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Some Branding Strategies
FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
Leveraging the power of the brand name to cover the
market more effectively
◦ Brand associations
Why do we do it?
◦ Phenomenally expensive to create and promote a new brand
name (at least 100 – 150 million dollars)
◦ Too many brands out there
◦ Increase productivity of current marketing programs
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Branding Strategy
Case-1
Your brand has a respectable market share but you want it to grow. What do
you do?
◦ Address segment needs more precisely
How can you use the equity of the brand name to address segment needs even
better?
◦ Sub-branding / umbrella branding
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Sub-branding
Creating new brands which are part of the parent brand family –
expressed as suffixes of the parent brand.
e.g Nike Air Jordan is a sub-brand of Nike which is the parent brand. Air
Trigo, Air Mohawk are sub-brands of Nike Air.
Apple I-Pod, I-Pod Mini, I-Pod Shuffle and now the I-Pod Nano
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Umbrella branding
When you have many sub-brands, each linked to a common brand, then
the common brand is known as the umbrella brand
E.g. Ford Taurus, Ford Explorer, Ford Focus, Ford Ranger, Ford Five
Hundred, Ford Freestyle, Ford Expedition, Ford Thunderbird, etc.
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Case 2
Your brand has a respectable market share and you want to protect it
from growing competition. What do you do?
◦ Address that section of the market which does not buy your product
How can you attract customers who do not buy into your brand’s
equity?
◦ Flanker branding
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Flanker Brand
Different brand name – same product
◦ Purpose: Pre-empt competition, cover the market more completely (protect
your flanks)
◦ Problem: some cannibalization is expected.
E.g. Thums Up and Coca Cola in India
General Mills – Robin Hood and Gold Medal brand flour
Tide and Cheer from P&G
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Your brand is strong in your current market. The market is saturated
and you are looking to diversify. What do you do?
◦ Identify another product and give it the same brand name
If the new product is in the same product line – Line Extension
If the new product is from a completely different product line – Brand
Extension
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Case-3
Same brand name, new product line e.g. Reebok
shoes and Reebok water. Nike shoes and Nike
casuals. Chevy cars and Chevy men’s cologne.
Hooters restaurants and Hooters airline
The concept of congruence determines the success
of a brand extension strategy. E.g. Johnson’s baby
powder and Johnson’s baby oil – high congruence.
But imagine Lysol toilet bowl cleaner and Lysol
toothpaste!!!
FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
Brand Extension
Line Extension
Same brand name, different product in the same product line.
◦ E.g. Ivory soap and Ivory shampoo; IBM PCs and IBM laptops
◦ Line extensions are safer strategies than brand extensions since congruence
is always higher.
FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
Your brand is sold in the B2B market as a component of another
product. You want the brand to get consumer recognition and equity.
What do you do?
◦ Tell consumers about your brand’s presence in the final product
Ingredient branding: Branding an ingredient of the main brand,
which is often manufactured by a different company.
E.g. Intel Inside is an ingredient brand on IBM, Dell, Compaq, etc. computers;
Breyers Chocolate Ice Cream with Hershey’s pieces / M & Ms; Breyers
icecream with Splenda
FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
Case-4
You have a strong brand but want to penetrate the
market even better. What do you do?
Complementary Branding OR Co-branding – when
two or more mutually reinforcing brands get
together to jointly promote themselves (one is not
an ingredient of another).
E.g. co-branded credit cards like Chase MasterCard,
OR Harley Davidson and Ford Explorer.
FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
Case-5
NEW
OLD
OLD NEW
Product
Market
Diversification
Brand extension
Product Development
Co-branding
Ingredient branding
Market Development
Brand extension
Line extension
Market Penetration
Sub-branding
Flanker brands
Co-branding
FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
Product-Market Matrix
FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
Brand
Name
Product
Line
EXISTING
EXISTING
NEW
NEW
Line
Extension
Flanker
Brand
Brand
Extension
Diversification
Product Line-Brand Matrix
FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
Thank You!
