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+ Batch

Subject: (BMM class of 2015)

Year (TY)

Faculty Name:
Vishal Desai

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Lesson # 8

Deviprasad Goenka Management College of Media Studies (dgmcms.org.in)

Product Branding/Multi-Brand strategy:
 In multi-branding strategy the brand is:

• Promoted exclusively so that it acquires its own identity and image

and stand on its own

• Allowed to acquire differentiation and exclusivity

• Targeted accurately to a distinct target market or customers because

its positioning can be precise and unambiguous

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Head & Whisper Vicks

Ariel Tide Pantene Camay Old Spice

Detergent Detergent Shampoo Shampoo Soap Sanitary Balm After Shave


Whiteness Dandruff Cream Hygienic Clear Sign of

High-Tech no other Healthy& blocked manliness
shampoo soap protection
Detergent can deliver shiny hair nose
with micro

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 As is evident from the figure P&G has been follower of the multi-
brand strategy

 A mega company like HUL also has been an adherent of multi


For example:

• HUL’s Soap category

• In terms of positioning

• Lux – beauty soap of filmstars

• Lifebuoy – soap that fight against germ and promotes health

• Rexona – a gentle soap with natural oils to have a good effect on skin

• Liril – freshness soap

• Same applies to HUL’s detergent and shampoo categories

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+ Benefits of Product branding:
1)It creates multiple brand entities which is uniquely positioned and
directed at a particular segment

For example

• HUL’s detergent brand – Surf Excel, Rin and Wheel offer all
possible price points, benefits and utilities linked to different sub-

2)A new product is not likely to send negative feedback and associate
the brand with the burden of failure

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3)A company following multi-branding is better positioned to venture
into unrelated product categories

4)Obtaining, greater shelf-space and leaving little for competitor’s


5)Saturating a market by filling all price and quality gaps

6)Catering to brand switchers users who like to experiment with

different brands

7)Keeping the firm’s managers on their toes by generating internal


8) Organization who use a multi-brand strategy acquire greater market

share than they could with fewer brands

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Drawbacks of Product branding:
1)Creating individual brands is a costly exercise

2)The new brands do not exploit strength of a company or its existing


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+ Line Branding:
 Line in the context of product mix refers to various product lines that
a firm may have in its total portfolio

For example:

• Philips – line extension has T.V, video and audio, personal care,
communication and household appliances

 The brand appeals to distinct market segments who appreciate and

like the brand

 Now the customers do not tend to be contended with one product

which the brand offers

 Line extension is generally followed for complimentary products.

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+  Consumers want complimentary products which go hand in hand with
the brand concept or application.

For example:

• L’Oreal user wants the brand to offer all contemporary products

which enhance beauty – body lotion, deep pore cleansing lotion,
lipstick, nail enamels, eye liner,etc

 The products in the line draw their identity from the main brand

 Marketing products as a line under a common brand improves the

brand’s marketing power rather than selling them as individual brands

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L’ Oreal Group

L’ Oreal

Nail Powder
Lipstick Eyeliner Foundation
Enamel Compact

Products share common

concept, complement
each other

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+ Range Branding / Mixed Branding:
 Line branding restricts the brand’s expansion into nearby territories of
complementary products, which complement or support the main
product’s usage

 All the products share a common promise which stems from the
firm’s or range brand’s area of competence

 The product are tied together by a single brand concept

For example:

• Nestle uses its Maggi brand for its range of fast food – Maggi
noodles, sauces, soups, pastas,etc

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Himalaya Drug Co.

