Ta c inet sustaining ro Brand Equity CHAPTER Branding Str ategies 1 2 eS In this chapter: VVVVVVV VV Vv Vv Self-Analysis and Branding Unique Brand Strategy Multi Branding Strategy Multi-product Branding Generic Branding Co-branding Brand Licensing The Brand-product Matrix Brand Hierarchy Brand Building Block Objective Questions with Answers Question Bank for Self-Practice~ 4 _ gto ies Tory: oO 0 6ELF- ANALYSIS. AND ia BRANDiny = DIN ——$—__ analysis of a customer influences | g (Ems) gla Jained with th S the br, pe xP ie following er ‘ands he selects, oe evaluate brands based y (0 “what they aspire to be. When the attri e reflected in the brand ‘utes present in a on ar oe , identificat, ification with the TER gt nd becomes easy. ymers own the brands; as a result, the consu re ear . , mi 4 elf-identification with the brands. For the bra te wos : nd to have gevance to the consumer, the personality of the brand guid embody the everyday life stories, lifestyles and aa == — ysuits of the consumers. P ,4brand is said to be successful, if it improves the self-image ofthe consumer. individuals show interest in a brand which is consistent with tir personality and self-concept. Research suggests that individuals select brands which enable them to improve their sltimage and gain greater social acceptance. concept and linking it to the brand fetole of individual self- “the more popular with the target audience we fou want where y' be Where your your brand to brand is now e now and ‘B ‘ny : ou art Nd ctu ete (AIS where Y' vive. The bitvi pul’s™ Brand Management (BMs) 150 actics you use to reach your it’s the & it’s a w, what, when, and to whom the how, ur product fo) leads to stronger overall brang our product, and how . in between is not strategy” objective. Brand strategy 1§ communicating yo r service. Having 4 you plan onc clear and concise brand strategy equity how people feel about oF P' much they are willing to Pay for it. “t just sell mobiles and other electronic erceive Y' For e.g. Samsung doesn gadgets they sell well designed UNIQUE BRAND STRATEGY measure more and more products that are easy to use. Unique branding is a reliable safety companies choose to go for! Think about a company selling items from a single product area Toothpaste, for example. Let's suppose this particular type of Toothpaste gets extremely successful and becomes a market leader. Unique branding refers to giving the product a unique name no other products manufactured by the company will be known under. BRAND ARCHITECTURE: What is Brand Architecture? cand Architecture is the structure of brands within and organisational identity.» SteMieegHS ag Steuttrg " eee isl Sade telleet OF strengthe > a" BEEN the strategic objectives of the wre brand to whieh they betons qian arehitectiive has long, been re witded as a static fixture, atogorised, wi 7 youl) categorised, with fairly tow priority given to proactive agement despite the arnagerment despite the fact that the brand architecture of most aanisations is always a legacy ant Ways a legacy of past and present, and can often qovide aw Opportunity for significant value creation if managed pperly, In addition to this, organisations today navigate far enter complerity in rapidly changing markets; because of this, and architecture should be fluid and reactive in order to ntinually leverage maximum value. ypes of Brand Architecture: Single master brand which everything is unified, One name one visual system. K than brand promise. atures/benefits of product or service are less important Client trusts the brand. Brand extensions built by descriptors. dorse Marketing synergy between product and service name and the parent. Product and service has a clear market presence; benefits from parent association. Parent endorses the product/ service.) vipul’s™ Brand Management (Bs) i 152 Branded: Found in FMCG comp’ porate identity fro’ ifecycles, personalil anies- e m brands. e Separate co! . a ties of their own, ¢ Brands have names, 1 * — Often compete with each other. Hybrid: © Combination of all three monolithic, branded and endorsed, ¢ Occur through M & As. © Preserve the goodwill associated with the acquisition. Why is this strategy important? Let's suppose a company produces more product line under the same brand let’s call it Brand C. Consider the following products: Brand C Toothpaste, Brand C Mouthwash and Brand C Toothbrush. If quality goes down suppose for Brand C Toothbrush, i i i rush, competitors come up with higher quality items and sales drop, the brand will become unsuccessful. This will most likely affect all products known as Brand pi G i them is causing trouble. even if only one ofq states 153 if MULTI