48990227 strategic brand management keller 11 branding startegies 0011
TRANSCRIPT
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Designing and Implementing
Brand Strategies
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Designing and
Implementing Brand Strategies
defines brand boundaries and brand
complexity
defines the relationship between the brand
and the products
Two strategic tools help formulate branding
strategy that
1. Brand architecture / strategies(a) Brand-product matrix and
(b) Breadth of branding strategy
(c) Depth of branding strategy
2. Brand hierarchy
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Brand Architecture / Brand Strategy
Objective of Brand strategy is to understand
and organize Firms products in consumers
mind
Its role is to -
1. ClarifyBrand Awarenessimprove consumer
understanding and communicate similarities and
differences between individual products2. MotivateBrand Imageto improve trial and
repeat purchases by maximizing transfer of
brand equity to / from the brand to individual
products
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Brand Architecture / Brand Strategy
Frequently adopted brand strategies are
broadly 2
Branded house umbrella branding
(corporate /family branding)
House of brands collection of individual
brands
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Brand-Product Matrix
Must define the Brand-Product Relationships. . .
ROWSall Brands of the Firm,
Brand-product relationship (brand lines)
COLUMNSall Productsof the Firm
Productbrand relationship (prortfolio strategy)
1 2 3 4
A
B
C
Products
Brands
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Designing and Implementing
Brand Strategies1. (a) Brand-product matrix
graphical
representation of all products sold by the firm
Brand l ineparticular brand name under whichproducts are sold Brand line is one row of the matrix (brand extensions)
Brand line may be composed of either a single brandor a family brand that has been line extendedNestle, Maggie
Brand m ix
all brand lines that a firm sells
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Designing and Implementing
Brand Strategies2 strategic tools1. (a) Brand-product matrix graphical
representation of all products sold by the firm
Product l ines - group of products within acategory, that are closely related because theyfunction in a similar manner, are sold to thesame customer group, marketed through thesame type of outlets and fall within the same
price range Produc t mix all product lines and items that a firm
sells
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Designing and
Implementing Brand Strategies2 strategic tools - Brand-product matrix
Brand Port fo l io consist of all brands and
brand lines that the Firm offers for sale
(occupies the columns of matrix) Brand por t fo l io strategy is judged on
Its ability to collectively maximize BE, and
Not decrease the equity of other brands
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Designing and
Implementing Brand Strategies
2 strategic tools
(b) Branding strategyreflects the number and nature
of different products linked to the brand and sold by
the firm It is characterized by - product brand
relationships, and extension strategy
Breadth - product mix and
Depth - number of brands in a product category Strategic decisions about breadth and depth of
Product mix are - How many product lines should the company carry?
How many variants should be offered in each product line?
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Designing and
Implementing Brand Strategies
Brand ing Strategy
Breadthof product mix considersproduct attractiveness on the basis of - 3 factors that affect category attractiveness
1. Aggregate market factors attractiveness of market - large,fast growing, growth stage of its product lifecycle, non cyclical,non seasonal, yields high profit margins
2. Category factorsstructural factors affecting the categorylow threat of new entrants, bargaining power of suppliers, andtrade, current category rivalry, few product substitutes, market
operating at near capacity3. Environmental factorstechnological, economic, regulatory,
social factors that affect the category
Also consider Firms capabilities and abilities, strategic objectives and goals
Name chosen for these products - depends on branding
strategy
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Designing and
Implementing Brand Strategies
Brand ing Strategy
Depth of a Branding Strategy number andnature of different brands marketed in a
product class - Multiple brands strategy - in the same category are
used for
Market coveragetargeting multiple marketsegments (different price, distribution, geographicboundaries etc.) P&G
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Designing and
Implementing Brand Strategies
Depth of Branding strategy
Optimal brand portfoliois a trade off between
market coverage, costs and profitability
A brand should be clearly differentiated, and
appealing to a sizeable enough market segment
to justify its production and marketing costs
Distinct positioning and segmentation for each brand must
maximize market coverage (no customers are ignored) but
minimize brand overlap
Portfolio is too big if the profits can be increased by
dropping a brand
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Designing and
Implementing Brand StrategiesBrand ing Strategy
Determining Depth of product mix
Optimal product lineis based on Ability to address consumer needs by each item in the
product line Ability to withstand competition
Percentage of sales and profits contributed
If line is too long if profits can be added by droppingan item, or too short if it can be done by adding an
item Branding perspectivelonger product lines may
decrease consistency of brand image if thesame brand is used
Branding strategy must determine which brand
elements should be used for which products
