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Branding strategy


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Branding strategy

  1. 1. Branding StrategyStrategy OptionsIndividual Brandsno connectionsBlanket Brandshelp pull new products through channelSeparate Family Brandssimilar manufacturing but not marketingdoes not tie all products together
  2. 2. Branding StrategyStrategy Options (cont.)Brand ExtensionBrand X, new and improved, with additives, new package size, newflavor…..Multibrand (proliferation)increase shelf space and market sharecatch brand switchersreach new segments
  3. 3. Branding StrategyStrategy Options (cont.)Brand Repositioningmove to a better segmentcompetition increased in current segmentcustomer preference changednew segment opened up
  4. 4. Branding StrategyDeveloping a Brand Nameshould suggest product benefit or qualityeasy to spell, remember, pronouncedistinctiveno negative connotationsno legal restrictionscannot be immoral, deceptive, scandalous
  5. 5. Steps to building a brand• Creation of strategic brand platform• Program driven approach with committedinvestments• Clear positioning and product quality in allmarkets• Clear roadmap on R&D to improve brandvalue• Global marketing organization• Implement performance measure
  6. 6. Major brand buildingcomponentsAdvertising -EventsCustomerReferralsAwardsRecognitionPRInfluencersProduct StrategyUser Forums
  7. 7. What defines an effective brand?The “5 Cs” of effective branding:1. clear in its positioning - where we will compete2. compelling to internal and external stakeholders - through itsrelevance (how we will compete)3. credible and is aligned to the brand’s core competencies - ensuresdelivery4. consistent in its execution - delivered through all touch points -physical and non physical5. cohesive - it serves to bond all stakeholders around a shared visionthat is aligned to the company’s mission - it is actively owned
  8. 8. Brand-Product Matrix:Relationships Diagramed• Brand line - all products sold under a brand• Brand portfolio -set of all brands and brand linesa company offers in a product category; used tomaximize equity (BR, Gap, ON)• Product line - products similar in price, TA, ordistribution• Product mix - all product lines• Brand mix - all brand lines
  9. 9. Breadth of Branding Strategy:Product Mix• Aggregate market factors - size, growth,stage, profits• Category factors - competition, bargainingpower of buyers & suppliers• Environmental factors - technological,economic, political, social
  10. 10. Depth of Branding StrategyMultiple brands are used to pursue multiplemarket segmentsSegment Ford brandLuxury (MB, Lexis) Jaguar, LRoverUp-market (BMW,Cad) Volvo, Lincoln,Astin MartinMid-price (HTN, GM, Ford, Mercury,Chrysler) Mazda
  11. 11. Depth Tactics• Flankers - to create stronger POP withcompetition so flagship brand keeps desiredposition (Philip Morris’ use of discountBasic to protect Marlboro hi $)• Cash cow - milked till dead (Trac II)• Low end entry or hi end prestige - subbrands used to leverage on basis of price orquality (BMW Z3, 700 series)
  12. 12. Brand Hierarchy• Corporate - GM• Family - Buick• Individual - Park Avenue• Modifier (model) - Ultra
  13. 13. Branding System• Product brand - individual positioning (P&Gs Ariel,Tide, Dash detergents)• Line brand - cross branding (Renault)• Range brand - one name for a group (Green Giantvegetables)• Umbrella brand - one brand for products in many markets(Canon copiers, cameras, equipment)• Source brand - family with different names (Calvin Klineperfume, clothing lines)• Endorsing brand - diverse products & brands (GeneralMotors cars)
  14. 14. EquityCorporate level image determinants1. Common product attributes, benefits(Quality, innovation)2. People and relationships (customerorientation)3. Values and programs (social resp)4. Corporate credibility (expertise, trust,likeability)
  15. 15. Designing branding strategyCorporate dominantcorporate brands (Kellogg)house brands (Frosted FlakesMixed brandsduel brands (equal prominence)endorsed brands (Chevy Blazer)Brand dominantmono brand (Absolute)furtive brand (identity secret; Turning Leaf)
  16. 16. Corporate/ProductRelationships1. Single entity: Federal Express2. Brand dominance: Marlboro (PM)3. Equal dominance: Nissan Maxima4. Mixed dominance: Bosch/ Blaupunikt5. Corporate dominance: XeroxAcura - from equal (Acura Legend) tocorporate dominance (Acura 3.5RL)
  17. 17. Naming choice for new products1. New brand name2. Apply existing brand name (TracIII)3. Combination of new with existing brandname (brand extension)• line extension - new flavor, Absolutecitron• category extension - Swiss Armyluggage
  18. 18. Expanding meaning with brandextensionsbrand product extension meaningCrayola crayons paint, clay kid craftSwiss Army knife luggage adventureMont Blanc pens watches luxuryBillabong surfboard snow & all sportsskate boards
  19. 19. Master brandsOwning an association in the consumer’s mind: Band-Aid,Alka-Seltzer, Jell-O, Crayola, VaselineDifficult to extend directly to other product categories.Directions for leveraging master brands are:1. Sub-branding to give new element (DuPont Stainmastercarpet)2. Super-branding adds improved element (EverreadyEnergizer batteries)3. Brand bundling fortifies master w/co-branding4. Brand bridging to new category
  20. 20. Advantages of Strong Brands• Improved perceptionsof productperformance• Greater loyalty• Less vulnerability tocompetitivemarketing actions• Less vulnerability tocrises• Larger margins• More inelastic consumerresponse• Greater trade cooperation• Increased marketingcommunicationseffectiveness• Possible licensingopportunities
  21. 21. A Continuum of BrandFamiliarityBrandNon recognitionBrandinsistenceBrand Brand BrandBrandrecognition acceptance preferenceinsistence
  22. 22. Packaging• Includes the activities of designing andproducing the container for a product• Packaging is done at three levels- primary- secondary- shipping
  23. 23. Packaging as a marketing tool• Self service• Consumer affluence• Company and brand image• innovation
  24. 24. Designing packaging• Packaging concepts• Technical specifications• Engineering tests• Visual tests• Dealer tests• Consumer tests• Packaging innovations• Environmental considerations
  25. 25. Labels• Identification• Grade classification• Description of product• Manufacturer identity• Date of mfg., batch no.• Instructions for use• Promotion
  26. 26. Labels as a marketing tool• Labels need to change with time orpackaging changes to give it acontemporary and fresh look
  27. 27. Packaging and LabelingSecondary PackagePrimaryPackageShippingPackagePackagingAspects
  28. 28. Packaging and Labeling• Developing an effective package:– Determine the packaging concept– Determine key package elements– Testing:• Engineering tests• Visual tests• Dealer tests• Consumer tests
  29. 29. Packaging and LabelingMay Promote the ProductFunctions of LabelingMay Describe the ProductMay Identify Product GradeIdentifies the Product or Brand