Brand Management

Module-5
IMT Nagpur

1
Designing & Implementing Brand Architecture Strategies
Define the key components of brand architecture
Define a brand-product matrix
Outline the principles of a good brand portfolio
Assemble a basic brand hierarchy for a brand
Describe how a corporate brand is different from a product brand
Explain the role of brand architecture in strengthening a brand’s value and a firm’s
performance
Understand how sustainability initiatives, corporate social responsibility and green
marketing can enhance a brand
3
Brand Architecture

• Brand architecture is a strategic roadmap for present and future

success. Brand architecture defines the different levels within the
brand and provides a hierarchy that explains the relationships
between the different products, services, and components that make
up the firm’s portfolio of offerings

4
 How does the right brand architecture help?
• Clarity in the marketplace – Clarity of brands offered and their relation with each other.

• Synergy among brands – Lists the relationship between different sub-brands and the master brands
& creates a synergy among the offerings and helps the company communicate about combined
solutions and how these brands complement each other (cross-selling)

• Target specific customer segments – Effectively segments the target market and makes it clear what
offering serves which segment.

• Clarity in positioning and communication – It’s easier to develop positioning and communication
strategies for each sub-brand and brand extension

• Enhance consumer awareness – Customers can be made aware of the offerings they didn’t know
were offered by their favourable brand.

• Build & enhance brand equity – Helps company make strategies to enhance the brand equity of its
sub-brands. It also lets the organisation lend its corporate brand equity to its offerings.

5
Developing a Brand Architecture Strategy
• Step 1: Defining brand potential
• Step 2: Identifying brand extension opportunities
• Step 3: Branding new products and services
Defining Brand Potential
• Three important characteristics:
• Brand vision – view of long-term potential of brand
• Goes beyond product attributes
• Takes cognizance of customers higher order
aspirations
• Brand boundaries – stretch across multiple categories
• Kingfisher; TATA; GE; Apple
• Abstract positioning, supporting multiple
categories
• Brand positioning
Identifying Brand Extension Opportunities
• Brand extension is a new product introduced under an existing
brand name
• Line extension: New product introductions within existing
categories
• Category extension: New product introductions outside
existing categories
• Equity implications of each extension needs to be understood in
terms of:
• Points-of-parity
• Points-of-difference
Specifying Brand Elements for Branding New Products and Services
• New products and services must be branded in a way to maximize the brand’s overall clarity
• Branded house strategy
• Umbrella corporate or family brand for all its products
• House of brands strategy
• Collection of individual brands all with different names
• Sub-brands
• Brand extension in which the new product carries both the parent brand name and a new
name
10
Brand Portfolios
• Includes all brands sold by a company in a product
category
• Brand portfolio judged by its ability to maximize
brand equity
• Any one brand in a portfolio should not
harm or decrease the equity of the others
• Ideally, each brand maximized equity in
combination with all others
Reasons for introducing multiple brands in a category:
• Increase shelf presence and retailer dependence
• Attract consumers seeking variety who may
otherwise switch to another brand
• Increase internal competition within the firm
• Yield economies of scale in advertising, sales,
merchandising, and physical distribution
Special Roles of Brands
in the Brand Portfolio
1. To attract a particular market segment not currently being covered by
other brands of the firm
2. To serve as a flanker and protect flagship brands
3. To serve as a cash cow and be milked for profits
4. To serve as a low-end entry-level product to attract new customers to
the brand franchise
5. To serve as a high-end prestige product to add prestige and credibility
to the entire brand portfolio
6. To increase shelf presence and retailer dependence in the store
7. To attract consumers seeking variety who may otherwise have
switched to another brand
8. To increase internal competition within the firm
9. To yield economies of scale in advertising, sales, merchandising, and
physical distribution
Brand Portfolios
• Flankers
• Win against competitors with lower pricing
• Enter new segments of consumers
• Capture brand switchers
• Garner more shelf space
• Fighter brands must not be more attractive than
higher-priced comparison brands
• Cash Cows
• Milked by capitalizing on their reservoir of existing
brand equity

• Low-End, Entry-Level, or High-End, Prestige Brands

• Sub-brands leverage associations from other brands
while distinguishing themselves on price and quality
• Attract customers to the brand franchise – entry level
brands
• To add prestige and credibility to the entire portfolio
– prestige brands
Brand Hierarchy