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Designing and Implementing Brand
Strategies
Depth of Branding strategy
- Portfolio Roles - brands play as part in theportfolio
1. Flanker brands -protect a flagship brand2. Cash cow - milked for profits
3. Entry level product - attracts new customers to thebrand franchise
4. High end prestige product -adds prestige andcredibility for the entire portfolio
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Designing and Implementing Brand
Strategies
Portfolio RolesFlankers(fighter brand) discount brands
introduced to compete with store brands
It creates strong POPs so that more importantbrands can retain their desired positioning
Flanker brands should not be too attractive andtake away the sales of their higher priced brands
They should not be connected to the betterbrands as they will reflect poorly on these otherbrands
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Designing and Implementing Brand
Strategies
Portfolio Roles
Cash Cow some brands are retained (despite
dwindling sales) as they continue to generate
sales with virtually no marketing support
The existing brand equity is milkedGillette's
Trac II, Atra, Sensor
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Designing and Implementing Brand
Strategies
Portfolio Roles
Low end Entry Level brand and High end
Prest ige brands
End points of the line extensions play animportant role Relatively low-priced brandin the brand portfolio is to
attract customers to the brand franchise
Retailers use these as traffic builders with a view to
trade up customers Relatively high priced brand in the brand family is to
add prestige and credibility to the entire portfolio evenif it is not the most profitable
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Designing and Implementing Brand
Strategies
Other roles brands play -1. Attract a segment currently not covered
2. Attract customers seeking variety who may otherwise
have switched to another brand3. Increase shelf presence and retail dependence in the
store
4. Yield economies of scale in advtg., sales,merchandising, distribution
5. Increase internal competition within the firm
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Designing and
Implementing Brand Strategies
Depth of a Brand ing StrategySummary
Different roles that brands play in the brand portfolio are
based on considerations related to the consumer,
competition, and the company
Expand market coverage Provide protection
Extend an image
And fulfill other roles
Portfolio decisions basic criteria - Each brand name product
must have
1. A well defined Portfolio role for brands
2. A well defined Positioning as to what benefits it offers
customers encapsulated in the associations
- Maximize coverage, minimize overlap, optimize portfolio
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Designing and Implementing Brand
Strategies2. Brand hierarchy graphically displays the
branding strategy The number and nature of common and distinctive
brand elements across the firms products
It reveals the explicit ordering of brand elements Captures the relationship between the different products
Represents how different products are nested with otherproducts of different brand elements at lower levels
It graphically portrays the firms branding strategy (brand trees)
Typically there are more entries at each successive level of thehierarchy
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Brand Hierarchy Levels
The Jean Noel Kapferer Model A brand hierarchy can involve multiple levels:
Corporate Brand
Family Brand
Individual Brand
Individual Item or Model (Modifier)
(Range brand / umbrella brand)
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Designing and Implementing Brand
Strategies
There are 2 strategic tools
2. Brand hierarchy
Corporate or company brand -
For legal reasons present on label and packaging
Used differently for strategic reasons -
As the only brand - Sony
Combine the family brand name (individual brand) withthe corporate name (Sony Bravia)
It might be virtually invisible and receives no attention in
the marketing program
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Designing and Implementing Brand
Strategies
There are 2 strategic tools
2. Brand hierarchy
Family brand used in more than one
product category (but not the name of the
company) Maggie
Most firms support only a few Family Brands
Corporate brand functions as a Family brandwhen it is used for a range of products.
The 2 levels collapse into 1 for those products
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Designing and Implementing Brand
Strategies
There are 2 strategic tools
2. Brand hierarchy
Individual brand restricted to only one
category, although it may be used for
many product types within the category
(variants) - Park Avenue
Modifier- means of designating a specificitem or model type, or version - Ultra
Product descriptor explains what the
product is and does
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Brand Portfolio Structure cont.
Brand structure can be captured by hierarchy trees
Toyota
Corolla-VE
-CE
-LE
Camry-CE
-LE
-VE
Avalon-Platinum
-Edition
-XL
-XLS
Celica-Liftback
-Convertible
Camry Sedan-SE
-SLE V6
Lexus
-LS
-400
-GS
-300
-400
-ES
-300
-SC
-300
-400
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Building Equity for Hierarchy Levelsand Knowledge Structures
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Building Equity for Hierarchy Levels
and Knowledge Structures
Corporate / Company brand level
Corporate image dimensions
Important when it plays a prominent role in the
branding strategy Corporate image - depends on a number of factors
Products it makes
Actions it takes
Manner in which it communicates
Doing the right thing everyday
Firms role in society and its reputation (with respect to
employees, neighbor, stakeholders) builds credibility.
