week 10- brand architecture

Question 1

deinfe brand architecture

Answer 1

Brand architecture is a strategic roadmap for present and future success.

It provides a hierarchy that explains the relationships between the different products, services, and components that make up your company’s portfolio of offerings.

This architecture gives your existing brand structure so employees and customers understand the value of and relationship between its different parts.

It also creates a roadmap that guides how your brand can scale in the future.

Question 2

why brands have an architecture

Answer 2

Launch of New Products and Services

Which Brand Elements to apply across products and services
Help consumers understand products and services and organise them in their minds

Brand Architectures are often complex
What is the best way to characterise a brand architecture strategy?
How to choose brand names and other brand elements across a product portfolio?

Role of Brand Architecture
To clarify brand awareness – similarities & differences between products
To improve brand image – maximise transfer of equity b/w brands and products

Question 3

explain developing a brand architecture stratergy

Answer 3

1. defining brand potential
2. identifying brand extension opportunities
3. branding new products and new services

Question 4

explain defining brand potential

Answer 4

Three important characteristics:

The brand vision - is management’s view of the brand’s long-term potential e.g., Microsoft: A computer on every desktop and in every home.

The brand boundaries - identifying the products or services the brand should offer, the benefits it should supply, and the needs it should satisfy.

The brand positioning - specificity into a brand vision – consider (1) competitive frame of reference, (2) points-of-difference, (3) points-of-parity, and (4) brand mantra.

Question 5

explin step 2: identifying brand extension opportunities

Answer 5

Brand extension is a new product introduced under an existing brand name

Line extensions: New product introductions within existing categories (same brand with multiple products category - different target audiences - different price points)

Category extensions: New product introductions outside existing categories

Equity implications of each extension needs to be understood in terms of:
Points-of-parity
Points-of-difference (see following slide

Question 6

explain 2 brand extension strategies

Answer 6

Line extensions: New product introductions within existing categories

Category extensions: New product introductions outside existing categories

Question 7

explain step 3: branding new products ans services

Answer 7

New products and services must be branded in a way to maximise the brand’s overall clarity

Branded house and house of brands strategy (See following slides)

Sub-brands: Brand extension in which the new product carries both the parent brand name and a new name

Question 8

branded house explain

Answer 8

one brand creates single powerful image, sometimes with a descriptor (e.g. fed ex)

Question 9

explain sub brands

Answer 9

combining the cooperate brand with strong brands

sub brands help differentiate and boost coperate brand

e.g. apple

Question 10

explain endoresed brands

Answer 10

leading with a strong sub-brand but leveraging coperate brand as endorser

e.g.g marriot

Question 11

explain house of brands

Answer 11

decentraized companies targeting diverse markets

e.g. P+G

Question 12

The role of defining branding strategies and brand architecture is two fold:

Answer 12

Clarify – Brand Awareness: Improve the customers understanding and communicate the similarities and differences between individual products

Motivate – Brand Image: Maximise transfer of equity to/from the brand to individual products to improve trial and repeat purchase

Question 13

explain the product matrix

Answer 13

A product line is a group of products within a product category that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges

A product line may include different brands, or a single family brand or individual brand that has been line extended.

A product mix is a set of all product lines and items that a particular seller makes available to buyers. Thus product lines represent different sets of columns in the brand – product matrix that in total make up the product mix

A brand mix (brand portfolio) is the set of brand lines that a particular seller makes available to buyers

Question 14

Why does a firm have multiple brands in the same product category?

Answer 14

Market coverage
Pursue different price segments, different channels of distribution, different geographic boundaries etc.
To create internal competition within the firm
To attract consumers seeking variety who may switch
To yield economies of scale in terms of merchandising, sales, advertising
Poorly differentiated brands can also result in cannibalization

Question 15

explain flankers or fighters

Answer 15

These are protective brands with lesser profit margins

These brands build strong points of parity with competing brands so that stronger brands can sustain their positioning

Many firms are introducing discount brands as flankers to better compete with store brands or private labels and protect the high priced brand companions.

Some firms are repositioning existing brands in their portfolio to play that role

Fighter brands must not be so attractive that they take the sales away from their higher priced comparison brands

At the same time if fighter brands are connected to other brands in the portfolio in ANY way, they must not be designed so cheaply that they reflect poorly on these other brands

Question 16

explain brand hierachy

Answer 16

company brand level
family brand level
individual brand level
modifier level
product developer

Question 17

explain coperate brand

Answer 17

Corporate brandingis the practice of using a company’s name as a product brand name. It is an attempt to use corporate brand equity to create brand recognition.
Example - IBM, Heinz, Hershey, Coca-Cola, etc….

Question 18

explain family brands

Answer 18

When a group of products are given the same brand name i.e. different products of company are marketed under one brand name.
Company level associations are less salient
The cost of launching new products can be reduced through family branding
The failure of one product may have adverse effects on the family brand
The pro’s and con’s will determine whether a “Branded house” or a “House of brands” is the more appropriate strategy

Question 19

explain indivdual brands

Answer 19

Individual branding, also called individual product branding or multi branding.
It is the marketing strategy of giving each product in a portfolio its own unique brand name.
The advantage of individual branding is that each product has an image and identity that is unique.
The disadvantage are difficulty, complexity and expense involved in developing separate marketing programs to build sufficient levels of brand equity.