BRANDING STRATEGY utsebranding is the marketing of two or more similar and a ting: products by the same firm under different and “ated brands. While these brands eat into each other's’ sales pnibalization), multi-brand strategy does have some syantages as a means of: ) itis strategy that is followed by Hindustan Unilever Limited | (HUL). We can understand multi branding by the variety of soaps that HUL offers. ) It offers Lux, Dove, Haman, Lifebyuoy, Pears, Liril, Breeze and Rexona. These brands eat into each other’s market share but keep the competitors away. \ulti-branding strategy has certain disadvantages: () Itcan fail because of poor management. () Itcan fail due to the wrong choice of business model. Multibranding Strategy Advantages: > obtaining greater shelf space and leaving little for competitors’ products, > saturating a market by filling all price and quality gaps, v catering to brand-switchers users who like to experiment with different brands, and * keeping the firm’s managers on their toes by generating internal competition. The customer gets to choose from a host of brands and v products in a single, visit toa single outlet.vipul’s 154 .. te: ry: Limitations of Multibranding 5t4'°6 oices often leave: > nd brand to the cust, > Difficult for a retailer to recommend a " ne omer b that would amount to underselling the other rands ecause tha s the buyer confused, > Offering multiple ch If a dislike for one product of the brand, then a Negative brand. association with other products of the Vv ANDING MULTI-PRODUCT BR. | Think about a situation, you being ina supermarket wanted to buy Oats. At the rack you found Saffola Masala Oats, Quaker oats, etc. As a consumer you would accept a Brand with which you are familiar to. For Brand Saffola the brand recognition is high as it has got range of products such a Saffola oil, Saffola biscuits, etc. Here Saffola is using a strategy called as Family branding strategy which is also called as Blanket branding strategy. In this strategy the manufacturer uses one name for all its products. This can result in significant economies of scope since one advertising campaign can be used for several products. A corporate branding strategy should only be used if the company is already wal aan by the target market and also has a very positive image in their minds. If corporate branding is done well, the corporae , n a = become synonymous with a product category. fo instance for Toothpaste the Brand name Colgate has becom ™ Brand Management (Bh ly ) | it ne ccategies ws y 155 é advertisin: campai ye ne ve gets ee paign can be used for several products, ’ produc S Bf ly accepted by the consumer. ye yuitiBranding-Each product in a product line has a distinctive |, This strategy is used for products that target different wa | gumers &/or to prevent competitors from taking market share. branding was originally pioneered by General | Multiple & Gamble is widely recognized as popularizing ly (tot, Proctor ye practice- ample: Multi-product branding involves releasing multiple products sith the same brand name for example Revlon. They have Revlon ipstick ranges, eye shadow ranges, foundation ranges etc. These ze different products, but all branded as Revlon. Advantages include: () Easy adoption of the new product by the already loyal customer base. For example, i en that already buy Revlon lipstic! ch decision making or peting brand's f Revlon brings out a new lipstick colour, wom ks will buy the new colour without too mu checking the price/colour against other com) offerings. 0) Facilitates the acceptance of new products by the retailer that is already stocking your other product(s). Disadvantages include: ) Ditution of brand name: One of the potential problems with using multi-product branding is that it can delete the name. When consumers see the effectiveness of the brand i a i156 (2) (3) (4) y different types of many ¢ here on Pr brand name every ae tg e same faith in the \ arily put the same the bra, y not necessa they may not yer sales j 4 7 id, This can lead to Tower sales in. gy) | : ey once did. This 6%” oncompasses, . vet aduct categories a brand e P different product categ mss tied together: Another potential disadvany All products tie y is that it ties all of the m Beg using this branding strategy . econ Uc : some cases, this can be good, Problems & together. m . ple, if your brand covers householq Produg, a enece snd cleaners, if one Pas does nes do Wel can lead to a bad perception associated with the Othe products in the lineup. The marketer has to make sure all y the products in your line share the same level of quality, Difficulty managing: When a particular brand name appears on many different types of products, the marketer may haves hard time managing them all. If the marketer restricts the brand name to items that are similar to one other, such a soap, shampoo and conditioner, it is easier to manage them.l! the marketer starts managing products that are complete unrelated to one another, such as soap and automobiles, te time managing the resources. Expectations on new products: marketer may have a hard Another potential proble that a marketer May face in using multi-product branding? asi or example, if the brand ic, evel in the eyes of the public, expectations on new Products, F; certain standard of excellence New product is Scrutinized. 