Brand Management

Managing beliefs and attitudes –

the only sustainable competitive
advantage
 Beiersdorf AG: Brand Mix

NIVEA VISAGE Skin Care

     JUVEDICAL
NIVEA BEAUTÉ The Caviar Col Sensitive Skin
Basic Care lection
NIVEA Hair Care Dry Skin
Deo Sprays Swiss Cellular PERSONAL S
Beauty Care NIVEA Creme De-Agers KIN COLLEC
Deo Roll-on Sensitive Facial
TION Skin
NIVEA soft Moisture Care REJUVEN
Sophisticated Care Face Impure Skin
NIVEA body Moisture Care
REJUVEN ulti Mature Skin
Performance Care NIVEA SUN Eyes
-max Sensitive Scalp
Cleansing Ess
NIVEA FOR MEN entials JUVENANCE
NIVEA Hand Creme Specialized Sk Sun Sensitive Sk
in
incare JUVENANCE
NIVEA deodorant Hand & Nail selection
Body Care
Face Care Soleil Suisse JUVELIA
NIVEA VISAGE V
ITAL vital Foundation
BODY
NIVEA Bath Care Cellular Treat
Body Care ment Colour a
NIVEA Lip Care
DISCOVER
nd Care for Lip
Men SWISS BASICS
NIVEA Baby s
Shower & Bath Cellular Treat
NIVEA Intimate C
Soap & Care ment Eye Colo Wound Care
are ur
Wellness Sport
Cellular Treat
ARCTIC ment Colour fo Scar Reduction
r Face External Pain
WILD RIVER
Art of the Brus Relief
h
Foot Care
Insect
 Product category structure
TOP DOWN DECISION MAKING FROM
PRODUCT CLASS 1

PRODUCT CATEGORY 2
1
PRODUCT TYPE 3 Drinks
BRAND 4

Water Flavoured
2
Non-alcoholic Alcoholic

Carbonate Milk Hot Juice Wine Beer Spirit 3

Squeezed
Squash
Cola Non Cola
FC
NFC
Coca Sprite Tropicana 4
cola
Brand positioning
The world’s biggest personal care brand – the mother of all
creams since 1911
Long acting, highly effective deodorant in attractive fragrances
From trendy to classic

Effective and superior lip care now and in the future

The specialist in high price anti-aging products. Available only

In selected specialist outlets
The brand with Swiss origins, restores the skin to what time has
Taken away
The leading dermocosmetic brand recommended by doctors and
pharmacists

All round care assortment, skin conditions for all the family

Self medicated wound care for sports related, muscle, and back
Pain, plus foot care and insect bites. We help to heal
 Brand awareness
• The product has an identity which links the
brand to a product category and consumption or
usage situations
• Depth of brand awareness measures how easily
a brand comes to mind (“I have dry skin – what
might help?”)
• Breadth of brand awareness measures the
different usage situations in which a brand
comes to mind (“I have dry skin and burn easily
in the sun”)
 Product level positioning
THE MOTHER OF
ALL MODERN
CREAMS SINCE
1911. TODAY NIVEA
HAS DEVELOPED INTO
A BIG BRAND FAMILY.
FOR YEARS NIVEA HAS
Cares for Efficient face care
BEEN THE WORLDS Formulated
Trustworthy and The most And cleansing The competent
BIGGEST PERSONAL To optimally
perfectly compatible Understanding skin Vulnerable Products adapted Hand care line The advanced mild
CARE BRAND Care for the
with your intimate Care partner for Skin you To the special To maintain Caring range which
Have – the Needs of Skin to
area. Confidence Babies to ensure Offer the The beauty of Covers all male
and well being all Healthy lips Mature skin The hands Facial skin care
Most caring
day long Development right Way to needs
From the start Effective
deodorisation

