Part 5:

Growing and Sustaining Brand Equity

 Organizing for brand building Chapter 12
 Brand Portfolios
 Brand Hierarchy
 Corporate branding
 Brand extensions Chapter 13
 Advantages and disadvantages of extensions
 Evaluating brand extension opportunities
 Managing brands over time Chapter 14
 Reinforcing brands
 Revitalizing brands
 Adjustments to the brand portfolio
 Managing brands over geographic boundaries Chapter 15
 Advantages of global marketing programs
 Disadvantages of global marketing programs
 Global brand strategy
 Chapter 11
Organizing for brand building

 Brand Portfolios
 Brand Hierarchy
 Corporate branding
 Brand Portfolios

The brand portfolio is the set of all brands

and brand lines that a particular firm offers for
sale to buyers in a particular category.

• Any one brand in the portfolio should not harm or

decrease the equity of the others.
• Ideally, each brand maximizes equity in combination
with all other brands in the portfolio.
 Brand Portfolios
Unilever makes and sells products under more
than 400 brand names worldwide.
 Brand Portfolios
Why might a firm have multiple brands in the same product category?
 Market coverage
o General Motors, Procter & Gamble
 No one brand is viewed equally favorably by all the different
distinct market segments
 Multiple brands allow a firm to pursue different price segments,
different channels of distribution, different geographic boundaries,
and so forth.
 To increase shelf presence and retailer dependence in the store
 To attract consumers seeking variety who may otherwise switch to
another brand
 To increase internal competition within the firm
 To yield economies of scale in advertising, sales, merchandising,
and physical distribution
 Brand Portfolios
Possible Special Roles of Brands in the Brand Portfolio
1. To attract a particular market segment not currently being
covered by other brands of the firm
2. To serve as a flanker and protect flagship brands
3. To serve as a cash cow and be milked for profits
4. To serve as a low-end entry-level product to attract new
customers to the brand franchise
5. To serve as a high-end prestige product to add prestige and
credibility to the entire brand portfolio
6. To increase shelf presence and retailer dependence in the store
7. To attract consumers seeking variety who may otherwise have
switched to another brand
8. To increase internal competition within the firm
9. To yield economies of scale in advertising, sales, merchandising,
and physical distribution
 Brand Hierarchy
A brand hierarchy is a useful means of graphically
portraying a firm’s branding strategy by displaying the
number and nature of common and distinctive brand
elements across the firm’s products, revealing their explicit
ordering.
A brand hierarchy can include multiple levels, such as:
1. Corporate or company brand
2. Family brand
3. Individual brand
4. Modifier
5. Product descriptor
 Brand Hierarchy
A brand hierarchy can include multiple levels, such as:

1. Corporate or company brand

A corporate brand is distinct from a product brand
because it can encompass a whole new set of
associations.
It’s a powerful means to express the company philosophy
in a way that is not tied to the product or the service.
 Brand Hierarchy
A brand hierarchy can include multiple levels, such as:

2. Family brand
A family brand, also called a range brand or umbrella
brand, is used in more than one product category. When
a group of products are given the same brand name.

SQUARE:
Radhuni Faluda Mix, Radhuni Halim Mix,
Radhuni Firni Mix, Radhuni Biryani Masala
 Brand Hierarchy
A brand hierarchy can include multiple levels, such as:

3. Individual brand (Unilever)

Individual brands are restricted to essentially one product
category, although multiple product types may differ on
the basis of model, package size, flavor, and so forth.

Unilever:
Lux, Dove, Pepsodent, Pure-it, Close-up,
 Brand Hierarchy
A brand hierarchy can include multiple levels, such as:

4. Modifier (designating item or model)

A modifier is a means to designate a specific
item or model type or a particular version or
configuration of the product. Modifiers help
make products more understandable and
relevant to consumers or even to the trade.
 Brand Hierarchy
A brand hierarchy can include multiple levels, such as:

5. Product descriptor
The product descriptor helps consumers understand
what the product is and does and also helps define the
relevant competition in consumers’ minds.
Descriptor brands communicate a distinct facet of the
parent brand—e.g., class, feature, target segment, or
function.
 Brand Hierarchy
 Corporate branding
Corporate brand equity is the differential response by
consumers, customers, employees, other firms, or any
relevant constituency to the words, actions, communications,
products, or services provided by an identified corporate
brand entity.

