Brand-Product Relationship

BrandBrand-Product Relationship Introduction Six types of relationship between brand and product (or service) product brand line brand d) endorsing brand 2 range brand umbrella brand source brand (or parent bran

BrandBrand-Product Relationship To assign an exclusive name to a product, having its own individual positioning Brand portfolio correspond to product portfolio Product-Brand Strategy Company X Brand A Brand B Brand N Product A Product B Positioning B Product N Positioning N Each new product receiving its own personal brand name Positioning A ? P&G: detergents-Ariel, Tide, Dash Food sector: bring out new specialty product > product-brand portfolio is extensive Mineral water: evian, perrier strict indic ation of identity (Post-it) Branduct : (product ->category ) , ? for firms focusing their attention on a particular market -by occupying several segments having different types of expectations and needs-< maximizing its share of the market When segments are not too different -Choosing one name per produc t helps the consumer see each other as being different for highly innovative fir ms who wish to preempt a positioning -if the first brand in a new segment turns out to be satisfactory, it inherits the pioneer advantage; copy y Shelf-space . . 3

BrandBrand-Product Relationship Line-Brand Strategy Line-Brand extends its specific concept across different products Cross Branding; product with complementary features ? Renault: Baccara version; a line brand indicating leather seats, a luxurious int erior, etc. beauty-care industry: a complete line of products go with for baldin g man LOreals Studio Line: offering youngsters a structuring gel, etc. It It It ? established by building on the success of the original product with practical va riations of a closely associated nature. Eg) typical approach followed by perfum es It A : raises the selling power of the brand and creates a strong image of consistenc y leads to ease of line extension reduces launch costs : lies in the tendency to forget that a line has limits powerful innovation could slow down its developme nt Eg) Nestle-Bolino 4

BrandBrand-Product Relationship Brands bring all their products together under one promise or positioning Range-Brand Strategy Brand Brand Concept Brands bestow a single name and a promise on a group of products having the same level of ability ? To assist its consumers in making sense of the scientific wording on products A B C D N Clarins Concept: the specialist In beauty care Fluids Gels Etc Cream Solutions Soothing line Slimming and forming line Line Y : It avoids the random spread of communication by concentrating on one single na me : The Brands opacity as it expands : 1. the brand needed to be nurtured in suc h a way as to express its individuality 2. The consumer has to be assisted in si fting through the mass of products -> converted to product lines food sector (Green Giant, Dole), cosmetics, clothes (Benetton, Kookai, etc) kitc hen equipment (Moulinex, Seb,.) accessories (Samsonite,.) ? Building up Brand awareness (which can be shared by products) Refining brand con cept Approach: by concentrating on specific products, called vector product -> s hared by the other products in the range not directly mentioned 5

BrandBrand-Product Relationship The same brand supports several products in different markets, each with its own communication and individual promise Umbrella-Brand Strategy Brand Yet each product retains its generic name Products or services A Specific Communications By product Or service A B B C C N N ? Canon: cameras, photocopiers, and office equipment under one name Yamaha: motorc ycles, pianos, guitars Mitsubishi: banks, cars, domestic appliances : Capitaliza tion on one single name Little marketing investment is required : Each division within the organization handles its own communication(to get the best out of the particular market in which it operates) Awareness resulting from the umbrella e ffect is not sufficient An accident occurring with one product can affect the ot her products under the same umbrella The more a brand covers different categorie s, the more it stretches and weakens- greatest handicap is its vertical extensio n ? favored by multinational corporations marketing worldwide -being already establi shed, their name and reputation is a major asset in entering segments or areas w hich they had not previously penetrated. -> awareness of the brand brings about immediate approval 6

