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Subject:
BRAND BUILDING

Batch
(BMM class of 2015)
Year (TY)

Faculty Name:
Vishal Desai

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Lesson # 8

BRAND STRATEGIES

Deviprasad Goenka Management College of Media Studies (dgmcms.org.

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TYPES OF BRANDING
STRATEGY:
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
unambiguous

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POSITION

MARKET

BRAND

P&G

Ariel

Tide

Pantene

Head &
Camay
Shoulder

Detergent DetergentShampoo Shampoo Soap

Whisper

Vicks

Sanitary
Napkin

Balm After Shave

Old Spice

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

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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


categories

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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
brands
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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
appliances

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


products.
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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

Lipstick

Nail
Enamel

Powder
Compact

Eyeliner

Foundation

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


concept
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
Competence
Or expertise

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

Body Care
Antiseptic Cream
Pain Balm
Muscle and Joint
Rub

Hair Care
Cleanser
Anti- Dandruff
Cleanser
Hair Conditioner
Hair Vitaliser

Lotions, Face Wash,


Creams

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+Benefits of Range Brand Strategy / Mixed


Branding:
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


branding

Indian business houses TATA and Bajaj

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PHILIPS

Television

Irons

Lighting

Mixers

Monitors

Hi-fi Music
system

Shaver

Medical
equipment

Phones
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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


market

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


strategy

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

Maruti
Ertiga

Maruti
Wagon-R

Maruti
Alto
Maruti
Zen

Maruti
Celerio

Maruti
Stingray
Maruti
Ritz

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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
personalization

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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
status

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


brand

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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school

+ The brand gets the an endorsement that it belongs to


specified company
For example:

Kit Kat gives a signal that it is a Nestls


product

Cinthols communication stresses that it is a


Godrej product

Dairy Milk is Cadburys brand

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Cadburys

Cadburys
Eclairs

Cadburys
Bournvita

Cadburys
Perk

Cadburys
Five star

Cadburys
Dairy

Cadburys
Crackle

Cadburys
Shots

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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
quality

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


hollow
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+ For example:

Nestle burnt its fingers when it launched Mithai


Magic
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
differentiation

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
consumers

Leveraging Brand Equity


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

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,


Pantene

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+BRAND ROLES IN THE


BRAND PORTFOLIO:

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
competition

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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+Flankers:

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


detergent
In order to appeal to consumers who desired a
lower - cost detergent , P&G introduced Cheer
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+Advantages:

Gain more shelf space for the company, which


increases retailer dependence on the companys
brands

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


brands:

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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Flankers:

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
attached

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
association

The parent brand provides the primary frame of


reference and the sub-brand provides the attribute
association
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
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+BRAND LICENSING:

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
fees

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


use

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+Benefits of Licensing For Brand Licensees:

Ease of entry into new product categories or price


range

Alternative to significant investments in brand building

Better bargaining power with retailers

Build competitive advantage

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+Disadvantage

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


industry

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


Luxor

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+CHOOSING A BRAND
STRATEGY:

The six strategies discussed above can be labeled as


generic strategies of branding

Each one is driven by its own internal structure and


logic

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


automatic

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


school
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
products

It is hard to generalize as to which brand strategy is


appropriate

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
desirable

2)Competition

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


pockets

They have resources to create and support product


brands

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


proliferation

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
desirable

The appropriate branding strategy under these


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

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


customers

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
clothes

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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+BRAND HIERARCHY:

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

Modifier

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
follows:

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
business

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


Ltd

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
product
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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+BRAND PRODUCT MATRIX:


Product Mix
Brands

4
Brand Line

A
B
C
D

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


category)

Product Assortment:

Entire Matrix

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Brand-Product Matrix

Product Mix

Detergent

Shampoo

Soaps

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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Detergen
ts

Soaps

Hair
Care

Wheel

Liril

Rin

HUL
Food

Bevera
ges /
Ice
Cream
s

Oral
Care

Skin
Care

Clinic Plus Kissan

Taj
Mahal
Tea

Close-up

Ponds

Breeze

Sunsilk

Knorr

Taaza

Pepsoden
t

Fair &
Lovely

Surf Excel

Rexona

Dove

Annapurna

Lipton

Comfort

Lux

All Clear

Bru

Vim

Pears

Tresemm
e

Kwalit
y Walls

Cif

Ponds

Sunlight

Lifebuo
y
Dove
Hamam
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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


branding

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

Indias premier Mschool