Positive corporate brand equity occurs when a

relevant constituency responds more favorably to a
corporate ad campaign, a corporate-branded product
or service, a corporate-issued PR release, and so on
than if the same offering were attributed to an
unknown or fictitious company.
 Corporate branding: Corporate Image Dimensions
A corporate image will depend on a number of factors, such as the
products a company makes, the actions it takes, and the manner in
which it communicates to consumers.
The different types of associations that are likely to be linked to a corporate
brand and that can affect brand equity are:
• Common Product Attributes, Benefits, or Attitudes
- high quality and innovation
• People and Relationships
characteristics of the employees of the company
customer focus, relation, caring
• Values and Programs
Launch corporate advertising campaigns focusing the
environmental issues and social responsibility
• Corporate Credibility
Corporate credibility depends on three factors:
Corporate expertise, Corporate trustworthiness, Corporate likability
 Corporate branding

Managing the Corporate Brand

Corporate social responsibility,
Corporate image campaigns, and
Corporate name changes.
 Corporate branding
Managing the Corporate Brand
Corporate image campaigns
• Build awareness of the company and the nature of its
business.
• Create favorable attitudes and perceptions of company
credibility.
• Link beliefs that can be leveraged by product-specific
marketing.
• Make a favorable impression on the financial community.
• Motivate present employees and attract better recruits.
• Influence public opinion on issues.
 Chapter 13
Brand extensions

 Advantages and disadvantages of extensions

 Evaluating brand extension opportunities
 Brand Extensions
A brand extension occurs when a firm uses an established brand
name to introduce a new product.
When a new brand is combined with an existing brand, the brand
extension can also be a sub-brand.

An existing brand that gives birth to a brand extension is the parent

brand.
If the parent brand is already associated with multiple products
through brand extensions, then it may also be called a family brand.
 Brand Extensions
Brand extensions fall into two general categories:
• Line extension: Marketers apply the parent brand to a
new product that targets a new market segment within a
product category the parent brand currently serves.
A line extension often adds a different flavor or ingredient variety, a
different form or size, or a different application for the brand.
* Head & Shoulders Dry Scalp shampoo
* Coca cola Diet

• Category extension: Marketers apply the parent brand

to enter a different product category from the one it
currently serves.
 Brand Extensions
Advantages of Brand Extension
Facilitate New Product Acceptance
• Improve brand image
• Reduce risk perceived by customers
• Increase the probability of gaining distribution and trial
• Increase efficiency of promotional expenditures
• Reduce costs of introductory and follow-up marketing programs
• Avoid cost of developing a new brand
• Allow for packaging and labeling efficiencies
• Permit consumer variety-seeking

Provide Feedback Benefits to the Parent Brand and Company

• Clarify brand meaning
• Enhance the parent brand image
• Bring new customers into brand franchise and increase market coverage
• Revitalize the brand
• Permit subsequent extensions
 Brand Extensions
Disadvantages of Brand Extension
• Can confuse or frustrate consumers
• Can encounter retailer resistance
• Can fail and hurt parent brand image
• Can succeed but cannibalize sales of parent brand
• Can succeed but diminish identification with any one category
• Can succeed but hurt the image of parent brand
• Can dilute brand meaning
• Can cause the company to forgo the chance to develop a new brand
 Brand Extensions
Factors 450
The effects of an extension on consumer brand knowledge will
depend on four factors:
• Compelling
• Relevant
• Consistent
• strongly
 Brand Extensions
Vertical Brand Extensions
Vertical brand extensions, which extend the brand up into
more premium market segments or down into more value-
conscious segments, are a common means of attracting
new groups of consumers.
EVALUATING BRAND EXTENSION OPPORTUNITIES
Steps in Successfully Introducing Brand Extensions
1. Define actual and desired consumer knowledge about the brand (e.g., create
mental map and identify key sources of equity).
2. Identify possible extension candidates on basis of parent brand associations and
overall similarity or fit of extension to the parent brand.
3. Evaluate the potential of the extension candidate to create equity according to the
three-factor model:
• Salience of parent brand associations
• Favorability of inferred extension associations
• Uniqueness of inferred extension associations
4. Evaluate extension candidate feedback effects according to the four-factor
model:
• How compelling the extension evidence is
• How relevant the extension evidence is
• How consistent the extension evidence is
• How strong the extension evidence is
5. Consider possible competitive advantages as perceived by consumers and
possible reactions initiated by competitors.
6. Design marketing campaign to maximize the likelihood of success and potential
positive feedback effects.
7. Evaluate extension success and effects on parent brand equity.
 Chapter 14
Managing brands over time

 Reinforcing brands
 Revitalizing brands
 Adjustments to the brand portfolio
 Reinforcing Brands
 Use marketing actions that consistently convey
the meaning of the brand to consumers in terms
of awareness and image.
 Fortify the brand by raising awareness and
building favorable associations - sponsorships,
product placements
 Reinforcing Brands
 three key issues:
(1) maintaining brand consistency;
(2) protecting sources of brand equity; and
(3) and trade-offs between fortifying and leveraging brands
 Maintaining consistency involves two key
aspects:
(1) consistency of marketing support; and
(2) consistency of brand associations.
  Revitalizing Brands
 Refresh old sources of brand equity
 Create new sources of brand equity
  Adjustments to Brand Portfolio
 Migration strategies
The brand migration strategy helps consumers understand how
various brands in the portfolio can satisfy their needs as they change
over time, or as the products and brands themselves change over
time.

 Acquire new customers

 Retiring brand
 Obsoleting existing product