Topic 7: Brand Architecture Strategies

Question 1

A firm’s brand architecture strategy helps marketers to determine:

Answer 1

1. which products and services to introduce

2. which brand names, logos and symbols to add to existing and new products

Question 2

Step 1: Defining Brand Potential - what are the 3 important characteristics?

Answer 2

VBP
Brand Vision
Brand Boundaries
Brand Positionig

Question 3

Step 2: What is the definition of Brand Extension and name 2 types of it

Answer 3

Brand extension is a new product introduced under an existing brand name (Razer gaming chair)

Line extension- New product introduced within existing categories

Category extension - New product introduced outside existing categories

Implication in terms of POP and POD

Question 4

Branding New Products and Services through…

Answer 4

BHS
Brand house strategy- family brand of all products

House of brand strategy- collection of individual brands with different names

Sub brands- brand extension in which new product carries both parent brand name and new name

Question 5

Brand Portfolios- reasons for introducing multiple brand in a category

Answer 5

IIAY

1. increase shelf presence and retail dependence in the store
2. increase internal competition within firm
3. attract consumers seeking variety who may otherwise switch over to another brand
4. yield to economic of scale in advertising, sales, merchandising and physical distribution

Question 6

Roles of Brand in Brand Portfolio

Answer 6

IIAY + cash cow

1. increase shelf presence and retail dependence in store
2. increase internal competition within firm
3. attract consumers seeking variety of products who may otherwise switch to another brand
4. yield to economies of scale in advertising, sales, merchandising and physical distribution
5. serve as cash cow and milked for profit

Question 7

Role of low-end, entry-end or high-end, prestiege brand

Answer 7

Role of relatively low price brand- to attract consumers to brand franchise
Role of relatively high price brand- to add prestige and credibility of entire portfolio