Prof.

Sachin Deshmukh

Branding Strategies
 Prof. Sachin Deshmukh

Introduction

Branding is major component of product strategy

What the brand signifies to the customers is an essential
part of brand management.
The values inherited by the brand merge with the company’s
values.
The firm must regularly assess the nature of its brand
image.
 Prof. Sachin Deshmukh

What is a brand?
It defines a brand name, symbol, word, sign, design or
combination that differentiates one or more offering of a
seller or group of sellers from the competition.
The brand helps the buyers in the following ways –
1. Product identification which reduces the search costs
2. Signal particular quality level which reduces perceived
costs.
3. Provide social status which reduces social and
psychological risks.
 Prof. Sachin Deshmukh

Branding
The benefits delivered by a brand to the selling company
are
1. The facilitation of customer identification & purchase
which improves financial performance
2. The breeding of customer familiarity, which aids in the
introduction of the new product offerings
3. Ability to identify specific product offerings clearly which
aids promotional efforts.
4. Differentiation of company’s offerings from those of
competitors, which enables premium pricing.
5. The distinctiveness of product offering, which allows for
the identification of appropriate target segments and
tailored communication and promotional campigns.
6. Enhancement of brand loyalty which promotes repeat
purchases
 Prof. Sachin Deshmukh

Brand Identity

Brand has a core identity which is its essence and which

remain constant
Brand has an extended identity which focuses on a series
of psychological & physical aspects that gives nuance &
texture.
Brand identity is comprised of 12 dimensions grouped
under 4 distinct brand perspectives.
 Prof. Sachin Deshmukh

Brand Identity
Extended
core

Brand as a product Brand as a Brand as a person Brand as symbol

1. Product Scope Organization 9. Personality 11. Visual &
imagery
2. Product attribute 7. Organization 10.Brand customer
metaphors
attributes relationship
3. Quality/value
12. Brand
9. Local vs global
4. Uses heritage
5. Users
6. Country of origin
 Prof. Sachin Deshmukh

Brand Equity
Brand equity focuses on the measurement of brand
value.
Brand value is a set of assets connected to a name
& symbols of the brand that adds to the value of
the product.
Brand assets are compared to brand liabilities and
maintain a strong viable brand equity valuation.
 Prof. Sachin Deshmukh

Brand Equity
Brand equity is made of 5 categories of assets
Brand awareness
Brand loyalty
Perceived quality
Brand association
Other brand proprietary assets
 Prof. Sachin Deshmukh

Brand Architecture
A complex structure of brands in a brand portfolio with a
variety of different types of brand roles and relationships.
Aaker and Joachimsthaler created the brand relationship
spectrum to help brand architecture analysis
They show a different branding relationships that extend from
the house of brands at one extreme to the branded house at
the other.
A house of brands is a company that manages a disparate
group of brands that stand on their own.
Proctor & Gamble and Colgate Palmolive represent the
house of brands.
 Prof. Sachin Deshmukh
Not connected
House of
brands Shadow endorser

Token endorser

Endorsed
Linked name
brands
Brand Strong endorser
relationship
spectrum
Co -drivers
Subbrands
Master brand as a driver

Different identity
Branded
house
Same identity
 Prof. Sachin Deshmukh

Creation of house of brands

Allows the company to
Avoid brand associations that would be perceived as
incompatible
Signal breakthrough advantages of new offerings
Own a new product class association by using a
powerful name that reflects a key benefit
Avoid or minimize channel conflict
 Prof. Sachin Deshmukh

House of brands

There are two possible options for the make up of the House
of Brands
1. No connection being made across the brands – General
Electric, General Motors
2. Shadow endorsement. Here the link is not actively
identified, but many customers understand the connection
– Tide (P & G) Lexus (Toyota)
 Prof. Sachin Deshmukh

Endorsed brands
These brands are independent but they are endorsed by
another brand.
Three types are identified
Token endorsement – where the endorser brand is the main
focus
Linked name – where a name with common components
create an entire family of brands
Strong endorsement – where the endorser brand is not
necessarily the main focus.
 Prof. Sachin Deshmukh

Subbrands

These brands are strongly connected to the parent brand

and build additional association in to the combined
offering.
There are two options for the subbrands
1. Parent and subbrand as co-drivers with neither
dominating
2. Parent brand as a driver
 Prof. Sachin Deshmukh

Branded house

Corporate brand has the dominating driving position for a

variety of product offerings.
The strategic options are
1. Brand offerings with the same identity
2. Brand offerings with different identity
 Prof. Sachin Deshmukh

Strategic Brand Management

Strategic brand management requires

understanding of two important issues
1. Industry cost structure, brand efficiency & brand
profitability
2. Consumer perceptions of brand and the potential
for sustainable competitive advantage.
 Prof. Sachin Deshmukh

