Designing and Implementing Brand Strategies - 11 Preview The Brand-Product Matrix Brand Hierarchy Designing a Branding Strategy

Preview Broader Perspective i.e. how to create, maintain and enhance brand equity in various situations and circumstances Maximization of all brands and products of a firm Complex branding strategies i.e. multiple brand name elements Best way to characterize firm’s branding strategy Guidelines of branding Issues in branding e.g. designing and supporting marketing programs

The Brand-Product Matrix Definition: A graphical representation of all brands and products sold by a firm. Various terminologies: Brand-Product relationship, Brand Line, Product-brand relationship, Brand Portfolio, Product line, Product mix, Brand mix, Branding strategy, Breadth, Depth Breadth of Branding Strategy –Breadth of product mix 1.Aggregate market factors 2.Category factors 3.Environmental factors –Depth of Product mix

Category Attractiveness Criteria

Brand-Product Matrix Continued..... Depth of Branding Strategy –Number and nature of different brands marketed in the product class/category sold by a firm –Reasons to adopt multiple brands: 1.Different price segments 2.Different distribution channels 3.Different geographic boundaries 4.Etc –Flankers –Cash Cows –Low end entry level OR High end prestige brands

Special Brand Roles

Brand Hierarchy Definition –It is a means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products, revealing the explicit ordering of brand elements. Potential Levels of a brand Hierarchy –Corporate / Company brand –Family brand –Individual brand –Modifier

Brand Hierarchy continued …. Building Equity at different hierarchy levels –Corporate / Company level Corporate image Corporate brand equity –Family brand level Range brands or Umbrella brands Associations –Product attributes, benefits, attitudes, people, relationship, programs, values, corporate credibility –Individual brands Restricted to one product category Advantages and disadvantages –Modifier Level Types and models needs to be distinguish –Product Descriptor

Determinants of Corporate Image

Important Corporate Image Associations

Designing A Branding Strategy Challenge –Design the proper brand hierarchy in terms of the number and nature of brand elements to be used at each level –Design the optimal supporting marketing program in terms of creating the desired amount of brand awareness and type of brand associations at each level Guidelines for brand hierarchy decisions –Number of levels Principle of simplicity –Level of awareness and type of associations Principle of relevance Principle of differentiation –Linking of brands at different levels for a product Principle of prominence –How to link brand across products Principle of commonality

Breakdown of Brands

Designing Branding Strategy continued … Number of Levels of the Brand Hierarchy –Sub-branding –Principle of simplicity Desired Awareness and Image at Each Hierarchy level Principle of relevance Principle of differentiation Combining Brand Elements from Different Levels (Five possible categories) 1.Single entity 2.Brand dominance 3.Equal dominance 4.Mixed dominance 5.Corporate dominance –Brand endorsement strategy Linking Brand Elements to Multiple Products –Principle of commonality Adjustments to the Marketing Program –Corporate image campaigns Building awareness of company and nature of business Building company trustworthiness and credibility Creating corporate image associations that can be leveraged by product-specific marketing –Brand line campaigns

Nestle Brand