BrandBrand-Product Relationship Identical to umbrella-brand strategy, Apart from Products are now directly named Source-Brand (Parent) Strategy Parent Brand Personal brand names Specific Communication Products Brand A Promis e A Product A Or Line A Brand B Promise B Product B Or Line B Brand C Promise C Product C Or Line C ? Perfume: no longer come under a generic tag, such as eau de toilette or eau de p arfum, but each has its own name, e.g., Jazz, Poison, Opium, Nina, etc -> two ti er brand structure known as double-branding : ability to impose a sense of difference and depth e.g. chanel: coco and no.5 : overstepping the limitation of the parent brands core identity; keeping within s trict boundaries where brand extension is concerned. : if looking for greater fr eedom, endorsing-brand strategy is more suited. endorsing brand source brand: the offspring may have their own Christian names, but are still ti ed to the family spirit which dominates endorsing brand: products follow their s ingular paths under a simple common guarantee problem with many brands is that t hey have converted from source brands to endorsing brands. 7

BrandBrand-Product Relationship It gives its approval to a wide diversity of products grouped under product bran ds, line brands or range brands Promise A Endorsing-Brand Strategy Promise B Promise C Product C Or Line C Brand C Promise N Product N Or Line N Br and N Product A Product B Or Line A Or Line B Brand A Brand B Each product is still free to show its originality; hence the wide variety of na mes and symbols Placed lower down in its basic reassuring role Endorsing Brand ? GM: Pontiac, Buick, Oldsmobile, Chevrolet, etc Kellogg: Country Store, Rice Kris pies, Frosties, etc ( Kellogg normally tends towards product brands-Frosties, Al l Bran, Corn Flakes, etc refers to particular products) Nestle: Crunch, Golden G raham, Nescafe, etc name : indicated either by an emblem next to the brand or as a simple : grater freedom of maneuverability which it confers e.g. Nestle: baby food, chi ldren;s chocolate, coffee, soup market profits from the advantages offered by sp ecifically named products. less costly ways of giving substance to a company nam e and allowing it to achive brand status. 8

BrandBrand-Product Relationship Conclusion In reality, firms adopt hybrid configurations in the form of a range, umbrella, parent, or endorsing brand, according to the products. 9

BrandBrand-Product Relationship to capitalize on them and nourish them. (3M) Overhead projectors, cameras Medical adhesives Post-it Extra, Magic Video casset tes Racoon (nick name) Generic denomination Schotch Brite (3M medical division) Sc hotch Sometimes with the 3M endorsement, sometimes alone Y Z W A Case of Brand Proliferation Use the name of one of its existing primary brands, New philosophy emphasizes 3Ms role 3M as an endorsement brand. Corporate Branding Policy Committee Establish corporate guidelines for brand use Review the brands world strategies Approve any new brand requests New guidelines introduced 1. The trademark 3M should endorse all products (with one exception, a cosmetic line) 2. No products would carry more than two brands. 3. All brands will be global, which means no more creation of local brands. Will the product create a new primary demand? (Postit) 3M brand proliferation and dilution of identity But 29 6 (65% , ) , 25% u brand proliferation Policy It has 1,500 product brands, which are correspondingl y specialized, and each one receives too little financial support to be properly supported. Furthermore, the effect is to create a screen, Hiding the corporatio n 3M. Sub brands -allowed only when the primary brand alone does not accomplish suffic ient differentiation 1989: 73 new brands created 1991: 4 created brand portfolio: 1500-> 700 . 10

BrandBrand-Product Relationship Choosing a brand policy is not a stylistic exercise, but a strategic decision to promote products with a long-term brand capital aim. long1. 2. 3. Selection Criteria The product or service Consumer habits The firms competitive position firm Carvet France Specific type of Bordeaux wine Club Med Abroad Multiproduct name Club Med . product brand -Hilton, Sheraton, Meridien, Sofitel brand policy Economy hutted villages No appreciable wine-producing Industry , rangerangeLuxury golf hotels . .. The Carvet brand has meaning only when it can offer a plus which other Bordeaux cannot Club Med Unitary Brand name Consumer is more accustomed to interpreting the various pointers to specificatio n on wine label: region, vintage, type of vine, year Consumer may not fully appreciate the meaning of appellation, vintages, and other details. & Advertising Campaign Despite their differences, all these products Product brand Umbrella brand covering many generic French regional wines share the same model and values. Their common features speak louder than their d ifferences. Denominative policy results from a recognition of the brands duties as expected b y the customer, brand customer, When compared with the function and meaning of ot her product-. range-, and line-brand names, product- rangelinenames, Including o bjective and subjective quality indicators such as packaging, advertising and th e retailers own prescription and advice. retailer 11

