1. Brand strategies Presented By: Pooja Singh (20061)
Sushmita Rani (20087)
Vishwanath Angam (20096)
Farjendra Kumar (20017)
Arvind Sai Prasad (20089)

2. the FASCINATING world of brands

3. What Is A “Brand”
A BRAND is symbolic embodiment of all the information connected to a Company, Product or Service.
It serves to create associations and expectations from products made by a producer, in the mind of the consumer.
The key objective being “to create a Relationship of TRUST with its consumers”.

4. Product mix and Brand mix
An organization’s product width includes all the different product lines it is offering to the market.
The organization can come out with a number of related products (that form one product line) or a number of unrelated products (that form different product lines, i.e., the product mix).
An organization’s product width denotes the number of product lines it has.
In the product line it can have a single brand or a number of brands.
All the brand lines that an organization has to offer are called the brand mix or brand assortment

5. Product mix width Product mix width Product line length Tiger Good Day
Biscuits
Product line - 2 Cakes
Product line - 3 Dairy Delights
Product line – 4 and so on
Tiger
Good Day
Bourbon
50-50
Marie Gold
Treat
Milk Bikis
Nutri Choice
Time Pass Namkeen
Little Hearts
Nice Time
Bar cakes
Cup cakes
Chunk Cakes
Veg cakes
Cheese
Milk
Dahi
Actimind
Ghee
Butter
Dairy Whitener
Product line length

6. Product Line Depth – Britannia Tiger Biscuits
Banana
Chocolate
Butterscotch
Elaichi
Orange
Pineapple
Strawberry
Chai Biskoot
Brita Energy Pops
Coconut Pops
Rs 10
Rs 4
Rs 2
Similarly can be in different packagings

7. Branding strategy
Branding strategy ‘reflects the number and nature of common and distinctive brand elements applied to the different products sold by the firm. In other words, branding strategy involves deciding which brand names, logos, symbols and so forth should be applied to which products and the nature of new and existing brand elements to be applied to new products’

8. Need for designing branding strategies
Resources in the form of human effort, time, and money are required in abundance to build a brand from scratch.
Once the brand is established and doing well, the companies realize that to stay competitive and to tap other opportunities in the market they need to come out with other products as well as to attract consumers.
The new product can be branded under the existing brand or the organization can give an entirely new brand name to the same. The decisions pertaining to the same are strategic and have implications for the organization as a whole.
Thus, over a period of time a company can have a number of brands in its basket of offering for consumers in the same or different product categories. This is called brand portfolio and includes all the brands and brand lines that a company has to offer to the market.

9. Strategies for choosing a brand name
Corporate brand name combined with individual name
Individual names
Blanket family names
Separate family names for all products

10. New Product –Branding Decisions
A new brand – individually chosen for the new product.
An existing brand name applied in some way.
A combination of a new brand with an existing brand.

11. Branding Strategies and opportunities for growth
Launch a new brand in an existing product category-Flanker Brand
Launch a new brand in a new product category- New Product
Launch an existing brand in an existing product category-Line Extension
Launch an existing brand name in a new product category-Category Extension

12. Extensions Extensions can be of the following types Line extension
Brand extension or Category extension

13. LINE EXTENSION
The parent brand is used to brand a new product that targets a new market segment with in a product category currently served by the parent brand.
A line extension often adds a different flavor or ingredient variety, a different form or size, or a different application for the brand.

14. Why Line extension? Diversity of customers Customers’ need for variety
Pricing breadth
Capacity utilization
Increasing profitability
Competitive reasons
Trade demands
Counter competition
Image benefits

15. Types of line extensions
Horizontal line extension
Vertical line extension
Upscale extension
Downscale extension

16. Coke’s Horizontal Line Extension

17. Britannia Vertical Extension

18. CATEGORY EXTENSION
The parent brand is used to enter a different product category from that currently served by the parent brand.

19. ITC’s Category Extension

20. Types of category extensions
A category-related extension is when an organization launches a brand related to the same category as the parent brand.
Image-related brand extension is when the company leverages its image to launch new products.
An unrelated extension is when a company launches a brand in a product category that is entirely new.

21. Why Brand Extensions?
Leveraging brand equity/value by introduction of logical & complementary new product categories
E.g HP
Product Innovation to surpass consumer expectations
It increases awareness of the brand name
Increases profitability from offerings in more than one product category.(widening the net to catch new consumers.)
It’s a great way to reinforce a brand, reach out to new customers, create a BUZZ

22. Advantages Of Brand Extensions
Improve brand image
Reduce risk perceived by
Customers
Permit consume variety-seeking

23. Advantages Of Brand Extensions
Clarify brand meaning
Brand
Original Product
Extension Products
New Brand Meaning
Weight Watchers
Fitness Centre
Low-calorie foods
Weight loss & maintenance
Sunkist
Oranges
Vitamins, juices
Good health
Kellogg’s
Cereal
Nutri-grain bars, Special K bars
Health snacking
Aunt Jemima
Pancake mixes
Syrups, frozen waffles
Breakfast foods