1¢ the standards Of th ve itm e old Ones, it negative" of the bran ; can lead to a neg Vipul’s™ Brand Manageng y Uy 4dng Strategies yi | corporate” brand, Xbox was new and cri ied Branding: {but mats e good DUS * tis a strategy of producing the same $ wie as, The § jiferent Segments under different naMe> To ample is Te ot have to be price-related. The great eXamy brand and : : 9 “value” brand jus. Toyota in the U.S, was perceived as a value iexus targeted the more expensive market. Another example includes: Microsoft and Xbox, Microsoft was considered a “serious ‘azy. There are three main variants of this strategy: Sub-branding (Cadbury Dairy Milk, has a sub-brand Silk), Store-branding (Big Bazaar has store brands like Tasty Treat and Clean Mate). Co-branding (Coca Cola has done co-branding with McDonalds and the soft drink is available at all McDonald Stores) LL GENERIC BRANDING ‘| “No-brand” Branding: A generic brand is a product that is not marketed anq sold under some type of name brand. The term was first coined to identify consumer projects sold in supermarkets during the latter Part of the 1970’s. Since that time, the designation of generic brand has come to include any brands sold exclusively under a Particular retailer name, and includes variety of Boods: In some fases, a generic brand is sold at a ee lower price than any brand name product. “No brand” branding may be construed as a |vipul’s™ Brand Management (By. 158 made. This approach is Usually aged goods, but many othe, id services are marked _ their own generic bran, d s the product is d and other pac products an having type of branding associated with foo' consumer and industrial generics. E.g. Shoppers stOP ‘Stop’. In the attempt to build up 4 strong brand image marketers ate rategic 5 the act of using two establisheq tion. Co-branding, ¢o. using co-branding as 4 st op! B Co: partnering or dual branding i brand names of different companies made inroads into nearly every industry, high-tech Internet companies to banking and fast food. Many well-known firms chose this marketing strategy in order to draw new customers, to increase the brand awareness, to support the on the same product. It has from automotive and customer loyalty or to win some other individual advantages offered by the partnership. The companies are very often following co-branding strategy only after realizing that the traditional marketing practices are exhausted and are no more capable of delivering a distinct brand benefit that they should have. Eg. Sony-Ericsson, Pillsbury Brownies with Nestlé Chocolate, Citibank/ American Airlines/Visa Card. A i J P involved on we . nding campaign has each company that is nsistently focused oo, : and advantages, on achieving the following goals (1) Respond to th P' marketplace’s expressed and latent needs: (2) Leverage one’s own core compet encies, (3) Create an e PI rp reven:gop a" gies ere yn” 159 fl jncreave product salience to the consumer ( P peduc tion of cost of Production. imitations of Co-branding are as follows: No control. Brand Equity gets affected. Lack of brand focus and clarity. Organizational distraction. Types of Co-branding: Co-branding is of two types: Ingredient co-branding and Composite co-branding. (1) Ingredient co-branding implies using a renowned brand as an element in the production of another renowned brand. This deals with creation of brand equity for materials and parts that are contained within other products. The ingredient/constituent brand is subordinate to the primary brand. For instance Dell computers has co-branding strategy with Intel processors. The brands which are ingredients are usually the company’s biggest buyers or present suppliers. The ingredient brand should be unique. It should either be a Id be protected by a patent. Ingredient major brand or shou! co-branding leads to better quality products, superior promotions, more access to distribution channel and greater profits. The seller © mer relations. The e advantage and the