Branding (pt. 2) Tuesday, November 30

Brand Strategies ► A brand strategy occurs in 5 different ways:  Support an existing brand;  Develop brand extensions;  License a successful brand;  Co-brand;  Acquire a company that is currently marketing a successful brand.

Support ► Slight changes to existing products. ► Including:  Redesigning packaging;  Communicating value to a different market;  Change an advertising message. ► However, once a brand has been positioned in a consumer’s mind, it is difficult to reposition the brand.

Develop ► Companies will use one of its established brands to help a new product capitalize on its success. ► If consumers regard the manufacturer with high regard, they will buy their other products.  Establishes consumer confidence.

Licensing ► Similar to brand extension. ► Companies license their brand identification to other companies for a fee, which is usually a percentage of the new product’s sales.  Can you think of an example? ► Famous people license themselves – thus becoming a brand.  I.e. Wayne Gretzky, Oprah Winfrey & Martha Stewart.

Co-Branding ► When two or more brands combine and cooperate for their mutual benefit, it is called co-branding.  Examples? ► Advertising and promotional tie-ins are also examples of co-branding.

Acquisition ► When larger companies buy a small company, based on the success of a brand, or the innovation of a new product or service, it is called acquisition. ► The 1990s saw a number of “start-up millionaires” emerge as a result of larger companies paying millions for small companies and a great concept.

Branding for International Markets & Packaging ► Read pg. 227 – 235 ► Answer ICE questions on pg. 238:  1 (a) & 1 (b)  2 (a)  3 (a)