7 – Sustaining Brand Equity I: Implementation

Question 1

Brand Portfolio

Answer 1

All brands sold in a company in a product category. Building a brand is complex. Firms must maximise brand equity across all different brands they offer. How should brand information be organised to make sense of it for the organisation to sort their time, effort and money.
Toyota
Building brand equity for multiple products/services under a signal company. Brand salience.

Question 2

Brand Architecture

Answer 2

Reflects the number and nature of common/distinctive brand elements applied to different products sold by the firm. A company usually has multiple brands through product categories.
• Which brand elements can be applied to which products and the nature of new and existing brand elements to be applied to new products. Do not confuse consumers
• It is critical because it is the means by which firms can help consumers understand its products and services and organise them in their minds. The primary motivation is to prevent confusion in consumers.
Honda cars, motorcycles, lawn mowers
Brand positioning, POPs, PODs. Brand elements. Brand architecture is to clarify brand awareness and improve brand image.

Question 3

Brand Product Matrix

Answer 3

• Brand product relationships (rows/breadth): captures brand extension strategy in terms of number and nature of products sold under firm’s different brands/ brand line/ extension (brands in multiple product categories).
• Product brand relationships (columns/depth): captures brand portfolio strategy in terms of number and nature of brands to be marketed in each category/ the brand portfolio (within a product category, there are multiple brands in a company).
Virgin music, airlines, gyms etc.
PnG, Unilever with multiple brands of shampoo.
Brand extension. Brand positioning, by giving consumers more choice, smaller target market. More POPs and PODs. Building brand equity through brand salience.

Question 4

Types of Brand Architecture Strategies

Answer 4

• House of brands
• Sub brands
• Endorsed brands
• Branded house
PnG, Apple, Marriott, Virgin
Brand positioning considering target market, competitors, POPs, and PODs. Strategies build brand equity differently.

Question 5

House of Brands

Answer 5

Introduce and provide resources for multiple and individual brand equity building. A company oversees a set of stand-alone brands. It focuses on specific niche markets and avoids negative image spillovers but weak brand loyalty, high cost and inefficient
PnG
Behavioural loyalty is low between brand products. Brand positioning considering target market, POPs, and PODs. BAV in niche, upper left quadrant. Brand performance, consumer judgements.

Question 6

Sub Brands

Answer 6

Brands that augment and connect to the master brand. it carries both parent brand and new brand name. Highly visible parent brand, streamlined marketing campaign but vulnerable master brand and conflicting brand associations
Apple with iPod and iPad
Brand positioning considering target market, POPs, and PODs. Carries consumer judgements and feelings, brand performance and image to new brand. Behavioural loyalty, attitudinal attachment.

Question 7

Endorsed Brands

Answer 7

Brand and products that are endorsed by larger brands. Faster market penetration and quality assurance but negative spillovers to other brands and potential brand dilution
Marriott, Toyota
Brand positioning considering target market, POPs, and PODs. Carries consumer judgements, feelings, credibility, consideration, quality and superiority.

Question 8

Branded House

Answer 8

One basic brand across all product categories. Products organised around corporate umbrella brand. Increases brand equity, marketing and spending efficiencies but a lot of eggs in one basket, systematic, idiosyncratic risks.
Virgin
Brand positioning considering target market, POPs, and PODs. Carries brand salience, performance and imagery to new product/service. History, heritage and experiences continue. Consideration.

Question 9

Reasons to introduce multiple brands

Answer 9

• Maximise market coverage: ensure various segments in the market are being served
• Minimise overlap: must convince consumers that brands are different.
PnG
Brand positioning, target market, competitors, POPs, PODs. Brand performance and imagery. Brand knowledge.

Question 10

Brand Roles in portfolio

Answer 10

• Flankers
• Cash cows
• Low end entry level
• High end prestige
Jetstar, Gillette, BMW, Lexus
Brand positioning with target market, competitors, POPs and PODs.