Area of
Ayurvedic Concepts Competence
Or expertise

Skin Care
Health Care Body Care Hair Care
Lotions, Face Wash,
Ayur Slim Capsules Antiseptic Cream Cleanser Creams
Daily health Capsules Pain Balm Anti- Dandruff
Digestive Capsules Muscle and Joint Rub Cleanser
Cough Syrup Hair Conditioner
Hair Vitaliser
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+ Benefits of Range Brand Strategy / Mixed Branding:

1)It helps in the formation of brand equity

2)The brand can easily embrace other new products which are
consistent with the brand, reducing the cost of introducing new brand
in the market

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Limitations of Range Brand Strategy / Mixed Branding:

1)The brand can become weak due to overstretching if the brand tends
to hang large number of products on it

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+ Umbrella Branding Strategy:

 Umbrella branding has been particularly favored by the companies of

the East

For example:

• Korean giant LG uses its name on the product like microwaves,

refrigerators, computers, television, air conditioners

• Philips, GE and Canon also follow umbrella branding

• Indian business houses – TATA and Bajaj

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Television Irons

Lighting Mixers

Hi-fi Music


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+ Benefits of Umbrella Branding / Multi – Product
Branding Strategy:
1)Umbrella branding is an economical strategy as investing in a single
brand is less costly than trying to build a number of brands

2)Using an umbrella brand to enter into new markets allows

considerable saving

For example:

• TATA making a foray into the automobile car market

3)Umbrella branding may even make sense in the current marketing

environment characterized by information overload and brand

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+ Drawbacks of Umbrella Branding / Multi – Product
Branding Strategy:

1) It is not a consumer consistent strategy

2)With time, market fragments and gets divided into smaller sub-

3) Each segment presents its own unique structure of needs and buyer

4) A specialist brand may be needed for precise targeting of a

particular segment

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3)A failure in one product category may influence other products/brands
because of shared identity

For example:

• If Samsung refrigerators are discovered to be faulty, the message

about its defect would travel to other quarters, impacting the
brand’s performances in categories like air conditioners, TV and

4)Umbrella branding is difficult to stretch vertically

For example:

• Maruti Suzuki’s attempt to go to the upper segment with its

‘Baleno’ range did not yield good results

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+ Source / Double branding:
 Source brand strategy combines the firm’s name with the product
brand name

 It is hybrid of umbrella brand and product brand strategy

 The product is given a brand name and it is combined with the name
of the firm

For example:

• Pulsar – name of the bike

Bajaj – the company name behind it

Both the name enjoys equal importance and are given equal
status in the brand’s communication

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Maruti Suzuki

Maruti Maruti Maruti Maruti

Alto Wagon-R Ertiga Stingray

Maruti Maruti Maruti

Zen Celerio Ritz

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+ Benefits of Source Branding:

1)The firm’s name brings its equity to the product

For example:

• When Bajaj name is added to a new brand, immediately Bajaj’s

repertoire of associations are transferred onto the product

2)The second name provides an opportunity to add something unique to

the brands by customization or personalization

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+ Drawbacks of Source Branding:

1)The company image becomes the limiting factor in this branding


2) When the product categories are different, double branding may not
be the correct strategy

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+ Endorsement Branding:
 Endorsement brand strategy is modified version of double branding

 It makes the product brand name more significant and the corporate
brand name is relegated to a lesser status

 The umbrella brand is made to play an indirect role of passing on

certain common generic associations

 It is only mentioned as an endorsement to the product brand

 By a large, the brand seeks to stand on its own

 Unlike the product brand, endorsement brand discloses the identity of

the maker, making it a small part of the brand

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+  The brand gets the an endorsement that it belongs to specified

For example:

• Kit Kat gives a signal that it is a Nestlé’s product

• Cinthol’s communication stresses that it is a Godrej product

• Dairy Milk is Cadbury’s brand

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Cadbury’s Cadbury’s Cadbury’s Cadbury’s

Eclairs Bournvita Five star Crackle

Cadbury’s Cadbury’s Cadbury’s

Perk Dairy Shots

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+  Endorsement branding strategy allows the brand the freedom to take
an independent direction

 Unlike the source brand strategy, in endorsement strategy the firm’s

name sits back as an assurance of quality

 Thus, endorsement branding strikes a delicate balance between

umbrella and product branding

 The marketers can subtly transfer the corporate brand’s equity and at
the same time enjoy the freedom to the venture beyond immediate
product boundaries

 Therefore, while endorsing a product brand, care must be exercised in

finding consistency

 Otherwise the endorsement may just be perceived as hollow

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+  For example:
• Nestle burnt its fingers when it launched Mithai Magic

The product failed as it did not go down well with the Nestle

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+ Private Labels / Store branding:

