Brand Growth Strategies

Therakorn Yardpaga
3M Thailand Ltd.
Brand
Brand Management
Management
What is a Brand ?
What is a Brand?
Sy
m
bo
l
Te
rm
Identifies
product/service
of seller
Differentiates from
competitors
Name
Si
gn
Co
Design
bi
na
tio
n
Keller, Kevin Lane. Strategic Brand Management:

Building, Measuring, and Managing Brand Equity. 1998.
Brand Recognition
The stage of brand acceptance at which
the consumer knows of a brand, but does
not prefer it to competing brands.
Brand Preference
The stage of brand acceptance at which the
consumer selects one brand over competing
offerings based on previous experience with it.
Brand Insistence
The stage of brand acceptance at which the
consumer refuses to accept alternatives and
searchers extensively for the desired good or
service.
Types of Brands
Generic
GenericProducts
Products
No
Noname
namecigarettes
cigarettes
Manufacturer
Manufacturer
Brand
Brand
Kodak,
Kodak,Heinz
Heinz
Family
FamilyBrand
Brand
KitchenAid
KitchenAid
Appliances,
Appliances,
Johnsons
Johnsons&&
Johnson
Johnsonproducts
products
Private
PrivateBrand
Brand
Kenmore,
Kenmore,DieHard
DieHard
Craftman
Craftman
Individual
IndividualBrand
Brand
Levers
LeversAim,
Aim,CloseCloseUp
Up&Pepsodent
&Pepsodent
Toothpastes
Toothpastes
Brand Manager
A marketing professional charged with
planning and implementing marketing
strategies and tactics for a brand.
Brand Name
The part of a brand consisting of words
or letters that form a name to identify
and distinguish a firms offerings.
Brand Mark
A symbol or pictorial design
that identifies a product.
Generic Name
A brand name that has become a generally
descriptive term for a class of products.
Trademark
A brand to which the owner
legally claims exclusive use.
Brand Extension
Application of a popular brand name to a
new product in an unrelated product category.
Brand Dilution
A loss in brand equity that results when
a firm introduces too many brand extensions.
Brand Licensing
The practice of allowing other companies to
use a brand name in exchange for a payment.
Co-branding
The practice of combining two strong brands,
perhaps owned by different companies, to
sell a product.
What is Brand Equity ?
What is Brand Equity?

Perceived
Brand Quality
Brand
Awareness
Brand
Loyalty
Brand
Associations
Attributes
Benefits
Attitudes
Brand Equity
Provides Value to Customer

by Enhancing Customers:
Other
Proprietary
Brand Assets
Provides Value to Firm by Enhancing:
Efficiency and Effectiveness of Marketing Programs

Interpretation/processing of information Brand Loyalty
Prices/margins
Confidence in the Purchase Decision
Trade Leverage
Use Satisfaction
Competitive Advantage
Source: Aaker (1991) Managing Brand Equity
Measuring Brand Equity
Indirect Measurement
Measure consumer brand awareness
Use aided and unaided memory measures
Measure Brand image

Use qualitative and quantitative techniques
Useful for identifying the aspects of brand

knowledge which potentially cause the
response that creates customer-based
brand equity
Direct Measurement
Comparative
Assess the effect of consumer perceptions
and preferences on aspects of the marketing
program
Holistic
Estimate overall value of the brand
Useful in approximating the possible

outcomes and benefits that arise from the
response that creates customer-based
brand equity
Implement Measurements
Conduct Brand Audit
Brand inventory: access health of brand
Brand exploratory: uncover sources of equity
Brand positioning: improve and leverage equity
Develop Brand Tracking Procedures

Monitor strength, favorability and uniqueness of key brand associations
Track preferences for brand, usage, price sensitivity, etc
Track marketing programs effect on brand image
Create Brand Equity Management System

