Designing and Implementing Branding Strategies

GROUP 10 AARIF | ARNAB | DIMPY | GAURI | MEGHA MOHNISH | PARAN

Agenda
Brand Architecture Brand Hierarchy

Designing a Branding Strategy

Using Cause Marketing to Build Brand Equity

Brand Architecture / Branding Strategy

A structure of brands within an organizational entity

A Branded House

A House of Brands

Role of branding strategies

Clarify Brand Awareness Improve consumer understanding and communicate similarities and differences between the brands
Motivate Brand Image Maximize transfer of equity to and from the brand to individual products to improve trial and repeat purchase

Brand Product Matrix

A graphical representation all the brands and products old by a company

Product 1 Brand 1 Brand 2 Brand 3

Brand- Product relationships

Product 2

Product 3

Represented by the rows of the matrix Captures the brand extension strategy of the firm Number and nature of products sold under different brand categories

Brand Line Represented by one row of the matrix Consists of all products (line+ category extensions) sold under a particular brand

Brand Product Matrix

Product-Brand relationships Represented by the Columns of the matrix Captures the brand portfolio strategy of the firm Number and nature of brands to be marketed in each category

Brand Portfolio Represented by one column of the matrix Consists of all brands and brand lines a particular firm offers for sale in a particular category

Brand Line

Brand Portfolio

Brand Product Matrix

Product Line Group of products within a product category that are closely related to each other Functionality, target segment, same retail outlets May include different brands, single family brand or an individual brand with line extended Product Mix Set of all product lines and items that a seller makes available to buyers Brand Mix Set of all brand lines that a particular seller makes available to the buyers

Breadth of a branding strategy Product Mix

Number and nature of different products linked to the brands sold by a firm

Breadth Different product lines

Depth Variants in each product line

1. Aggregate Market factors

Market size, Market growth, Seasonality Threat of new entrants, Bargaining Power of buyers and suppliers, Current category rivalry, Substitutes Technological , Political , Economic, Regulatory, Social

2. Category Factors

3. Environmental Factors

1. Understanding of the market and cost interdependencies between products 2. Percentage of sales and profits contributed by each item 3. Ability to withstand Competition and address consumer needs

Example HUL Product Mix

Food & beverages Ice cream Home Care Soaps & Detergents Personal Care Hand Wash

Tea
Ketchup Soups Wheat Flour

Cloth Conditioner
Toilet Cleaner Dish washer

Shampoo
Conditioner Soaps Deodorants Crme

Depth of Branding Strategy- Brand Mix

Number and nature of different brands marketed in the product class sold by a

firm

Reasons Increased Market Coverage

Maximize market coverage

Pursue different price segments

Different channels of distribution

Different geographic boundaries Increase shelf presence and retailer dependence Increase internal competition within the firm Yield Economies of scale in advertising, sales, merchandizing etc

Do not ignore any potential Consumer

Minimize brand overlap

Minimize cannibalization

Depth of Branding Strategy- Brand Mix

Detergents Shampoo Soaps Tea

Different Roles of Brands

Flankers
Fighter Brands Create stronger points of parity with competitors' brands so that more important flagship brands can retain their desired positioning

Cash Cows
Brands which manage to hold on to a sufficient number of customers and maintain profitability with virtually no marketing support More profitable to keep rather than to discontinue

Low end Entry or High End Prestige

Low end- Attract customer to the brand franchise and then trade up to high priced product High end Add prestige and credibility to the entire brand portfolio

Brand Hierarchy
Brand Hierarchy is a useful means of graphically portraying a firms branding strategy Displays the number and nature of common and distinctive brand elements across the firms products Revealing the explicit ordering of brand elements

Ways to define brand elements and levels of hierarchy

Corporate or Company Brand Family Brand Individual Brand Modifier

Brand Hierarchy

General Motors

Chevrolet

Pontiac

Buick

Cadillac

GMC

Saturn

Hummer

Trucks

Cars

Colorado Avalanche Silverado

Tahoe

Aveo Cobalt Corvette SSR

G6 Torrent Solstice Grand Pix

LaCrose Terreza Rendezvous Rainer

STS XLR SRX CTS

Sierra Canyon Envoy Yukon

Ion L300 Vue Relay

H1 H2 H3

Brand Hierarchy
Corporate or Company Brand
Highest level of the hierarchy Name of subsidiary may appear Combine corporate with family or individual brands (Conglomerates e.g. Siemens) Company name is virtually invisible (e.g. DeWalt)

Family Brand
Used for more than one product category

Individual Brand
Brand restricted to essentially one product category

Modifier
Designate a specific item or model type or a particular version or configuration of the product

Brand Hierarchy Brand Equity

Corporate or Company Brand level Corporate image is of prime importance
Strong statistical correlation between corporate reputation and consumers intentions To buy companys product Recommend to others Buy a companys stock Strong corporate image is an effective means to attract and motivate employees Corporate image factors

