1. Module IV: Nurturing Brand to Grow:
Understanding & Developing Brand Architecture
Managing Strategic Branding Issues:
Brand Extension & Brand Revitalization
Corporate & Internal Branding
Managing Global Brand

2. Module IV: Nurturing Brand to Grow

3. Branding Strategy or Brand Architecture:
“The number and nature of
common and distinctive brand elements
applied to the different products sold by the firm”

4. Brand-Product matrix Products Brands Soap Talcum Deo Cold cream Lux
Liril
Ponds
Palmolive
Brands
Columns (Product Line)
Brand extension strategy
Rows (Brand Line)
Brand portfolio strategy

5. Factors effecting Product category attractiveness
Breadth of a Branding Strategy
The number and nature of different products linked to the brands sold by a firm
Aggregate of market factors
Mkt size
Mkt growth
Stage of PLC
Seasonality
Profits
Breadth of Product Mix:
How many product lines a company should carry ?
Environmental factors
Technological
Economic
Political
Regulatory
Social
Factors effecting Product category attractiveness
Category factors
Porter’s five forces
Category capacity

6. Breadth of a Branding Strategy (Contd.)
Depth of Product Mix:
How many variants should be offered in each product line ?
Understanding of the market
Cost interdependence between products
Length of the product line
Issues in
deciding no. of
Product lines
The ability of each item in the product line to
Withstand competition
Address consumer needs
% of sales and profits contributed by each item or member of the product line

7. Depth of a Branding Strategy
Number and nature of different brands marketed in the product class sold by a firm
Why multiple brands?
To pursue multiple market segments & larger mkt. coverage
To increase shelf presence and retailer dependence in the store
To attract customers seeking variety
To increase internal competition within the firm
To yield economies of scale in adv., sales and distribution
Maximise market coverage, minimise brand overlap
and optimize the product portfolio

8. Brand hierarchy
Means of summarising 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.
The simplest representation of a Brand Hierarchy from top to bottom is as follows:
Corporate ( or company ) brand.
Family Brand eg: Colgate
Individual Brand eg:Lux
Modifier( designating item or model) eg. Pentium PI, PII, PIII…

9. Special role of brand in brand portfolio
Serve as a high end
prestige product
Serve as a flanker
and
protect flagship brands
Phillip Morris
Mercedes
Special role of brands in a brand portfolio
Gillette
Toyota
Serve as a lower end
entry level product
to attract a new customer
to the brand franchisee
Serve as a cash cow
and
Milk for profits

10. Guidelines for brand hierarchy Decisions
Designing a Branding Strategy
The no. of levels of the hierarchy to use in general
Principle of simplicity: As few levels as poss.
Guidelines for brand hierarchy Decisions
Desired awareness and associations at each level
Principle of relevance: Create abstract associations that
are relevant across as many individual items as possible
Principle of differentiation: Differentiate individual items and brands
How to link brands from different levels for a product?
Principle of prominence: The relative prominence of brand
elements affects perceptions of product distance and the type
of image created for new products
How to link a brand across products?
Principle of commonality: The more common elements shared
by products, the stronger the linkages

11. New Products & Brand extensions
New Brand: Tide launched by P&G
Line Extension: Wills Lifestyle
Category extension: Colgate Supershakti

12. Brand Strategies Product Category Line Extension Brand Extension
Existing
New
Existing
Multibrands
New Brands
Brand Name
New

13. Reinforcing brands…
Brand equity is reinforced by marketing actions that consistently convey the MEANING of the brand to consumers in terms of BRAND AWARENESS and BRAND IMAGE.
Reinforced marketing actions, along with product development, branding strategies etc. also help in keeping the brand meaning in terms of products, benefits and needs as well as in terms of product differentiation intact.

14. Reinforcing depends on nature of the brand associations
Product related performance associations
Product innovations are critical.
Change in product may not be drastic, as brand meaning may be associated with the product characteristics.
Non-product related imagery associations
Relevance in user and usage imagery is critical.
Potentially easier to change through major advertising campaigns (no product innovation may be involved).
Too frequent repositioning can blur the image of the brand and confuse or even alienate the consumers.

15. Reverse Fortunes of Brands
Recapture lost sources of Equity
Identify and establish new sources of Brand Equity

16. Approaches to Re-vitalization
Expanding Brand Awareness
Improving Brand Image
Entering New Markets

17. Approaches adjustment to brand portfolio
Migration Strategy
Acquiring new customers
Retiring Brands

18. Quick Revisit

19. What is a brand? A brand is a name, term, sign, symbol, or design,
or a combination of them,
intended to identity the goods or services
of one seller or group of sellers
and to differentiate them from those of competitors
- American Marketing Association 19

20. A sum of parts + The Brand Functional Product Attributes
Symbolic Values
& Associations
Rational (Head)
Emotional (Heart)
The Brand 20 20

21. Four characteristics
Difference
Clarity
Consistency
Leadership 21 21

22. Brand Identity (Kapferer’s Prism)22 22

23. Life style Expectation Experience Disposition Differentiation
BRAND IMAGE: the way of thinking by a consumer about the brand and the feelings the brand arouses when the consumer thinks about it
Life style
Expectation
Experience
Disposition
Differentiation 23