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Building Equity for Hierarchy Levels
and Knowledge StructuresCorporate brand level Brand Equity - is the
differential response by consumers, employees,
other firms, and others to the Firms activities
Corporate BE occurs - when relevant constituentshold relevant, strong, favorable associations about
the brand in memory They respond more favorably to a corporate ad campaign,
corporate branded products, and PR releases, than if the same
was attributed to another company
It is distinct from Product Brands as it encompasses a
much wider range of associations which impacts
individual products of the firm
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Building Equity for Hierarchy Levels
and Knowledge StructuresCorporate Image Dimensions
affect BE
Type of associations at the Company Brand levelaffect BE - Common product attributes, benefits, attitudes
Intangible attributes
High quality image association
Innovative image associations
People and Relationships Customer focused corporate image associations
Values and programs
Corporate credibility Corporate expertise
Corporate trustworthiness
Corporate likeability
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Building Equity for Hierarchy Levels
and Knowledge StructuresCorporate Image Dimensions
Common produc t att r ibutes, benef i ts ,
att i tudes performance associations,
judgment and feelings association,type ofuser, use occasions, etc.
Intangible attributes- abstract benefits or attitudes
are the strongest associations fun, high quality
standards, leader Product related corporate image- 2 dimensions
are important
1. High quality corporate image association
2. Innovative corporate image associations
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Building Equity for Hierarchy Levels
and Knowledge StructuresCorporate Image Dimensions
Common
product attributes, benefits, attitudes
2 specific product related dimensions are -1.
High quality corporate image association Create a perception that Products are of the highest
quality (one of the most important decision factors) Rated by various sources
2. Innovative corporate image associations
Modern, up-to-date, investing in R&D, advancedmanufacturing facility, introducing new productfeatures
Unique marketing programs with respect to productintroduction and improvements
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Building Equity for Hierarchy Levels
and Knowledge StructuresCorporate Image Dimensions
Peop le and
re lat ionships
Reflects characteristics of employees (a naturalpositioning strategy for services) as they directly or
indirectly impact the product / services offered Retail stores derive BE from employees -
Customer focused corporate image associations perception that company is responsive, and caring,listening to customers - King Fisher Airline
Reflected through out the marketing program andcommunicated through advertising
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Building Equity for Hierarchy Levels
and Knowledge StructuresCorporate Image DimensionsValues and
Programs
Reflected without directly relating to products
Corporate image campaigns about the philosophy,and actions of the company with respect to
organizational, social, political, and economic
issues
Socially conscious image and environment friendlyimage
Targeting consumers, employees, others
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Building Equity for Hierarchy Levels
and Knowledge StructuresCorporate Image Dimensions
Corpo rate credib i l i ty reputation acquired through designsand delivery of products and services
Consumers form abstract feelings and judgments
about the company Personality of the corporate brand Success and leadership
Credibility is dependent on 3 factors - Corporate expertiseextent to which it can competently
make and sell products or conduct its services
Corporate trustworthinessextent to which it is seen ashonest, dependable, and sensitive to consumer needs
Corporate likeabilityseen as likeable, attractive, prestigious,dynamic
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Building Equity for Hierarchy Levels
and Knowledge StructuresCorporate Image Dimensions
Corpo rate credib i l i ty advantages
Company will be treated favorably by govt, legal
bodies Can attract better quality employees
Helps existing employees become more
productive and loyal
Helps survive a brand crisis and avoid public
outrage (buffers corporate trouble)
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Building Equity for Hierarchy Levels
and Knowledge Structures
Corporate Brand building and managing it Firms must have a high public profile especially to shape
more abstract associations
MD, CEO must maintain a more public profile to help
communicate news and information and a be symbol of the
current marketing activity
Firm will also be up for more public scrutiny - has to be
transparent in terms of its values activities and programs
Strong Corporate Brands (if built and nurtured) offer a host of
potential marketing advantages
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Building Equity for Hierarchy Levels
and Knowledge StructuresSummary
Many types of associations become linked to thecorporate brand image that transcend physicalproduct characteristics
These intangible associations are valuablesources of BE and provide POPs and PODs
Companies have a number of means of creatingthese associations
In doing so the companies must talk the talk andwalk the talk with customerscommunicatingand backing up claims with concrete programsthat they can understand and experience
B ildi E i f Hi h L l
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Building Equity for Hierarchy Levels
and Knowledge Structures
Family brand level (Range or Umbrella Brands)
applied across a range of product categories
Company level associations are less salient
Family brands are used for several reasons - When products become dissimilar, it is difficult to use the
Company brand and still retain its meaningTitan and
Fast Track
Family brands evoke a specific set of associations across
groups of related products
These associations may relate to -
Common product attributes, benefits attitudes,
To a lesser extent to people, relationships, values, and
corporate credibility
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Building Equity for Hierarchy Levels
and Knowledge StructuresFamily brand level
(Range Brands or Umbrella Brands)
Family brands are an efficient means to link commonassociations to many but distinct products
Cost of introducing related new products is lower
Likelihood of acceptance is higher Products linked must be considered carefully so that
associations of the family brand do not become weakerand less favorable
Failure in one product has ramifications on otherproducts in the family because of common identification
These consideration determine whether aBranded Houseor a House of Brandsis a more appropriate strategy
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Building Equity for Hierarchy Levels
and Knowledge StructuresIndividual brand level
restricted to 1 product
category (there may be many product types)
Different models, package size, flavors, forms
Advantagebrand and supporting activities arecustomized to meet the needs of a specific customergroup and designed for them
The name, logo and other branding elements
Product design,
IMC programs,
pricing and distribution
If the brand fails, the risk to other brands / company is minimized
Disadvantageof creating individual brands - Difficulty, complexity and expensive to developing separate
marketing programs to build sufficient levels of BE
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Building Equity for Hierarchy Levels
and Knowledge StructuresModifier level
used with Corporate or Family or
Individual brand to further distinguish the type ofitems / models involved
Signifies refinements or differences in brand related
factorsquality, attributes, functions, Makes products more understandable, and relevant to
the customer / trade
Plays an important organizing role in communicating
That different products within a category may share the same brandname, but differ on one or more attribute / benefit
Plays an important role in market coverage within thecategory
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Building Equity for Hierarchy Levels
and Knowledge Structures
Product descriptor (is not a brand element)
used with branded product so that consumers
understand what the product is and does, and
helps define the relevant competition for theproduct
A basic product name - useful to facilitate
familiarity and understanding of how it is different
from other similar products when it is difficult todescribe a new product with unusual functions.