Products and services the company provides Role in society , actions towards environment Communication to consumers

Brand Hierarchy Brand Equity

Corporate or Company Brand level Corporate Brand Equity Differential response by consumers, customers, employees, other firms, or relevant constituency to the words, actions, communications, products, or services provided by an identified corporate brand entity. Corporate brand is distinct from a product brand as it can encompass a much wider range of associations Corporate image factors Additional requirements High public profile Willingness to subject to more scrutiny Transparent values, activities and programs High level of openness

Brand Hierarchy Brand Equity

Family Brand Level

Range brands or Umbrella brands Specific set of associations across group of related products Lower cost of introducing a related new product, higher level of acceptance Failure of one product may have adverse effects on other products
Individual Brand Level Customize the brand and supporting marketing activities to meet the needs of a specific customer group Focus on a certain target market If brand fails, the risk to other brands and the company itself is minimal Difficult, complex and expensive Modifier Level

Distinguish brands according to the different types of items or models Quality levels Attributes Functions Modifiers make products more understandable and relevant to consumers

Brand Hierarchy Corporate Image

High-quality corporate image association Products of the highest quality Quality is an important decision factor for consumers
Product Attributes, Benefits or Attitudes

Innovative corporate image association Product innovation and improvements; Unique marketing programs Competitive weapon; Trustworthy and likeable

People and Relationships

Customer focused corporate image association Responsive to and caring about its customers Reflects characteristics of employees

Socially responsible corporate image association

Values and Programs

Environmentally concerned corporate image association

Corporate Credibility

Corporate Expertise Corporate Trustworthiness Corporate Likability

Brand Strategy

Deviation in brand strategy Corporate objective Consumer behavior Target market Competitive activity of the company

Challenges in branding strategy Design the proper brand hierarchy with the right number Nature of brand element to use at each level Optimal supporting marketing program to create brand awareness Type of brand association at each level

Number of levels of brand hierarchy

Advantage of brand levels Communicates additional specific information about the product Lower level hierarchy gives flexibility in communicating the uniqueness Higher level provides economic means of sharing information and synergy across the company Sub branding Means of modifying super ordinate brand builds stronger connection to the family brand Creates brand specific belief Helps consumers to understand about product variability and suitability Helps sales people and retailers to organize selling efforts

Principle of simplicity Provide right amount of information to consumers - no more or no less Principle of clarity Transparent relationship of all brand elements at each level

Desired awareness at each hierarchy level

Decision on how much awareness at each level What type of association at each level
Brand knowledge creation process Principle of relevance Based on advantage of efficiency and economy Association should be relevant to as many level as possible E.g. Nikes slogan Just Do It relevant to virtually all its products More abstract the association, more relevant across different product setings

Principle of differentiation Based on disadvantages of redundancy Appropriately distinguish brands at the same level Brand extension and innovation to be introduced thoughtfully Choosing the relative emphasis to place on different products making up brand hierarchy

Combining brand elements from different level

Principle of Prominence
Relative visibility among brand element Primary brand element should covey main product positioning and point of difference Secondary element convey more restricted set of association such as point of parity.

PEPSIVitacola Or Vitacola BY PEPSI

Single entity Only one product line or set of services Image of the company and product to be the same e.g Federal Express Brand dominance Strategic decision not to relate brand and corporate names E.g. Phillip Morris makes little connection to Marlboro and Meritt. Equal dominance Separate image of product but also associate with the corporation Neither the corporation nor the individual brand name dominates E.g. General Motor with its different car division and individual brands as Electra, Riviera Mixed dominance Sometimes individual product brand and sometime corporate name is dominant Corporate dominance Corporate name is supreme and applied across range of product lines e.g Xerox

Developing brand strategy

Linking brand element to multiple products Horizontal aspect of brand hierarchy Principle of commonality More common brand element product share, the stronger the linkage between the products e.g. HP LaserJet followed by DeskJet, PaintJet, ThinkJet, OfficeJet printers Developing a brand architecture Clearly defined relevant customer segment Brand positioning and equity in terms of point of parity and differences A good brand mantra to offer rational and emotional benefit Brand equity implication of transfer from parent brand to individual products Carefully evaluate brand portfolio and hierarchy

Adjustment to the Marketing Program

Different brands require different marketing mix Corporate image campaign Association to corporate brand as a whole Tend to ignore individual products Builds awareness of company and nature of buisness Create favourable attitude and perception of company credibility Associating belief to product specific marketing

Brand line campaign

Focus on breadth of product associated with brand Shows different benefits of range of products Increase brand awareness

Building brand equity

Cause Marketing Offer from the firm to contribute a specified amount to a designated cause Also customer engage in revenue providing exchange satisfying organizational and individual needs e.g. ITC contributes to rural education program in purchase of every classmate notebook Advantages of cause marketing Building brand awareness Enhancing brand image Establishing brand credibility Evoking brand feeling- social approval and self respect Creating sense of brand community

Thank You