Question 11

Flankers

Answer 11

Threat of competition is matched by introducing another brand. To protect equity of parent brand. To ensure flagship brands can maintain their desired positioning. They must be not so attractive that they take sales away from higher priced comparison brand, must be connected to other brands, and should not be designed cheaply that they reflect poorly on other brands.
Qantas introducing Jetstar
Creates strong POPs with competitor brand. Brand positioning. Target market and competitors. Building brand equity through brand performance and imagery

Question 12

Cash Cows

Answer 12

Milked for profits. Brands that have dwindling sales but kept because they are still profitable. Withdrawing may not necessarily switch customers to another brand but to competitors.
Gillette Mach 3
Brand positioning with target market, competitors, POPs and PODs. Often seen as commodity in BAV power grid. Do not have the same brand performance, but consumers have positive brand image.

Question 13

Low End Entry Level

Answer 13

Entry point for consumers. Products may be out of reach for consumers and this allows consumer entry into brand franchise such that they can trade up to more profitable products. Also known as traffic builders. They start engaging and experiencing with the brand
BMW 3 Series
Brand positioning with target market, competitors, POPs and PODs. Builds brand equity through resonance – behavioural loyalty, attitudinal attachment, sense of community.

Question 14

High End Prestige

Answer 14

Lends credibility to portfolio. Reinforces/ upgrades parent’s brand position. Also known as traffic builders.
Toyota’s Lexus
Brand positioning with target market, competitors, POPs and PODs. Builds brand equity through performance – quality, superiority, consideration, and credibility.

Question 15

Reasons to introduce new brands

Answer 15

• To maximise shelf space and retailer dependence
• To increase internal competition within the firm
• To maximise market coverage to introduce a new brand. To yield economies in scale in ads, sales, merchandising and physical distribution. Costs less to introduce next brand.
• To attract variety-seeking consumers, prevent them from going to competitors.
Colgate, Yoplait
Brand positioning with target market, competitors, POPs and PODs. Saves cost of brand elements, IMC, and leveraging secondary associations.

Question 16

Brand Hierarchy

Answer 16

A means of summarising branding strategy by displaying number and nature of common and distinctive brand elements across firm’s products revealing explicit ordering of brand elements. A useful means of portraying a firm’s branding strategy. A graphical way to represent different brands/product categories.
Toyota
Brand elements. Brand positioning. Brand architecture. Brand portfolio.

Question 17

Corporate Brands

Answer 17

Highest level of hierarchy. Always present on packaging
• Only brand used on products
• Combined with another brand name
• Completely ‘invisible’
Samsung, Apple iPad, PnG products
Brand elements – packaging. Brand portfolio. Brand architecture. Brand positioning.

Question 18

Family Brands

Answer 18

Same brand supports several products in different markets/ a group of similar products. It is more flexible in communicating brand benefits but risk of brand dilution through product failures as if one product fails, it could cause problems to other brands. It links common associations to multiple but distinct products.
Purina for Nestle (corporate)
Brand elements, IMC. Brand portfolio, architecture and positioning. Brand crisis management could be have a higher possibility.

Question 19

Individual Brands

Answer 19

Restricted to one product category. Allows for customisation and less likely to have adverse impact on other brands but it is costly and complex
Cadbury for Kraft (corporate)
Brand elements, IMC, leveraging secondary associations. Brand positioning with target market, competitors, POPs and PODs. Brand portfolio and brand architecture. Brand crisis management has a lower possibility.

Question 20

Modifier Brands

Answer 20

Highlight a specific item/ model type/ version of the product. It signals refinements to a product. Differences between brands related to quality levels, function etc.
Yoplait Yoghurts
Brand positioning with target market, competitors, POPs and PODs. Builds brand equity through performance.

Question 21

Designing a brand strategy and key decisions

Answer 21

• Decide on which products are to be introduced (principles of growth, survival, synergy)
• Decide on how many hierarchy levels to use (principle of simplicity)
• Decide on desire brand awareness and image at each level (principles of relevance and differentiation)
• Decide how to combine the different brand elements from different hierarchy levels (principle of prominence)
• Linking any one brand element to multiple products within the same level (principle of commonality)
Toyota to introduce Camry/ Lexus
Brand elements, IMC, leveraging secondary associations. Brand positioning with target market, competitors, POPs and PODs. Building brand equity through brand awareness, performance, imagery. Brand knowledge (awareness and image).