Industry cost structure, brand

efficiency & brand profitability
Strategic brand decisions can have impact on financial performance of
the company
Brand managers con improve brand performance from cost &
profitability perspective.
Operational efficiencies can be achieved from
Brand leveraging
Brand consolidation
Premium branding
Co – branding
Use of non traditional communication/promotional channels
Use of new brand valuation mechanism
 Prof. Sachin Deshmukh

Brand leveraging
The company uses the name recognition that accompanies
a strong brand to increase potential sales and profits by
attaching the name to other company offerings.
The following factors drive brand leveraging
1. Leveraging causes spreading out of the support cost
associated with brand management
2. Convergence is causing the merging of many separate
industries, opening up new market opportunities
3. Relationship building appears to mean more to the
customers than functional benefits
 Prof. Sachin Deshmukh

Brand consolidation
There are many mergers and acquisitions taking
place that present challenges to the brand
managers.
If a company decides to consolidate the brands
then three choices can be made
1. To phase out the brand
2. To quickly change to a single brand name
3. To combine brands using co –branding or putting
brands under a single umbrella brand.
 Prof. Sachin Deshmukh

Can brand consolidation be

successful?
Correctly pursued brand consolidation can lead to
1. Creation of synergistic mixture which results in
greater sales than the individual brands
produced by themselves before consolidation
due to reduction in cost of goods sold.
2. A ‘makeover’ for the previously stodgy brands
that are now being fused together.
 Prof. Sachin Deshmukh

Premium branding & relative

market share
Brand profitability is driven both by market share and by
nature of market in which the brand competes.
Greater profitability can be achieved if the market is
dominated by a series of premium brands.
Studies reveal that brands with high market shares achieve
approximately 10% on return on sales while those with
low market share achieve less than 5%.
Brand managers must try to find answers to two questions
while planning brand strategy.
1. Is the category ‘premium’ or value?
2. Is the brand’s relative market share high or low?
 Prof. Sachin Deshmukh

A four cell matrix for analysis

Market share

High High – road brand Low –road brand

Low Hitchhiker brand Dead – end brand

Premium Value
 Prof. Sachin Deshmukh

Co –branding
Co – branding refers to bringing together of two
separate company brands to be marketed together
to create a joint offering with additional value to the
customer.
Kellogg’s cereals with Walt Disney
Dunkin’ doughnuts with Baskin Robbins
 Prof. Sachin Deshmukh

Non traditional communication

channels
Publicity
Event sponsorship
Theme park development – Cadbury’s in UK
Membership club development Nestle’
 Prof. Sachin Deshmukh

New brand valuation mechanism

Two ratios are used for brand assets evaluation
1. Advertising turnover ratio which examines the
relationship between advertising expenditure and brand
value.
2. Brand ROI – which is a ratio described as below
Brand ROI = Brand sales net income
brand value brand sales
 Prof. Sachin Deshmukh

Consumer perception of brand and

competitive advantage

Brand management has image & personality

component which must be carefully assessed and
tracked over time
 Prof. Sachin Deshmukh

Customer familiarity & brand regard

Consumer’s familiarity with the brand as well as consumer’s

regard for the brand must be carefully examined
 Prof. Sachin Deshmukh

Consumer’s familiarity results from

1. Brand awareness
2. The ease with which it is brought to mind
3. Brand usage
 Prof. Sachin Deshmukh

Brand regard results from

1. Product quality perceptions

2. User satisfaction
3. prestige
 Prof. Sachin Deshmukh

Categories of brands
There are five major categories of brands in terms of familiarity & appeal
1. Diamonds – are high very on familiarity & appeal have exceptional
brand equity & serve as a powerful bases for brand extension - Coke
2. Troopers – which are high in familiarity and appeal, geared towards a
broader market and good for extension that fit with brand image and
quality perceptions – Tropicana
3. Developers – which are low in familiarity and appeal, with a little
problem of cannibalization and where extensions can build
awareness – Whirlpool refrigerators
4. Tarnished treasures – with low consumer regard relative to familiarity,
where price competition has hampered high regard & the risk of
cannibalization is high. Marlboro cigarettes
5. Coveted icons – with high consumer appeal relative to familiarity,
reflective of a prestige image, extension has a high potential. – Bose,
Lamborghini
 Prof. Sachin Deshmukh

Brand personality

It is the embodiment of the personality traits of the

consumer in the brand itself
Example – Victoria’s secrets
 Prof. Sachin Deshmukh

Customer brand involvement &

perceptual connections

The key to brand success is to build strong

relationships with customers by enhancing
customer experiences with the brand, its
personality, & its heritage
 Prof. Sachin Deshmukh

Brand perceptual reinforcement &

revitalization
Keller – Brand management must always take a long term
perspective with respect to brand equity and valuation.
Any strategic decision made in the short term can affect the future
potential of the band.
Brand audit – A comprehensive examination of the various sources
of brand equity from the perspective of the company as well as the
consumer.
Lovemark – A move beyond branding to where the name becomes
a symbol of love to the consumer. The key is that the name triggers
an emotional attachment that transcends reasons
Examples of lovemarks – BBC, IKEA Singapore Airlines