managing brand systems 8
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MANAGING BRANDSYSTEMS
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Managing Brand Systems
Companies often find themselves struggling to manage anumber of different brand identities in several differentsituations & for a variety of audiences.
e.g. Hewlett-Packard must manage the mother brand HP in ahost of products & markets, and also manage a complexrange of inter-related brands of printers, software & hardwareproducts.
A Brand System means considering brands as not just
individual performers but members of a system of brands thatmust work to support one another.
A Brand system serves as a launching platform for newproducts / brands & as a foundation for all brands.
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Managing Brand SystemsBrand Hierarchy Example 1:Corporate Brand: Toyota
Range Brand: Lexus
Product Line Brand: Toyota Lexus
Sub Brand: Toyota Lexus LS 460
Branded Feature/
Component/ service: SloganImagine Driving It,
Higher horsepower, Betterengine, 50 new luxury features
Most appreciated model, has received awards every year since
1990 for design, engg, quality & customer satisfaction
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Managing Brand SystemsBrand Hierarchy Example 2:Corporate Brand: P & G
Range Brand: Pantene Pro V
Product Line Brand: Hair Fall Control/ Smooth &
Silky / Nourished ShineSub Brand: Hair Fall Control Shampoo/
Conditioner
Branded Feature/
Component/ service: Strong healthy hair from root
to tip, Essential nutrients,
prevents breakage
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Managing Brand SystemsUnderstanding Brand Roles
Driver
Endorser
StrategicBrands
Sub Brand Roles
Branded Benefits
Silver Bullets
Brand Roles
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Managing Brand SystemsDriver Role Is a brand that drives Purchase decision
Its Identity represents what the customer expects to receive
from the purchase
It represents the value proposition that is central to thepurchase decision
E.g. Gillette Sensor Razorcustomers are buying the
technology & performance of the Sensor name, so Sensor
is the Driver brand, its name & symbol have a strongidentity & clear visibility on the pack, also on mind of the
customer. Gillette is the Endorser brand
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Managing Brand Systems
In case of Pantene ProV, Hair Fall Range, Hair Fallrange is the Driver brand, because it represents the value
proposition offered by the product, while Pantene ProV
is the Endorser brand
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Managing Brand Systems In case of BMW series or Mercedes series, these are the
Driver brands, because customers buy the value
proposition represented by BMW or Mercedes, rather than
what the model offers
However in case of Ford Figo or Chevrolet Beat, theremay be Dual Driver brands.
The Figo or Beat may have an influence on the purchase
decision, yet Ford or Chevrolet too have an active role to
play in the same decision Although the Brand strategy may be to make Figo the
Driver brand, customers are buying Figo based on its Ford
identity
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Managing Brand Systems Dual Driver brands may cause conflicts if the brands
belong to different companies.
E.g. A conscious decision to withdraw the Intel Inside
campaign was taken by Compaq, when they felt that Intelwas becoming the Driver brand & eclipsing the Compaq
name.
Although there were substantial costs & risks involved in
doing it, Compaq wanted to make sure that it was the
Driver brand for its computers
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Managing Brand SystemsEndorser Role A brand in this role, provides support & credibility to the
Driver brands claims
Because the corporate brand usually represents an orgn
with people, culture, values & programs, it is well suited tosupport the Driver brand ?& hence plays the role of the
Endorser
E.g. Kelloggs is Endorser for Chocos
Apple . iPod, iPadSony Vaio
Honda.. City
Cadbury Perk
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Managing Brand Systems The role of the Endorser is to reassure the customer that
the product will deliver the promised functional/
emotional/ self-exp benefit because the company behind
the brand is a successful orgn
The Endorser may have a special credibility with respect tocertain areas of expertise such as Kelloggs in breakfast
cereals, Honda in car engines, Philips in lighting.
