These slides are prepared by Prof. Sameer Mathur, IIM Lucknow.

1. 1
Soap
2
Shampoo
3
Conditioner
4
Moisturizer
A
B
Brands C
Products
Brand Architecture and Portfolio
Prof. Sameer Mathur, Ph.D.

2. Sameer Mathur
Marketing Professor 2009 – 2013
Ph.D. and M.S. (Marketing) 2003 – 2009
Marketing Professor 2013 –
Indian Institute of Management,
Lucknow
2
© Sameer Mathur
Harshit Khaitan
BTech, IIT Kanpur
2

3. Overview
© Sameer Mathur 3
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

4. The number and nature of common or
distinctive BRAND ELEMENTS applied to
the different products sold by the firm
Brand Architecture
4© Sameer Mathur
1 2 3 4
A
Brands B
C
Products

5. 1) Clarify: Generate Brand Awareness
Improve consumer understanding and
communicate similarity and differences between
individual products
Twin roles of Brand Architecture
5© Sameer Mathur

6. 2) Motivate: Manage Brand Image
Maximize transfer of equity to/from the brand to
individual products to improve trial and repeat
purchase
Twin Roles of Brand Architecture
6© Sameer Mathur

7. 1 2 3 4
A
Brands B
C
Products
Brand-Product Matrix
7© Sameer Mathur

8. Brand-Product
relationships
(rows)
Line and
category
extensions
Product-Brand
relationships
(columns)
Brand
portfolio
Brand-Product Matrix
8© Sameer Mathur

9. Product Line
A group of products within a product category
that are closely related
1 2 3 4
A
Brands B
C
Products
9© Sameer Mathur

10. A
Brands B
C
D
Products
10© Sameer Mathur
HUL’s Bathing Soaps

11. E
Brands F
G
H
Products
11© Sameer Mathur
HUL’s Bathing Soaps

12. Brand Line
All products, original as well as line and
category extensions, sold under a particular
brand
1 2 3 4
A
Brands B
C
Products
12© Sameer Mathur

13. 1
Soap
2
Shampoo
3
Conditioner
4
Moisturizer
A
Brands B
Products
13© Sameer Mathur
Dove’s Brand Line

14. 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
14© Sameer Mathur

15. Breadth of product mix
Aggregate market factors
Category factors
Environmental factors
Breadth of a Branding Strategy
15© Sameer Mathur

16. Aggregate Market Factors
Market Size
Market
Growth
Stage in
product life
cycle
Sales
cyclicity
Seasonality Profits
16© Sameer Mathur

17. Category Factors
Threat of new
entrants
Bargaining
Power of new
buyers
Bargaining
power of
supplier
Current
category
rivalry
Pressure
from
substitutes
Category
Capacity
17© Sameer Mathur

18. Environmental Factors
Technological Political Economic
Regulatory Social
18© Sameer Mathur

19. 19
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

20. 20
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

21. 21
HUL Brand Portfolio21© Sameer Mathur

22. 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
Designing a Brand Portfolio
22© Sameer Mathur

23. Flankers
Cash cows
Low-end entry-level
High-end prestige brands
Brand Roles in the Portfolio
23© Sameer Mathur

24. Despite the Mach being technologically much
advanced , Gillette still sells its older models
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
24© Sameer Mathur

25. 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
25© Sameer Mathur

26. Low-End Entry-Level
To attract customer to the brand franchise
“trade up” these customers to a higher-priced
brand
26© Sameer Mathur

27. BMW 3-series
Rs 30.40- 81.90*lakh
27© Sameer Mathur

28. High End Prestige Brands
To add prestige and credibility to the entire
brand
Chevrolet Corvette ZR1
28© Sameer Mathur

29. Summary
© Sameer Mathur 29
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

30. Credits
© Sameer Mathur 30
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