BrandBrand-Product Relationship Major corporations selling to both industrial and consumer markets must decide h ow much emphasis they will put on product brands and how much visibility they wi ll give to the corporate name Selection Criteria Trend now exists in favor of corporate branding For a long time, corporations remained hidden for security purposes: in the even t of problems with one of brands, The corporation would not be hurt. Reciprocall y, the brands would not suffer from corporate problems. However, the advantages in the uncommon event of crisis are now outweighed by certain disadvantages. Ie) Unilever: is starting an endorsement policy in Europe and adds its corporate name in small type under its Persil Akzo: remained largely unknown; gained a po or image in terms of its technology because of this lack of visibility Johnsons: all products are endorsed by Johnsons, despite their being strong product brands in their own right. ICI A Top-down policy (umbrella-brand policy) Branding policy GE -a range of technical products which remain unbranded (polyurethanes) A hand-inhand policy (endorsement-brand policy) -adds its corporate reputation and reassu rance on technology and quality for the customers of famous mass-market brands ( Dulux-paint) A product brand-only policy (makes no reference at all) -Tactel(fib er-fashion industry) is far removed from the imagery of the chemical industry The monolithic one (GE as an umbrella brand) -GE signs the product or company as single-brand (GE Silicones, GE Aircraft Engines, GE Motors) The endorsement typ e -GE signs adjacent to a specific product or company name (GE-X) The holding ty pe -GE is discretely mentioned in such term as (X, member of the GE group) The a utonomous product or company -making no reference to GE All companies must define strict guidelines with which to face these naming and branding decisions. manager Guidelines bring rationality and coherence to decisio ns so far made according to each managers Subjectivity. They become a tool of con sensus and delegation. This is all the more necessary if the delegation. Company is international and sells innumerable products. 12

BrandBrand-Product Relationship 7 forms of strategy; Increasing degrees of auton omy The product do not have their own names -stamp of the powerful brand; Ie) Lacoste shirt, socks, sweaters - q product stat us . ie) St. Michael, Sony -not suitable for weak brands, Since they are unable to inject a common quality or spirit into the products bearing their name Product Names: What Autonomy? The brand dominates The product -emphasizes a brand whose image is reflected in every model. -The customers will will discover all the objective and subjective attributes which go to make up t he brand identity. ie) Mercedes: call its models the 190, 200, and so on. In naming, it provides A forceful reminder of The source brand -Each product is simply a variation on the brands values deriving from a common c ore. ie)Diorssimo, Miss Dior -strict association between brand and product allows the rising brand to express its identity and system of values by means of those little extra touches. -The principle should not be applied to too many products at one time. Ie) Nescafe, Nesquick, Nestea.. Wish to show an association between brand and products through suffix, -The brand takes them under Its exclusive wing, expressing their innovative qual ities. Ie) Lancome: Niosome, Noctosome Totally autonomous product brand, with no offshoots or Affiliations Ie) Signal, Crest, Persil, Jif, and Sun The relationship between product and brand is bottom-up -Nominal and semantic detachment allows brand to extend without destabilizing th e heart of the brand. Ie) Diors Capture and Poison perfumes, Johnsons Pledge -Exha usted or weak brands . Ie)car industry; Renault R5, R9 1990 c own-name policy . C lio, Chamade . Wish to show an association Between brand and products through term (ex:prefix) Ie) Clarins: multi-tensing gel, multirestoring fluide generic name . 1. Prefix . 2. Clarins chose to capitalize on term: multi infers a complete course of treatment, corresponding to the Clarins identity and intent. ->product line rather than mon o products The choice between these policies depend greatly on the strength of the brand an d its will, will, the strength of its new products, and the force of its commerc ial strategy. products, strategy. Firms that have extensive growth policy in an effort to capture a larger share o f the market -Range . (P&G) Firms opt for an intensive policy by developing thei r sales to existing customers - range . (ex-Apple; MacWrite, MacPaint, etc) 13