 Products marketed by retailers and other members of the distribution


 Private labels can be called store brands when they actually adopt the
name of the store itself in some way

For example:

• Stop brand of clothes by Shopper’s Stop

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+  Private label brands typically cost less to make and sell than the
national or manufacturer brand with which they have to compete

 Thus, the benefit to the consumers of buying private label and store
brands is often cost saving

 Whereas, the benefit to retailers selling private label and store brands
is their gross margin which is relatively higher as compared to
national brands

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+ Brand Architecture Objectives:
 Creating power brands

Strong logo design offering that synchronies with the consumer’s

logic and emotions, providing effective differentiation

 Creating synergy

Well-developed brand architecture provides the synergy of logo

design, reinforcing associations, which in turn results in cost

For example:

• Gillette uses the common thread of providing “the best a a man

can get” in terms of quality and speed across all product

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+  Providing clarity in product offering
This is necessary to ensure a clear-cut identity among consumers

 Leveraging Brand Equity

Make the logo design work harder by increasing the impact

One way is through brand extension

A major function of brand architecture is to provide a strong

framework to deal with brand extension opportunities

 Planning future growth

Brand architecture should plan for the brand’s future

It must be the foundation for making strategic advances in the

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+  The Monolithic Structure
This is employed when a firm uses its corporate brand name on all
products or services

For example:

• Tata, Philips, Samsung, Videocon, Toshiba

 The Fixed Endorsed Structure

In this the corporate brand remains all powerful but the product is
also given a name

It is a slight extension of the monolithic structure

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+ By giving the product a sub-brand, some differentiation is achieved

For example:

• Fiat - Uno, Fiat - Siena, Fiat - Trend, Fiat - Palio

• Maruti Suzuki - Esteem, Maruti Suzuki - Zen, Maruti Suzuki -

Wagon R

 The Flexible Endorsed Structure

In this format the corporate brand remains visible but it takes the back

The product brand is given the front seat

The sub-brand is hero to the customers

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+ It achieves greater autonomy and identity

For example:

• Godrej endorses all its product brands which are most visible and
dominant – Cinthol, Ganga, Fair glow, No.1

• Hamdard – Rooh Afza, Pachnol, Sualin

 The Discreet Approach

Here the product becomes a standalone brand

It is given its own due identity and status

The corporate name does not back it up

For example:

• P&G employs this strategy – Pampers, Whisper, Pantene

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• ITC – Wills, Gold flake

 In a brand portfolio, each brand should be unique and should result in
maximizing the equity of all the other brands in the portfolio and/or
should not harm the equity of the other brands

 Each brand has to be unique and should cater to different segment in

the market

 Therefore, while devising a brand portfolio, marketers need to be

careful and come out with brands that maximize the coverage of the
market and minimize the overlap between brands, so that threat of
cannibalization is minimized

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 An organization can launch new brands either to satisfy a particular
need of the target market or to offset competition

 This result in brands playing a specific role in the portfolio of brands

of an organization

 Brands can play the following roles:-

1) Flankers
2) Cash cows
3) Low-end entry
4) High-end prestige
5) Strategic Brands
6) Silver Bulltets
7) Linchpin Brand
8) Sub-brands

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+ Flankers:

 A flanker brand is a new brand introduced into the market by a

company that already has established brand in the same product

 The new brand is designed to compete in the category without

damaging the existing item’s market share

 This strategy is also called fighter branding or multi-branding Eg:-

Nirma v/s Wheel, Micromax v/s other mobile brands

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+ Importance of flanker branding
 It allows a company to attract new customers from various market

 The main brand of a company’s portfolio should target the market

segment containing the most customers

 Another brand can then be positioned to convert users from other

market segments by using different set of benefits or product

For example:

• P&G – Tide is an extremely successful laundry detergent

In order to appeal to consumers who desired a lower - cost

detergent , P&G introduced Cheer

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+ Advantages:
 Gain more shelf space for the company, which increases retailer
dependence on the company’s brands

 Capture “brand switchers” by offering several brands

 Protect the company- giving a product its own unique name means it
will not be readily associated with the existing brand. This reduces
risk of damage to the existing brand and/or company if the product