retailer can benefit f ingredient brand enjoys long-term brand manufacture can benefit by custo} having a competitiv b joying a promotional help from ingredient brand. ry enjo’ —_— avipul’s™ Brand Management (8Ms) 160 om ar ‘o renowned b; (2) Composite co-branding refers to Use of tw rand n col names in a way that they © aa product/ service that could not be possible individually. The ing’: i ends upon the ingredien, composite branding’s success is dep’ t branding. This branding strategy involves two existing site with these two to make or create a lectively offer a disting brands and compo: composite brand name for a new product. It shares q marketing and manufacturing expertise to create a product market. For example: Kellogg's healthy choice cereal by Kellogg's and special K frozen. BRAND LICENSING A licensing agreement authorizes a company which markets a product or service (a licensee) to lease or rent a brand from a brand owner who operates a licensing program (a licensor). Companies who know their brands well will have a good understanding of the equity of the brand. A brand’s equity is derived from the awareness and image a brand holds with its consumers. Brand Licensing is a strategic relationship between a brand owner (licensor) and a manufacturer (licensee) in which the licensor grants the licensee the Tight to manufacture and distribute specific products or services under the brand name. For example, Timex Group has tecently acquired license from the International Cricket Council (ICC) for launchin; 8 Merchandise using the icc World Cup 2011 logo. Timex can use the ICC World Cup 201! logo on its special edition watches,- Strategies din 161 icensing is a ‘ac Licensing contractual agreement whereby a company io" another firm to use its brand name, patent, trade secret, or other comp. pssen and equity of its own product. roper a 7 a property for a royalty or a fee. Licensing also. assists anies in entering global markets with minimal risk. tially, a firm is “renting” another brand to contribute to the Licensing enables companies whose brands have high erence to unlock a brand’s latent value and satisfy pent up pref demand that exists. After Apple launched the iPod a number of years ago it created an immediate need for accessories. Apple qld have chosen to manufacture and distribute these themselves, but decided they were not core to the business and therefore, chose to satisfy the need through licensing. Licensing the iPod brand enabled many companies to produce all kinds of > user-friendly and enhance terrific products to make the iPod more use: he Bose Sound System the listening experience. Examples include tl with iPod docking station, other products that enable an iPod to be heard through a vehicle’s built-in stereo and iPod holding devices that allow users “to take their music with them” when they go running. All these accessories are sold by licensees. Apart from benefits to licensors, sees lease the rights to a certain property for handise, but traditionally they do not there are benefits to licensees as well. Licen: incorporation into their merc share ownership in it. Havin brands, and the logos and trademarks associated with those nsee signi! ortant of these is the marketing power g access to major national and global brands, gives the lice ficant benefits they previously did not possess. The most imp' the brand brings to the licensee’s products. Building a brand fromvipul’s™ Brand Management (Bs) | 162 ollars and a lot of luck, The millions of 4 scratch can take years, gains immediate access to ally, ich li brand ny which licenses 4 ° ent before ; oe . d and image building that w nel it. The ositive brand a a son of the licensor, Tcencee also takes with them the reputation T. Often licensee als : late into is “halo” effect can trans this “halo’ . 5 returned calls, an agreement to immeasurable benefits such as meet, or simply the benefit of the doubt. many intangible and Branding Strategy: The branding strategy for a firm reflects the number ang nature of common or distinctive brand elements applied to the different products sold by the firm. ¢ Which brand elements can be applied to which products and the nature of new and existing brand elements to be applied to new products. e — Clarify: brand awareness. e Improve consumer understanding and — communicate similarity and differences between individual products. ° Motivate: brand image Maximize ce of equity to/from the brand to individual products to improve trial and repeat purchase. 