Brand Product Matrix

Products

1 2 3 …..n

B
Brands Brand Product
C Relationship (brand line)
….

Product Brand Relationship

(product line)

h Pai, Visiting Faculty, NMIMS University

 Brand Portfolio

• Brand Line
– Products within a brand (original +extensions)
– Brand portfolio is a set of all brand lines targeted at various segments

• Product line
– Set of products with similar function
– Product across brands or brand extensions

• Branding strategy
– Number of common and distinct brand elements to be used
– Breadth ( in terms of brand – product relationship and brand extension
strategy)
– Depth (in terms of product-brand relationship and brand-portfolio)

h Pai, Visiting Faculty, NMIMS University

 Brand Portfolio
Aggregate Market Factors
Market Size
Market Growth
Stage in PLC
Sales cyclicity
Seasonality
Profits

Breadth of a
Environmental Product Mix Category Factors
Factors Threat of new entrants
Technological Bargaining power of buyers
Political Bargaining power of sellers
Economic Current Category Rivalry
Regulatory Pressures from substitutes
Social Category Capacity

h Pai, Visiting Faculty, NMIMS University

 Depth of a brand

• Different brands in the same product class

• To pursue Multiple Market Segments
• To increase shelf presence and retailer dependence
• Variety to customers
• Internal Competition
• Economies of scale in advertising, sales,
merchandising and distribution

h Pai, Visiting Faculty, NMIMS University

 Other Special Roles of brand in a portfolio

• Tap into untapped segment

• Serve as flanker and protect flagship brand
• Serve as cashcow and be milked for profits
• Low end entry level product – customer acquisition
• High end prestige product

h Pai, Visiting Faculty, NMIMS University

 Brand Hierarchy

• Summarizing brand strategy by usage and sharing of brand elements

across brands ( MTV, VH1, Nick)
• Kapferer’s Branding System
– Product Brand (Ariel, tide and Dash by P and G)
– Line brand.. Across different products (Chevrolet: GM)
– Range Brand… (maggi food range)
– Umbrella brand.. Across products and services (canon, HP)
– Source brand (Garnier.. With fruit extracts) – direct named
– Endorsing brand

• Other Way of classifying

– Corporate brand (GM)
– Family Brand (Chevrolet)
– Individual Brand (optra)
– Modifier (GLX)

h Pai, Visiting Faculty, NMIMS University

 Brand Extensions

Current Products New Products

Market Penetration Product

Current Development
Markets

New Market Diversification

Markets Development

Ansoff’s Growth Share matrix

h Pai, Visiting Faculty, NMIMS University

 New product branding choices

• Develop a new brand, individually chosen for the product

• Apply, in some way, an existing brand
• Combination of the above

• Brand Extension ( 2 and 3 above)

– Line extension (same product category as the parent brand)
– Category extension (new product category vs. the current parent brand)

h Pai, Visiting Faculty, NMIMS University

 Types of extensions - Ed Tauber

• Same product new form

• Products with same taste, ingredient or component
• Companion products –(eveready flashlight and cells)
• Products relevant to the customer franchise of the brand
• Capitalize on firms expertise – dupont, canon, Honda lawn mowers
• Brands distinctive benefits
• Distinct imagery of the brand – Ferrari accessories

h Pai, Visiting Faculty, NMIMS University

 Advantages of extensions
• Advantages
– Facilitate new product acceptance
• Improve brand image
• Reduce risk perceived by customers
• Increase the probability of gaining distribution and trial
• Reduce costs of introduction and followup marketing
• Avoid cost of developing a new brand
• Packaging and labelling efficiency
• Permit consumer variety seeking

– Feedback benefits to parent brand and company

• Clarify brand meaning
• Enhance the parent brand
• New customers into the brand franchise
• Revitalize the brand

h Pai, Visiting Faculty, NMIMS University

 Disadvantages of Brand Extension

• Can confuse or frustrate customers

• Retailer resistance
• Failure and hurt to parent Brand Image
• Success and hurt to parent brand image
• Cannibalization of parent brand
• Diminish identity with any one category
• Dilute brand meaning
• Can cause the company to forego a further chance to develop a
new brand

h Pai, Visiting Faculty, NMIMS University