Designing and

Implementing
Branding Strategies

Branding Strategy or Brand

Architecture
Branding Strategy reflects the number and nature
of common or distinctive brand elements applied
to the different products sold by the Firm.

Branding Strategy determines

Which brand elements can be applied to which products

The nature of new and existing brand elements to be

applied to new products

With a view to

Define the relationship between brands and products and

products and brands
Define brand boundaries and brand complexity

Role of Branding
Strategy or Brand
Architecture
The role of a Branding Strategy is to

Clarify: brand awareness

Improve consumer understanding and

communicate similarity and differences
between individual products

Motivate: brand image

Maximize transfer of equity to/from the brand to

individual products to improve trial and repeat
purchase

Branding Strategy or Brand

Architecture
Tools of Branding Strategy /
Architecture 2 important strategic tools:
1.
2.

Brand-product matrix and

Brand hierarchy

By defining various relationships among

brands and products these tools help
characterize and formulate branding
strategies

Brand-Product Matrix
1

Products
2
3

A
Brands

B
C

Must define:

Brand-Product relationships (rows)

Brand Line and Category Extensions

Product-Brand relationships (columns)

Brand Portfolio

Brand-Product Matrix

Product mix (product assortment)

all products - lines and items that a
Firm sells
Product line - closely related group
of products within a category
(shampoo - for oily hair, dry hair,
normal hair, in sachets)

These products function in a similar manner

Sold to the same consumer group
Marketed through the same type of outlets
Fall within the same price range

Brand-product matrix

Brand mix all brand lines that a firm sells

Brand line particular brand name under
which various products are sold

Brand line is one row of the matrix (line and

category extensions)
Brand line may be either an

Individual Brand is been line extended (no category

extensions).
Or

Family Brand is extended across product categories

Nestle, Maggie

Breadth of a Branding Strategy

Breadth of Branding Strategy i.e Brand Extension
Strategy
a) Breadth of the Product Mix - 3 factors to establish product
attractiveness 1.

2.

3.

Aggregate market factors attractiveness of market

large, fast growing market, growth stage of product lifecycle,
non cyclical, non seasonal, yields high profit margins
Category structural factors affecting the category low
threat of new entrants, current category rivalry, bargaining
power of suppliers, and trade, product substitutes, market
operating at near capacity
Environmental factors technological, economic, social
and regulatory factors that affect the category

Also consider Firms strategic objectives, capabilities, etc.

Breadth of a Branding Strategy

Breadth of Branding Strategy i.e Brand Extension
Strategy (brand-product relationship)

b) Depth of the Product Mix - optimal product line is

evaluated on the basis of

Percentage of sales and profits contributed by each item in the
product line

Reflects the ability of each item in the product line to

Profits may be added by doing the following

Address varied consumer needs

Withstand competition
If line is too long - drop an item
If line is too short - add an item

Branding perspective longer product lines decrease

consistency of brand image

Depth of a Branding Strategy Multiple Brand Strategy

Depth of a Branding Strategy / Brand Portfolio
i.e Number of Brands in a Product Class
Multiple Brand Strategy in same product category
rationale

Targets multiple market segment needs (different

price, distribution, geographies, etc.) P&G
Attracts consumers seeking variety
Increases shelf presence and retailer dependence
Increases competition within the firm
Yields economies of scale in distribution, etc.
Maximizes market coverage and minimizes overlap

Designing a Brand Portfolio

Basic principles and goal of Multiple Brand

Strategy

Maximize market coverage so that no potential

customers are being ignored
Minimize brand overlap so that brands arent
competing among themselves to gain the same
customers approval

Optimal Brand Portfolio Depth of a Branding Strategy

Optimal Brand Portfolio is a trade off between
market coverage, costs and profitability

Distinct positioning and segmentation for each brand

is a must to

maximize market coverage (no customers are ignored) but

minimize brand overlap

Appeals to a sizeable enough market segment to

justify its production and marketing costs

Brand Roles in the Brand

Portfolio
Brand Portfolio Roles - brands are also
introduced to play a part in the Brand
Portfolio such as

Flanker brands - protect a flagship brand

Cash cow - milked for profits
Low-end entry-level - attracts new customers to
the brand franchise
High end prestige product - adds prestige and
credibility for the entire portfolio

