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BUSS454

Product and Brand Management

Designing and Implementing Branding Strategies


(Chapter 12)

BUSS454 Spring 2021 Tony Garrett


The Course

• Part 1: Introduction
• Part 2: Identifying and Establishing Brand Positioning and Values
• Part 3: Planning and Implementing Brand Marketing Programs
• Part 4: Measuring and Interpreting Brand Marketing and Programs
• Part 5: Growing and Sustaining Brand Equity
• Designing and Implementing Branding Strategies
• Introducing and Naming New Products and Brand Extensions
• Managing Brands over time
• Managing Brands over Geographic Boundaries and Market Segments
• Part 6: Conclusion

BUSS454 Spring 2021 Tony Garrett


Designing and Implementing Branding Strategies

BUSS454 Spring 2021 Tony Garrett


Learning Objectives

• Define the key components of brand architecture


• Outline the guidelines for developing 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

BUSS454 Spring 2021 Tony Garrett


Brand Architecture Strategy

• Brand Architecture strategy helps marketers determine which


products and services to introduce, and which brand names, logos,
and symbols to apply to new and existing products.
• Role:
• To clarify brand awareness.
• To improve brand image

BUSS454 Spring 2021 Tony Garrett


Developing a Brand Architecture Strategy

• Step 1: Defining brand potential


• Step 2: Identifying brand extension opportunities
• Step 3: Branding new products and services

BUSS454 Spring 2021 Tony Garrett


Step 1: Defining Brand Potential

• Three important characteristics:


• The brand vision
• The brand boundaries
• The brand positioning

BUSS454 Spring 2021 Tony Garrett


Step 2: Identifying Brand Extension Opportunities

• Brand extension is a new product introduced under an existing brand name


• Line extensions: New product introductions within existing categories
• Category extensions: New product introductions outside existing categories
• Equity implications of each extension needs to be understood in terms of:
• Points-of-parity
• Points-of-difference

BUSS454 Spring 2021 Tony Garrett


Step 3: Branding New Products and Services

• New products and services must be branded in a way to maximize the


brand’s overall clarity
• Branded house and house of brands strategy
• Sub-brands: Brand extension in which the new product carries both the
parent brand name and a new name

BUSS454 Spring 2021 Tony Garrett


http://bloggingnicebrands.com/2013/02/27/branded-house-vs-house-of-brand-vs-hybrid/

BUSS454 Spring 2021 Tony Garrett


To Sum Up…

Marketers should use brand portfolio analysis for


Step 1, and brand hierarchy analysis for Steps 2
and 3

BUSS454 Spring 2021 Tony Garrett


Designing a Brand Portfolio

• 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
• Basic principles:
• Maximize market coverage so that no potential customers are being
ignored
• Minimize brand overlap so that brands aren’t competing among
themselves to gain the same customer’s approval

BUSS454 Spring 2021 Tony Garrett


Brand Portfolios

Reasons for introducing multiple brands in a category:


• Increase shelf presence and retailer dependence in the
store
• 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

BUSS454 Spring 2021 Tony Garrett


Possible Special Roles of Brands in the Brand
Portfolio

BUSS454 Spring 2021 Tony Garrett


Brand Roles in the Portfolio

• Flankers
• Cash cows
• Low-end entry-level, Entry level, or High-end prestige brands

BUSS454 Spring 2021 Tony Garrett


Flankers

• Protective or fighter brands


• To create stronger points-of-parity with competitors’ brands
• Fighter brands must not be so attractive that they take
sales away from their higher-priced comparison brands
• If they are connected to other brands in the portfolio, they must
not be designed so cheaply that they reflect poorly on other
brands

BUSS454 Spring 2021 Tony Garrett


Cash Cows

• Despite dwindling sales, some brands are retained


• Due to their sustainability without any kind of marketing
• Milked by capitalizing on their reservoir of existing brand
equity

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

• Sub-brands leverage associations from other brands while


distinguishing themselves on price and quality
• Role of a relatively low-priced brand - To attract
customers to the brand franchise
• Role of a relatively high-priced brand - To add prestige
and credibility to the entire portfolio

BUSS454 Spring 2021 Tony Garrett


To Sum Up…

• To minimize overlap and get the most from the portfolio, each
brand-name product must have:
• Well-defined roles to fulfill for the firm
• Well-defined positioning, indicating the benefits it offers to consumers

BUSS454 Spring 2021 Tony Garrett


Brand Hierarchy

• A means of summarizing the branding strategy by displaying the


number and nature of common and distinctive brand elements
across the firm’s products, revealing the explicit ordering of brand
elements
• A useful means of graphically portraying a firm’s branding strategy

BUSS454 Spring 2021 Tony Garrett


Brand Hierarchy Tree: Toyota

Toyota
Corporation

Toyota Toyota Toyota Toyota Lexus


(Trucks) (SUV/vans) (Cars) Financial
Services

Corolla MR2
Camry Avalon Celica ECHO Matrix Prius
Spyder
Platinum
CE Edition
SE
S XL SE
LE
LE XLS SLE
XLE

BUSS454 Spring 2021 Tony Garrett


Apple Brand Hierarchy

BUSS454 Spring 2021 Tony Garrett


Levels of a Brand Hierarchy
Company Brand Level (General Motors)

Family Brand Level (Chevrolet)

Individual Brand Level (Malibu)

Modifier Level (Premier)

Product Descriptor (… the uplevel sedan that


could easily be mistaken for a car in a much higher
price bracket.)

