L9: Branding strategy Flashcards
Brand equity
a set of assets (and liabilities) connected to the brand’s name and symbol that add value.
5 types of brand equity
Brand Awareness, Brand Loyalty, Perceived Quality (profitability), Brand Associations, Intellectual Rights
Three main benefits of brand to customers
- Product identification, which reduces search cost.
- Signal quality, which reduces perceived risk.
- Provide social status, which reduces social and psychological risk.
Benefits of brand
- Facilitate customer identification and purchase => profitability.
- Breed customer familiarity => Introduce new products.
- Able to identify distinctive product clearly => Premium pricing use; Identify target segments, hence supporting and tailoring communications/promotions.
- Enhance brand loyalty => Repeat purchases.
Brand leveraging
Use the power of an existing brand name to support a company’s entry into a new product.
Co-branding
The strategic alliance of multiple brand names jointly used on a product/service.
House of brands
- Independent companies in terms of brand identity.
- Less loyalty in this product spectrum.
- Stock-out products are more dangerous than excess capacity.
House of brands cons
- Risk of cannibalization: not increase sales but spread them among a broader range of brands.
- High marketing cost due to no consumer awareness or understanding.
House of brands pros
Greater chance for consumers to buy other products of the firm (Ex: PG 26 laundry detergents)
Types of house of brands
+ Not connected: Persil (Unilever)
+ Shadow endorser: Lexus (Toyota)
Endorsed brands
to build connection to a known brand, hence increasing new brand’s credibility.
Types of endorsed brand
+ Token endorsement: Universal A. Sony company
+ Linked name: Nestea (Nestle)
+ Strong endorsement: Obsession (Calvin Klein)
Sub-brand
Stronger connection to the parent brand than the endorsed brand.
Types of sub-brand
+ Co-driver: Gillette Mach 3
+ Master brand as driver: Dell Dimension
Branded house
All brands have the same identity with the corporation
Pros of Branded house
- Lower marketing cost
- Build relationship between customers and brands.
Cons of Branded house
- Quality, features, options, and performance will set the expectation level under the same company name.
- Confusing consumers if products are inconsistent with their flagship products => Harm reputation of the parental companies.
Pros of private brand
- Using product equipment more efficiently.
- Increase profit.
- Other firms take the responsibility to mkt the products.
- Gain brand followings.
- Create a long-term relationship with target consumers
Co-branding benefits
- Make efficient transactions through sharing of retail sites (Starbucks use bookstore space in Barnes and Noble).
- Suitable for global brands: receiving high local brand equity, hence lowering risk and creating an impression of greater value.
Co-branding limitation
Risk of lacking congruence in image or fit involved.
=> Require a careful assessment of potential partnering candidates.
Brand levels in the Brand wheel
Key reward > Personality > Values > Benefits > Feature
Core of the claim in the Brand wheel
Key reward: the central reason that people buy or use the brand based upon the four earlier levels of the brand wheel.
Relationship and loyalty in the Brand wheel
- Values: social values = community citizenship or social responsibility
- Personality: particular personality traits of brand
Preferences in the Brand wheel
- Features: tangible and intangible assets used to deliver bran promise.
- Benefits: translation of feature into benefits for its TA.