Portfolio Roles of Brands

Portfolio Roles
Flankers (fighter brand) discount brands
introduced to compete with store brands,
competitors low end brands, etc.
e.g.HULs Wheel was the franker brand to face
the Nirma washing powder threat

Flanker brands role -

Create strong POPs so that the more important

brands can retain their desired positioning
Should not compete for sales with the higher
priced brands by being too attractive
Should not be connected to better brands, as
Flankers will reflect poorly on these brands

Portfolio Roles of Brands

Portfolio Roles
Cash Cow despite dwindling sales some
brands are retained as they continue to
generate sales with virtually no marketing
support

Existing brand equity is milked Gillette's

Trac II, Atra, Sensor

Portfolio Roles of Brands

Portfolio Roles
Low end Entry Level and High end Prestige brands
end points of line extensions play an important role

Relatively low-priced brand in the brand family attracts customers to the brand franchise

Retailers use these as traffic builders with a view to get

customers to trade up

Relatively high priced brand in the brand family adds prestige and credibility to the entire portfolio
even if it is not the most profitable

Portfolio Roles of Brands

Other roles brands play 1. Attract a segment currently not covered
expand the market
2. Attract variety-seeking customers who may
otherwise have switched to another brand
3. Increase shelf presence and retailer
dependence
4. Yield economies of scale in advtg., sales,
merchandising, distribution
5. Increase internal competition within the firm

Summary - Depth of the Branding

Strategy
Depth of the Branding Strategy Summary

Portfolio decisions basic criteria - each brand-name

product must have a well defined -

Positioning (the benefits it offers customers)

Ideally a Portfolio role (support for other portfolio brands)

Different portfolio roles brands play are based on

considerations related to the consumer, competition, and
the company

Expand market coverage, generate large revenues

Provide protection
Extend / enhance image
Fulfill other roles

Optimize portfolio - to maximize coverage,

minimize overlap

Branding Strategy /
Brand Architecture
Two broad branding strategies frequently
adopted are Branded house corporate branding
(umbrella branding)
http://www.virgin.com/company
House of brands a collection of individual
brands
https://www.hul.co.in/
Combination of both strategies eg Tata
Brands

House of Brands

Brand Hierarchy Levels

Corporate Brand (Virgin)
Family Brand (Maggi)

Individual Brand (Lifeboy)

Modifier: Item or Model (Ultra)

Brand Hierarchy
Branding Hierarchy - a graphical means of
summarizing the Firms branding strategy Captures the relationship between products

Displays the number and nature of common and distinctive

brand elements across the firms products, revealing the
explicit ordering of brand elements
Represents how different products are nested with other
products with different brand elements, at the lower levels

Summarizes the branding strategy (brand trees)

Typically there are more entries at each successive level of

the hierarchy

Brand Hierarchy Levels

Corporate Brand uses the Firms name
for all the branded product offerings
Corporate Brand Equity

Corporate BE occurs when relevant constituents

hold strong, favorable, and unique associations
about the corporate brand in memory
It encompasses a much wider range of
associations than a product brand

Brand Hierarchy Levels

Corporate Brand is used differently for strategic
reasons
As the only brand - Sony
Combined with the Family Brand name (individual
brand) - Sony Bravia
Or it stays virtually invisible and receives no
attention in the marketing program - Lifebuoy

1.
2.

3.

1.

Present for legal reasons only - on label, packaging

Brand Hierarchy Levels

Family Brand brands applied across a range

of product categories Maggie
Efficient means to link common associations to
multiple but distinct products

Most firms support only a few Family Brands

Corporate Brand functions as a Family Brand when
it is used for a range of products.
(The 2 levels collapse into 1 for those products)

Brand Hierarchy Levels

Individual brand restricted to only one

product category

Multiple product types may be offered on the

basis of different models, package sizes, flavors,
etc. e.g. Halo Shampoo

Brand Hierarchy Levels

Modifier - signals refinements or differences

in the brand related to factors such as quality
levels, attributes, functions, etc.