BrandBrand-Product Relationship similar firms competing in the same area [Retailer sector] Wide range of brand p olicies Retailer Brand Policies Retailer brands have typically been umbrella brands, exclusive to the retailer, each covering a number of groceries cosmetics products within a similar sphere S ainsbury: began as far back as 1869 Houseware Co-op: officially register its bra nd in France in 1929 The retailers saw these products in an essentially defensiv e role, a reaction against reluctant manufactures who were not supplying them. C arrefour (1976) 1. a new type of retailer brand known as banner. => signifies an a ttacking strategy. Umbrella brand cover . retailer signature emblem guarantee fr eedom produ t line . => stan e: national brands 2. banner 3. Retailer . q generi un branded . National brand quality 30~40% pa kage banner brand . 4. generi banner retailer Banner brand retailer . 5. Carrefour c freedom line , corporate branding policy . Umbrella brand . Own brand or Private label-different name from that of the retailer, Ie) Marks & Spe ncer - St. Michael. -share one essential difference from their earlier counterparts -in many cases t hey are product or line brands, designed to capture customers from the market le ader, hence the name counter brands. tactic: 1. Major brand 2. , major brand R&D , retailer shelf q . 14 . .

BrandBrand-Product Relationship Retailer Brand Policies Brand Owner Brands Main Purpose To capture clientele of A targeted brand To perso nalize the product To incorporate the Product among others To identify the produ ct source Product brand Line brand Range brand Umbrella brand Source brand Endor sing brand Manufacturer Retailer Counterbrand Own-label Own-label (Banner brand) Retailer named brand To indicate the manufacturer Corporate branding 15

BrandBrand-Product Relationship Breakdowns in the Brand-Product Relationship: A Few Classic Examples BrandBrand-product relationship organization aims at optimally managing the imag e flows.

Descending flows; from the brand to the products -whenever their sales could be increased by the application of a source-effect. Regenerate brand -thanks to a b ottom-up image flow Horizontal flows between the products -themselves can be a s ource of added value and may lead the consumer to try more products. P1 B

Pn Horizontal flows between the products All brand architectures initial goals

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BrandBrand-Product Relationship Breakdowns in the Brand-Product Relationship: A Few Classic Examples Classic cas es of failure 1. A brand disappearing behind one of its products -the most frequent case; Pare nt brand . -brand range Ie) Anais-Anais Honeywell ( . Cacharel identity . ) parent brand 2. Brand-product disconnection -When the company prefers to remain in the background, its image is not nurtured by its best-selling products and cannot act as an endorsement brand on other pr oducts. ie) Essilor: Varilux endorse . Seiko, Nikon Corning Pyrex ware corning . . Brand ore 5. The insisten e on ertain a ounting methods. line range ommuni ation support line . A brand map visual layout of brand-produ t relationships, distan es and stru ture Core produ t benefit line line overshadow . ie) Playtex-Cross Your Heart, Super Look bras . Produ t with no mention of brand Produ t with a spe ifi name and a small mention only of the brand -parent brand source brand brand value core identity . brand core name double br anding ie) Kelloggs: health and nature brand core Generic name . (eg. Kelloggs Cor n Flakes ) - Choco pops, Frosties less health oriented, with more fun and gimmic

ks -> receive double branding c brand map . . endorsing identity seg -in ase of a range brand, the produ ts of the range must work in synergy and omp lementarity to fulfill the brand mission, but it often happens that many produ t s in a range have their separate lives, unexpe ted and even ontradi tory. Ie) Jo hnnie Walker - a lassi ase of verti al disruption of the brand. (a brand suffers when it signs both a basi , low-pri ed produ t and a top- lass, premium-pri ed produ t.) -Bla k label johnnie walker , Red label . -> johonnie walker -> brand reposition range . (johnnie walker bla k label Gold label Premier . Bla k label range . Johnnie walker symbol .) 3. Excessive use of product name4. Range disruption or breakage 17