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(BMM class of 2015)
Year (TY)

Faculty Name:
Vishal Desai

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Lesson # 8


Deviprasad Goenka Management College of Media Studies (

Product Branding/Multi-Brand strategy:

In multi-branding strategy the brand is:

Promoted exclusively so that it acquires its own identity

and image and stand on its own

Allowed to acquire differentiation and exclusivity

Targeted accurately to a distinct target market or

customers because its positioning can be precise and

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Head &

Detergent DetergentShampoo Shampoo Soap




Balm After Shave

Old Spice

Sign of
Dandruff Cream Hygienic Clear
High-Tech no other Healthy&
shampoo soap protection blocked manliness
Detergent can deliver shiny hair
with micro

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As is evident from the figure P&G has been follower of

the multi-brand strategy

A mega company like HUL also has been an adherent of

multi branding
For example:

HULs Soap category

In terms of positioning

Lux beauty soap of filmstars

Lifebuoy soap that fight against germ and promotes health

Rexona a gentle soap with natural oils to have a good effect

on skin

Liril freshness soap

Same applies to HULs detergent and shampoo


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+Benefits of Product branding:

1)It creates multiple brand entities which is uniquely
positioned and directed at a particular segment
For example

HULs detergent brand Surf Excel, Rin and

Wheel offer all possible price points, benefits and
utilities linked to different sub-markets

2)A new product is not likely to send negative feedback

and associate the brand with the burden of failure

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3)A company following multi-branding is better

positioned to venture into unrelated product categories
4)Obtaining, greater shelf-space and leaving little for
competitors products
5)Saturating a market by filling all price and quality gaps
6)Catering to brand switchers users who like to
experiment with different brands
7)Keeping the firms managers on their toes by
generating internal competition
8) Organization who use a multi-brand strategy acquire
greater market share than they could with fewer
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Drawbacks of Product branding:

1)Creating individual brands is a costly exercise

2)The new brands do not exploit strength of a company
or its existing brands

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+Line Branding:

Line in the context of product mix refers to various

product lines that a firm may have in its total portfolio
For example:

Philips line extension has T.V, video and audio,

personal care, communication and household

The brand appeals to distinct market segments who

appreciate and like the brand

Now the customers do not tend to be contended with

one product which the brand offers

Line extension is generally followed for complimentary

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+ Consumers want complimentary products which go

hand in hand with the brand concept or application.
For example:

LOreal user wants the brand to offer all

contemporary products which enhance beauty
body lotion, deep pore cleansing lotion, lipstick,
nail enamels, eye liner,etc

The products in the line draw their identity from the

main brand

Marketing products as a line under a common brand

improves the brands marketing power rather than
selling them as individual brands

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L Oreal Group

L Oreal






Products share common

concept, complement
each other
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+Range Branding / Mixed Branding:

Line branding restricts the brands expansion into

nearby territories of complementary products, which
complement or support the main products usage

All the products share a common promise which stems

from the firms or range brands area of competence

The product are tied together by a single brand

For example:

Nestle uses its Maggi brand for its range of fast

food Maggi noodles, sauces, soups, pastas,etc

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Himalaya Drug Co.

Ayurvedic Concepts

Area of
Or expertise

Skin Care
Health Care
Ayur Slim Capsules
Daily health
Digestive Capsules
Cough Syrup

Body Care
Antiseptic Cream
Pain Balm
Muscle and Joint

Hair Care
Anti- Dandruff
Hair Conditioner
Hair Vitaliser

Lotions, Face Wash,


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+Benefits of Range Brand Strategy / Mixed

1)It helps in the formation of brand equity
2)The brand can easily embrace other new products
which are consistent with the brand, reducing the cost
of introducing new brand in the market

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Limitations of Range Brand Strategy /

Mixed Branding:

1)The brand can become weak due to overstretching if

the brand tends to hang large number of products on it

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+Umbrella Branding Strategy:

Umbrella branding has been particularly favored by the

companies of the East
For example:

Korean giant LG uses its name on the product

like microwaves, refrigerators, computers,
television, air conditioners

Philips, GE and Canon also follow umbrella


Indian business houses TATA and Bajaj

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Hi-fi Music



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+Benefits of Umbrella Branding / Multi

Product Branding Strategy:
1)Umbrella branding is an economical strategy as
investing in a single brand is less costly than trying to
build a number of brands
2)Using an umbrella brand to enter into new markets
allows considerable saving
For example:

TATA making a foray into the automobile car


3)Umbrella branding may even make sense in the

current marketing environment characterized by
information overload and brand proliferation
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+Drawbacks of Umbrella Branding / Multi

Product Branding Strategy:
1) It is not a consumer consistent strategy
2)With time, market fragments and gets divided into
smaller sub-segments
3) Each segment presents its own unique structure of
needs and buyer preferences
4) A specialist brand may be needed for precise
targeting of a particular segment

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3)A failure in one product category may influence other
products/brands because of shared identity
For example:

If Samsung refrigerators are discovered to be

faulty, the message about its defect would travel
to other quarters, impacting the brands
performances in categories like air conditioners,
TV and monitors.