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Designing Branding Strategy
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Managing Brand Equity
Managing BE concerns those activities that takea broader and more diverse perspective of abrands equity
Understanding how branding strategies shouldreflect corporate concerns and be adjusted, if atall, over time or over geographical boundaries ormarket segments
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Branding Strategies
The branding strategy for a firm reflects thenumber and nature of common or distinctivebrand elements applied to the different
products sold by the firm
Which brand elements can be applied to whichproducts and the nature of new and existing brand
elements to be applied to new products
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Brand Hierarchy Decisions
In creating the hierarchy, it is important todecide:1. The number of levels of the hierarchy to use in
general
2. How brand elements from different levels of thehierarchy are combined, if at all, for any oneparticular product
3. How any one brand element is linked, if at all, tomultiple products
4. Desired brand awareness and image at eachlevel
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Designing the Brand Hierarchy
Decide on
1. Number of levels Principle of simplicity: as few levels as possible
Principle of clarity: Logic and relationship of all brandelements employed must be obvious and transparent.
2. Levels of awareness and types of associations tobe created at each level
Principle of relevance: Create associations that are
relevant across as many individual items as possible Principle of differentiation: Differentiate individual
items and brands
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Designing the Brand Hierarchy
3. Products to be introduced Principle of growth - depending on ROI invest in
market penetration / expansion vs. productdevelopment
Principle of survival -brand extensions mustachieve brand equity in the categories
Principle of synergy - brand extensions shouldenhance the equity of the parent brand
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Designing the Brand Hierarchy
4. How to link brands from different levels for aproduct
Principle of prominence: The relative prominence ofbrand elements affects perceptions of product distanceand the type of image created for new products
5. How to link a brand across products
Principle of commonality: The more commonelements shared by products, the stronger the linkages
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Adjustments to Marketing Strategy
Multiple levels of branding strategy
Different levels of awareness and image
Sub-brand strategy- marketing communications at the
corporate / family brand level to complement individualbrands
2 marketing communication strategies
1. Corporate image campaign (also works at Family level)
2.
Brand line campaigns
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Adjustments to Marketing Strategy
Multiple levels of branding strategy
2 marketing communication strategies
1. Corporate image campaign to create
associations for the corporate brand to - Build awareness of company and nature of business
Create favorable attitude and perceptions about
company credibility
Link beliefs that can be leveraged about productspecificmarketing
Make favorable impression on the financial community
Motivate present employees and attract better recruits
Influence public opinion on issues
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Adjustments to Marketing Strategy
Multiple levels of branding strategy
2 marketing communication strategies
1. Corporate image campaign
To build CBBE 3 objectives are critical1. Build awareness of company and nature of business
2. Build trust worthiness and credibility
3. Create corporate image associations (beliefs) that can be
leveraged by productspecific marketing
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Adjustments to Marketing Strategy
Multiple levels of branding strategy2 marketing communication strategies
2. Brand l ine campaign to emphasize the breadth
of products associated with the brand
It refers to the range of products associated with abrand line
Brand line ads shows uses and benefits of various
products
To builds awareness Clarify meaning
Suggests additional use applications
Umbrella ads (that encompass also serve brands) used
in conjunction serve a purpose
Managing Brand Portfolios
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Managing Brand Portfolios
Multiple brands are often employed in a category
for market coverage Target different market segments
Basic principle of brand portfolios
Maximize coverage Minimize overlap
Basic economics guideline ... A portfolio is too big if profits can be increased by
dropping brands. A portfolio is not big enough if profits can be increased
by adding brands
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