4 THE BRAND-PRODUCT MATRIXr 03 Strategies pero ar 163 oducts and brands to show consumers how these products and prands may be related. As a result, brand names of products are wpically not restricted to one name but often consist of 4 combination of multiple brand name elements. The brand-product matrix is a graphical representation of all the products sold by a firm. Each row of the matrix is labelled with a brand name, while each column represents @ product. Thus, the rows of the matrix correspond to brand lines (all the products sold under a particular brand name) while the columns correspond to product lines, a.k.a. brand portfolios, (all the brands marketed in particular product categories). Products 1 2 3 4 Se | A | | Brands B | c || Brand-Product relationships (rows). Line and category extensions. Product-Brand relationships (columns). Brand portfolio. i Branding alternatives.164 Franchise Extension Extension > & 9 6 E 4 ° Qa Zz ? « o 9 2 a x w Four Branding Alternatives (Adapted from Tauber, 1961) New Product: For Instance Cadbury brand entering into a marketing of Biscuits with innovative concepts and ideas and sub-branding it a ‘Oreo’. A new product is developed witha series of new brand ideas and meanings to the consumer. Flanker Brand: For instance Cadbury introducing a new brand with the established product i.e. Cadbury gems. Here new brand is introduced into a category where the organization already has established products (Chocolates). Line Extension; For introducing a ni iene Cadbury Dairy © Milk ew category ie. ‘Dairy Milk silk’ A current For J beverage category ig Nstance Cadbury entering into a umvita’ A familiar brand is tal ken toa Product cq h Where it j 1S unknown. tego;: ies eet ing Strate Lv YI 165 a firm’s branding strategy can be characterized according to its breadth, which refers to the number and nature of products that bear the same brand name, and its depth, which refers to the number and nature of brands in the same product category. Marketers can use the brand-product matrix to determine whether and where to make connections across products and brands. , Breadth of product mix: >» Aggregate market factors. > Category factors. > Environmental factors. + Depth of product mix: > Examining the percentage of sales and_ profits contributed by each item in the product line. > Deciding to increase the length of the product line by adding new variants or items typically expands market coverage and therefore market share but also increases costs. | BRAND HIERARCHY Wh panies are creating a new product or service, the en CO! . a “What should we name it?” And before they first question is ofte . . qu here's an_ afternoon brainstorm scheduled in the it, i iow il som. OF worse, the internal code name gets leaked to room. ‘ i eet and ther there’s no turning back. In both these the marke! essential step has been skipped-where does this Scenarios 47166 orarchy? By that we me t brand hierarchy y nan rent prand or ane s of summarizing the brangj, 8 product fit in our curren Peering this an extension of the cu ? a mean ber ts across the firm’s products, "eVeaing jerarchy is A brand hierarchy and nature of common g ; nN strategy by displaying the num distinctive brand elemen ering of brand elements. the explicit ord: Corporate Brand (Nestle) Family Brand (Nescafe) Individual Brand (Nescafe Classic) Modifier: Nescafe cappuccino Corporate Brand Equity: e Occurs when Vi tr relevant constituents hold si ‘ong, fa le , favourable, and unique . asso i ciations about th : memory. corporate brand it product brand. Family Brands;167 d to essentially one product category. gestricle ay be multiple product types offered on the basis of there ™ ackage sizes, flavours, etc. aifferent models, P odifiers+ s or differences in the brand related to signals refinement attributes, functions, etc. factors such as quality levels, an important organizing role in communicating how products within a categ! | | Plays different brand name are. ory that share the same Bottled Water NESTLE PURE LIFE) cmos Beverages Confectionary conte moi. ||: bas werEeunch ale canacre Baby Food Mitk, Dairy and |} MILKPAK . gems wou ||. Negra 20 nent an ey . See + Me one Seer, neat nes : aes, capers «REET Oe cau Ra > weer es Bee ppc ant ra : ena 2 ete16 we KS , AND BUILDING BLOC why Is It Hard? gs and they decide what Produg money on. As there ~ BR. ig Building Strong Brands: are kin} stomers . pend their Nowadays cu or service they are going t° 4 almost infinite amount of simil: customers these days tend to more trusted brand, whose whose ar goods and services out there, the d more choose the Product, quality is proven, whos. business is honest, ethic] an that are of a identity is clear and socially responsible. and likeable, and So what has happened these days, is that if you have a really all you need to