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Brand Architecture and Brand Portfolio
 

Brand Architecture and Brand Portfolio

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    Brand Architecture and Brand Portfolio Brand Architecture and Brand Portfolio Presentation Transcript

    • Brand Architecture and Portfolio Products 1 B Brands C Prof. Sameer Mathur, Ph.D. 3 4 Soap A 2 Shampoo Conditioner Moisturizer
    • Sameer Mathur Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 Harshit Khaitan 2 BTech, IIT Kanpur © Sameer Mathur 2
    • Overview Brand Architecture • • • • The role of Brand Architecture Brand-Product Matrix Breadth of a Branding Strategy Depth of a Branding Strategy Brand Portfolio • Designing a Brand Portfolio • Brand Roles in the Portfolio • • • • Flankers Cash cows Low-end entry-level High-end prestige brands © Sameer Mathur 3
    • Brand Architecture The number and nature of common or distinctive BRAND ELEMENTS applied to the different products sold by the firm Products 1 2 3 4 A Brands B C © Sameer Mathur 4
    • Twin roles of Brand Architecture 1) Clarify: Generate Brand Awareness Improve consumer understanding and communicate similarity and differences between individual products © Sameer Mathur 5
    • Twin Roles of Brand Architecture 2) Motivate: Manage Brand Image Maximize transfer of equity to/from the brand to individual products to improve trial and repeat purchase © Sameer Mathur 6
    • Brand-Product Matrix Products 1 2 3 4 A Brands B C © Sameer Mathur 7
    • Brand-Product Matrix Brand-Product relationships (rows) Line and category extensions © Sameer Mathur Product-Brand relationships (columns) Brand portfolio 8
    • Product Line A group of products within a product category that are closely related 1 Products 2 3 4 A Brands B C © Sameer Mathur 9
    • HUL’s Bathing Soaps Products A Brands B C D © Sameer Mathur 10
    • HUL’s Bathing Soaps Products E Brands F G H © Sameer Mathur 11
    • Brand Line All products, original as well as line and category extensions, sold under a particular brand Products 1 2 3 4 A Brands B C © Sameer Mathur 12
    • Dove’s Brand Line Products 1 2 3 4 Soap Shampoo Conditioner Moisturizer A Brands © Sameer Mathur B 13
    • Brand mix (brand assortment) The set of all brand lines that a particular SELLER makes available to buyers Product mix (product assortment) The set of all product lines and items that a particular SELLER makes available to buyers © Sameer Mathur 14
    • Breadth of a Branding Strategy Breadth of product mix Aggregate market factors Category factors Environmental factors © Sameer Mathur 15
    • Aggregate Market Factors Market Size Market Growth Stage in product life cycle Sales cyclicity Seasonality Profits © Sameer Mathur 16
    • Category Factors Threat of new entrants Bargaining Power of new buyers Bargaining power of supplier Current category rivalry Pressure from substitutes Category Capacity © Sameer Mathur 17
    • Environmental Factors Technological Political Regulatory © Sameer Mathur Economic Social 18
    • Depth of a Branding Strategy The number and nature of different brands marketed in the product class sold by a firm Also Referred to as BRAND PORTFOLIO © Sameer Mathur 19
    • Depth of a Branding Strategy WHY? 1)To pursue different market segments, different channels of distribution, or different geographic boundaries WHY? 2) Maximize market coverage and minimize brand overlap © Sameer Mathur 20
    • © Sameer Mathur HUL Brand Portfolio 21 21
    • Designing a Brand Portfolio Two Basic Principles 1) Maximize MARKET COVERAGE so that no potential customers are being ignored 2) Minimize BRAND OVERLAP (Cannibalization) so that brands aren’t competing among themselves to gain the same customer’s approval © Sameer Mathur 22
    • Brand Roles in the Portfolio Flankers Cash cows Low-end entry-level High-end prestige brands © Sameer Mathur 23
    • Cash Cows Some brands despite of their dwindling sales are kept around to hold on to a sufficient number of customers and maintain their profitability with virtually no marketing Despite the Mach being technologically much advanced , Gillette still sells its older models © Sameer Mathur 24
    • Low-End Entry-Level or High End Prestige Brands Line extension or brand variants in a certain product category that vary in price and quality Leverages associations from the other brands while distinguishing themselves on the basis of their price and quality dimensions © Sameer Mathur 25
    • Low-End Entry-Level To attract customer to the brand franchise “trade up” these customers to a higher-priced brand © Sameer Mathur 26
    • BMW 3-series Rs 30.40- 81.90*lakh © Sameer Mathur 27
    • High End Prestige Brands Chevrolet Corvette ZR1 To add prestige and credibility to the entire brand © Sameer Mathur 28
    • Summary Brand Architecture • • • • The role of Brand Architecture Brand-Product Matrix Breadth of a Branding Strategy Depth of a Branding Strategy Brand Portfolio • Designing a Brand Portfolio • Brand Roles in the Portfolio • • • • Flankers Cash cows Low-end entry-level High-end prestige brands © Sameer Mathur 29
    • Credits http://www.gillette.com/en/IN/home.aspx http://www.hul.co.in/investorrelations/AnnualReports/ http://www.bmw.com/com/en/newvehicles/3series/overview.html http://www.chevrolet.com/2013-corvette-zr1-sports-car.html K. L. Keller, M. G. Parameswaram, I. Jacob. (2011) . Strategic Brand Management(3rd edition). India: PEARSON © Sameer Mathur 30
    • Sameer Mathur Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 Harshit Khaitan 31 BTech, IIT Kanpur © Sameer Mathur 31