4)Umbrella branding is difficult to stretch vertically

For example:

Maruti Suzukis attempt to go to the upper

segment with its Baleno range did not yield
good results
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+Source / Double branding:

Source brand strategy combines the firms name with

the product brand name

It is hybrid of umbrella brand and product brand


The product is given a brand name and it is combined

with the name of the firm
For example:

Pulsar name of the bike

Bajaj the company name behind it
Both the name enjoys equal importance and are
given equal status in the brands communication
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Maruti Suzuki






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+Benefits of Source Branding:

1)The firms name brings its equity to the product
For example:

When Bajaj name is added to a new brand,

immediately Bajajs repertoire of associations
are transferred onto the product

2)The second name provides an opportunity to add

something unique to the brands by customization or

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+Drawbacks of Source Branding:

1)The company image becomes the limiting factor in this
branding approach
2) When the product categories are different, double
branding may not be the correct strategy

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+Endorsement Branding:

Endorsement brand strategy is modified version of

double branding

It makes the product brand name more significant and

the corporate brand name is relegated to a lesser

The umbrella brand is made to play an indirect role of

passing on certain common generic associations

It is only mentioned as an endorsement to the product


By a large, the brand seeks to stand on its own

Unlike the product brand, endorsement brand discloses

the identity of the maker, making it a small part of the
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+ The brand gets the an endorsement that it belongs to

specified company
For example:

Kit Kat gives a signal that it is a Nestls


Cinthols communication stresses that it is a

Godrej product

Dairy Milk is Cadburys brand

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Five star




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+ Endorsement branding strategy allows the brand the

freedom to take an independent direction

Unlike the source brand strategy, in endorsement

strategy the firms name sits back as an assurance of

Thus, endorsement branding strikes a delicate balance

between umbrella and product branding

The marketers can subtly transfer the corporate

brands equity and at the same time enjoy the freedom
to the venture beyond immediate product boundaries

Therefore, while endorsing a product brand, care must

be exercised in finding consistency

Otherwise the endorsement may just be perceived as

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+ For example:

Nestle burnt its fingers when it launched Mithai

The product failed as it did not go down well
with the Nestle endorsement

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+Private Labels / Store branding:

Products marketed by retailers and other members of

the distribution chain

Private labels can be called store brands when they

actually adopt the name of the store itself in some way
For example:

Stop brand of clothes by Shoppers Stop

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+ Private label brands typically cost less to make and sell

than the national or manufacturer brand with which
they have to compete

Thus, the benefit to the consumers of buying private

label and store brands is often cost saving

Whereas, the benefit to retailers selling private label

and store brands is their gross margin which is
relatively higher as compared to national brands

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+Brand Architecture Objectives:

Creating power brands

Strong logo design offering that synchronies with the
consumers logic and emotions, providing effective

Creating synergy
Well-developed brand architecture provides the
synergy of logo design, reinforcing associations, which
in turn results in cost efficiencies
For example:

Gillette uses the common thread of providing

the best a a man can get in terms of quality
and speed across all product categories
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+ Providing clarity in product offering

This is necessary to ensure a clear-cut identity among

Leveraging Brand Equity

Make the logo design work harder by increasing the
One way is through brand extension
A major function of brand architecture is to provide a
strong framework to deal with brand extension

Planning future growth

Brand architecture should plan for the brands future
It must be the foundation for making strategic
advances in the marketplace

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+ The Monolithic Structure

This is employed when a firm uses its corporate brand
name on all products or services
For example:

Tata, Philips, Samsung, Videocon, Toshiba

The Fixed Endorsed Structure

In this the corporate brand remains all powerful but
the product is also given a name
It is a slight extension of the monolithic structure

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By giving the product a sub-brand, some

differentiation is achieved
For example:

Fiat - Uno, Fiat - Siena, Fiat - Trend, Fiat - Palio

Maruti Suzuki - Esteem, Maruti Suzuki - Zen,

Maruti Suzuki - Wagon R

The Flexible Endorsed Structure

In this format the corporate brand remains visible but
it takes the back seat
The product brand is given the front seat
The sub-brand is hero to the customers
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It achieves greater autonomy and identity