Plays an organizing role in communicating how

different products are related and vary within a
category that share the same brand name
(specific item or model type, or version - Ultra,
Plus)

Product descriptor explains what the

product is and does

Brand Hierarchy Decisions

The decisions are regarding The number of levels of the hierarchy to use
in general
How brand elements from different levels of the
hierarchy are combined, if at all, for any one
particular product
How any one brand element is linked, if at all,
to multiple products
Desired brand awareness and image at each
level

Brand Hierarchy Decisions

Decisions should be made on the basis of Principles of simplicity and clarity

1.

Number of levels of the hierarchy. Should be as few

levels as possible

Principle of relevance and differentiation -

2.

Desired brand awareness and image at each level

Principle of growth, survival, synergy -

3.

Of the Products to be introduced

Principle of prominence and commonality

4.

How brand elements from different levels of the

hierarchy are combined for any one particular product
How any one brand element is linked, to multiple
products

Brand Hierarchy Decisions

Creating the hierarchy - important to decide:
1.
Number of hierarchy levels based on

Principle of simplicity: as few levels as possible

Principle of clarity: transparent, logical
relationship of the brand elements employed

Levels of awareness and types of

associations to be created at each level
based on ..

2.

Principle of relevance: common relevant

associations across as many individual items as
possible
Principle of differentiation: differentiate
individual items and brands

Brand Hierarchy Decisions

Products to be introduced

3.

Principle of growth - evaluate ROI: does it

lie in investing in market penetration /
expansion or in product development
Principle of survival - evaluate if parentbrand has equity in the product category
Principle of synergy - evaluate if brand
extensions will enhance the equity of the
Parent Brand

Brand Hierarchy Decisions

4. To link brands at different levels

Principle of prominence: relative

prominence of brand elements affects
perceptions of product distance from Family
Brand, and the type of image to be created
for new products

To link a brand across products

Principle of commonality: more elements

shared by products, the stronger the linkages

Building Equity for

Hierarchy Levels and
Knowledge Structures

Building Equity for Hierarchy

Levels and Knowledge
Structures
Corporate brand level BE - include a much wider range of
associations to impact the individual products of the firm

Corporate image Dimensions are important when it

plays a prominent role in the branding strategy

But not always is the Corporate Brand association a
positive one
Determine whether a Branded House or a combination House of Brands
or a of both is a more appropriate strategy for a new product introduction

Building Equity for Hierarchy

Levels and Knowledge
Structures
Corporate Image Dimensions

Common product attributes, benefits, attitudes

Corporate credibility

Corporate expertise
Corporate trustworthiness
Corporate likeability

People and Relationships

Quality image associations

Innovative image associations
Other intangible attributes

Customer focused
Employee focused

Values and programs

Concern about the environment, social responsibility, etc.

Building Equity for Hierarchy

Levels and Knowledge
Strong Corporate Image
Structures
Advantages Potential marketing advantages

Potential HR advantages

Success of brand extensions is more likely

Lowers marketing costs
Better hold over trade, etc.
Attracts better quality employees
Existing employees become more productive and loyal

Will be treated favorably by Govt., other legal bodies

Helps survive a brand crisis and avoid public outrage
(buffers corporate trouble)

Building Equity for Hierarchy

Levels and Knowledge
Structures
Corporate Brand - BE building, managing

Create high public profile of the Firm

Shape abstract associations for the Firm

High profile MD, CEO - communicate news and

information, be the symbol of current marketing
activity
Quality focus, Innovation, customer focus, CSR

Be up for public scrutiny

Transparency in terms of its values, activities

and programs

Building Equity for Hierarchy

Levels and Knowledge
Structures
Corporate
Brand - Summary

Corporate brand image associations must transcends

physical product characteristics and include.
Intangible associations are valuable sources of BE and
provide POPs and PODs
Number of means of creating these associations must
be used high profile CEOs, investments in R&D,
transparency, Green Marketing, CSR, etc
Companies must talk the walk and walk the talk
communicating and substantiate claims with concrete
programs that can be understood and experienced

Building Equity for Hierarchy

Levels and Knowledge
Structures
Family brand level (Range or Umbrella Brands)

applied across a range of product categories

Family brands are used for several reasons

To evoke a specific set of Product Associations

Common product attributes, benefits, attitudes, across

groups of related products (rather than associations
related to people, relationships, values, and corporate
credibility)