 Companies with a high-quality existing product can introduce lower-

quality brands without diluting their higher-quality brand names

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+ Cash Cows:
 Some brands may be kept around despite dwindling sale because they
still manage to hold on to a sufficient number of customers and
maintain their profitability with virtually no marketing support

For example:

• Colgate has come out with Colgate Gel, it still sells the Colgate
White toothpaste

 Brands with significant customer bases that require less attention than
other brands

 The role of cash cow brand is to generate resources that can be

invested in other brand for future growth

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+ Lower-end entry and high-end prestige brands:
 Many brands introduce brand variants in a certain category that vary
in price and quality

 These brands leverage associations from other brands while

distinguishing themselves on the basis of their price and quality

 The role of a relatively low-priced brand in the brand portfolio often

may be to attract more customers to the brand franchise

For example:

• Volkswagen introduced Polo with an idea of bringing new customers

into its brand franchise with the hope of later moving them up to
higher priced models of automobiles

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Flankers: Cash Cows:
For example: For example:
Colgate, Singer sewing
Wheel & Rin (Unilever), Machine and
Sunlight soap of Unilever

Low-end entry: High-End Prestige

For example: For example:
Lucera brand of jewelry from Nakshatra and D’Damas
Gitanjali Group, Wheel for jewelry from Gitanjali group,
Unilever, Tata Nano Surf Excel from Unilever,
Cadbury’s Dairy Milk Silk

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+ Strategic brand:
 Can be a ‘currently dominant brand also called megabrand, which can
maintain or grow its position, or a small brand that is projected to
become a major one

 Thus, a strategic brand represents a meaningful level of profit and

sales in the future

 Eg: Pepsi or Thumbs Up

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+  Linchpin brand
• As the name suggest, is the top brand or the key player

• It provides a source of differentiation and indirectly influences

customer loyalty

For example:

• Dairy Milk is a linchpin brand for Cadbury

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+ Silver Bullet:
 A silver bullet is a sub-brand or branded benefit that is employed as a
vehicle for changing, or supporting the brand image of a parent brand

 Because a silver bullet has a role that extends beyond supporting its
own business, it deserves extra resources allocation in the form of
advertising / or product development

For example:

• Sony Walk-Man – supports innovative miniaturization identity

that is central to Sony

• Vodafone Tuesdays, Airtel Hello Tunes.Mc Donald’s Happy Meal

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+  Branded Benefit As Silver Bullet:
• A branded benefit can also play a silver bullet role by supporting the
image of the brand to which it is attached

• Thus it can do more than help communicate a functional benefit

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+ Sub Brands:

 Sub brands are brands that are connected to the parent brand and
supplement or modify the parent brand’s association

 The parent brand provides the ‘primary frame of reference’ and the
sub-brand provides the attribute association

For example:

• Titan Raga, Tata Sonata,Titan Nebula,etc

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+  Sub-brands are further graded into the following
 Sub-brands as co-driver –

• Where the endorser brand and the sub-brand both play a major role

For example

• Nestle Kit Kat – both Nestle & Kit Kat have strong brand equity

 Master brand as drive –

• Here, the parent or Masterbrand primarily drive the success of sub-


For example:

• HP DeskJet printer – where primary driver for the sub-brand, is the

parent brand name HP

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 Licensing involves contractual agreement whereby firms can use the
name, logo, character, and so forth of other brands to market their
own brands for some fixed fees

 Essentially, a firm is “renting” another brand to contribute to the

brand equity of its own products

 Entertainment licensing has been a big business in the recent years

 Successful licensors include movie title, logo, comic strip character,

television and cartoon characters

 For example:

RaOne, Krissh, Tom & Jerry, Chotta Bheem,

Angry Birds
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+ Merchandise Licensing industry
 Worldwide is estimated at $187billion but in India it is still at nascent

 The emergence of organized retail in India has set the pace for new
collaborations between Licensors and Indian business houses

 Licensing of brands, designs, characters and celebrities is now

becoming popular in India – used as jewellery, apparel, lifestyle
accessories, toy, gifts, games etc

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+ Benefits of Licensing For Brand Owners:

 Allow entry into new categories and businesses in which the company
may not have core competency

 Provides broader retail presence

 Generates new, ongoing revenue streams at minimal increment cost

 Protects the trademark through registrations and actual use

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+ Benefits of Licensing For Brand Licensees:

 Ease of entry into new product categories or price range

 Alternative to significant investments in brand building

 Better bargaining power with retailers

 Build competitive advantage

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+ Disadvantage
 One danger in licensing is that manufacturers can get caught up in
licensing a brand that might be popular at the moment but is really
only a fad and produces short lived sales

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+ Corporate trademark licensing:
 One of the fastest growing segments of the licensing industry

 Is the licensing of company name, logo, or brand for use on various,

often unrelated products

 In licensing their corporate trademark, firm may have different

motivation, including generating extra revenue and exposure, or
enhancing their brand image

 However, the risk is that the product will not live up to the reputation
established by the brand

 Inappropriate licensing can potentially dilute brand meaning with

consumers and marketing focus within the organization

Eg: Maruti Suzuki,Hero Honda,Parker Pens by Luxor

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 The six strategies discussed above can be labeled as generic strategies
of branding

 Each one is driven by its own internal structure and logic

 The benefits and constrain flow accordingly

 One cannot make a blanket judgment about any strategy being the

 Each strategy comes with its own pros and cons

 Therefore, the branding strategy decision cannot be automatic

 It must be preceded by a systematic analysis of a brand’s strategic

challenges and a firm’s strengths and weaknesses
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+  Firms can adopt multiple branding strategies depending upon their

For example:

• Nestle – adopts, by and large , an endorsement brand strategy for

all its products

• Within the endorsement framework, Maggi takes as an umbrella

brand role for its range of products

 It is hard to generalize as to which brand strategy is appropriate

 But the choice of the strategy needs to be used on a thorough

understanding of what each of the branding strategy stands for and
what are its intentions

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+ Factors for Selecting Branding Strategy:
1)Market Size

• When market size is smaller and is not growing, achieving critical

mass is difficult

• In such situations a branding strategy which takes assistance from an

established name may be more desirable


• Implies how fiercely the market is contested

• Brands need to shift from generality to specialty

• Specific customer benefits or personality focus needs to be achieved

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+• Accordingly, branding strategies which are tilted in favor of
individual brand’s identity creation may be more appropriate

3) Resources

• Product branding is definitely not an option for a resource starved


• Product branding firms like P&G, HUL, etc have deep pockets

• They have resources to create and support product brands

• While the firms in Eastern side of the globe heavily banked upon
umbrella branding. These firms, instead created a common equity
pool to be used and exploited by products in their portfolio

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+ 4) Product Newness:

• Today’s market environment is characterized by brand proliferation

• When a marketer wants to add a new product which is characterized

by its own uniqueness in terms of benefits or attributes, using
common brand name is not desirable

• The appropriate branding strategy under these circumstances is not to

follow umbrella branding, but to mow towards product branding
which concentrates on differentiations

• Brands can evoke a mid-route by combining company name with

product name to avoid confusion and establish clarity of image

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+ 5) Technology / Innovations:
• Product innovation sometimes embody new technology

• Innovation brings uncertainty, both for the firm and the customers

• Firms marketing innovation have to attend to two tasks:

1)To insulate brand equity in case the innovation fails

2)To communicate its innovativeness

Eg: Kent RO Water Purifier.

Kent Ozone Veg & Fruit Purifier

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+ 6)Nature of the product:
• A brand name could be based on functional or attribute of the brand

• The functional brands are rigidly defined by their functions /

attributes. Eg: Ezzee conditioner for woolen clothes

• This limits their ability to be globally extended to categories placed at

a distance from their core

• However, some brands allow greater scope for umbrella or source

branding Eg: Kingfisher and Godrej. v/s Unilever and P&G

• Product category also has to be considered for branding strategy Eg:

Tea cannot be given brand name like Wheel Tea or Cinthol Tea

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+ 7)Customer Sophistication:
• In different geographic markets, customer sophistication with respect
to product class may vary

