Brand startegies ppt

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Lesson # 8
BRAND STRATEGIES
Subject:
BRAND BUILDING
Faculty Name:
Vishal Desai
Batch
(BMM class of 2015)
Year (TY)
India’s premier M-school
Deviprasad Goenka Management College of Media Studies (dgmcms.org.in)

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TYPES OF BRANDING
STRATEGY:
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

Camay Whisper Old Spice
P&G
Head &
Shoulder
Ariel Tide Pantene Vicks
Detergent Detergent Shampoo Shampoo Soap Sanitary
Napkin
Balm After Shave
High-Tech
Detergent
Whiteness
no other
can deliver
Healthy&
shiny hair
Dandruff
shampoo
with micro
ZPTO
Cream
soap
Hygienic
protection
Clear
blocked
nose
Sign of
manliness
POSITION MARKET BRAND

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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
branding
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-markets
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
products
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
competition
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
brands

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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.

+  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

L’ Oreal Group
L’ Oreal
Lipstick
Nail
Enamel
Powder
Compact
Eyeliner Foundation
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

Area of
Competence
Or expertise
Himalaya Drug Co.
Ayurvedic Concepts
Health Care Body Care Hair Care
Skin Care
Ayur Slim Capsules
Daily health Capsules
Digestive Capsules
Cough Syrup
Antiseptic Cream
Pain Balm
Muscle and Joint Rub
Cleanser
Anti- Dandruff
Cleanser
Hair Conditioner
Hair Vitaliser
Lotions, Face Wash,
Creams

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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

Limitations of Range Brand Strategy / Mixed Branding:
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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

PHILIPS
Television
Lighting
Monitors
Shaver
Phones
Irons
Mixers
Hi-fi Music
system
Medical
equipment

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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
proliferation

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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-segments
3) Each segment presents its own unique structure of needs and buyer
preferences
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
monitors.
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

Maruti Suzuki
Maruti
Alto
Maruti
Zen
Maruti
Wagon-R
Maruti
Celerio
Maruti
Ertiga
Maruti
Ritz
Maruti
Stingray

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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
approach
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
company
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

Cadbury’s
Cadbury’s
Eclairs
Cadbury’s
Bournvita
Cadbury’s
Perk
Cadbury’s
Dairy
Cadbury’s
Five star
Cadbury’s
Shots
Cadbury’s
Crackle

+  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

+  For example:
• Nestle burnt its fingers when it launched Mithai Magic
The product failed as it did not go down well with the Nestle
endorsement

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Private Labels / Store branding:
 Products marketed by retailers and other members of the distribution
chain
 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

+  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
efficiencies
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
categories

+  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
marketplace

+  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

+ 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
seat
The product brand is given the front seat
The sub-brand is hero to the customers

+ 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
• ITC –Wills, Gold flake

+ BRAND ROLES IN THE BRAND
PORTFOLIO:
 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
category
 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
segments
 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
characteristics
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
fails
 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

Flankers: Cash Cows:
For example:
Wheel & Rin (Unilever),
For example:
Colgate, Singer sewing
Machine and
Sunlight soap of Unilever
Low-end entry: High-End Prestige
For example: For example:
Lucera brand of jewelry from
Gitanjali Group, Wheel for
Unilever, Tata Nano
Nakshatra and D’Damas
jewelry from Gitanjali group,
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

+  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

+
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

+  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

+
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

+  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-brand
For example:
• HP DeskJet printer – where primary driver for the sub-brand, is the
parent brand name HP

+ BRAND LICENSING:
 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

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

+
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

+
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

+
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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CHOOSING A BRAND STRATEGY:
 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
best
 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

+  Firms can adopt multiple branding strategies depending upon their
requirements
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

+
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
2)Competition
• 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

+
• 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
firm
• 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

+ 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

+ 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

+
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

+ 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

+ BRAND HIERARCHY:
 “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”

Company brand
Family Brand
Individual Brand
Modifier
The corporate or the parent
brand of the organization
(General Motors)
A portfolio of products under
one brand, generally within one
product category ( Chevrolet)
A specific product in that line or
a sub-brand (Beat)
An individual and unique item
or a special class (GLX)
Different levels of the hierarchy of General Motors

+  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

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

+  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

+  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
butter
 Different level of the hierarchy may receive different emphasis in
developing a branding strategy

+ BRAND PRODUCT MATRIX:
Product Mix
Brands 1 2 3 4
A
B
C
D
Brand Portfolio/Product Line
Brand Line
Product Assortment

+  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

Brand-Product Matrix
Product Mix
Detergent Shampoo Soaps
Product Breadth/Width
(No. of product lines)
Product Line Length
No. of products in product line
Average Depth
= Total Variants/
Total Brands
Product Assortment

Detergents Soaps Hair Care Food Beverage
es / Ice
Creams
Oral Care Skin
Care
Wheel Liril Clinic Plus Kissan Taj
Mahal
Tea
Close-up Ponds
Rin Breeze Sunsilk Knorr Taaza Pepsodent Fair &
Lovely
Surf Excel Rexona Dove Annapurna Lipton
Comfort Lux All Clear Bru
Vim Pears Tresemme Kwality
Walls
Cif Ponds
Sunlight Lifebuoy
Dove
Hamam
HUL

+  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
firm
 It helps identify Gap Areas which can be entered by launching new
brands/products.

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

+
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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