BUSS454 Spring 2021 Tony Garrett


Corporate or Company Brand Level

• Highest level of hierarchy


• Corporate image: The 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

BUSS454 Spring 2021 Tony Garrett


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 the products linked to the family brand are not carefully
considered, the associations to the family brand may become weaker

BUSS454 Spring 2021 Tony Garrett


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 the brand runs into difficulty or fails, the risk to other brands and
the company itself is minimal
• Disadvantages of difficulty, complexity, and expense of developing
separate marketing programs

BUSS454 Spring 2021 Tony Garrett


Modifier Level

• Brands should distinguish according to the 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

BUSS454 Spring 2021 Tony Garrett


Designing a Brand Hierarchy

1. Specific Products to Introduce


2. Number of Levels of the Brand Hierarchy
3. Desired awareness and image at each hierarchy level

BUSS454 Spring 2021 Tony Garrett


Designing a Brand Hierarchy

Specific products to introduce


• Principle of growth: Firms must make cost-benefit calculations for
investing resources in selling more of a brand’s existing products to
new customers versus. launching new products for the brand.
• Principle of survival: Brand extensions must achieve brand equity in
their categories.
• Principle of synergy: Brand extensions should also enhance the
equity of the parent brand.

BUSS454 Spring 2021 Tony Garrett


Brand Hierarchy Decisions

• The number of levels of the hierarchy to use in general


• How brand elements from different levels of the hierarchy are
combined, if at all, for any one particular product
• How any one brand element is linked, if at all, to multiple products
• Desired brand awareness and image at each level

BUSS454 Spring 2021 Tony Garrett


Number of Hierarchy Levels

• Principle of simplicity
• Employ as few levels as possible e.g. Philips light bulbs
• Principle of clarity
• Logic and relationship of all brand elements employed must be obvious
and transparent

BUSS454 Spring 2021 Tony Garrett


Levels of Awareness and Associations

• Principle of relevance
• Create global associations that are relevant across as many individual
items as possible
• Principle of differentiation
• Differentiate individual items and brands

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Linking Brands at Different Levels

• Principle of prominence
• The relative prominence of brand elements affects perceptions of
product distance and the type of image created for new products

• E.g. APPLE I-pad


I-Pad by Apple

BUSS454 Spring 2021 Tony Garrett


Linking Brands Across Products

• Principle of commonality
• The more common elements shared by products, the stronger the
linkages

• E.g. i- XXX
• McXXX
• CK
• XXXXman

BUSS454 Spring 2021 Tony Garrett


Branding Strategy Screen

BUSS454 Spring 2021 Tony Garrett


Corporate Branding

• Corporate brand equity: Differential response by consumers, customers,


employees, other firms, or any relevant constituency to the words, actions,
communications, products, or services provided by an identified corporate
brand entity.
• Powerful means for firms to express themselves in a way that isn’t tied to
their specific products or services.

1. Corporate Image Dimensions


2. Managing the Corporate Brand

BUSS454 Spring 2021 Tony Garrett


Corporate Image Dimensions
• Corporate product attributes, benefits or attitudes
• Quality
• Innovativeness
• People and relationships
• Customer orientation
• Values and programs
• Concern with the environment
• Social responsibility
• Corporate credibility
• Expertise
• Trustworthiness
• Likability
BUSS454 Spring 2021 Tony Garrett
Managing the Corporate Brand

• Corporate Social Responsibility


• Consumers are increasingly using their perceptions of a firm’s role in society in
their purchase decisions.
• Consumers want to know how a firm treats its employees, shareholders, local
neighbors.

• Corporate Image Campaigns


• Designed to create associations to the corporate brand as a whole.

• Ignore or downplay individual products or sub-brands.

• Corporate Name Changes

BUSS454 Spring 2021 Tony Garrett


Brand Architecture Guidelines

• Adopt a strong customer focus


• Avoid over-branding
• Establish rules and conventions and be disciplined
• Create broad, robust brand platforms
• Selectively employ sub-brands as means of complementing and
strengthening brands
• Selectively extend brands to establish new brand equity and enhance
existing brand equity

BUSS454 Spring 2021 Tony Garrett


To Sum Up…

• Key aspect of managing brand equity is adopting the proper branding


strategy
• Brand architecture strategy for a firm identifies which brand
elements a firm chooses to apply across the various products
• Brand-product matrix is a graphical representation of all the firm’s
brands and products
• A firm may offer multiple brands in a category to attract different
market segments

BUSS454 Spring 2021 Tony Garrett


To Sum Up…

• A brand hierarchy reveals an explicit ordering of all brand names by


displaying the number and nature of common and distinctive brand
name elements across the firm’s products
• Corporate or family brands can establish a number of valuable
associations to differentiate the brand
• Firms now employ cause-marketing programs designed to align their
brands with a cause of importance

BUSS454 Spring 2021 Tony Garrett

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