11 - Brand Architecture & Extensions

Question 1

brand portfolio

Answer 1

set of all brands and brand lines that a firm offers in one or several particular categories

Question 2

product portfolio

Answer 2

set of all products that a particular brand offers

Question 3

brand portfolio: strategies

Answer 3

1. minimize brand overlap - need different positionings (unilever: dove, axe, rexona)
2. compete w/ own brands before competing externally (l’oreal)

Question 4

brand portfolio: challenges

Answer 4

tech + components are often shared across brands of the same group

ex: volkswagen automotive group (lambo, bentley, porsche…)

Question 5

Kapferer’s 6 main models of brand strategy (+mixed approach)

Answer 5

hidden corporate brand:
- product brand strategy
- line brand strategy
- range brand strategy

discreet corporate logo:
- endorsing brand strategy

strong corporate brand:
- source brand strategy
- umbrella brand strategy

Question 6

product brand strategy

Answer 6

each product has its own positioning
- 1 product p/ brand
- most FMCG’s initial strategy (ex: P&G initial) - no longer exists

+ allows firms to take risks (unknown company)
+ independent brand so it has no impact on other brands

Question 7

line brand strategy

Answer 7

each line has its own positioning
- 1 line p/ brand
- dominant in FMCG sector (P&G current)

+ similar to product brand strategy
+ reduces launch costs
+ strong impact on shelves

Question 8

range brand strategy

Answer 8

brand has a concept that is shared by all products
- common in food&beverages + cosmetic sector (ex: knorr + vichy)

+ low launch costs
+ communication/advertising (generic)

Question 9

endorsing brand strategy

Answer 9

• most brands in the healthcare market + Nestle + Unilever

+ endorsing brand is the guarantor of quality + security
+ other brand functions are assumed by endorsed brands
+ greater freedom of movement

Question 10

source brand strategy

Answer 10

different daughter brands w/ different positionings
- dominant in L’Oreal (Garnier) + automotive industry (Renault)

+ parent brand offers it significance + identity
- incongruence b/w parent + daughter brand

Question 11

umbrella brand strategy

Answer 11

specific positioning for each line/range
- ex: yamaha pianos, guitars, motorbikes…

+ capitalization on one single name (economies of scale)
+ useful to penetrate new sectors (awareness)
- patchwork brand

Question 12

example of mixed approach strategy

Answer 12

kinder + knorr: line + endorsed

Question 13

house of brands vs branded house

Answer 13

house of brands: product brand strategy + line brand strategy + range brand strategy

branded house: endorsing brand strategy + source brand strategy + umbrella brand strategy

Question 14

current trend

Answer 14

rise of branded houses vs house of brands
- ex: seventh generation (from range to endorsing)

• demand for responsibility + transparency
• need for attractiveness
• need for visibility

Question 15

peripheral trend

Answer 15

acquisition of local brands (GROM, pure leaf…)

Question 16

3 approaches to branding a new product

Answer 16

1. develop a new brand
2. apply one of the firm’s existing brand
3. use a combination of new + existing brand

Question 17

brand extension

Answer 17

uses an established brand name to introduce a new product

• if combined w/ existing brand (approach 3) = sub-brand

Question 18

general categories of brand extensions

Answer 18

new products in:

1. current categories: product development strategy = line extension (ex: new flavor)
2. new categories: diversification strategy = category extension (ex: bentley bags)

Question 19

unsuccessful brand extensions

Answer 19

• Harley Davidson perfume
• Bic perfumes
• Levi’s classic suits

Question 20

succesful brand extensions

Answer 20

Colgate’s extension from toothpaste to toothbrushes

Question 21

lines vs ranges

Answer 21

lines: together in stores (ex: kinder)
ranges: separate in stores (ex: vIchy)