This reassurance is particularly important when the
product is new or untested like new technology e.g. iPadfrom Apple
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Managing Brand Systems An Endorser brand may fade later after it provides initial
support
E.g. In 1994, Levis launched its brand Dockers, which wastargeted towards the older men, with a different fit & style.This contrasted with Levis image of young, rugged, urban
male and there was a risk of Levis user imagery beingdiluted by Dockers. So as Dockers became more popular,Levis was dropped from its advertising & promotionalcampaign. This strategy is also known as Brand BridgingStrategy
For Consumer Durable Products & industrial products, TheEndorser can signal that the company will make sure thatthe brand is supported with service & other back-up
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Managing Brand Systems E.g. Servicing of Aquaguard Water Purifiers by Eureka
Forbes, availability of Printer cartridges by HP for their
entire range of Printers, Service centres & availability of
spare parts for Honda cars
A customer investing huge amount of money & time in
such a product will want to know that there are resources& commitment behind the brand from its orgn
In such cases, the brand performs both the roles of Driver
& Endorser simultaneously as the value proposition is
provided by the product & the support by the orgn e.g. HP
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Managing Brand SystemsStrategic Brands Marketing budgets are usually spent on growing brands &
problem brands
It then becomes a Strategy to allocate resources by
classifying brands into Divestment candidates/brands,Milkers & Strategic brands
A Divestment candidate is a brand which faces an
unattractive market with weak position, does not fit in the
future vision of the orgn Reasons could be manysqueezed margins, declining
sales, industry dynamics, too much expenditure to turn it
around
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Managing Brand Systems A Milker is a brand that may be tired but has some real
strengths, may have a core customer base that supports its
margins & the brand can be supported with minimal
resources, it also provides a positive cash flow to fund
other brands
A Strategic Brand is one which fits into the future of the
orgn, it may represent a meaningful qty of sales & profits
in future, it is already a large dominant brand, can maintain
its market position, or is a new product which can become
a major success E.g. Lux is a Milker brand for HUL whereas Dove is a
Strategic Brand
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Managing Brand SystemsSub Brand Roles
A Sub Brand is a brand that distinguishes a part of the
product line within the brand system
E.g. Ford uses Sub Brand Figo to distinguish a specific
model, its characteristics & personality from another
model such as Fiesta. Both belong to Ford but each is a
different product
The SubBrand can be a Driver or a Descriptor brand
E.g. Chocos has a Driver role for Kelloggs but Chocolate
Horlicks is a Descriptor brand
It is imp to know the roles of subbrands & also determine
what roles are involved in each case
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Managing Brand SystemsThe SubBrand the foll tasks:
1. Describe offerings2. Structure & clarify offerings
3. Augment or modify identity
4. Exploit market opportunities
5. Facilitate horizontal or vertical extension strategy
1. Describe Offerings :
Communicates the product class/features/target
segment/function of the brand E.g. Colgate Plaxanti- plaque mouthwash & Colgate
Total toothpaste both indicate function of the products
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Managing Brand Systems Colgate is the driver brand, driving purchase decision &
define use experience for both products
The advantage is that the sub-brand does not divert attention
from the driver brand (Plax/ Total does not detract from the
Colgate brand name)
A descriptive sub-brand can specify segments by suggestingthat the products provide functional & emotional benefits
sought by the target segment
E.g. HP printers come in various target segments like
Colour Printers, Multi-function printers, LaserJet Printers &Specialty printers to suit each type of customer-
home/office/business/professionals like photographers, etc
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Managing Brand Systems Companies create a family of descriptive brands by using a
common prefix or suffix to relate sub-brands e.g.McDonalds is known for sub-branding its products by
adding the Mc pre-fix as in McChicken, McVeggie,
McMuffin, McGrill, etc
2. Structure & Clarify Options
Companies create new products/services to either meet
needs of a poorly served segment of customers or to reach
a niche segment which has been left out by the company Unfortunately the more products the company offers, the
more confused the consumers become
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Managing Brand Systems Sub-brands provide a way to offer diff products or serve
diff markets under one brand name & minimize customerconfusion & brand dilution
The customer understands that the new product fits within
the brand system& possesses aspects of brand identity but
also that the new product is different from other products inthe brand system
E.g. Taj Group of hotels own about 96 hotels in India &
have acquired a few palaces belonging to royal families in
India, now converted to luxury hotels. Therefore, they offervarious themes as holiday packages ranging from basic to
ultra luxury as well as separate packages for corporates &
business destinations.
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Managing Brand Systems The holiday themes are Royal Retreats, Romantic
Rendezvous, Family Vacations, Culture Carnivals &Soothing Spa Sojourns. Each offers a diff experience &price to suit every budget.
