Branding week 6 Flashcards
Ingredient branding strategy =
The incorporation of a branded ingredient/attribute within the product of a different brand.
Brand architecture strategy =
Determines which intangible brand elements (names, logos, symbols etc.) a firm should apply across new and existing products and services. –> how an organization structures its multiple brands
- critical because it is the means by which the firm can help consumers understand their products/services and organize them in their minds.
- It defines both brand breadth (boundaries) and brand depth (complexity).
2 different roles of brand architecture:
- Clarify – brand awareness: improve consumers understanding of the brand and communicate similarities and differences between individual products/services of the same brand.
- Motivate – brand image: Maximize transfer of brand equity to/from the brand to individual products/services to improve trial and repeat purchase.
Three criteria that determine whether or not a brand association can truly function as a PoD
- Desirable (relevant, credible, believeable)
- Deliverable (preemptive, defensible, difficult to attack)
- Differentiating (distinctive, superior)
Product breadth:
number and nature of products brands are active in to leverage existing equity.
Product extension: brand with different products (Axe’s deodorant, body lotion, shower gel etc.)
Line extension: extension within a single product category (different Axe deodorants)
Depth:
Running multiple brands in a single product category
3 step process by which a firm can design and implement their brand architecture strategy:
- Defining the potential of a brand in terms of the extent of its market footprint
- Identifying the types of product/service extensions that would allow a brand to achieve that potential
- Specifying the brand elements and positioning associated with the specific products and services associated with the brand (i.e. branding new products/services)
3 considerations in defining the potential of a brand:
- Articulate the brand vision: a point of view, or aspiration on the long-term potential of a brand to grow and improve, exceeding brand boundaries.
- Google is much more than just a search engine as it offers more services
- Important to understand your current brand equity (what are you) in order to understand what the brand could be built further on (what it can become).
- Brand vision higher order purpose of the brand based on keen consumer and customer understanding.
2.Define the brand boundaries: decide, based on the brand vision and positioning, the products/services the brand should offer, the benefits it should supply and the needs it should satisfy.
- Brand extensions improve market coverage by targeting different market segments but marketers must extend their brands carefully and launch new products selectively, because all brands have boundaries (Spandex Rule)
- Brand portfolios can become too big, resulting in higher marketing and production costs against its profits or brand cannibalization (too much overlap between extensions they will compete).
- Broad brands, such as Nivea, have abstract positioning/associations (gentle, mild, caring, protective) that is able to support a higher order promise that is relevant in multiple product categories .
–> It often has transferable PoD because of a widely relevant benefit supported by multiple reasons to believe or supporting attributes.
- Crafting the brand positioning: specifying the brand vision, by designing a distinctive offering and image in the mind of the consumer.
4 components:
- A competitive frame of reference: in terms of the target market and nature of competition (which other brands a brand competes with)
- PoD: SFU brand associations
o Attributes/benefits of the brand strongly associated with the brand.
o Positive evaluations and the believe that these cannot be found to the same extent with a competitive brand.
o Three criteria that determine whether or not a brand association can truly function as a PoD
Desirable (relevant, believable, credible)
Deliverable (preemptive, defensible, difficult to attack)
Differentiating from competitors (distinctive, superior)
- PoP: brand associations that negate any weakness or PoDs by competitors.
o 3 forms:
Category PoP: essentials of products
Competitive PoP: areas where other brands are perceived more favorably
Correlational PoP: inverse product relationships in the mind of consumers such as low price cannot be market as high in quality
- Brand Mantra: summarizes the essence/uniqueness of the brand and key PoDs in 2-5 words (help to establish brand boundaries.
3 principles address the brand extensions success:
- Principle of growth cost-benefit calculations as to investing resources in selling more of a brand’s existing products to new customers vs launching new products of a brand
- Principle of survival: extensions must achieve brand equity
- Principle of synergy: extensions should enhance the equity of the Parent Brand.
5 hierarchical levels of brands:
Branded House (BH): the name of the organization itself is the main parent brand and the products are generally identified by the sub-brand names. it is a family brand for all products of the same corporate brand
o Unifying corporate brand extends across all entities in the portfolio.