do is add your brand image to strong brand then st watch it fly off the any product in the supermarket and then ju: shelves. Creating a strong brand takes time though and in order to make a truly exceptional brand whose products and services people just can’t get enough of, many things have to be done in order to do it. To be abl i able to develop effective brand strategies, it is useful to understand these pressures and barriers, (@) De an evelop a Vision for your brand: The vision for a brand169 pranding Strategies steve Jobs, the founder of Apple, wanted to truly make 4 difference with his life and to make the world a better place with the products he and his company created. ) Clear Identity: Every strong brand has a clear image and identity that people can quickly recognize and identify themselves with. The words Ferrari and Lamborghini instantly evoke images of fast cars, glamorous lifestyles and being part of the super-rich. When we think of Apple, currently the strongest brand in the world, we think of good quality technology products with beautiful, yet minimalistic style and a cult-like following, that has now begun to fade, as Steve Jobs departed from the business not long ago. None of these brands leave us indifferent and all of them evoke images, feelings and thoughts of what they are all about. When we are creating our own brand, it is important ly what we are trying to represent to the to know exactl and why id, what great qualities do we possess, outside worl: rent and unique to everything else that is out are we diffe there. Pressure to Compete on Price: There are enormous pressures on nearly all firms to engage in price competition. In all industries from computers to cars to frozen dinners to airlines to soft drinks, price competition is at centre stage, driven by the power of strong retailers, value-sensitive customers, reduced category growth, d by old competitors hanging on, sometimes and overcapacity (often caused by new entrants an via bankruptcy). | |170 4) (5) r by year and they C gtronget yea vane Retailers have become ° out vss vn prices. Sale, a rth to i have used that strength mn PgicatOr oe : ; ayer and © . f promotion is both a driver hat a success factor iste «cog imply tha’ trim » market realities ! ed - The "5 nizations must reduce hen cost. Organizations - . ee . . and cut all unnecessary exp ee ath downsize, a ran vat te the people who support th ar ' happens to prand-building activities? They are other brane abet ew cost culture. nizations Nv vulnerable to the org' ler to differentiate yourself from Position your brand in ord! " ; Competitors: Brands are multidimensional in that they usually carry with them a number of images and association in the minds of the compan: successful brands have a particular focus that differentiates it from those of competitors. A properly positioned brand must transcend demographics and clearly identify likely prospects. y and customers. However, all An Exceptional Quality of Products and Services: No brand in the world has ever become famous for just creating average goods and average services. If we want to create a strong brand, then the fi i ath aheotute e inst thing to start out with is by providing the ‘olute best quality products and servi ices that no-one else can match in the marketplace. It might be difficult to get there, but the truth is that in order to ‘ cre must identi ; amazin, Nfy our business immediately wi d 6 things that we have to off ely with great an er. if we are just starting out,3 if strategies 171 fit is difficult to create better products than those already in the market, then we can create something that is unique ynd different, or something that covers a specific niche’s expectations in the best way possible. As we continue to provide the highest standards possible with everything that we do, then eventually the customers will begin to associate our business and our brand with high quality and of great value-for-the-dollar. Reliance on outdated methods: Faced with opportunities in emerging markets, most domestic enterprises have relied on a diversified business strategy tailored to individual sectors rather than launching a comprehensive range of products designed to create a strong, unified brand. Such enterprises need to look beyond traditional management theories to more current thinking about the role and importance of brands. Fragmenting Markets and Media: At one time, being consistent across media and markets was easy. There were a limited number of media options and only a few national media vehicles. ‘Mass markets were the norm, and micro segmentation did not exist. Brand managers now face a very different