Brand equity charter
Brand equity report
Brand overseers

Evaluate current position of

brand/product
Brand Scorecard
1. The brand excels at delivering the
benefits customers truly desire.
2. The brand stays relevant to
consumers.
3. The pricing strategy is based on
consumers perceptions of value.
4. The brand is properly positioned.
5. The brand is consistent.
6. The brand portfolio and hierarchy
make sense.
7. The brand makes use of and

coordinates a full repertoire of
marketing activities to build
equity.
8. The brands managers
understand what the brand
means to consumers.
9. The brand is given proper
support, and that support is
sustained over the long run.
10.The company monitors sources
of brand equity.
Source: Kotler, The Brand Report Card, HBR, Jan. 2000
Determining Associations with

the Brand Name
Projective Techniques
Name Associations
Jan had just finished eating

the Campbells tomato
soup and felt
What comes to mind when

the following brands are
mentioned?
Associations with
the Brand Name
Exploring Perceptual Differences

What other brands is it different from and why?
Managing Equity: Capitalizing on the Value of a Brand Name. 1991
Building Brand Equity:

Brand Development
Brand Growth Strategies
New Markets
Present Markets
Present Products
I. Rejuvenating a Brand
Find New Uses
Increase Usage
Extend the Brand
Obsolete Existing Product
Augment the Product/Service
Reposition the Brand
Enter New Markets
III. Brand Expansion
New Products
II. Brand Extensions
Add product features, product
refinement
Expand the product line
Develop a new generation product
Develop new products for the same
market
IV. Brand Development
Brand Development
Evaluate the current health of brand
Determine growth objectives of company and
potential product usage growth opportunities
Measure long-term potential impact of
opportunities against current brand equity
Launch into the new market
Re-evaluate brand positioning & impact
Brand Development
5. Test Market & 6. Lift-Off
1. Segment and 2. Target
Market Testing
Finding the Pain
Commercialization
Estimating the Gain
4. Marketing Plan
Four Ps
Product Development
3. Position
Create the Brand
Communicate the Brand
1. Segment - Find the Pain

Strategic windows to look for in deciding to
enter a new market:
1. A segment of consumers whose needs are not
being satisfied (quality, service, or specialization
needs).
2. A segment not targeted by others.
3. A position or segment held by a weak
competitor.
Once an idea is found make sure it meshes

with the companys corporate vision and core
competencies.
2. Target
Estimate the Gain
1. Factor and Cluster analysis: determine segments.
2. Regression analysis: identify best segment(s) to target.
3. Funnel Model: forecast total market and market segment
shares now and in the future.
4. Mitigate risks such as seasonality and business cycle
5. Additional factors include:
1. Technical/Competence
2. Legal
3. Social
4. Competitive
5. Financial
3. Position
Market Opportunity Analysis
Deliver one singular benefit
Define your product in the clearest terms possible
Define user profiles; aiming toward Love Group
Brand name
Make a statement with the name
Brand Logo & Symbol

Logo should be designed to fit both eyes
Use color opposite to major competitor
3. Position (cont.)
Brand Slogan
Be unique in the consumers mind
Success is the claim to authenticity
Claim to be the leader, not better
Trying to be all things to all people weakens the
brand
Brand Tagline & Byline

Tagline: express current functional & emotional
benefits
Byline: descriptive words to tell consumer where to
place the brand
3. Position (cont.)
Brand Creation
How many brands exist?
Outline the underlying architecture for the brand name,
byline, tag line, logo, and the brand story.

Consider trends, profile existing brands and determine
how decisions are made that affect brand choice.

Include branding in everything from finance to operations
Test product concept and positioning
3. Position (cont.)
Brand Creation Strategy
Specify sales and market share and
communication objectives and strategies to
accomplish them
Specify tactics of specific action to achieve each
strategy
Develop a timeline and product roadmap
The Brand Position Statement

Answers four questions:
1. Which elements of the brand identity should be part
of the proposition and active communication
program?
2. Who is the target audience - primary and
secondary?
3. What are the communication objectives?
4. What will be the points of advantage?
Aaker, David A. Building Strong Brands. 1996
Segments
Unmet Needs
er
An
al
ys
Cu
st
om
Motivations
s
si
ly
na
rA
tito
pe
Trends
m
Co
is
Brand Position
Strategic
Brand
Analysis
Brand Image/ Position

Strengths/vulnerabilities
Self-Analysis
Existing Brand Image

Brand Heritage
Strengths/Weaknesses
The brands soul
Links to other brands
A Brand Image Can:

Reinforce image
strengths
Add associations
Augmented
Reinforced &
Exploited
Diffused, Softened
Or Deleted
Soften
restrictive
perceptions
Exploit positive
differences
Eliminate images inconsistent

with the brand identity
Specify what the brand is not

Creating a New Brand Name

Does it make learning the brand easier?
Is it unique and likely to be superior to competitors in
stimulating associations?
Can the brand justify marketing support adequate to
establish the name?
Marlboro -- Masculine
Maytag -- Dependable
Ownership
Of A
Position
Federal Express -- Overnight
Benefits of
Brand
Consistency
Slogan
Image
Ownership of
Identity
Symbol
Jingle
More
Productive
Cost
Efficiencies
Spokesperson
Less Expensive
4. Marketing Plan
1. Product
1. Variety, Quality, Name, Features, Packaging, Sizes,
Services, Warranties, Returns
2. Usage models and scenarios
2. Pricing
1. List price, Discounts, Allowances, Payment period,
Credit terms
3. Placement
1. Sales promotions, Advertising, Sales force, Public
relations, Direct marketing
4. Marketing Plan (cont.)

Promotion
PR, radio, print, consumer promotion, sampling,

direct marketing, third-party marketing
Reach vs. Frequency; National vs Spot
markets; Steady vs. Pulsing vs. Seasonal
Product Development
Communicate vision into actual product

Test within company, with select customers,
with consumers
5. Test Markets
Market Testing
Measure consumer testing by trial, first repeat,
adoption and purchase frequency
Success Metrics
Achievement of each years goals
Support Environment
The level of service a customer receives affects their
perception of the brand
6. Lift Off
1. Have you generated your idea?
2. Have you done research on the target market?
3. Has the brand been created?
4. What is your marketing plan?
5. Has your product tested successfully
in the market?
Rejuvenating A Brand
New Markets
Present Markets
Present Products
Find New Uses
Increase Usage
Extend the Brand
Enter New Markets
New Products
refinement
market
Rejuvenating the Brand

1. Find New
Uses
2. Increase
Usage
7. Enter New
Markets
Brand
Rejuvenation
3. Extending
the Brand
6. Reposition
the Brand
5. Augment the
Product/Service
4. Obsoleting
Existing
Products
David Aaker, Managing Brand Equity
How To Evolve a Brand and

Make It More Contemporary
New Products
Update Slogans
Update Name
Update Symbols
3M
Mazda
Singha Beer
GE Electricity /
Technology /
Progress
Jell-O Jigglers
Quaker Oat
Squares
Federal Express /
FedEx
Kentucky Fried Chicken /
KFC
TAC / DTAC
Brand
Rejuvenation
1. Find New Uses
Conduct market research to see exactly
how consumers use the brand.

Examine competition for applications
Brand
Rejuvenation
2. Increase Usage
Frequency of Use
Reminders
Incentives
Ease or convenience
of use
Occasions
Locations
Level of Use
Reminders
Incentives
Reduce negative
associations with
frequent use
Develop positive
associations with
frequent use
Brand
Rejuvenation
3. Extending the
Brand
Good
More Good
The Extension
Enhances the Brand
Name
Brand Name
Aids the Extension
EFFECTS OF
EXTENDING
A BRAND TO A
NEW PRODUCT
Bad
More Ugly
The Brand Name

Fails to Help the
Extension
Step 1: Determine brand name

associations
Step 2: For each association identify
related product categories
Step 3: Select candidate products
New Brand Name is

Foregone
The Ugly
The Brand Name is
Damaged
David Aaker, Managing Brand Equity
Brand
Rejuvenation
4. Obsoleting Existing
Product
The Art of Cannibalism
When you are at the top, you have to have the

courage to say, I have to stop investing in this
great product and generate a new product that
will kill it. If you dont, some competitor will do
it for you.
-Willem Roelandts, Hewlett-Packard
Brand
Rejuvenation
5. Augment the
Product/Service
How can you further differentiate your

product with augmentation?
What can be done better?
What can be done extra or different?
Improved packaging
Upgraded services
Brand
Rejuvenation
6. Reposition the Brand
Change common or usual associations

Add value by creating new associations
Brand
Rejuvenation
7. Enter New Markets
Evaluate segmentation and consumer

demographic information
Examine growth opportunities in declining
or maturing markets/industries
Find segments that have traditionally not
been served
Select a segment where your Brand can
add value
Improve Product-line Strategies