Face care which

The expert
Visibly enhances your
Brings out the Make up with the Own beauty in
Best in your skin. Skin care Harmony with your
Nivea Body is The original Competence of NIVEA
Precious ingredients skin
Your partner Moisturiser for And a passion for
The safest sun care Every skin type To protect and
In skin care It feels like gentle Colour to
Protection for the Care for your hair
Summer rain for For daily use Celebrate your
Whole family plus Feminine beauty
All the care of Soft and supple
skin
NIVEA
 LIPS
HANDS
Skin Care WOUND
Segment CARE INTIMATE

Map Florena
Nivea ANTI-AGING
DERMO Nivea LipCare
Hand Nivea
Hansaplast Labello Intimate

Nivea
Eucerin Visage
DEO
EVERYDAY Juvena
Florena La Nivea 8x4
Nivea
La Prairie Deo
Creme Juvena
MASS PREMIUM PrairieSUPER PREMIUM
La
La Prairie Eucerin Nivea
Prairie La
Florena Sun
La Prairie SUN
SOAP Juvena
Nivea Prairie
Nivea
Juvena
Nivea Soft Beaute
Juvena
Body

florena Nivea Nivea Visage

For Men Nivea Nivea Vital
BathCare Baby
BODY Florena COLOUR
Florena
Florena

MEN MATURE
BATH BABY
 The Brand Portfolio Model (Riezebos)
High quality perception
La Prairie High psycho social meaning
PRESTIGE High price
BRAND
Juvena

Labello
8x4
Eucerin Nivea
Premium strategy
FLANKER BASTION High perceived FLANKER
performance
BRAND BRAND Most profitable
BRAND
Highest share and
Specific needs T/O
Can be niche
Strategic importance
(eg barrier to entry)
Florena Priced between bastion and discount
Protection from own brand/discount brand
FIGHTER Strategic rather than financial importance
BRAND
 BPM rationale
• The essence of the BPM is to use other brands
to protect the most profitable brand from
competitive attack and customer defection
• Ries and Trout’s “teeter-totter principle”: one and
the same brand cannot refer to two different
experiences
• The boundary of a brand is determined by the
different needs, desires and macro-
segmentation variables of the target customer
 Advantages of brand types

BRAND TYPE FINANCIAL STRATEGIC

ADVANTAGE ADVANTAGE
Bastion High High

Flanker Low High

Fighter Moderate High

Prestige High Moderate

Based on Riezebos
 Brand – Product Matrix
PRODUCTS

lips Anti-aging n Product line

BRANDS

Labello Brand line

Nivea
La Prairie
n

Rows = brand/product relationships ie the number and nature of products sold

under different brands. This is breadth of branding strategy

Columns = product/brand relationships ie the number and nature of brands in each

product category. This is depth of branding strategy
 Decisions about breadth of branding
strategy
• Means decisions about breadth and depth of product mix (how
many product lines and how many variants in each line)
• Breadth of product mix concerns attractiveness of product category
measured by

AGGREGATE MARKET CATEGORY FACTORS ENVIRONMENTAL

FACTORS FACTORS
Market size Threat of new entrants PEST factors

Market growth Bargaining power of buyers

PLC stage Bargaining power of suppliers

Cyclical Current category rivals

Seasonal Product substitutes

Profitability Category capacity

Category attractiveness criteria from Lehmann and Winer

 Decisions about depth of branding strategy

• Depth is the number and nature of brands in each

product class
• Why does Beiersdorf have multiple brands in the same
product category?
• Basic principles of portfolio design (Keller): maximise
market coverage so that no consumers are being
ignored, minimise brand overlap so that brands aren’t
competing against themselves
• Each brand should have a distinct target market and
positioning
 The product within the brand
• The product is the primary influence on
what consumers experience with a
brand, what the firm can tell them
about it and what consumers hear
from others about the brand (Keller)
• At the heart of a great brand is a great
product (Keller)
• For brand loyalty to exist and to grow
brand equity consumers’ experiences
with the product must meet and/or
surpass their expectations (Keller)
Great products
• Brand attitude is more dependent on
abstract imagery, symbolism and the
personality reflected in the brand
(Froggett)
• Augmented benefits and intangibles
are more important than product
performance (Froggett)
• Rarely can consumers articulate
expectations of product performance
and rarely does perceived quality
shape future purchase behaviour
(Froggett)
Brand leaders
 Product related performance associations