3. Augment/ Modify Identity An analysis of a new business area often shows that the
development of a new brand would be prohibitivelyexpensive
To stretch the existing identity of the brand to newerproducts may be a liability as it dilutes the identity &associations
E.g. Garnier has used its brand name to market variousproducts for men & women in bodycare,
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Managing Brand Systemsskin care, hair care, deodorants, hair styling & hair color. Thebrand name is now synonymous with gender-neutral
associations.
E.g. Tropicana is known for its fresh juices & their ads have
spoken of 100% pure & natural juice without concentrate.
Its a quality claim for this product category & competitors
are unlikely to use this theme in their ads. Their new
campaign lets make breakfast 100% is solidifying the
brands quality position & thus reducing competitors to
exploit a niche segment.
Strong brands have clear, well-defined identity &
personality
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Managing Brand Systems However, this may turn to be a disadvantage when the
brand extends to new products or new markets
Brands like Surf have close association with just one
product class (detergents) & hence reduced ability to stretch
their identity to other product classes A sub-brand can help to break the brand out of this box
Another interesting term was provided by C.Park & A.
Shockermodifier brands & modified brands
Kelloggs is the modifier in Kelloggs Corn flakes, Cornflakes is modified in Kelloggs Corn flakes
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Managing Brand Systems In Kelloggs Cornflakes, Cornflakes are perceived first as
healthy breakfast cereal, then the endorser brand
Kelloggs.
4. Exploit Market Opportunities
When a emerging niche is detected by an orgn, a sub-brand
for that segment is tailored/ developed, usually with
minimum investment
If the segment grows, the sub-brand can be allowed to stay
for long term business
If the segment is short lived, the sub-brand can be allowed
to die, without putting the core brand in any risk
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Managing Brand Systems This strategy is called Strategic Opportunism, it provides a
way for a firm to be flexible & quick on its feet when
coping with a dynamic & uncertain environment Nike is a particularly good company at Strategic
Opportunism, it introduces hundreds of new shoe designsevery year, for 30 different sports. It identifies segments &
creates sub-brands. Strong emotional ties are formed with
the target customers by innovation in products & celebrity
athlete endorsers.
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Managing Brand Systems5. Support Vertical & Horizontal Extensions
(more in detail in Ch 9Leveraging Brands)
Branding Benefits
1. Branding a FeatureOral B has been the leader in the tooth brush market as
the brand which dentists use. In 1990s, its leadership
position was under attack from J&Js Reach toothbrush,
Colgates Precision & P&Gs Crest. Oral B responded
with a new toothbrush with a descriptive brand name
Advantage Plaque Remover toothbrush. It had already
branded its Indicator bristles which change colour when
brush is worn out.
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Managing Brand SystemsWhen designing a new or improved product, there should be
more design features that enable the brand to excel & these
features should be communicated well.
E.g. Iron Shakti in Kelloggs
DHA in Bournvita Lil Champs
Moisturizing Milk in Dove Soap/ Shampoo
Multi-vitamin in Fair & Lovely Fairness Cream
2. Branding a ComponentAdding a branded component provides a point of
differentiation because of the association the consumer has
with the component
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Managing Brand SystemsCadburys Bournville is seen as a rich dark chocolate which
you have to earn because every cocoa is not suitable tobecome a Bournville & only special ones with the right
colour, flavour & taste are selected from Ghana to be used
in the manufacturing of this chocolate
Consumers automatically make associations that Cadburyshas spent centuries in the art of chocolate making & hence
what they offer is the best. (perceived quality)
Another example is that of Intel, most popular branded
component of PCs & laptopsCost benefits for both brands are seen as costs of
manufacturing & advertising are shared
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Managing Brand Systems3. Branding a Service
Banks, Hotels, Airlines often brand services for its various
class of customersbusiness plans, family plans,
Gold/Silver/ Platinum class, etc
Silver Bullets
Is a sub-brand or a branded benefit that is employed for
changing or supporting brand image of parent brand
Term coined by Regis McKenna
Etios Liva is a silver bullet for Toyota, that shows that
Toyota can design & build cars in the small car segment
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Managing Brand Systems Silver bullets deserve extra resource allocations in forms of
advtg & product developmt
A branded benefit (feature/component/service) can also
play a silver bullet role by supporting the brand image
Tata Tea has created the Jaago Re club that reflects the
social causes/ issues that are faced by citizens & anyone
interested in tackling these issues or voicing their opinions
or commenting can join the club
Saffola has its website Saffolalife.com where you can
find your hearts age by filling a simple questionnaire.