• Sophisticated customers who appreciate differences among the

product within a class are not be dealt with umbrella branding

• The differentiation must be accounted for by the branding strategy

• Greater customer sophistication makes umbrella branding an

inappropriate option

• The branding strategy must focus on category differentiation as it

exists in customer’s mind

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 “A brand hierarchy is a means of summarizing the brand strategy
by displaying the number and nature of common distinctive brand
elements across the firm’s product’s, revealing the explicit ordering
of brand element”

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The corporate or the parent
Company brand brand of the organization
(General Motors)
A portfolio of products under
Family Brand one brand, generally within one
product category ( Chevrolet)

Individual Brand A specific product in that line or

a sub-brand (Beat)

Modifier An individual and unique item

or a special class (GLX)

Different levels of the hierarchy of General Motors

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+  Kapferer Branding system is developed by one of the Europe’s
leading branding expert Jean-Noel-Kapferer

 This hierarchy involves moving from top level to the bottom level
introducing more brands at each succeeding level which may be
easily represented as follows:

1)Corporate (or company) brand (GM)

2)Family Brand (Chevrolet)

3)Individual Brand (Optra)

4)Modifier (GLX)

 The highest level of hierarchy always involves one brand – the

corporate or company brand

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+  Some brands highlight their parent company’s name in a subtle

For example:

• P&G owns Vicks, Whisper, Ariel etc – but does not uses its
corporate name in any of its line business

 Some other firms combine their corporate brand name with family
brands or individual brands

For example:

• Reliance – Reliance Communications, Reliance Energy etc

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+  Finally, in some other cases, the company’s name is virtually invisible
and, although technically part of the hierarchy, receives virtually no
attention in the marketing program

For example:

• Big Cinemas – a division of Reliance Media Works Ltd

 At the next lower level, a family brand is defined as brand that is used
in more than one product category but it is not necessarily the name
of the company or the corporation itself

For example:

Kissan Jams, Sauces, Fruit Crushes, etc

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+  An individual brand is defined as a brand that has been restricted to
essentially one product category, although, it may be used for several
different product types within the category

For example:

• Haldiram’s - Namkeen, Chips, Bhujia Sev, etc

 A modifier is a means to designate a specific item or model type or

particular version or configuration of the product

For example:

• Lay’s – regular and baked chips

• Amul – ‘Pasteurized Unsalted’, ‘regular’, and ‘Lite’ versions of


 Different level of the hierarchy may receive different emphasis in

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Product Mix

Brands 1 2 3 4
Brand Line

Brand Portfolio/Product Line

Product Assortment India’s premier M-school

+  Brand Line:
 1 Row of the matrix (original + Extensions)

 Brand Portfolio /Product Line

 1 Column of the matrix ( set of all brands in a product category)

 Product Assortment:

 Entire Matrix

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Brand-Product Matrix

Product Mix

Detergent Shampoo Soaps

Product Breadth/Width
(No. of product lines)

Average Depth
Product Line Length = Total Variants/
No. of products in product line Total Brands

Product Assortment
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Detergents Soaps Hair Care Food Beverage Oral Care Skin
es / Ice
Wheel Liril Clinic Plus Kissan Taj Close-up Ponds
Rin Breeze Sunsilk Knorr Taaza Pepsodent Fair &
Surf Excel Rexona Dove Annapurna Lipton

Comfort Lux All Clear Bru

Vim Pears Tresemme Kwality

Cif Ponds

Sunlight Lifebuoy



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+  A brand-product matrix helps to highlight the range of products and
brands sold by a firm

 To characterize the product and branding strategy of a firm one useful

tool is the brand –product matrix

 A graphical representation of all the brands and products sold by the


 It helps identify Gap Areas which can be entered by launching new


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Corporate Branding
 Aaker defines a corporate brand as a brand that represents an
organization and reflects its heritage, values, culture, people and

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+ Difference between Corporate and Product Brand

 Shift in focus from product branding to corporate branding

 Organizational culture and health comes to fore

 From customer focus to stakeholder focus

 Branding responsibility shifts from brand management team to

corporate communications team

 Product brands live in the present where as corporate brands live in

the past, present and future

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