• For brands whose core associations are primarily

product related performance attributes innovation in
product design and manufacturing are crucial to brand
equity (Keller)
• “Good products come from market research, great
products come from R&D” Alfred Zeien former Gillette
CEO “we increase spending in growth drivers (R&D,
plants, equipment, advertising) at least as fast as
revenues go up”
• See Gillette and Barbie case studies
Brand Concept Experiential concept
Chamomile and vitamins
Management (Park,
Jaworski and MacInnis) Subtle fragrance
Fresh and healthy skin
Functional needs – linked to basic
motivations (physiological, safety).
Solves externally generated
consumption needs

Symbolic needs – internally

generated needs for self Symbolic concept
enhancement, role position, social
approval. Prestige, fashionability,
exclusivity linked to self concept “Advanced shaving”
Functional concept with “Ultraglide
Experiential needs – sensory Technology”
pleasure, variety and stimulation Soothes, calms and
Protects sensitive
skin
 Look beyond product features:
innovate across the whole product experience
Product and experience features for
a laptop:

24/7 free tech support

Screen resolution

Memory
Processor speed

Battery life
Weight

Goffin et al 2005
Extending the brand

“Whether it's eating healthier, de-cluttering

your life or changing the way you approach
problems, there are lots of things we can
all do to make things more comfortable.”
Playtex.co.uk
 New products and brand extensions
Options for branding the new product?

Product
Development
Strategy

Market Product Market

Penetration Development Penetration
Strategy Strategy Strategy

Market Market
Diversification Diversification
Development Development
Strategy Strategy
Strategy Strategy

1. Develop a new brand individually chosen for the

new product (Beiersdorf/Labello)
Brand 2. Apply an existing brand (Playtex, Branston Beans)
extension 3. Combination of existing and new brand (Nivea
Visage),
 Types of brand extensions (Keller 2008)
• Line extension: apply the parent brand to a
new product that targets a new market
segment within an existing product
category served by the parent brand
(Nivea Visage, Walkers SunBites)
• Category extension: apply the parent
brand to enter a different product category
(Branston Beans, Playtex Tampons)
 Tauber’s brand extension strategies

Same product/different form Mars Bar ice cream

New product containing brand’s distinctive taste or ingredient Bacardi Breezer

Companion products Durabeam torch, Aunt Bessie roast

spuds
New product relevant to existing customer franchise

Products that capitalise on the firm’s expertise Honda lawnmower, Canon copiers

Products that reflect the brands distinctive benefit, feature, Apple iPod
attribute
Products that capitalise on the brand’s distinctive image, Chanel watches, Adidas tolietries
prestige, positioning
 Brand extension advantages

ADVANTAGE
IMPROVE BRAND IMAGE Pre-purchase evaluation based on knowledge of brand and extent to which this is
relevant to new product
REDUCED RISK Connection to a well known brand family increases likelihood of consumer trial
PERCEPTION
INCREASED CHANCE OF Brand reputation is a key screening criterion for retail buyers
RETAIL LISTING
INCREASED Advertising to sales ratios are lower for brand extensions than for new name entries.
PROMOTIONAL Existing brand links and associations aid CDP
EFFICIENCY
HALO EFFECT Other brands in family benefit from launch and on-going marketing programmes

AVOID NEW BRAND Names, logos, symbols, packaging, slogans are expensive to develop
DEVELOPMENT COSTS
PACKAGING AND Greater prominence in retail environment, increased visibility
LABELLING
EFFECTIVENESS
PERMITS CONSUMER Consumers can purchase more product types without leaving the brand family
VARIETY SEEKING