unit 4 branding strategies · • branding strategy is critical because it is the means by which...
TRANSCRIPT
UNIT 4
BRANDING STRATEGIES
BRANDING STRATEGY
• Branding strategy is critical because it is the means by which the firm can help consumers understand its products and services and organize them in theirminds.
• Two important strategic tools: The brand- product matrix and the brand hierarchy help to characterize and formulate branding strategies by defining various relationships among brands and products.
BRANDING STRATEGY OR BRAND
ARCHITECTURE
• The branding strategy for a firm reflects the
number and nature of common ordistinctive
brand elements applied to the different
products sold by the firm.
– Which brand elements can be applied to which
products and the nature ofnew and existing brand
elements to be applied tonew products
THE ROLE OF BRAND ARCHITECTURE
• Clarify: brand awareness
– Improve consumer understanding and
communicate similarity and differencesbetween
individual products
• Motivate: brand image
– Maximize transfer of equity to/from the brand to
individual products to improve trial and repeat
purchase
DEVELOPING BRANDARCHITECTURE
STRATEGY
3 Steps or Requirements
1.Defining the Potential of the brand in terms of
its “market footprint”
2.Identifying the Product and ServiceExtensions
that will allow the brand achieve that potential
3.Specifying the brand elements and positioning
associated with the specific products andservices
for the brand
1. DEVELOPING BRAND ARCHITECTURE
STRATEGY : DEFINING THE BRANDPOTENTIAL
• 1. Brand Vision: Management’s view of the brand’s long term
potential. It relates to the brand’s “higher order purpose”
e.g. eliciting joy, enabling connections, evoking pride,inspiring exploration
etc.
Crayola : Known for crayons. Now Crayola Chalk, CrayolaGlitter Glue, Crayola
Scissors hence Brand Meaning of “Colourful Arts and crafts for kids”
Brand Essenceis to find “What if “ in eachchild”
“ We believe in unleashing, nurturing and celebrating the colourful originality in
every child. We give kids an invitation that ignites, colours that inspire, and
tools that transform original thoughts into visible form. We give colourful
wings to the invisible that grow in the hearts of children. Becausewe believe
that creatively alive kids grow into inspiredadults.”
DEVELOPING BRAND ARCHITECTURE
STRATEGY : DEFINING THE BRANDPOTENTIAL
2.Defining Brand Boundaries: Identifying the
products or services the brand should offer,it
should supply and the needs it should satisfy
based on its brand vision andpositioning.
3.Crafting the Brand Positioning: The unique
and valuable place the brand seeks to occupyin
the minds and hearts of consumers relative to
its competitors.
2. IDENTIFYING BRAND EXTENSION
OPPORTUNITIES
Identify new products and services toachieve
that potential through a well-designed and
implemented brand extensionstrategy.
Line Extension : New product introductions
within existing category e.g. Close UpWhite
Category Extensions: New product
introductions outside existing categoriesetc.
Sunlight Dishwash, Dove Deodorant
3. DEVELOPING BRAND ARCHITECTURE STRATEGY:
BRANDING NEW PRODUCTS ANDSERVICES
Branding New Products andServices
•This involves deciding the specific brand
elements to use for any particularnew product
or service associated with thebrand.
•New products and services must be branded in
a way to maximize the brand’s overall clarity
and understanding to consumers andcustomers
BRAND-PRODUCTMATRIX
•Must define:
– Brand-Product relationships (rows)
• Line and category extensions
– Product-Brand relationships (columns)
• Brand portfolio
A
B
C
Products
1 2 3 4
Brands
IMPORTANT
DEFINITIONS
• Product line
– A group pf products within a productcategory
that are closely related
• Product mix (product assortment)
– The set of all product lines and items that a
particular seller makes available to buyers
• Brand mix (brand assortment)
– The set of all brand lines that a particularseller
makes available to buyers
BREADTH OF A BRANDING
STRATEGY
• Breadth of productmix
– Aggregate market factors
– Category factors
– Environmental factors
• Depth of productmix
– Examining the percentage of sales andprofits contributed by each item in the product line
– Deciding to increase the length of the product line by adding new variants or items typically expands market coverage and therefore market share but also increases costs
DEPTH OF A BRANDING
STRATEGY
• The number and nature of different brands
marketed in the product class sold by afirm
• Referred to as brandportfolio
• The reason is to pursue different market
