MM6016 BRANDING AND MARKETING COMMUNICATION Master of Business Administration School of Business and Management Institut Teknologi Bandung BRANDING STRATEGY 1

What is Strategy? Creation of unique and valuable position, involving different set of activities Requires trade offs in competing – choosing what to do and what not to do Involves creating fit with company’s activities Michael E. Porter (2000), What is Strategy? Harvard Business Review 2

Branding Strategy Deciding what a company should do and should not do in building the equity of a brand so that it will fit the company’s branding objectives and overall activities of the company 3

Competitors’ Extended Network Branding Context Branding Strategy from An Extended BVC Perspective 4 Branding Strategy & Investment Brand Equity Market Brand Market Performance Competition The Focal Company’s Extended Network

Branding Strategy Steps 5

Results of Situation Assessment Brand awareness problems: – Brand is not recognized – Brand is not Top of Mind Brand Association problems: – Weak association – Missing association – Unclear association – Too much association Perceived quality problems: – Bad quality – Inconsistent quality – Lower quality compared to competitors – Quality does not meet standard – Lack of important quality aspect Brand loyalty problems: – Attitudinal loyalty problem: e.g. Lack of net promoters – Behavioral loyalty problem: e.g. Few repeat buyers 6

Brand Awareness Problems Try yourself with the following brands: Mega Net Arke Atari Try to mention some brands under the following categories: -Energy drinks -Sneaker -Emergency light 7

Brand Association Problems 8

Sunsilk Co-Creation Source: Anjani, A.H., ANALYSING INFLUENCE OF SUNSILK CO-CREATION TOWARD PERCEPTION OF SUNSILK IN BANDUNG, Undergraduate Final Project, School of Business and Management, Institute of Technology Bandung Respondents’ Perceptions

Panther’s key Brand associations Toyota’s much wider key Brand associations 10

Panther is strong in: DISTRIBUTION & SERVICE While weak in: PRODUCT & PROMOTION 11 Perceived Quality Problems

Brand Loyalty Problem 12 Brand loyalty is relatively lower than average 12

Branding Strategy Alternatives Single brand strategy: – Brand revitalization Expanding brand awareness Brand elements redesign New and completely different usage of brand Brand repositioning – Brand reinforcement Brand fortification Brand leveraging Multiple brand strategy – Brand extension – New brand/brand portfolio strategy 13

When to Use Branding Strategy? Case 1: Kartu Halo Case 2: Orchid Ecotel Case 3: McDonald’s McCafe Initiative 14