 So far we have looked at:  Brands and brand management  Identifying and establishing brand positioning and values  Planning and implementing brand marketing programs  Measuring and interpreting brand performance

 Now we will start with the fifth part of the text, which is:  Growing and sustaining brand equity Under this topic, we will focus on: Designing and implementing branding strategies. This will include:  Brand architecture and  building a branding strategy.

 Which brand names, logos, symbols and so forth to apply to which new or existing products.  Branding strategies can be distinguished as Corporate, family or individual brands  Role of defining a brand is:  Clarify – Brand  Motivate – Brand image

 A graphical representation of all the brands and products sold. Products A Brands B C

BRANDS PRODUCTS BOARDMANSHome ware, kitchenware, DIY CNAStationary, books, mobile phones, music DISCOMCosmetics, personal care, home ware EDGARSClothing, footwear, cosmetics, home ware JET MARTHome ware, clothing and footwear JET SHOESFootwear LEGITClothing and footwear RED SQUARECosmetics and fragrances TEMPTATIONSWomen’s underwear PRATOCasual footwear EDGARS ACTIVESports wear

 Brand - product relationship  Brand line  Product - brand relationship  The brand portfolio  Product line  Product mix  Brand mix

 Breadth – In terms of brand-product relationships and brand extension strategy  Depth - In terms of product-brand relationship and brand portfolio or mix

 Refers to the number and nature of different products linked to the brands sold by the firm.  Factors affecting product attractiveness:  Aggregate market factors  Category factors  Environmental factors

 The number and nature of different brands marketed in the product class sold by a firm.  Market coverage  The main reason is to pursue different:  Channels of distribution  Price segments  Geographical boundaries

 Increase shelf presence  Attract consumers seeking variety who may otherwise switch to another brand  Increase internal competition within a firm  Economies of scale in advertising, sales, merchandising and physical distribution

 Flankers/ Flighter brands  Its purpose is to create stronger points of parity with competition  Many companies are introducing flankers to compete with store brands  Cash cows  Low-end entry level or high end prestige brands

 Understanding the portfolio  Assessing brand contribution  Assessing market position  Addressing problems and identified opportunities  Developing a plan for the portfolio of brands

 Is a useful way of graphically portraying a firm’s branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products.  The simplest form of a brand hierarchy from top to bottom is:  Corporate or family brand  Family brand  Individual brand  Modifier

EDCON DEPARMETAL STORES Edgars, Red square, temptations Boardmans, Prato, CAN, Edgars active DISCOUNT DIVISIONS Jet, Jet mart, Legit, Jet shoes, Blacksnow, Jet home & Discom

 Is relevant when the corporate or company brand plays a prominent role in the branding strategy.  Firm’s role becoming important in society.  Reputation  Corporate brand equity

 Corporate brand equity is the differential response by customers to the words, actions and communications, products or services provided by an identified corporate brand entity.  No direct cash flow  Does this mean that it has no value.  Clearly a brand that is identified as being part of the Edcon group is more attractive and has a higher probability of having higher sales than Jacinta fashion.  There is no doubt that corporate brands are highly valuable, but can we measure them?

Corporate image Corporate contributions conduct Corporate employees conduct The productCommunicationPriceSupportService Distribution channels Sales force Company business conduct Corporate social conduct Determinants of corporate image

 These are brands applied across a range of product categories.  A range brands or umbrella brands.  Distinct family brands can evoke a specific set of associations across a group of related products

 These are restricted to essentially one product category  If brand fails, risk to other brands in the company is minimal  However, it is difficult to build individual marketing programmes for the different brands

 Modifiers often signal refinements in brands related to quality  Modifiers communicate how different products in the same category that share the same brand name differ on one or more significant attributes

 These help consumers understand what the product is and does and also helps to define the relevant competition in consumers’ minds.  E.g. Sunlight Washing powder.

 Common product attributes benefits or attitudes - Corporate brands can also evoke strong associations to a product attribute, type of user, usage situation or overall judgement.  Two product related corporate image associations:  High quality corporate image associations  Innovative corporate image association

 People and relationships Corporate image associations reflect characteristics of the employees of the company  Values and programmes Reflect values and programmes of the company that do not directly relate to the product it sells. Two examples of these are: a socially responsible corporate image association and environmentally concerned corporate image association.

 Corporate credibility Consumers may form abstract judgements about the company. E.g perceptions of the personality of the corporate brand. Corporate credibility can be defined as measuring the extent to which consumers believe a firm can design and deliver products and services that satisfy customer needs and wants. It depends on three factors. These are: Corporate expertise Corporate likability Corporate trustworthiness

 There is no uniform agreement on one type of branding strategy that all firms should use.  Even within any one form, marketers may adopt different branding strategies for different products.

 The brand is worth 6 billion  Second favourite brand second from Cocacola in SA  How did they manage to achieve these?  Advertising(humour and energy) and uniquely south African  Sponsorship marketing to stay a top of mind brand.  Building likeable brand icons.  Social advertising  Branding products

 You must 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 level of awareness and type of associations to be created at each level

Principle of relevance: create abstract associations that are relevant across as many individual items as possible Principle of differentiation: Differentiate individual items and brands  Decide on which products to be introduced Principle of growth: Invest in market penetration or expansion versus product development according on ROI opportunities. Principle of survival: Brand extensions must achieve brand equity in their categories Principle of synergy: Brand extensions must enhance the equity of the parent brand

 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 products share, the stronger the linkages

Keep the following guidelines in mind:  Adopt a strong customer focus  Avoid over branding  Establish rules and conventions and be disciplined  Create broad robust brand platforms  Selectively employ sub brands as a means of complimenting and strengthening brands  Selectively extend brands to establish new brand equity and enhance existing brand equity

 Corporate image campaigns These are designed to create associations to the corporate image as a whole and consequently ignore or down play individual products or sub brands in the process.

 Build awareness of the company and the nature of its business  Create favourable attitudes and perceptions of company credibility  Link beliefs that can be leveraged by product specific marketing  Make a favourable impression on the financial community  Motivate present employees and attract better recruits  Influence public opinion and issues

 It emphasises the breadth of products associated with the brand  Unlike a corporate image campaign that represents the brand in abstract terms, with few if any references to specific products, brand line campaigns refer to the range of products associated with a brand line

 CRM is the process of formulating and implementing marketing activities that are characterised by an offer from the firm to contribute a specified amount to a desgnated cause when customers engage in revenue providing exchanges that satisfy organisational and individual objectives

 Building brand awareness  Enhancing brand image  Establishing brand credibility  Evoking brand feelings  Creating a sense of brand community  Eliciting brand engagement

Obstacles: Over exposure and lack of credibility Consumer behaviour Poor implementation  Possible solutions Green your products before you are forced to Communicate environmental aspects of products Deliver on performance and price Dramatise environmental benefits Stress direct tangible benefits Be consistent and thorough.

 THANK YOU