segments, different channels of distribution,
or different geographicboundaries
• Maximize market coverage andminimize
brand overlap
DESIGNING A BRANDPORTFOLIO
• Basic principles:
– Maximize market coverage so that nopotential
customers are being ignored
– Minimize brand overlap so that brands aren’t
competing among themselves to gain thesame
customer’s approval
BRAND ROLES IN THE
PORTFOLIO
• Flankers
• Cashcows
• Low-end entry-level
• High-end prestige brands
BRANDHIERARCHY
• A means of summarizing the brandingstrategy
by displaying the number and nature of
common and distinctive brand elements
across the firm’s products, revealing the
explicit ordering of brandelements
• A useful means of graphically portraying a
firm’s branding strategy
BRAND HIERARCHY TREE:TOYOTA
Toyota
Corporation
Toyota
(Trucks)
Toyota
(SUV/vans)LexusToyota
Financial
Services
Toyota
(Cars)
Corolla PriusCelica ECHO MatrixMR2
SpyderCamry
CE
S
LE
SE
LE
XLE
Avalon
Platinum
Edition
XL
XLSSE
SLE
BRAND HIERARCHYLEVELS
Family Brand (Buick)
Corporate Brand (General Motors)
Modifier: Item or Model (Ultra)
Individual Brand (Park Avenue)
CORPORATE BRAND
EQUITY
• Occurs when relevant constituents hold
strong, favorable, and uniqueassociations
about the corporate brand inmemory
• Encompasses a much wider range of
associations than a product brand
UMBRELLA OR FAMILY OR RANGE
BRANDS
• Brands applied across a range of product
categories e.g. Sunlight, Dove,Nivea
• An efficient means to link common
associations tomultiple but distinct products
INDIVIDUALBRANDS
• Restricted to essentially one productcategory
• There may be multiple product typesoffered
on the basis of different models, package
sizes, flavors, etc.
MODIFIERS
• Signals refinements or differences in the
brand related to factors such as quality levels,
attributes, functions, etc.
• Plays an important organizing role in
communicating how different productswithin
a category that share the same brand name
are. E.g. Johnnie Walker Red Label, Black
Label, Gold Label Scotch whiskey, Wrigley’s
Spearmint, Doublemint, Juicy Fruit etc.
CORPORATE IMAGEDIMENSIONS
•
•
•
•
Corporate product attributes, benefits orattitudes– Quality
– Innovativeness
People and relationships– Customer orientation
Values and programs– Concern with the environment
– Social responsibility
Corporate credibility– Expertise
– Trustworthiness
– Likability
BRAND HIERARCHY
DECISIONS
• The number of levels of the hierarchy to use
in general
• How brand elements from different levels of
the hierarchy are combined, if at all, for any
one particular product
• How any one brand element is linked, ifat all,
to multiple products
• Desired brand awareness and image at each
level
NUMBER OF HIERARCHY
LEVELS
• Principle of simplicity
– Employ as few levels aspossible
• Principle of clarity
– Logic and relationship of all brandelements employed must be obvious andtransparent
LEVELS OF AWARENESS AND
ASSOCIATIONS
• Principle of relevance
– Create global associations that are relevantacross as many individual items aspossible
• Principle of differentiation
– Differentiate individual items andbrands
Brand Strategies
Aaker’s Brand Equity Model
Aaker’s Brand Equity Model
Brand Equity Framework
BrandEquity
BrandAttributes &Brand
AwarenessBrandLoyalty
PerceivedQualityAssociations
BrandRecall
BrandRecognition
Uniqueness Favorability Relevance
Brand Equity Framework
Brand Associations: Uniqueness
USP Unique Selling
Product-related
Image Related
Proposition
Points of Difference - How brand is unique
Points of Parity - How brand is similar to others
Brand Value Chain Model
Customer
Mind-setMarketing
Activity
Market
PerformanceShareholder
Value
CUSTOMER-BASED BRAND EQUITY PYRAMID
RESONANCE
JUDGMENTS
PERFORMANCE IMAGERY
SALIENCE1. IDENTITY =
Who are you?
2. MEANING =
What are you?
3. RESPONSE =
What about you?
PERFOR
FEELIN
IMA
4. RELATIONSHIPS =
What about you & me?
Customer-Based Brand Equity Model
Consumer-Brand
Resonance
ConsumerJudgments Feeling
Brand Brand
Imagery
Brand Salience
DEEP, BROAD
BRAND
AWARENESS
POINTS-OF-
PARITY &
POINTS-OF-
DIFFERENCE
RATIONAL &
EMOTIONAL
REACTIONS
C
Bran
Perfo
onsumer
rmance
Consu
Feelings
INTENSE, ACTIVE
LOYALTY
Customer-Based BrandPyramid
Equity
Brand Salience - How brand standsrest (Prominence)
out from the
Brand Performance - How product meetscustomers’ functional needs
Brand Imagery - Strong, Unique Associations How
brand meets psychological or social needs Brand
Judgments - Personal opinions & evaluationsof brand
Brand Feelings - Emotional responses to brand
Brand Resonance - Intense loyalty, Activeinvolvement with brand
Thank You