24. Brand Positioning Define competitive frame of reference
Target market
Nature of competition
Define desired brand knowledge structures
Points-of-parity
necessary
competitive
Points-of-difference
strong, favorable, and unique brand associations 24

25. Your Brand’s Genetic Code: BRAND DNA
Every great brand has substance. a brand’s DNA is timeless. a brand’s blue print is a unique set of values that originally defined them. Great brands can remain relevant through creativity.
A brand’s DNA is not strictly about the product, service, the past or even about research -- its about tapping in to an essence or story that defines who you are to the people that matter most, your core customers.
What Do You Stand For? 25

26. - Jingles BRAND_VIDEO CLIPS\Hutch song.mp3 - Packaging
- Brand Names
Logos and Symbols
- Characters:
- Benefits
- Cautions
- Slogans
- Designing Slogans
- Updating Slogans
- Jingles BRAND_VIDEO CLIPS\Hutch song.mp3
- Packaging
- Package design
- Packaging changes 26

27. Criteria Memorabiltiy Meaningfulness Likability Transferability
Easily recognized
Easily recalled
Meaningfulness
Descriptive
Persuasive
Likability
Fun and interesting
Rich visual and verbal imagery
Aesthetically pleasing
Transferability
Within and across product categories
Across geographic boundaries and cultures
Adaptability
Flexible
Updateable
Protectability
Legally
Competitively 27

28. Leveraging Secondary Brand Knowledge to Build Brand Equity
Brands may be linked to other entities that have their own knowledge structures in consumer minds
Means of reinforcing existing associations in a fresh and different way
very important aspect if the existing brand associations is deficient in some way 28

29. Customer Based Brand Equity (CBBE): Keller29

30. Marketing Program Investment Market place Conditions
The Brand Value Chain
Marketing Program Investment
Customer Mindset
Market Performance
Shareholder Value
Value
Stages
BRAND_VIDEO CLIPS\Lufthansa Brand Movie_vcd0.mpg
Price premium
Price elasticity
Market share
Expansion success
Cost structure
Profitability
Product
Communication
Trade
Employee
Other
Awareness
Associations
Attitudes
Attachment
Activity
Stock prices
P/E ratio
Market capitalization
BRAND_VIDEO CLIPS\Recap - Intel's Shareholder Meeting - Bloomberg.flv
BRAND_VIDEO CLIPS\Performance Review IKEA 2009.flv
Program Quality
Market place Conditions
Investor Sentiment
Multiplier
Clarity
Relevance
Distinctiveness
Consistency
Market dynamics
Growth potential
Risk Profile
Brand contribution
BRAND_VIDEO CLIPS\Global Brands Lose Value as Economy Suffers.flv
Competitive reactions
Channel support
Customer size and profile 30

31. Key Metrics: Consumer Based
Brand Persuasion =Ratio of Intention to Purchase Brand/ Spontaneous Brand Recall
Brand Pull =Ratio of Likely Switch-ins to the Brand / Likely Switch-outs from the Brand
Brand Loyalty = Ratio of Likely to Continue Buying the Brand / Total Current Users of the Brand
Secondary Brand Share = Total Current Users of the Brand / Total Current Users of the Category
Primary Brand Share =Preferred Current Users of the Brand / Total Current Users of the Category 31

32. Discounted Cash Flows Method:
Value of Brand =
Where = Anticipated Revenue in year t attributable to the brand
r = Discounting rate or WACC (Weighted average cost of capital)
= Residual Value after n (year)
For Example:
Brand A had revenues of Rs 600 crores ( 2009).
The Brand A is expected to grow at around 10% per annum for the next five years.
The Discounting rate is taken at 12 %.
The period when the brand is expected to operate status quo is assumed to be the next five years 32

33. The Interbrand method for valuing brands:33

34. A Two Dimensional Framework for Diagnosing Brands: The Power Grid
BrandAsset® Valuator
Leading
Brand Strength
Differentiation
Relevance
Lagging
Brand Stature
Esteem
Knowledge
OK, so here’s the cheat sheet.
I’m Miss Lonelyhearts and I’m checking out what you’re telling me about the brands.
I want to know about Brand Strength and Brand Stature and what they tell me about pursuing the relationship further. 34 11

35. Brand-Product matrix Products Brands Soap Talcum Deo Cold cream Lux
Liril
Ponds
Palmolive
Brands
Columns (Product Line)
Brand extension strategy
Rows (Brand Line)
Brand portfolio strategy 35

36. Brand hierarchy
Means of summarising 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.
The simplest representation of a Brand Hierarchy from top to bottom is as follows:
Corporate ( or company ) brand.
Family Brand eg: Colgate
Individual Brand eg:Lux
Modifier( designating item or model) eg. Pentium PI, PII, PIII… 36

37. New Products & Brand extensions
New Brand: Tide launched by P&G
Line Extension: Wills Lifestyle
Category extension: Colgate Supershakti 37

38. Reverse Fortunes of Brands
Recapture lost sources of Equity
Identify and establish new sources of Brand Equity

39. Approaches adjustment to brand portfolio
Migration Strategy
Acquiring new customers
Retiring Brands

40. Thank you