Brand strategy

Branding
A brand is a
name, term, sign,
symbol, or design,
or a combination
of these, that
identifies the
maker or seller of
a product or
service.
A brand is…
 Branding
 Advantages to buyers:
– Product identification
– Product quality
 Advantages to sellers:
– Basis for product’s quality
– Provides legal protection
– Helps to segment markets
 Some basics on Brand
 The concept of Brand is usually associated
to Brand Equity.

 Brand Equity is the sum of a brand´s

distinguishing qualities and is sometimes
referred to the intangible value that
accrues to a company as a result of its
successful efforts to establish a strong
brand.
 Financially, brand equity is the value of a
brand as a financial asset in balance
sheet, proprietary brand assets (eg.
patents, trademarks, copyrights, channel
relationships).

 From a marketing point of view, brand

equity is the measure of customer loyalty
to a brand (Brand Loyalty).
 From the production point of view, brand
equity is the description of the product
image that customers (real and prospect)
hold.

 Brand Equity = Brand Value + Brand

Loyalty + Brand Image
 Brand strategy
 Brand strategy is a ”big picture”
plan, a clear vision and articulation
of how a brand will deliver distinctive
and relevant benefits to target
customers.
 Brand Strategy

Strategy Options

Individual Brands
no connections

Blanket Brands
help pull new products through channel

Separate Family Brands

similar manufacturing but not marketing
does not tie all products together
 Brand Strategy

Strategy Options (cont.)

Brand Extension
Brand X, new and improved, with additives, new package
size, new flavor…..

Multibrand (proliferation)
increase shelf space and market share
catch brand switchers
reach new segments
 Brand Strategy

Strategy Options (cont.)

Brand Repositioning
move to a better segment
competition increased in current segment
customer preference changed
new segment opened up
Major Brand Strategy Decisions
 Why Position A Brand?
 Optimize potential and appeal
 Establish the competitive reason a
consumer should select a brand
 To provide constancy in establishing
relationships with customers.
 Brand Positioning

 Can position
brands at any of
three levels:
– Product attributes
 Leastdesirable;
easily copied.
– Product benefits
– Beliefs and values
 Hits
consumers on a
deeper level,
touching universal
emotions.
 Essentials of Effective Positioning
 Substantive value
 Consistency

– Internally (all parts working together to

reinforce perception about brand)
– Over time (perception reinforcement
persists over duration of weeks, months,
…)
 Simplicity

 Distinctiveness
Important Elements Of Brand Positioning

 Consumer needs
 Target group

 Competitive framework

 Benefit

 Reason why

 Brand character
 Brand Name Selection
 Desirable qualities for a brand name include:
1. It should suggest product’s benefits and qualities.
2. It should be easy to pronounce, recognize, and
remember.
3. It should be distinctive.
4. It should be extendable.
5. It should translate easily into foreign languages.
6. It should be capable of registration and legal
protection.
 Brand Sponsorship
 Manufacturer’s
brands
– Also called national
brands
 Private brands
– Also called store or
distributor brands
 Licensed brands
 Co-branding
Brand Development Strategies
 Brand Development
 Line extension:
– introduction of additional items in a given
product category under the same brand name
(e.g., new flavors, forms, colors, ingredients,
or package sizes).
 Brand extension:
– using a successful Video Snippet
brand name to Swiss Army’s successful
brand name has been
launch a new or instrumental in launching
modified product
in a new category. brand extensions. Watch

the snippet to see

what they’ve done.
 Brand Development

 Multibranding:

– offers a way to establish different

features and appeal to different buying
motives.
 New brands:
– developed based on belief that the
power of its existing brand is waning and
a new brand name is needed. Also used
for products in new product category.
 Conclusion
 Brand strategy depends upon
marketing strategy and business
strategy and continuously has to
follow their footsteps. Research,
execution and implementation are
key aspects in addition to a good
brand strategy.
 References
 www.unm.edu/~werder/pages/482ppt_lectures/
Lecture%20Positioning.ppt
 mgtclass.mgt.unm.edu/Hozier/MGT
%20722/Course
%20Outlines/08%20%20Branding
%20Strategy.ppt
 www.houstontech.org/attachments/articles/114/0
2-Branding_DavidGreely.ppt
 http://www.scribd.com/doc/11544448/brand-ppt