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Some Branding Strategies
Branding Strategy
• 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
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
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
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.
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
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
Case 3
• 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
Brand Extension
• 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!!!
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.
Case 4
• 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
Case 5
• 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.
Product-Market Matrix
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
Brand
Name
Product
Line
EXISTING
EXISTING
NEW
NEW
Line
Extension
Flanker
Brand
Brand
Extension
Diversification
Product Line-Brand Matrix
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants &
Other-Mother )
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi
India Postal Code-110015
Branding strategies

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Branding strategies

  • 2. Branding Strategy • 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
  • 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
  • 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
  • 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.
  • 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
  • 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
  • 8. Case 3 • 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
  • 9. Brand Extension • 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!!!
  • 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.
  • 11. Case 4 • 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
  • 12. Case 5 • 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.
  • 13. Product-Market Matrix 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
  • 15. Parveen Kumar Chadha… THINK TANK (Founder and C.E.O of Saxbee Consultants & Other-Mother ) Email :-saxbeeconsultants@gmail.com Mobile No. +91-9818308353 Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015