environment, one in which it is difficult to achieve the consistency that is needed to build and maintain strong brands. For example prand like ‘Vodafone’ utilizes various media options today that includes interactive television, advertising on the Internet, direct marketing, and event sponsorship, and more are being invented daily. Coordinating messages across(8 i. Viput’s"” Brand Monageny, nt (Bry ‘al Challe, ined sning the brand is a re; these media without weakening the | Nee espe din the iy addition, companies are dividing the popu smaller cially when promotional vehicles are include In tion inty aching. then, annels, yp is and more refined target markets, often re With specialized media and distribution ch tempting to develop different brand identitic: S for Some of these new Oral loping and MANAGIng same brand, however, Presents rT. Since Media overlap, customers are likely to be €xposed to more than one identity relating to the same brand, target segments. Devel Multiple identities for the Problems for both the brand and the custome! audiences invariably Complex Brand Strategies and Relati time, not too long entity. Colgate, onships: ago, when a brand was for example, was a brand ni needed to be defined, established, and nurt situation is far different. There extensions, There Was a a clear, singular ame that simply ‘ured. Today, the are sub brands, brand ingredient brands, endorser brands, and corporate brands. The Coke logo can be foun Products, including Diet Cherry Coke, Coke, and Coke Classic and it Srocery store, id on a dozen Caffeine Free Diet at sporting events, it’s » and in the comi bottling plants Operate, munities where its Coke is a Corporate brand.| a tegies dns Sad a 173 prands) must be clarified both strategically and with respect to customer perceptions. pias Toward Changing Strategies: There are sometimes overwhelming internal pressures to change a brand identity and/or its execution while it is still effective, or even before it achieves its potential. The resulting changes can undercut prand equity or prevent it from being established. Most strong brands, such as Nirma, Rin and Surf have one characteristic in common-each developed a clear identity that went virtually unchanged for a very long time. The norm is to change, however, and thus powerful identities supported by clear visual imagery never get developed. 10) Bias against Innovation: While there may be a bias toward changing a brand identity or its execution, a psychic and capital investment in the status quo often prevents true innovation in products or services. There is an incentive to keep the competitive battleground static; any change not only would be costly and risky investment to have a much-reduced return (or even make it obsolete). The result js a vulnerability to aggressive may come from outside the industry with he inhibitions with which industry but also could cause prior competitors that little to lose and none of # participants are burdened. Companies managing an established brand can be so pleased by past and current success, and so preoccupied with day-to-day problems, that they become blind to changes in the competitive situation. tal changes in the market or potential technological By ignoring or minimizing fundame!vipat" Brad Maren 4 ee Hy ive their brands vulnerapy, My Meng, ars lea 6, managers Ce See A new competitor thus ig risk missing opportunities iry of true innovation source and the bencfici stions with Model Answers (1) Fill in the blanks: aetna (a) A clear and concise brand strategy leads to strongoy Very (Brand recognition, Brand Equity, Architecture) (b) Brand — is the structure of brands Within, ang organisational identity. (Brand recognition, Brand Equity, Architecture) (c) The brand-product matrix is a__ representation of all the products sold by a firm. (graphical, mathematical, statistical) (d) A brand is a product that is not marketed and sold under some type of name brand. (multi, generic, corporate) [Ans.: (a) brand recognition, (c) architecture, (c) graphical, (0) generic] (2) State whether the following statements are True or False: (@) Brand Architecture is the structure of brands within and organisational identity. (b) A multi brand is a product that is not marketed and sold unde! some type of name brand, (c) Multi-branding is the marl competing products unrelated brands, (d) Mix branding is @ strategy of Producing the same good ie marketing it to different segments under different names. (e) A generic brand is a i and sold Produ ct that is marketed and sol [Ans.: (a- True), keting of two or more similar atd by the same firm under different and (- False), (¢~ Tryp ), (1 True), (e— False