BRANDING STRATEGIES

Defining Strategy
A Strategy is a systematic plan for achieving a specific goal or result. Whereas a Branding Strategy can be defined as a plan of execution conducted for a brand in order to increase the brand’s market & optimize brand functioning.

A branding strategy can also be described as a plan for the systematic development of a brand which enables it to meet its agreed objectives.  Product Branding  Line Branding  Range Branding .

   Umbrella Branding Source/Double Branding Endorsement Branding .

One Product”. In this strategy company name is not known to the customer. This strategy allows products to have a unique identity & Image. Product Branding Product Branding follows the concept of “ One Brand. . Like Colgate for toothpaste or surf for detergent. In this strategy brand becomes almost synonymous with the product.

Ariel. Crest. all have different image & identity. All these products are not seen as the same or being offered for the same company. Pantene.P &G has different brands like Tide. Pampers. etc. .  Example of Product Branding.

Firms following product branding can venture into unrelated market area. If a brand is unsuccessful.Advantages of Product Branding    Brand becomes Synonymous with the product. . its failure does not affect the other brands of the company.

Disadvantages of Product Branding  It takes a significant amount of investment in time. money & effort to establish a new brand. .

Line Branding  Line Branding involves exploiting a successful concept by extending it but staying very close to the initial product.   . Focus in line branding is on complementary products. Line brand starts with one product but later extend to complementary products.

All these products complement each other. .Example of Line Branding  Gillette has razors. shaving gels. aftershave.

Reduces launch cost of other products in the same line.Advantages of Line Branding    Reinforces selling power of the brand & create strong brand image. New products can use existing distribution system .

. One cannot innovate too much in a line.Disadvantages of Line Branding   Only a limited number of products can be introduced in a line.

In range branding. A Range of products belonging to the same area of competence are promoted through a single promise.Range Branding    A Range brand encompasses many products under single banner. brand moves beyond product complementarity that is it moves away from a line .

butter.Example of Range Branding  Britannia has a sub brand. all are dairy products. . cheese.Milkman which stocks products like ghee. milk. But the area of competence is the same. etc. milkshake.

New products can use existing distribution system.Advantages of Range Branding    Reinforces selling power of the brand & create strong brand image. Reduces luanch cost of other products in the same range. .

.Disadvantages of Range Branding  An unsuccessful product will affect the other products of the same brands.

Umbrella Branding  Umbrella branding uses one brand name. . it covers diverse kinds of products which are more or less related. But. Umbrella brand can offer a line or range of products.

laptops. ipods. phones. desktops. Example of Umbrella Branding Sony brand offers camera.  .

 .Advantages of Umbrella Branding  Capitalization on the single brand name results in economies of scale the in national & international market. Brand awareness allows launch of new products under the umbrella.

Disadvantages of Umbrella Branding     Umbrella brand is a generalistic brand instead of being a specialist. A debacle in one product may influence other products. An over stretched brand fails. Companies following this strategy don’t earn high revenues. .

Source/ Double Branding may br described as Cooperate Umbrella branding.Source/Double Branding Source Branding is when Product Brand Name+ Firm’s name. both are used. . In source branding product brand name & firm’s name have equal status & common core value.

Maruti is an established car manufacturing Company in India. so lends equity whereas Wagon R name distinguishes it from 800.Example of Source/ Umbrella Branding Maruti+ Wagon R . Grand Vitara. . Swift & others.

The name of the product brand or sub-brand adds something unique & brings distinction or differentiation.Advantages of Source/ Double Branding  Firm’s name or source name brings equity to the product.  .

Disadvantages of Source/ Double Branding  The brand needs to be consistent with the activity or expertise domain of the firm. .

It’s a balance between product & umbrella branding. Product brand name is more significant. . Unlike source branding firm’s name takes a back seat but is disclosed to the target audience.Endorsement Branding   In endorsement branding a company endorses its brands & products.

Nestle endorses its products but these products on their own have a distinct image & equity.Example of Endorsement Branding    It is known to everyone that Nescafe. Cerelac. Lactogen are all Nestle Products. Milo. But these products are dominant & are brands in their own right. .

.  With this strategy company enjoys the freedom to venture in other product categories. Also lends a quality assurance.Advantages Endorsement Branding  Corporate name gives a guarantee to the product brand name.

Disadvantages Endorsement Branding  May enjoy freedom of diversification but it has to be consistent with the brand. .

Differences between six branding strategies Umbrella Single Image Double Product+ firm image Endorsement Source brand passes on generic Image More Independence Range Brand signifies area of expertise Products Stem Line Focus on Complem entary Products Products mutually reinforce each other Customer s need is taken care of by the line Product Individual image Narrow Expansion Boundaries Some Independence Boundary less Generic Association Expansion in Limited Area Can cover Multiple Area Related Products Unique Association .