Improve cost accounting
Allocate resources To winners
Research consumer behavior
Apply The logic line test
Coordinate marketing across The line
Work with channel partners
Expect product-line turnover
Manage deletions
Ries, Al. & Trout, Jack. The 22 Immutable Laws of Branding. 1993.
Brand Expansion Strategy
New Markets
Present Markets
Present Products
Find New Uses
Increase Usage
Extend the Brand
Enter New Markets
New Products
refinement
market
Brand Expansion Strategies

Hedge off competitors
Increase profits, sales and revenues
Increase brand exposure
Lower R&D / marketing expenses than
with completely new product
Economies of scale are greater
The Board told you to grow!
Growing a Brand
Brand Extensio
n
Brand A
Cobranding
Brand B
New Brand C
Lin
New Product
e Ex
t en s
d
r an
B
w
g
Ne Multibrandin
ion
New Variation
on Old Prod.
Line extensions: existing brand name extended to new sizes or flavors

in the existing product category.
Brand extensions: brand names extended to new product categories.
Multibrands: new brand names introduced in the same product
category
New brands: new brand name for a new category product
Cobrands: brands bearing two or more well-known brand names.
Source: Kotler, Marketing Management, p. 413
Steps
1. Evaluate the current health of brand/product
2. Determine growth objectives of company and
potential product usage growth opportunities
3. Measure long-term potential impact of
opportunities against current brand equity
4. Launch into the new market
5. Re-evaluate brand positioning & impact
Brand Extension
New Markets
Present Markets
Present Products
Find New Uses
Increase Usage
Extend the Brand
Enter New Markets
New Products
refinement
market
Why Brand Extensions?

Current Brand
Poorly
Conceived
Limited
Market
Not Contemporary
Marketplace
Obsolete
Consumers Segmentation
Consumer Desires
Pricing Breadth
Short Term Gain
Excess Capacity
Competitive Intensity
Trade Pressure
When Does an Extension Make Sense?

Strong Brand associations provide:
A point of differentiation
An advantage for the extension
The extension helps the core brand by:
Reinforcing the key associations
Avoiding negative associations
Providing name recognition
The category will not support the resources
needed to establish a new name
A new name will not provide a useful set of
associations or a platform for future growth
The Extension Decision

Good:
If the brands association, perceived

quality and awareness/presence help the
extension
More Good: If the extension reinforces the

associations and awareness of the brand
Bad:
If the name does not add value to the

extension of even has negative
associations
Ugly:
If the core brand name is damaged or

diluted by the extension, or the brand
franchise is cannibalized
More Ugly: If the opportunity to develop another

brand name is forgone. Aaker, David A. Building Strong Brands. 1996
Brand Roles
Endorser
Strategic Brands
Sub brand
Roles
Describe offerings
Driver
Brand
Roles
Structure & clarify

offerings
Augment/Modify
brand identity
Silver Bullets
Branded Benefits
Features
Components
Service programs
Exploit market
opportunities
Support
Extensions
Sub-brand Roles
Add value by fulfilling one or more of the following tasks:
Levis Loose
Hidden Valley Low Fat
Oral B Tooth & Gum Care
Describe
Offerings
Nike Air Jordan
Exploit
Market
Opportunities
Sub-brand
Roles
Structure &
Clarify
Offerings
Marriott Hotels
Fairfield
Courtyard
Residence Inn
Oatmeal Crisp
Apple Mac Quadra
Augment or
Modify the
Identity
Smuckers Simply Fruit
Sure Prostick
Brand Extensions - Advantages

Facilitate new product acceptance
Reduced risk perceived by customers
Increase the probability of gaining distribution and trial
Increase efficiency of promotional expenditures
Reduce cost of introductory and follow-up marketing programs
Avoid cost of developing a new brand
Allow for packaging and labeling efficiencies
Permit consumer variety-seeking
Provide feedback benefits to the parent brand and company

Clarify brand meaning
Enhance the parent brand image
Bring new customers to the brand franchise and increase market coverage
Revitalize the brand
Permit subsequent extensions
Brand Extensions - Disadvantages