Question 20

explain modifiers

Answer 20

Modifier refers to word, phrase or clause that functions as an adjective or adverb to qualify the meaning of other word.

Regardless of whether corporate, family or individual brands are employed it is often necessary to further distinguish brand according to the different types of items or models involved.

Modifiers help communicate how different products within a category that share the same brand name differs on one or more significant attributes e.g., quality or other in the same brand family

Question 21

define cause related marketing

Answer 21

has been defined as “the process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives.

similar to secondary marketing

Question 22

advantages of cause related marekting

Answer 22

Building brand awareness—Because of the nature of the brand exposure, CSM programs can be a means of improving recognition for a brand, although not necessarily recall.

Enhancing brand image—Two types of abstract or imagery-related associations to a brand can be linked via CSM: user profiles; and personality and values.

Establishing brand credibility—CSM could affect credibility, because consumers may think of a firm willing to invest in CSM as caring more about customers and being more dependable than other firms, as well as being likable for “doing the right things.”

Evoking brand feelings—CSM may help consumers justify their self-worth to others or to themselves.

Creating a sense of brand community—CSM and a well-chosen cause can serve as a rallying point for brand users and a means for them to connect to or share experiences with other consumers or employees of the company itself.

Eliciting brand engagement—Participating in a cause-related activity as part of a CSM program for a brand is certainly one means of eliciting active engagement.

Question 23

what is green or environmental marketing

Answer 23

consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment (Polonsky, 1994).
Companies are increasingly recognising that the environment is an important issue to their customers and shareholders and, therefore, to their bottom lines

Question 24

From a branding perspective, however, green marketing programmes have not always been entirely successful:

Answer 24

Overexposure and Lack of Credibility—So many companies have made environmental claims that the public has sometimes become skeptical of their validity

Although consumers often assert that they would like to support environmentally friendly products, their behavior doesn’t always match their intentions

Poor Implementation—’Jumping on the green marketing bandwagon’, many firms initially did a poor job. Products were poorly designed, overpriced, and inappropriately promoted

Question 25

what is a brand extension

Answer 25

When a firm uses an established brand name to introduce a new product

Question 26

types of brand extension

Answer 26

Line extension
Adds a different variety, a different form or size, or a different application for the brand

Category extension
Marketers apply the parent brand to enter a different product category from the one it currently serves

Question 27

advantages of extensions - facilitate new product acceptance

Answer 27

Improve brand image – meets consumer expectations over time

Reduce risk perceived by customers i.e., due to connection with a known family brand – emphasis on longevity, sustainability, reputation, corporate credibility

Increase the probability of gaining distribution and trial

Increase efficiency of promotional expenditures i.e., do not have to create awareness

Reduce costs of introductory and follow-up marketing programs e.g., save up to 80% on the launch of a new product

Avoid cost of developing a new brand (elements) i.e., it is difficult to develop appealing brand names

Allow for packaging and labeling efficiencies

Permit consumer variety seeking – easy to switch brands if the organisation has a portfolio of brands

Question 28

brand extension advantages part 2 = provides positive feedback benefits to parent brand

Answer 28

Provide positive feedback benefits to parent brand
Clarify brand meaning e.g. Hershey’s = ???? (See Figure 12-3) – broadens meaning to consumers

Enhance the parent brand image e.g., clarify core brand values and associations, corporate credibility

Bring new customers into brand franchise and increase market coverage e.g., new ways to use a brand e.g., RTDs

Revitalise the brand e.g., ANZAC
Permit subsequent extensions, especially category extensions e.g., Billabong surf culture and related lifestyle

Question 29

dsiadvantages of extensions

Answer 29

Can confuse or frustrate consumers – too many variants -> induce consumers to buy less or retailers may not stock all varieties
Can encounter retailer resistance – too many varieties (‘me too’ brands) across brands within the same product category e.g., too many line extensions
Can fail and hurt parent brand image e.g., Levi tailored clothing
Can succeed but cannibalise sales of parent brand e.g., Kodak, Diet Coke
Can succeed but diminish identification with any one category e.g., Virgin
Can succeed but hurt the image of the parent brand e.g., VB – mid strength beer
Can dilute brand meaning e.g., Gucci (22,000 items) and mass distribution in the 80s
Can cause the company to forgo the chance to develop a new brand with its own unique brand image and equity

Question 30

explain vertical brand extension

Answer 30

Extend the brand up into more premium market segments or down into more value- conscious segments, are a common means of attracting new groups of consumers i.e., brand stretching

Pros: An upward extension can improve brand image; Extensions offer consumers variety, revitalise the parent brand, and permit further extensions.
Cons: Vertical extension to a new price point, frustrate consumers; Successful downward extension has the possibility of harming the parent’s brand image.
It is difficult to change people’s impressions of the brand enough to justify a significant upward extension.
Honda, Toyota, and Nissan
It is possible to use certain brand modifiers to signal a noticeable, although presumably not dramatic, quality improvement.
Ultra Dry Pampers, Extra Strength Tylenol, or PowerPro Dustbuster Plus
To avoid the potential difficulties associated with vertical extensions, companies sometimes elect to use new and different brand names to expand vertically.
Qantas and Jetstar