the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2010 Strategic Brand Management Designing and implementing branding strategies Dr. Klairoong Phairor

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Brand Architecture Brand architecture is used to describe branding strategies. It involves defining both brand boundaries and complexity.  Which products should share the same brand name?  How many variations of that brand name should be employed?

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Brand Architecture The role of defining brand strategies is two-fold:  Clarify brand awareness: improve customer understanding and communicate similarities and differences between products.  Motivate brand image: maximise transfer of equity from the brand to products to improve trial and repeat purchase.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Breadth of Branding Strategies It concerns the number and nature of products linked to the brands sold by a company  Which products the firm should manufacture or sell?  How many product lines a company should carry?  How many variants should be offered in each product line?

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Depth of Branding Strategy It concerns the number and nature of brands marketed in product class sold.  Why might a firm have several brands int he same product category?  The primary reason relates to market coverage.  Although multiple branding was pioneered by General Motors, Procter & Gamble is widely recognised as popularising the practice.  Hair care: e.g. head & shoulders, Herbal Essences, Pantene Pro-V and Wella.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Depth of Branding Strategy It concerns the number and nature of brands marketed in product class sold.  Why might a firm have several brands int he same product category?  The primary reason relates to market coverage.  Although multiple branding was pioneered by General Motors, Procter & Gamble is widely recognised as popularising the practice.  Hair care: e.g. head & shoulders, Herbal Essences, Pantene Pro-V and Wella.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Brand Hierarchy General Motors’ brand hierarchy in the USA

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Building Equity at Different Hierarchy Levels Corporate brand level: Colgate-Palmolive Family brand: Colgate Individual brand: Colgate Total Determinants of corporate image

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Determinants of corporate image Determinants of Corporate Image

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Determinants of corporate image Designing a Branding Strategy There is no agreement on the type of strategy that should be adopted by all firms for all products. LaForet and Saunders analysed the strategies of 20 brands sold by each of 20 of the biggest suppliers of product to Tesco and Sainsbury

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Designing a Branding Strategy Branding StrategyPercentage of Occurrence Corporate Dominant 1. Corporate brands: corporate name or subsidiary name used5 11 Mixed brands 1.Dual brands: two or more names given equal prominence 2.Endorsed brands: brand endorsed by corporate identity Brand Dominant 1.Mono brands: Single brand name used 2.Furtive brands: Single brand name used and corporate identity not disclosed 19 13

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Miller Beer Even within one firm, different branding strategies may be adopted for different products. Beer: Miller High Life, Miller Lite and Miller Genuine Draft No-alcohol beer: Sharp’s Iced Beer: Icehouse Low-priced beer: Milwaukee’s Best

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Guidelines for Brand Hierarchy Decision Decide on the number of level. Simplicity Clarity Decide on the levels of awareness and types of associations to be created at each level. Relevance Differentiation Decide on how and which products to be introduced. Growth Survival Synergy

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Guidelines for Brand Hierarchy Decision Decide on how to link brands from different levels for a products Relative prominence of brand elements affects perceptions of product distance and the type of image created by the new brand Decide on how to link a brand across products. Commonality: The more common elements are shared by products, the stronger the linkages.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Corporate Image Campaigns Create associations with the corporate brand as a whole Ignore or downplay products or sub-brands Often criticised as an ego-stroking waste of time.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Objectives of Corporate Image Campaigns Building awareness of the company and the nature of its business Building company trustworthiness and credibility Creating corporate image associations that can be leveraged by product-specific marketing ‘Let’s make things better’ ‘ Sense and Simplicity’

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Using Cause Marketing to Build Brand Equity In 1983, American Express launched a campaign to restore the Statue of Liberty. Donating a small amount of money for every credit card transaction and each new card issued, Amex gave 1.6 million Euro to the restoration. Transactions for Amex rose 30% and the issuance of new cards increased by 15%. In the next 5 years, Amex supported more than 70 causes in 18 countries, ranging from preservation of the national bird of Norway to protection oft he Italian coastline.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Using Cause Marketing to Build Brand Equity Amex initiated ‘Charge against Hunger’ in Bono and his Aids organisation project Red = Amex Red card. Visa created a transaction-based donation scheme to support the 1988 Olympics. MasterCard tied the use of its credit card to donations to six charities with its ‘Make a difference’ campaign.

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Green Marketing Green marketing is a special case of cause marketing. Concern for the environment is a trend that is reflected in the attitudes and behaviour of both consumers and companies. From branding perspective, green marketing campaigns have not been entirely successful. Despite reported public interest in environmental responsibility, many of these products and campaigns were unsuccessful. What obstacles did the green marketing movement encounter?

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Green Marketing Overexposure and lack of credibility So many companies made environmental claims that the public became sceptical. E.g. Degradability of bin bags This backlash = Gimmicks Consumer behaviour Products need to achieve points of parity on quality and price and credible environmental claims for green marketing to work. Poor implementation Possible solutions

the BUSINESS SCHOOL the UNIVERSITY of GREENWICH Strategic Brand Management 2009 Green Marketing Poor implementation Poor product design in terms of environmental worthiness Overpriced products Inappropriately promoted products