Confuse or frustrate consumers
Retailer resistance
Failure could hurt parent brand image
Cannibalize sales of parent brand
Diminish identification of brand with any one category
Hurt image of parent brand if associations between products
conflicts
Dilute brand meaning by spreading brand too thin
Forgo the chance to develop a new brand and lose associated
potential opportunities and revenues
Usually does not increase purchases with a category
Light, Clear, Fat-free diminish perception of parent brand
Brand Extension Types

Line Extension: A parent brand is used to brand
a new product that targets a new market segment
within a product category currently served by the
parent brand. Most new products are line extension
Category Extension:
A parent brand is used
to enter a different product category from that

currently served by the parent brand.
Keller, Kevin Lane. Strategic Brand Management: Building,
Measuring, and Managing Brand Equity. 1998.
Horizontal Extension
FIT
Customers must
be comfortable
with the brand in
the new setting.
Bases: product
associates,
ingredient,
attribute,
application, user
imagery, expertise,
designer image.
ADDED
VALUE
The brand name

alone should help
customers
articulate why the
offering is
superior to other
brands.
ENHANCED
BRAND
EQUITY
The brand equity
should be
enhanced by the
brands presence
the brands
presence in
another context -not only from
increased visibility
but also from the
associations
generated.
Aaker, David A. Brand Leadership. 2000
Vertical Extension
ADVANTAGES
Product vitality & margins
DISADVANTAGES
A vertical stretch is
particularly tricky because
perceived quality is involved
and also because the use
of sub-brands & endorsed
brands needs to be
considered.
Risk to brands reputation &
customer base
Cannibalization
To participate in a large
& growing value
market
Lack of credibility
Competitor price wars
Aaker, David A. Brand Leadership. 2000
7 Approaches to Brand Extension

Same Product / Different Form
Distinctive Taste / Ingredient /
Component
Cranberry Juice Cocktail /

Dole Frozen Fruit Bars
Arm & Hammer Carpet Deodorizer
Companion Product
Colgate Toothbrushes /
Duracell Durabeam Flashlights
Customer Franchise
Visa Travelers Checks /

Gerber Baby Clothes
Expertise
Benefit / Attribute / Feature
Designer or Ethnic Image
Honda Lawn Mowers

Ivory mild shampoo /
Sunkist Vitamin C Tablets
Porsche Sunglasses /
Ragu Pasta
Determining Brand and

Extension Fit
Original Product Class
Skills/Assets
Complementing
Extension Product Class
Functional Benefits
Prestige
Brand
Extension
User Type
Symbol
*The brand and the extension must share common skill or asset perceptions to be successful
How many brands?
Is the brand
sufficiently different
to merit a new
name?
Will a new
name really
add value?
Will an existing
brand be
placed at risk if
used on
a new product?
Will the
business
support
a new brand
name?
How to use Brand Extensions

Subset of identity/
Value Proposition
Core of Identity
Points of Leverage
Key Benefits
Target Audience
Primary
Secondary
Brand
Position
Actively Communicate
Augment the Image
Reinforce the Image
Diffuse the Image
Create Advantage
Points of Superiority
Points of Parity
What the Brand Name Brings

to the Brand Extension
Brand
Association
Weight Watchers (low calorie)
Jeep (adventure)
Quality
Associations
Brand
Name
H-P, Kraft, GE, Ford

Reputation for Quality
Awareness /
Presence
Jell-O Pudding Pops
Arm & Hammer Carpet Cleaner
Trial
Purchase
More likely to try established
Brand names
Why the Brand Name Fails

to Help the Extension?
The Name Does
Not Add Value
Pillsbury Microwave
Popcorn beat out by
Latecomer
Orville Redenbacher
Negative
Attribute
Associations
Levi Strauss
Tailored Classics /
Bic Perfume
The Name
Confuses
Betty Crocker
Cookbook
Chicken
The Fit
Is Poor
Rolls-Royce Bicycles /
Dole Hawaiian Resorts
Expanding Brand Meaning

Through Extensions
Brand
Original
Product
Extension
Products
New Brand
Meaning
Weight Watchers
Fitness Center
Low Calorie Foods
Weight Loss and