Ritu RajBranding & Digital Media
Follow me:
/Ritu__Raj
/digitalrituraj

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Branding strategies- Ritu Raj

  • 1. Some Branding Strategies FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
  • 2. Leveraging the power of the brand name to cover the market more effectively ◦ Brand associations Why do we do it? ◦ Phenomenally expensive to create and promote a new brand name (at least 100 – 150 million dollars) ◦ Too many brands out there ◦ Increase productivity of current marketing programs FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ Branding Strategy
  • 3. Case-1 Your brand has a respectable market share but you want it to grow. What do you do? ◦ Address segment needs more precisely How can you use the equity of the brand name to address segment needs even better? ◦ Sub-branding / umbrella branding FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
  • 4. Sub-branding Creating new brands which are part of the parent brand family – expressed as suffixes of the parent brand. e.g Nike Air Jordan is a sub-brand of Nike which is the parent brand. Air Trigo, Air Mohawk are sub-brands of Nike Air. Apple I-Pod, I-Pod Mini, I-Pod Shuffle and now the I-Pod Nano FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
  • 5. Umbrella branding When you have many sub-brands, each linked to a common brand, then the common brand is known as the umbrella brand E.g. Ford Taurus, Ford Explorer, Ford Focus, Ford Ranger, Ford Five Hundred, Ford Freestyle, Ford Expedition, Ford Thunderbird, etc. FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
  • 6. Case 2 Your brand has a respectable market share and you want to protect it from growing competition. What do you do? ◦ Address that section of the market which does not buy your product How can you attract customers who do not buy into your brand’s equity? ◦ Flanker branding FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
  • 7. Flanker Brand Different brand name – same product ◦ Purpose: Pre-empt competition, cover the market more completely (protect your flanks) ◦ Problem: some cannibalization is expected. E.g. Thums Up and Coca Cola in India General Mills – Robin Hood and Gold Medal brand flour Tide and Cheer from P&G FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
  • 8. Your brand is strong in your current market. The market is saturated and you are looking to diversify. What do you do? ◦ Identify another product and give it the same brand name If the new product is in the same product line – Line Extension If the new product is from a completely different product line – Brand Extension FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ Case-3
  • 9. Same brand name, new product line e.g. Reebok shoes and Reebok water. Nike shoes and Nike casuals. Chevy cars and Chevy men’s cologne. Hooters restaurants and Hooters airline The concept of congruence determines the success of a brand extension strategy. E.g. Johnson’s baby powder and Johnson’s baby oil – high congruence. But imagine Lysol toilet bowl cleaner and Lysol toothpaste!!! FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ Brand Extension
  • 10. Line Extension Same brand name, different product in the same product line. ◦ E.g. Ivory soap and Ivory shampoo; IBM PCs and IBM laptops ◦ Line extensions are safer strategies than brand extensions since congruence is always higher. FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ
  • 11. Your brand is sold in the B2B market as a component of another product. You want the brand to get consumer recognition and equity. What do you do? ◦ Tell consumers about your brand’s presence in the final product Ingredient branding: Branding an ingredient of the main brand, which is often manufactured by a different company. E.g. Intel Inside is an ingredient brand on IBM, Dell, Compaq, etc. computers; Breyers Chocolate Ice Cream with Hershey’s pieces / M & Ms; Breyers icecream with Splenda FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ Case-4
  • 12. You have a strong brand but want to penetrate the market even better. What do you do? Complementary Branding OR Co-branding – when two or more mutually reinforcing brands get together to jointly promote themselves (one is not an ingredient of another). E.g. co-branded credit cards like Chase MasterCard, OR Harley Davidson and Ford Explorer. FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ Case-5
  • 13. NEW OLD OLD NEW Product Market Diversification Brand extension Product Development Co-branding Ingredient branding Market Development Brand extension Line extension Market Penetration Sub-branding Flanker brands Co-branding FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ Product-Market Matrix
  • 14. FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ Brand Name Product Line EXISTING EXISTING NEW NEW Line Extension Flanker Brand Brand Extension Diversification Product Line-Brand Matrix
  • 15. FOLLOW ME: FB/DIGITALRITURAJ , TWITTER.COM/RITU__RAJ Thank You! Ritu RajBranding & Digital Media Follow me: /Ritu__Raj /digitalrituraj