A way of graphically
portraying a firm’s
branding strategy
Levels of a Brand Hierarchy
• Corporate or Company Brand Level
• Family Brand Level
• Individual Brand Level
• Modifier Level
• Product Descriptor
Corporate or Company Brand Level
• Highest level of hierarchy
• Corporate image
• Consumer associations to the
company or corporation making
the product or providing the
service
• Relevant when the corporate or
company brand plays a prominent
role in the branding strategy
Family Brand Level
• Used in more than one product category
• But is not necessarily the name of the company or corporation
• Also called a range brand or umbrella brand
• If the corporate brand is applied to a range of products, then it functions as a family
brand too
• If products linked to a family brand are not carefully considered, the associations to
the family brand may become weaker
 Individual Brand Level
• Restricted to essentially one product
category
• Although multiple product types may
differ
• Customization of the brand and all its
supporting marketing activity
• If a brand runs into difficulty or fails, risk to
other brands and the company is minimal
• Disadvantages of difficulty, complexity, and
expense of developing separate marketing
programs
Modifier Level
• Must further distinguish brands according
to different types of items or models
• Modifier
• Designate a specific item or model
type or a particular version or
configuration of the product
• Function of modifiers is to
show how one brand variation
relates to others in the same
brand family
• Help make products more
understandable and relevant
to consumers
Product Descriptor
• Helps consumers understand what the product is and does
• Helps define relevant competition in consumers’ minds
• In the case of a truly new product, introducing it with a familiar
product name may facilitate basic familiarity and comprehension
Designing a Brand Hierarchy
• The challenge in setting up a brand hierarchy is to decide:
• Specific products to be introduced for any one brand
• Number of levels of the hierarchy to use
• Desired brand awareness and image at each level
• Combinations of brand elements from different levels of the
hierarchy
• Best way to link any one brand element to multiple products
Guidelines for Brand Hierarchy Decisions
1. Decide on which products are to be introduced.
• Principle of growth: Invest in market penetration or expansion v s
er us

product development according to ROI opportunities.

• Principle of survival: Brand extensions must achieve brand equity in
their categories.
• Principle of synergy: Brand extensions should enhance the equity of
the parent brand.
2. Decide on the number of levels.
• Principle of simplicity: Employ as few levels as possible. (JLR; BMW;
Audi; Samsung – Galaxy/Gear)
• Principle of clarity: Logic and relationship of all brand elements
employed must be obvious and transparent.
Guidelines for Brand Hierarchy Decisions (2 of 2)
3. Decide on the levels of awareness and types of associations to be created
at each level.
• Principle of relevance: Create abstract associations that are relevant
across as many individual items as possible. (Nike Just Do It –
Performance; BMW- The Ultimate Driving Machine)
• Principle of differentiation: Differentiate individual items and brands.
(HUL power brands)
4. Decide on how to link brands from different levels for a product.
• Principle of prominence: The relative prominence of brand elements
affects perceptions of product distance and the type of image created
for new products. (Air Max by Nike; Marriott’s Courtyard)
5. Decide on how to link a brand across products.
• Principle of commonality: The more common elements products
share, the stronger the linkages. (i; Mc; Jet; )
Branding Strategy Screen
Brand Architecture Design Principles
Design Objectives / Goals Principle Definition
Specifying products to Growth Investments made in market or product development should be
introduce made according to ROI opportunities
Specifying products to Survival Brand extensions must achieve brand equity in their categories
introduce
Specifying products to Synergy Brand extensions must enhance the equity of the parent brand
introduce
Number of levels of Simplicity Provide the right amount of branding info at each level,
hierarchy balancing no. of shared & separate associations
Achieving awareness & Relevance Create associations at each level that are relevant to as many
image at each level brands present in the level below
Achieving awareness & Differentiation Distinguish brands at the same level as much as possible to
image at each level ensure lack of overlap
Combining elements from Prominence Relative visibility of a brand element determines its importance
different levels in consumers’ perceptions
Combining elements from Commonality The more common brand elements products share, the stronger
different levels the linkages between them
25
Corporate Branding
• Corporate brand associations have a deep impact on brand equity of individual brands
• Firm may need to keep a high profile; CEO may also be required to do so
• Corporate brand equity needs to be built & nurtured carefully
• Mahindra; Godrej; TATA; Infosys; Zoho; ABG
Corporate Image Dimensions
• Common Product Attributes, Benefits, or Attitudes
• Quality - Toyota; HUL
• Innovativeness – 3M; Michelin
• People and Relationships
• Customer orientation – Maruti Suzuki
• Values and Programs
• Environment concern - HUL
• Social responsibility – TATA; WIPRO
• Corporate Credibility
• Expertise – Infosys; Siemens
• Trustworthiness – TATA; HDFC Bank
• Likability - Titan
Managing the Corporate Brand
• Corporate Social Responsibility
• JSW; TATA; HUL
• Corporate Image Campaigns
• Aditya Birla Group; GE; Godrej; Piramal
• Corporate Name Changes
• Vedanta
Brand Architecture Guidelines
• Adopt a strong customer focus
• Create broad, robust brand
platforms
• Avoid overbranding and having too
many brands
• Selectively employ sub-brands
• Selectively extend brands