Maintenance
Sunkist
Oranges
Vitamins, Juices
Good Health
Crayola
Crayons
Markets, Paints,
Colorful Crafts for
Pens, Pencils, Clay Kids
Aunt Jemima
Pancake Mixes
Syrups, Frozen
Waffles
Breakfast Foods
Keller, Kevin Lane. Strategic Brand Management: Building,

Measuring, and Managing Brand Equity. 1998.
How to Augment a Brands

Identity
Product
Extensions
Adding
emotional
benefits
Use of
sub
brands
DE
M
AN
D
UNITIES
CO
ST
D
EAS
N
DE
CO
EA
SE
UNDEREXPLOITED ID
HID
ST
S
IN
C
R
LO
YA
LT
Y
Risks of
Brand
Proliferation
S
PORT
ETITOR OP
P
M
O
C
E
R
MO
RY
B
R
AN
D
CA
TE
G
O
W
ER
NA
NT
LO
ST
AG
IC
LINE LOG
R
E
K
A
E
W
Problems And Risks From

Brand Proliferation
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
22 Immutable Laws of Branding
Expansion: The power of a brand is inversely proportional to its scope.

Contraction: A brand becomes stronger when you narrow its focus.
Publicity: The birth of a brand is achieved with publicity, not advertising.
Advertising: Once born, a brand needs advertising to stay healthy.
Word: A brand should strive to own a word in the mind of the consumer.
Credentials: The crucial ingredient in the success of any brand is its claim to authenticity (ex. Coke is it!)
Quality: Quality is important, but brands are not built by quality alone. (ex. Is Rolex really better than Timex?)
Category: A leading brand should promote the category, not the brand.
Name: In the long run, a brand is nothing more than a name. (Ex. Xerox, Kleenex, etc.)
Extensions: The easiest way to destroy a brand is to put its name on everything. (Ex. Miller beer)
Fellowship: In order to build the category, a brand should welcome other brands. (Competition draws attention)
Generic: One of the fastest routes to failure is giving a brand a generic name.
Company: Brands are brands. Companies are companies. There is a difference.
Subbrands: What branding builds, subbranding can destroy. (Line extensions can kill the value of a brand.)
Siblings: There is a time and a place to launch a second brand. (Ex. Honda introduced Acura, not Honda Ultra)
Shape: A brands logotype should be designed to fit the eyes. Both eyes. (Ex. Arbys logo is too tall, less effect.)
Color: A brand should use a color that is the opposite of its major competitors. (Ex. Car rental logos)
Borders: There are no barriers to global branding. A brand should know no borders.
Consistency: A brand is not built overnight. Success is measured in decades, not years.
Change: Brands can be changed, but only infrequently and only very carefully.
Mortality: No brand will live forever. Euthanasia is often the best solution.
Singularity: The most important aspect of a brand is its single-mindedness. (Ex. What is a Chevrolet?!?)

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Therakorn Yardpaga

Keller, Kevin Lane. Strategic Brand Management:

What is Brand Equity ?

What is Brand Equity?

Provides Value to Customer

Provides Value to Firm by Enhancing:

Efficiency and Effectiveness of Marketing Programs

Measuring Brand Equity

Measure Brand image

Useful for identifying the aspects of brand

Useful in approximating the possible

Develop Brand Tracking Procedures

Create Brand Equity Management System

Keller, Kevin Lane. Strategic Brand Management:

Evaluate current position of

7. The brand makes use of and

Source: Kotler, The Brand Report Card, HBR, Jan. 2000

Determining Associations with

Jan had just finished eating

What comes to mind when

Exploring Perceptual Differences

Building Brand Equity:

III. Brand Expansion

IV. Brand Development

1. Segment and 2. Target

Finding the Pain

Estimating the Gain

1. Segment - Find the Pain

Once an idea is found make sure it meshes

Brand Logo & Symbol

Brand Tagline & Byline

byline, tag line, logo, and the brand story.

how decisions are made that affect brand choice.

The Brand Position Statement

Aaker, David A. Building Strong Brands. 1996

Brand Image/ Position

Existing Brand Image

A Brand Image Can:

Eliminate images inconsistent

Specify what the brand is not

Creating a New Brand Name

Managing Equity: Capitalizing on the Value of a Brand Name. 1991

Federal Express -- Overnight

4. Marketing Plan (cont.)

PR, radio, print, consumer promotion, sampling,

Communicate vision into actual product