24. Advantages Of Brand Extensions
Increase the probability of gaining distribution and trial
Increase efficiency of promotional expenditures
Reduce costs of introductory & follow-up marketing programs (save 40-80%)
E.g. Apple iPods
Avoid costs of developing a new brand
Allow for packaging & labeling efficiencies

25. Advantages Of Brand Extensions
Enhance the parent brand image
Bring new customers into brand franchise and increase market coverage
Revitalize the brand
Permit subsequent extensions

26. Disadvantages Of Brand Extensions
Can fail & hurt parent brand image
Xerox Computers-synonymous with copiers & no one believed they could make computers
Can succeed but cannibalize sales of parent brand
Amul Butter-”reduced salt butter”
is slowly eating up Amul normal butter

27. Disadvantages Of Brand Extensions
Can succeed but diminish identification with any one category
Can succeed but hurt the image of parent brand

28. Disadvantages Of Brand Extensions
Can confuse or frustrate consumers
Can encounter retailer resistance
Can dilute brand meaning
Can cause the company to forgo the chance to develop a new brand

29. Brand extension decision: An analysis
A brand is an organizational asset built painstakingly over a period of time.
This calls for a careful evaluation of the brand extension strategy and managers should take a call as to when to protect the brand name and when to exploit it.
This requires a careful understanding of the various advantages and pitfalls associated with using an established brand name to launch a new product in the market.

30. When are Brand Extensions Appropriate?
When Prior Brand equity exists
Consumer must see some “connection” between the proposed extension and the parent brand.
The proposed extension contributes to and reinforces the overall brand equity of the parent brand.

31. How Consumers
Evaluate Extensions

32. Conditions For Evaluating Consumer’s Brand Extension
Consumers have some awareness & positive associations about the parent brand
At least some of these positive associations will be evoked by the brand extension
Negative association are not transferred from the parent brand
Negative associations are not created by the brand extension

33. Evaluating Brand Extension Opportunities
Define actual & desired consumer knowledge
Identify possible extension candidates
Evaluate potential of the extension candidate
Evaluate potential candidate feedback effects
Consider possible competitive advantages & reactions
Design marketing campaign
Evaluate extension success & effects on parent brand equity

34. Potential pitfalls of brand extensions
Failure of brand name to add value
Negative association
Problem of fit
Cannibalization of parent brand’s sales
Perception of poor quality
Creation of undesirable associations
Weakening of existing associations
Dilution of the parent brand image resulting in confusion
Reduced identification with any one category
Effect of a brand crisis
Foregoing opportunity to create a new brand
Encounter retailer resistance

35. Critical factors for Brand extension success
Relationship between Parent and extended brand
Perceptual Fit
Benefit transfer
Parent Brand characteristics
Quality of product
Conviction of parent brand
Experience with parent brand
Brand extension success
Extended brand
Marketing support
Competitive leverage
Retailer acceptance of the extended brand

36. Launching a brand extension
Brand to be extended by the organization
For example Amul
Stage 1
Identify the associations with the brand name
(example Amul – associated with quality milk products)
Stage 2
Definitions for each association*
Butter Milk drinks Fresh milk Powdered milk Cheese
Pizza Curd Ice-cream Sweets
Stage 3
Related categories are identified for each definition*
For example, cheese: processed cheese, cottage cheese, cheese spreads, mozzarella cheese etc.
Stage 4
Selecting the ‘candidate product’
Stage 5
Launching the brand extension
Stage 6

37. Brand stretching
The terms stretching and extension are often used interchangeably.
However, some have delineated extension as the addition of product variants or new products under the established brand name in the same product field as the established brand. On the other hand, stretching refers to a brand in a new product field.

38. Factors supporting brand stretch
Awareness and reputation of the parent brand
Applicability of the brand essence
Expertise and know-how
Consumers’ perception of the difficulty to manufacture the new brand
Offering complementary products
Filling a market gap

39. Factors against brand stretch
Inappropriate association between the parent brand and new brand
Wrong associations between parent and new brand
Consumers’ perception of the organization

40. Types of products that can be extended
Products with function-oriented image
Products with prestige-oriented image

41. Strategic advantages for the parent brand
Enhance appeal for the parent brand
Reinforce key associations
Strengthen parent brand ‘memory structures’ and ‘facilitate retrieval processes’
Maximize comparative advantage
Lead to fewer brands that need to be managed
Increase advertising efficiencies
Defend a brand
Enhance the life cycle of the brand
Help target a particular segment of customers

42. Strategic advantages for the sub-brand
Positioning a brand
Introducing from a position of strength
Minimizing introduction expense
Minimizing marketing expenses
Quality association
Encouraging trial purchase
Satisfying variety seeking behavior
Increasing advertising efficiencies
Clarifying what the brand means to customers
Increasing market coverage
Permitting subsequent extensions

43. Thank You