Question 22

Principle of Growth

Answer 22

Whether there could be a positive impact on bottom line and be profitable in the long run. Depends on how much is the category going to grow. Invest in market penetration/ expansion vs. product development according to ROI opportunities.
Apple iPad
Brand knowledge (awareness and image). Whether the brand can improve in terms of relevance according to BAV. Brand extensions.

Question 23

Principle of Survival

Answer 23

Whether brand can survive, standalone and build equity for itself. Brand extensions must achieve brand equity in their categories.
Head and Shoulders
Brand extensions. Building brand equity through identity, meaning, responses and relationships to new brand not just to parent brand.

Question 24

Principle of Synergy

Answer 24

Whether the parent brand will be positively affected. Brand extensions should enhance the equity of parent brand.
Toyota
Brand extensions. Building brand equity of both new brand and parent brand.

Question 25

Principle of Simplicity

Answer 25

Sub branding is a common strategy. To prevent separate branding sub levels to confuse consumers. Employ as few levels as possible.
Sony Bravia
Brand extensions. Brand portfolio, brand hierarchy. Building brand equity. Brands for consumers.

Question 26

Principle of Relevance

Answer 26

Aim to create association that are relevant across as many individual items as possible. Has the ability to be linked to different levels. Must be able to be transferred across product categories. Create abstract associations that are relevant across as many individual items as possible.
Nike
Build brand equity through same imagery and performance associations to achieve similar consumer judgements and feelings. POPs.

Question 27

Principle of Differentiation

Answer 27

Aim is to distinguish brands at the same level as much as possible. Create different associations. Differentiate individual items and brands
Apple TV
Build brand equity through different performance and imagery attributes to achieve similar consumer judgments and feelings. PODs.

Question 28

Principle of Prominence

Answer 28

The relative prominence of brand elements affects the perception of product distance and the type of image created for new products.
Marriott residence inn / Ritz Carlton
Primary and secondary brands. Brand elements displayed would have most impact on consumer imagery, judgements, and feelings.

Question 29

Principle of Commonality

Answer 29

The more common elements shared by products, the stronger the linkages. Similar names, symbols, colours etc.
McDonalds ‘Mc’ Prefix
Brand elements. Strong, favourable and unique associations. Building brand equity through brand salience, and imagery.

Question 30

Brand Renewal Matrix

Answer 30

What roles do brands play and need to be evaluated according to these categories, to understand which brands should be invested in. a framework to understand these decisions based on:
• Contribution - to the company in terms of growth, time, money, etc.
• Traction – image of the brand today, reflection of past marketing expenditures, whether brand has a positive image from the past.
• Momentum – future of the brand.
Apple iPhone/ Gillette
Traction related to brand esteem. Momentum related to energised differentiation and relevance. Building brand equity through understanding, which brands need to be invested in to move up the pyramid.

Question 31

Power Brands

Answer 31

Drive success. Defend ferociously
Apple iPhone
High contribution, traction and momentum. Leadership quadrant of BAV

Question 32

Sleeper Brands

Answer 32

Fast track and push to a power brand. May need repositioning, heavy investment of resources.
Sephora
High contribution and traction, low momentum. Niche quadrant of BAV. Brand positioning.

Question 33

Slider Brands

Answer 33

Old brand starting to slow down. Either fix/sell brand. Lost respect and damage has been done.
American Airlines Puma
High contribution, medium traction, low momentum. End of product life cycle. Knowledge is greater than esteem. Brand positioning needed

Question 34

Soldier Brands

Answer 34

Investment boost every 2-4 years. Contribute to bottom line
Head andShoulders
Medium contribution, traction and momentum. Commodity quadrant of BAV. IMC not frequent. Flanker brands.

Question 35

Rocket Brands

Answer 35

Monitor progress. High potential if external forces favourable, niche market or could crash
Segway
Low contribution and traction. High momentum. IMC, brand elements, leveraging secondary associations.

Question 36

Wallflowers

Answer 36

Niche markets, to maintain.
Gillette
Low contribution and momentum. High traction. Cash cows. Niche quadrant of BAV.

Question 37

Discard Brands

Answer 37

Soaks up resources, divest or retire
Tab
Low contribution, traction and momentum. Reinforce, revitalise or retire brands.