Branding Strategies

• The branding strategy for a firm

reflects the number and nature of
common or distinctive brand
elements applied to the different
products sold by the firm
– Which brand elements can be applied to
which products and the nature of new
and existing brand elements to be
applied to new products
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 Brand Hierarchy Levels

– A brand hierarchy can involve multiple

levels: Corporate Brand

Family Brand

Individual Brand

Individual Item or Model (Modifier)

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 Brand Hierarchy Decisions
• In creating the hierarchy, it is
important to decide:
– The number of levels of the hierarchy to
use in general
– How brand elements from different levels
of the hierarchy are combined, if at all,
for any one particular product
– How any one brand element is linked, if
at all, to multiple products
– Desired brand awareness and image at
each level
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 Designing the Brand
Hierarchy
– Decide on the number of levels
• Principle of simplicity: Employ as few levels as
possible
• Principle of clarity: Logic and relationship of all
brand elements employed must be obvious and
transparent.
– Decide on the levels of awareness and types
of associations to be created at each level
• Principle of relevance: Create global
associations that are relevant across as many
individual items as possible
• Principle of differentiation: Differentiate
individual items and brands
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 Designing the Brand
Hierarchy
– Decide on how to link brands from different
levels for a product
• Principle of prominence: The relative
prominence of brand elements affects
perceptions of product distance and the type of
image created for new products

– Decide on how to link a brand across

products
• Principle of commonality: The more
common elements shared by products, the
stronger the linkages 5
 Managing Brand Portfolios
• Multiple brands are often employed in a
category for market coverage
– Target different market segments
• Basic principle of brand portfolios…
– Maximize coverage
– Minimize overlap
• Basic economics guideline ...
– A portfolio is too big if profits can be increased
by dropping brands.
– A portfolio is not big enough if profits can be
increased by adding brands

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Brand Consolidation & Focus

• Number of factors are driving this trend

– Movement from transactions to relationships
with consumers
– Value of strong “power” brands
– Difficulty of brand management
• Cost
• Need for efficiencies
– Importance of “top-down” brand management

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 Brand Architecture Obj.
• Create effective powerful brands
• Allocate brand-building resources
• Create Synergy
• Achieve clarity of product offering
• Leverage brand equity
• Provide a platform for future growth

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Elements of Brand Architecture

Brand Portfolio

Portfolio Roles

Brand market context roles

Brand portfolio structure

Portfolio Graphics

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Brand-Market Context
Roles
•Endorser/Subbrands
•Benefit brands
•Co-brands
•Driver roles
Brand Portfolio Structure
•Brand Groupings
•Brand hierarchy trees
•Brand range
Brand Portfolio
Includes all the brands & subbrands
attached to product-market offerings,
including co-brands with other firms. Portfolio Roles
•Strategic brands
•Linchpin brands
•Silver bullets
•Cash cow brands
Brand
Architecture
Portfolio Graphics
•Logo
•Visual presentation

Powerful Optimal Synergy in Clarity of Leveraged Platforms

brands allocation creating: offering brand for future
of brand visibility, assets growth
building efficiency options 10

resources
 The Boston Consulting Group’s
Growth-Share Matrix
20%-
Market Growth Rate

Stars Question marks

? ?
18%-
16%-
14%-
12%-
?
(Linchpin Brand)

?
(Strategic Brand)
10%-
8%- Cash cow Dogs
6%-
4%-
2%- 6 (Silver Bullet)
0
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
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Relative Market Share

 Product-Market Context Roles
• Endorser & Subbrand Roles – A master brand is the primary
indicator of the offering, the point of reference- Nescafe sunrise and
Wipro.
• Benefit Brands – The benefit brand is a branded feature.
– Examples: Gillete Razor- sensor- shows time to replace the razor
Oral-B toothbrushes – PowerTip Bristles
• Co-Brands – Occurs when brands from different organizations combine
to create an offering in which each plays a driver role.
– Examples: Zeiss and Nokia/Sony

Driver Role- It represents the extent to which a brand drives the purchase
decision and defines the use experience- Fair ever

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 Brand Portfolio Structure
• Brand Grouping: Grouping of brands that have a
meaningful characteristics in common
– Segment: Men or women- Lee
– Product: Health care and Feminine care
– Design: classic or contemporary

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 Brand Portfolio

ARVIND BRANDS LTD.

Denims Casual wear Formal wear Women’s wear

Wrangler Wrangler Arrow Wrangler

Lee Lee Excaliber Lee

Newport Newport Flying

Bay Island
Machine
Ruf n Tuf Ruf n Tuf
THF
Flying Flying Machine
Machine
THF
THF Bay Island

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 Brand Portfolio Structure
• Brand Hierarchy Trees: Brand family

Colgate

Colgate Colgate Colgate Colgate

Toothpaste Toothbrush Dental Floss Mouth rinse

Classic Plus Precision

Diamond The wild

Heads ones
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 Brand Portfolio Structure
• Brand Range:
Extent to which the brand has to be stretched
across markets and products
Eg. Dettol- Hygiene and protection against
germs
Denim
Horlicks
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 Portfolio Graphics
• Visual representations across brands and
contexts:
– Logo
– Packages
– Symbols
– Product design

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 Horizontal Extension

ADDED ENHANCED
FIT BRAND
VALUE
EQUITY

•Customers must be •The brand name •The brand equity

comfortable with the alone should help should be enhanced
brand in the new customers by the brand’s
setting. articulate why the presence the brand’s
offering is superior presence in another
•Bases: product
to other brands. context -- not only
associates,
from increased
ingredient, attribute,
visibility but also
application, user
from the associations
imagery, expertise,
generated.
designer image.
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 Vertical Extension
ADVANTAGES DISADVANTAGES
Product vitality & margins A vertical stretch is
particularly tricky because
perceived quality is involved
and also because the use of
sub brands & endorsed brands
needs to be considered.

Risk to brand’s reputation &

customer base
Cannibalization
Lack of credibility
To participate in a large
& growing value market Competitor price wars
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 Five Dimensions
Dimension Action Item
Brand Portfolio Inventory existing brands and subbrands.

Identify brands playing strategic roles (cash-cow,

Portfolio Roles
etc.)
Look at use of endorsers and subbrands, branded
Product-Market Context Roles
benefits, co-brands, and driver brands

Brand Portfolio Structure Create brand grouping or hierarchy tree.

Lay out a sample of the way that the brands are

Portfolio Graphics
presented visually.

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