Branding strategies and brand extensions Flashcards
What is Brand architecture?
- The structure of brands within an organisation
- It is the way in which the brands within a company’s portfolio are related to, and differentiated from eachother
What is the purpose of brand architecture? (CIL)
- to clarify brand awareness
- increase understanding
- leverage brand image across portfolio
What is a product line?
group of products in a category that are closely related and function in a similar way
ex; coffee shop selling espresso, cappuccinos, lattes, mochas, café au lait etc.
What is a brand line?
All products sold under a particular brand
ex; unilever: gillette, ben and jerry, maybelline etc.
What is a brand portfolio? how is it judged?
set of all brands sold in a category (Fairy liquid, ariel etc)
- judged on ability to collectively maximise brand equity
What is the branding strategy of the product portfolio?
- Breadth: number and nature of products linked to the brands sold by a company
- Depth: number and nature of brands marketed in the product class sold
What are some reasons for increasing brand presence in a category? (4 points)
- increase shelf presence and retailer dependence
- cater to variety seeking behaviour (low involvement and perceived significant brand differences)
- increase competition in the firm allow fittest to survive (proactive cannibalisation)
- economies of scale
ex: P&G brands
What are some issues with the brand portfolio?
- balance between market coverage and costs/profitability
- portfolios can be too big (inefficient cost as segments become smaller, profitability can be increased by dropping brands)
- portfolios can be too small (profitability increases by adding brands)
ex: P&G sheds 100 brands to achieve greater focus
What is Hill, Ettenson and Tyson’s (2005) portfolio analysis technique?
- Understand the portfolio
- Assess brand contribution
- Assess market position
- Assess problems and opportunities
- Develop the plan
According to Kotler, what are the determinant factors of corporate image?
- How do business
- Social impact
- Philanthropic activities
- Employees
- Products
- Services
- Prices
- Distribution channels
- Support
- Communications
- Salesforce
What is a corporate brand?
Attempt to attach higher credibility to a new product by associating it with a well established company name.
= greater array of associations
e.x. For example, Disney attaches its name to nearly all of its creations to emphasize its long-standing name recognition
What is a family brand?
when corporate brand begins to lack meaning family brand takes over that role.
- use of a single brand name for the sale of two or more related products
- associated with attributes, benefits and attitudes
- less about people and relationships, campaigns
ex; apple: computers, phones, accessories, music players and tablets.
What is an individual brand?
- A company may use a distinctive logo, name and marketing strategy for each product it sells
- restricted to one product category
- marketing activity targeted to a particular customer group
eg: P&G: Vicks, Ariel, Head and Shoulders, Pampers
What is the advantages of incorporating CSR to a brand? e.g. Kenco (Coffee versus gangs) (4 things)
- Positive response from customers (values of target groups)
- Increased brand awareness, brand image and credibility
- Evoke brand feelings, brand community and engagement
- Establish brand personality = if successful can reach all levels in the CBBE model
What is the disadvantages of incorporating CSR to a brand? (5 things)
- Difficult in linking what customers say they like and what they will do
- do customers really want causes or do they want a quality product at a good price?
- Action need to match image
- differentiating is difficult in a world where companies are doing the same thing
- ethically loaded dilemmas
What is brand extension? line extension and category extension?
brand: launch a new product by using an existing brand name on a new product in a different category (Virgin -> Virgin Blue Australia)
Line: use of parent brand name to target a new market in the same category (Sainsbury’s taste the difference, basics)
Category: use of parent brand to enter a different category (Amazon echo, virgin galactic)
What are different vertical brand extension techniques?
- Downward extension stretch: locate at the top end of the market “stretches” downwards to pre-empt a competitor, respond to an attack. (e.g. Mercedes C-class)
- Upward extension stretch: companies stretch upward to add prestige to their existing range of products (Toyota with Lexus)
- Two-way extension stretch: extend product lines upwards and downwards to address different segments of the market (Sainsbury’s basics, taste the difference etc)
What are the advantages of brand extensions? (5 and 4 things)
- enhances new product acceptance
- increases brand image
- lowers risk
- increases distribution
- efficiency of promotions
- decreases costs - Feedback to parent brand:
- increases parent brand image
- increases marketing coverage
- keeps the brand fresh
- allows extensions
What are the disadvantages of brand extensions?
- confusion and frustration
- retailer resistance
- failure can hurt parent brand image
- cannibalisation
- diminished identification with the category
- dilute brand meaning
How do you evaluate brand extension opportunities?
- Define actual and desired knowledge about the brand
- Evaluate potential (consumer factors and consumer research, fit with existing campaigns and competitive reaction)
- Design campaigns to launch extension (choose brand elements, marketing campaign and build secondary associations)
- evaluate extension success (brand tracking)
What is Aaker and Keller’s (1990) model of brand extensions?
Brand extension evaluations based on:
- Quality of original brand
- Fit between parent and extension
- Quality*Fit
Brand Extensions and the Ownership Effect?
- Ownership effect: Owners have more favourable responses to brand stretching than non-owners.
- Ownership effect occurs for ↑/↓ stretches of non-prestige brands and upward stretches of prestige brands
- but downward stretches for prestige brands lead to an unfavourable consumer response – owners desire to maintain brand exclusivity
Sub-branding