For example:

Godrej endorses all its product brands which are

most visible and dominant Cinthol, Ganga, Fair
glow, No.1

Hamdard Rooh Afza, Pachnol, Sualin

The Discreet Approach

Here the product becomes a standalone brand
It is given its own due identity and status
The corporate name does not back it up
For example:

P&G employs this strategy Pampers, Whisper,


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In a brand portfolio, each brand should be unique and

should result in maximizing the equity of all the other
brands in the portfolio and/or should not harm the
equity of the other brands

Each brand has to be unique and should cater to

different segment in the market

Therefore, while devising a brand portfolio, marketers

need to be careful and come out with brands that
maximize the coverage of the market and minimize the
overlap between brands, so that threat of
cannibalization is minimized

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An organization can launch new brands either to satisfy

a particular need of the target market or to offset

This result in brands playing a specific role in the

portfolio of brands of an organization

Brands can play the following roles:-

1) Flankers
2) Cash cows
3) Low-end entry
4) High-end prestige
5) Strategic Brands
6) Silver Bulltets
7) Linchpin Brand
8) Sub-brands
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A flanker brand is a new brand introduced into the

market by a company that already has established
brand in the same product category

The new brand is designed to compete in the category

without damaging the existing items market share

This strategy is also called fighter branding or multibranding Eg:- Nirma v/s Wheel, Micromax v/s other
mobile brands

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+Importance of flanker branding

It allows a company to attract new customers from

various market segments

The main brand of a companys portfolio should target

the market segment containing the most customers

Another brand can then be positioned to convert users

from other market segments by using different set of
benefits or product characteristics
For example:

P&G Tide is an extremely successful laundry

In order to appeal to consumers who desired a
lower - cost detergent , P&G introduced Cheer
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Gain more shelf space for the company, which

increases retailer dependence on the companys

Capture brand switchers by offering several brands

Protect the company- giving a product its own unique

name means it will not be readily associated with the
existing brand. This reduces risk of damage to the
existing brand and/or company if the product fails

Companies with a high-quality existing product can

introduce lower-quality brands without diluting their
higher-quality brand names

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+Cash Cows:

Some brands may be kept around despite dwindling

sale because they still manage to hold on to a sufficient
number of customers and maintain their profitability
with virtually no marketing support
For example:

Colgate has come out with Colgate Gel, it still

sells the Colgate White toothpaste

Brands with significant customer bases that require

less attention than other brands

The role of cash cow brand is to generate resources

that can be invested in other brand for future growth
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+Lower-end entry and high-end prestige


Many brands introduce brand variants in a certain

category that vary in price and quality

These brands leverage associations from other brands

while distinguishing themselves on the basis of their
price and quality

The role of a relatively low-priced brand in the brand

portfolio often may be to attract more customers to the
brand franchise
For example:

Volkswagen introduced Polo with an idea of

bringing new customers into its brand franchise
with the hope of later moving them up to higher
priced models of automobiles
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Cash Cows:

For example:

For example:

Wheel & Rin (Unilever),

Colgate, Singer sewing

Machine and
Sunlight soap of Unilever

Low-end entry:
For example:

High-End Prestige
For example:

Lucera brand of jewelry from Nakshatra and DDamas

Gitanjali Group, Wheel for
jewelry from Gitanjali group,
Unilever, Tata Nano
Surf Excel from Unilever,
Cadburys Dairy Milk Silk

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+Strategic brand:

Can be a currently dominant brand also called

megabrand, which can maintain or grow its position, or
a small brand that is projected to become a major one

Thus, a strategic brand represents a meaningful level

of profit and sales in the future

Eg: Pepsi or Thumbs Up

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+ Linchpin brand

As the name suggest, is the top brand or the key player

It provides a source of differentiation and indirectly

influences customer loyalty
For example:

Dairy Milk is a linchpin brand for Cadbury

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+Silver Bullet:

A silver bullet is a sub-brand or branded benefit that is

employed as a vehicle for changing, or supporting the
brand image of a parent brand

Because a silver bullet has a role that extends beyond

supporting its own business, it deserves extra
resources allocation in the form of advertising / or
product development
For example:

Sony Walk-Man supports innovative

miniaturization identity that is central to Sony

Vodafone Tuesdays, Airtel Hello Tunes.Mc

Donalds Happy Meal
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+ Branded Benefit As Silver Bullet:

A branded benefit can also play a silver bullet role by

supporting the image of the brand to which it is

Thus it can do more than help communicate a

functional benefit

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+Sub Brands:

Sub brands are brands that are connected to the parent

brand and supplement or modify the parent brands

The parent brand provides the primary frame of

reference and the sub-brand provides the attribute
For example:

Titan Raga, Tata Sonata,Titan Nebula,etc

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+ Sub-brands are further graded into the following

Sub-brands as co-driver

Where the endorser brand and the sub-brand both play

a major role
For example

Nestle Kit Kat both Nestle & Kit Kat have

strong brand equity

Master brand as drive

Here, the parent or Masterbrand primarily drive the

success of sub-brand
For example:

HP DeskJet printer where primary driver for the subIndias premier Mbrand, is the parent brand name HP


Licensing involves contractual agreement whereby

firms can use the name, logo, character, and so forth of
other brands to market their own brands for some fixed

Essentially, a firm is renting another brand to

contribute to the brand equity of its own products

Entertainment licensing has been a big business in the

recent years

Successful licensors include movie title, logo, comic

strip character, television and cartoon characters

For example:
RaOne, Krissh, Tom & Jerry, Chotta Bheem,
Angry Birds

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+Merchandise Licensing industry

Worldwide is estimated at $187billion but in India it is

still at nascent stage

The emergence of organized retail in India has set the

pace for new collaborations between Licensors and
Indian business houses

Licensing of brands, designs, characters and celebrities

is now becoming popular in India used as jewellery,
apparel, lifestyle accessories, toy, gifts, games etc

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+Benefits of Licensing For Brand Owners:

Allow entry into new categories and businesses in

which the company may not have core competency

Provides broader retail presence

Generates new, ongoing revenue streams at minimal

increment cost

Protects the trademark through registrations and actual


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+Benefits of Licensing For Brand Licensees:

Ease of entry into new product categories or price


Alternative to significant investments in brand building

Better bargaining power with retailers

Build competitive advantage

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One danger in licensing is that manufacturers can get

caught up in licensing a brand that might be popular at
the moment but is really only a fad and produces short
lived sales

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+Corporate trademark licensing:

One of the fastest growing segments of the licensing


Is the licensing of company name, logo, or brand for

use on various, often unrelated products

In licensing their corporate trademark, firm may have

different motivation, including generating extra
revenue and exposure, or enhancing their brand image

However, the risk is that the product will not live up to

the reputation established by the brand

Inappropriate licensing can potentially dilute brand

meaning with consumers and marketing focus within
the organization

Eg: Maruti Suzuki,Hero Honda,Parker Pens by


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The six strategies discussed above can be labeled as

generic strategies of branding

Each one is driven by its own internal structure and


The benefits and constrain flow accordingly

One cannot make a blanket judgment about any

strategy being the best

Each strategy comes with its own pros and cons

Therefore, the branding strategy decision cannot be


Indias premier MIt must be preceded by a systematic analysis of a

brands strategic challenges and a firms strengths and

+ Firms can adopt multiple branding strategies

depending upon their requirements
For example:

Nestle adopts, by and large , an endorsement

brand strategy for all its products

Within the endorsement framework, Maggi takes

as an umbrella brand role for its range of

It is hard to generalize as to which brand strategy is


But the choice of the strategy needs to be used on a

thorough understanding of what each of the branding
strategy stands for and what are its intentions
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+Factors for Selecting Branding Strategy:

1)Market Size

When market size is smaller and is not growing,

achieving critical mass is difficult

In such situations a branding strategy which takes

assistance from an established name may be more


Implies how fiercely the market is contested

Brands need to shift from generality to specialty

Specific customer benefits or personality focus needs

to be achieved
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Accordingly, branding strategies which are tilted in

favor of individual brands identity creation may be
more appropriate

3) Resources

Product branding is definitely not an option for a

resource starved firm

Product branding firms like P&G, HUL, etc have deep


They have resources to create and support product


While the firms in Eastern side of the globe heavily

banked upon umbrella branding. These firms, instead
created a common equity pool to be used and exploited
by products in their portfolio
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+4) Product Newness:

Todays market environment is characterized by brand


When a marketer wants to add a new product which is

characterized by its own uniqueness in terms of
benefits or attributes, using common brand name is not

The appropriate branding strategy under these

circumstances is not to follow umbrella branding, but to
mow towards product branding which concentrates on

Brands can evoke a mid-route by combining company

name with product name to avoid confusion and
establish clarity of image
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+5) Technology / Innovations:

Product innovation sometimes embody new technology

Innovation brings uncertainty, both for the firm and the


Firms marketing innovation have to attend to two tasks:

1)To insulate brand equity in case the innovation fails

2)To communicate its innovativeness
Eg: Kent RO Water Purifier.
Kent Ozone Veg & Fruit Purifier

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+6)Nature of the product:

A brand name could be based on functional or attribute

of the brand

The functional brands are rigidly defined by their

functions / attributes. Eg: Ezzee conditioner for woolen

This limits their ability to be globally extended to

categories placed at a distance from their core

However, some brands allow greater scope for

umbrella or source branding Eg: Kingfisher and Godrej. v/s
Unilever and P&G

Product category also has to be considered for

branding strategy Eg: Tea cannot be given brand name like
Wheel Tea or Cinthol Tea

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+7)Customer Sophistication:

In different geographic markets, customer

sophistication with respect to product class may vary

Sophisticated customers who appreciate differences

among the product within a class are not be dealt with
umbrella branding

The differentiation must be accounted for by the

branding strategy

Greater customer sophistication makes umbrella

branding an inappropriate option

The branding strategy must focus on category

differentiation as it exists in customers mind

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A brand hierarchy is a means of summarizing

the brand strategy by displaying the number and
nature of common distinctive brand elements
across the firms products, revealing the explicit
ordering of brand element

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Company brand

Family Brand

Individual Brand


The corporate or the parent

brand of the organization
(General Motors)

A portfolio of products under

one brand, generally within one
product category ( Chevrolet)

A specific product in that line or

a sub-brand (Beat)
An individual and unique item
or a special class (GLX)

Different levels of the hierarchy of General Motors

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+ Kapferer Branding system is developed by one of the

Europes leading branding expert Jean-Noel-Kapferer

This hierarchy involves moving from top level to the

bottom level introducing more brands at each
succeeding level which may be easily represented as

1)Corporate (or company) brand (GM)

2)Family Brand (Chevrolet)
3)Individual Brand (Optra)
4)Modifier (GLX)

The highest level of hierarchy always involves one

brand the corporate or company brand
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+ Some brands highlight their parent companys name in

a subtle manner.
For example:

P&G owns Vicks, Whisper, Ariel etc but does not

uses its corporate name in any of its line

Some other firms combine their corporate brand name

with family brands or individual brands
For example:

Reliance Reliance Communications, Reliance

Energy etc

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+ Finally, in some other cases, the companys name is

virtually invisible and, although technically part of the
hierarchy, receives virtually no attention in the
marketing program
For example:

Big Cinemas a division of Reliance Media Works


At the next lower level, a family brand is defined as

brand that is used in more than one product category
but it is not necessarily the name of the company or
the corporation itself
For example:

Kissan Jams, Sauces, Fruit Crushes, etc

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+ An individual brand is defined as a brand that has been

restricted to essentially one product category,
although, it may be used for several different product
types within the category
For example:

Haldirams - Namkeen, Chips, Bhujia Sev, etc

A modifier is a means to designate a specific item or

model type or particular version or configuration of the
For example:

Lays regular and baked chips

Amul Pasteurized Unsalted, regular, and

Lite versions of butter

Different level of the hierarchy may receive different

emphasis in developing a branding strategy

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Product Mix

Brand Line


Brand Portfolio/Product Line

Product Assortment

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+ Brand Line:

1 Row of the matrix (original + Extensions)

Brand Portfolio /Product Line

1 Column of the matrix ( set of all brands in a product


Product Assortment:

Entire Matrix

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Brand-Product Matrix

Product Mix




Product Breadth/Width
(No. of product lines)

Product Line Length

No. of products in product line

Average Depth
= Total Variants/
Total Brands

Product Assortment
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ges /



Clinic Plus Kissan









Fair &

Surf Excel







All Clear





y Walls




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+ A brand-product matrix helps to highlight the range of

products and brands sold by a firm

To characterize the product and branding strategy of a

firm one useful tool is the brand product matrix

A graphical representation of all the brands and

products sold by the firm

It helps identify Gap Areas which can be entered by

launching new brands/products.

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Corporate Branding

Aaker defines a corporate brand as a brand that

represents an organization and reflects its heritage,
values, culture, people and strategy.

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+Difference between Corporate and

Product Brand

Shift in focus from product branding to corporate


Organizational culture and health comes to fore

From customer focus to stakeholder focus

Branding responsibility shifts from brand management

team to corporate communications team

Product brands live in the present where as corporate

brands live in the past, present and future

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