Sub-branding: leverage both separate and corporate brands and they operate equally as meaningful, equity creating entities.
o Apple: iPod, Mac and iPhone sub-brands
o A good sub-branding strategy can facilitate access to associations and attitudes to the company as a whole, while also allowing for the creation of new brand beliefs to position the extension in the new category.
o Sub branding creates a stronger connection to the company (PB) and all the associations that come along with that.
o Sub branding signals to consumers both similarities and differences in a new product! Sub-branding should only be employed when there is a distinctive, complementary benefit. Otherwise, branded house is more suitable
o Because sub-brands combine new brand elements combined with existing PB elements, they effectively signal the intended similarity/fit of a new extension with its PB.
Endorsed branding: leverage both separate and corporate brands but the linked second brand is superordinate to and more visible than the corporate brand which plays just an authenticating endorsement role.
o Post it notes by 3M, Marriot
o The second brand is most visible in communication through bold letter, larger font sizes and on packaging.
o The word ‘by’ often specifies the subordinate corporate brand connection
House of brands (HOB): individual brands with different names under same corporate brand.
o Separate brands that are not linked to the corporate brand and are cultivated for specific market segments
o Unilever
BH-HOB hybrid: Mixed architecture combines at least 2 of 4 strategies, most commonly the BH and HOB
o Fanta, Sprite, CHF fall under HOB of corporate brand Coca-Cola, where coke zero is part of BH.
Brand hierarchy: the different levels associated with how a company could brand its products. (5)
1. Corporate/company brand
2. Family brand
3. Individual brand
4. Modifier
5. Product description
2 general principles should guide the brand knowledge creation process at each level:
Principle of relevance: based on the advantages of efficiency and economy. The more abstract the association, the more likely it is to be relevant in different product settings
Principle of differentiation: based on the disadvantages of redundancy. Marketers should distinguish their extensions at the same level as much as possible. This principle is important at the individual brand or modifiers levels and also valid at the family brand level.
Brand portfolio management=
the marketing and assortment of brands by consumer good firms.
4 key considerations/factors that trigger brand deletion
- When a brand does not perform wel financially
- When a brand does not meet consumers’ needs and preferences
a. Brand awareness is built to educate consumers about which of their needs the brand satisfies.
b. All brands need to revitalize their concept from time to time to adapt to changing trends, meet the needs of consumers and deal with competitive threats.
i. If brands are unable to do this consider deletion - When a brand does not correspond/fit with in the firm’s overall brand portfolio strategy
a. 3 key facets of a firm’s brand portfolio strategy:
i. Scope: number of brands and number of segments in which the firm markets its brands
ii. Intra-portfolio competition: level to which brands within a portfolio are positioned similarity to one another and compete for the same consumers’ spending
iii. Perceived price-quality positioning: consumers’ perceptions of the quality and price of brands in a portfolio.
Simplifying the brand portfolio improves efficiency in management and optimum allocation of resources but also avoids confusion in consumers’ minds about the portfolio of brands and helps them understand the brands better!
When a brand in a portfolio is not holding its promise / having a bad image, deleting the brand could be a good strategy before it starts hurting the equity of the entire portfolio (negative spillover) aka reputation of the firm. - When a brand is not in line with the firm’s strategic direction and goals (dilution)
a. Sometimes corporate strategic changes are made in a firm. If brands belonging to the certain corporation are not in line with the new overall corporate strategy and goals, their contribution and importance to the firm’s brand portfolio reduces and thus the firm can decide to delete those brands.
why deepen the depth of your brand?
- Coverage of segments
- Cash cows/milking a product with high market share in a low or no growth industry / mature market
o E.g. Kellog’s corn flakes market leader of mature market
o iPhone brings in most of Apple’s revenue
o Gilette - Flanker brands (fighter branding/multibranding) a new brand introduced into the market by a company that already has an established brand in the same product category.
o The new brand is designed to compete in the category without damaging the existing item’s market share by targeting a different group of consumers.
o Is used to achieve a larger total market share than one product could garner alone. - Low-end entry level brand in a portfolio the product that is offered at less price (Iphone SE).
o Once the consumer becomes a part of the family, he is then persuaded for the purchase of the higher-priced product in near future.