Company level associations must be less salient

Because product imagery is dissimilar to the Company

brand. E.g. Titan and Fast Track. It is difficult to use
the Company brand without acquire its meaning

Building Equity for Hierarchy

Levels and Knowledge
Structures
Family brand level (Range Brand / Umbrella

Brand) is an efficient means to link common

associations to many related but distinct products

Cost of introduction of related new products is lower

Likelihood of acceptance is higher
Products linked must be considered carefully so that
associations of the Family brand do not become weaker
and less favorable
Failure in one product has ramifications on other products
in the family because of common identification

Building Equity for Hierarchy

Levels and Knowledge
Structures
Individual
brand level restricted to 1 product
category but can offer different models, forms,
package sizes, flavors, etc.
Advantages

Customized brand and supporting marketing activities

meet the needs of a specific customer group

Unique brand name, logo and other branding elements and .

Product design, pricing and distribution strategy, IMC programs

Risk to other brands / company is minimized if brand

fails
Disadvantage of creating individual brands

Difficult, complex and expensive to develop separate marketing

programs to build sufficient levels of BE
Success rate is lower than brand extensions

Building Equity for Hierarchy

Levels and Knowledge
Structures
Modifier
level used to further distinguish the type
of items / models involved

Used with Family / Individual brand to signify

refinements or differences in product related factors
quality, attributes, functions
Makes products more understandable, and relevant to
the consumer / trade
Plays an organizing role in communicating - different
products within a category while sharing the same
brand name, but differ on one or more attribute / benefit
Plays an important role in market coverage within the
category

Building Equity for Hierarchy

Levels and Knowledge
Structures
Product
descriptor (not a brand element) used
with branded products so that consumers can

Understand what the product is and does

Define the relevant competition for the product

PD is a basic product name e.g Hand

Sanitizer

Important to facilitate familiarity and understanding

when product is difficult to describe (a new product
with unusual functions)
To show it as different from other similar products

Communicating the Branding

Strategy

Communication of multiple level branding strategy

because different levels of awareness and image are
needed for different brand levels
2 Sub-brand communication strategy
Corporate image campaign /Family Brand level
communication
2.
Brand line campaigns
Communication at the Corporate / Family Brand level must
complement communication of brand line / extension
1.

Communicating the Branding

Strategy
2 marketing communication strategies
1.

Corporate Image Campaign must create associations

for the Corporate brand

Build awareness for company & its nature of business

Create favorable attitude and perceptions about companys
credibility (expertise, trustworthiness & likeability)

Influence public opinion on various issues with

Create beliefs that can be leveraged by product specific marketing

Cause Related Marketing, Green Marketing

Also helps with

Creating favorable impression on the financial community

Motivating employees and attracting better recruits

Communicating the Branding

Strategy
2 marketing communication strategies
2.

Brand line campaign

These ads must show uses and benefits of each of
the various products when launched -

Build awareness
Clarify meaning
Suggest additional use applications

Must emphasize the breadth of brands products

(range of products)
Used in conjunction with Umbrella ads that
encompass all sub-brands

Using Cause Marketing to

Build Brand Equity
Cause Marketing -The process
offormulating and implementing
marketingactivities that are characterized
by an offer from the firm to contribute a
specified amount to a designated cause
when customers engage in revenueproviding exchanges that satisfy
organizational and individual objectives

Advantages of Cause
Marketing

Builds brand awareness

Enhances brand image
Establishes brand credibility
Evokes brand feelings
Creates a sense of brand community
Elicits brand engagement

Green Marketing
A type of Cause Marketing that is concerned
with the environment
Environmentally friendly products and
marketing programs are gaining ground
in the developed world

Crisis Managing Guidelines

The two keys to effectively managing a crisis
are

Firms response should be swift

It should be sincere.

Brand Architecture
Guidelines

Adopt a strong customer focus

Avoid over-branding
Establish rules and conventions and be
disciplined
Create broad, robust brand platforms
Selectively employ sub-brands as means of
complementing and strengthening brands
Selectively extend brands to establish new
brand equity and enhance existing brand
equity