Brand Management

2016

Recap
Brand reside in the minds of the customer
To build strong brands, marketers have to build a strong
awareness and a positive image
Brand Positioning (unique and valuable position) in the
minds of the customer )is a critical element in brand
building. Involves : customer segmentation, P-O-P, P-O-D,
competition mapping
The brand resonance model shows the sequential steps
that brands need to take to build brand equity
All the elements and marketing activities of the brand have
to be in sync to aid brand development
To reinforce the brand, brands need to be consistent,
protect their brand equity, decide on leveraging & fortifying
equity, need to fine tune marketing elements to drive
brand equity
To revitalize brands, need to understand the associations,
does it still function for P-O-P and P-O-D and understand if
any ve associations have got linked with the brand

Brand Architecture
Brand architecture is the structure of brands
within an organizational entity.
It is the way in which the brands within a
company's portfolio are related to, and
differentiated from, one another.

1. Helps determine which products or service to

introduce
2. And which brand name, logo, symbol to apply

Brand Architecture
Branded
House

House of
Brands

Endorsed
brand

When the products are in

the same category or
offer a similar set of
benefits.

Portfolio of brands
designed to stand
entirely on their own in
the marketplace.

Brands are combined in

such a way that one is
designed to work in
concert with the other

Every product reinforces

the main brand

Allows for a portfolio of

brands, each with a
unique brand positioning
tailored to a particular
product or market
segment

Sub brand rides on and

enhances the main
brand as well

HUL, P&G

Maruti, Honda, Reliance

BMW, Mercedes, Del

Monte, Nivea,
Mitsubishi, Yamaha

Brand Architecture

Branding Strategy

Brand Hierarchy
Graphical representation of a firms
branding strategy, displaying their
ordering
Company

Family

Brand

Modifier

LDi | LDi (O) | VDi | VDi

(O) | ZDi | ZDi +

Brand Portfolio
A brand portfolio includes all brands sold
by a company in a category
Tea Bags

CTC

Darjeeling Flavoured

Iced Tea

Maximize coverage. Minimise overlap / cannibalisation

Brand Extensions
Brand extensions are a new product
introduction strategy
When launching a new product, its always a
trade off between leveraging an existing brand
or creating a new brand
Over 90% of all new product introductions are
brand extensions!
Over 80% of all new products fail in the market
Important to understanding brand extensions

Sources of growth
Current Products

New Products

Market
Penetration
Strategy

Product
Development
Strategy

Market
Development
Strategy

Diversification
Strategy

Branding Scenario
Existing

CATEGORY

New

Line Extension

Category Extension

Flanker Brand

Diversification

1. Develop a new brand

2. Launch with an existing brand
3. A combination of a new brand an existing brand

Just because you can.doesn't mean

you should!
- Scott Bedbury

Brand Extensions
Brand
Extension
Lower cost of
introduction
Rub off of brand
affiliations
Reduces consumer
risk
Advantage Leverage distribution
Variety seeking
behaviour
Bring in new
customers
Revitalize the brand
Failure impacts
parent brand

New Brand
No impact on parent
brand
Create a new brand
which could spur
further growth

High Costs
Takes huge amount of

Rule of thumb for brand

extensions

Line Extensions

Category Extensions

Relatively lower risk

Biggest risk is of
cannibalisation between
extensions
Segment too finely with an
inside- out thinking

High risk
Biggest risk is of parent
brand dilution, customer
confusion & lost opportunity

The extension should be a logical fit with the parent brand

The parent should give the extension an edge in the new
category
The extension should have the potential to generate
significant sales.

Key Steps for Category

Extensions

Brand

Feedback effect

Attributes
Personality
Identity
Latent associations

Transferability

Category

Relevance

Can the brand deliver on the

benefit
P-O-P and P-O-D
Superiority
Can the brand sustain the
advantage

Parameters for Evaluation

Kapferer Model

Category Extensions
Complementary products

New forms
Same target segments
Company expertise

Complementary Products

Category Extensions in New

Forms

Same Target Segments

Company Expertise

Do they work?

Do They Work?

Expanding the
brand across all
segments and
niches in atta
Getting into the
additive space as
well
Leveraging

Do They Work?

Do they work?

Why launch under Hajmola which is seen as a therapeutic brand

Sub Brand YOODLEY?
Why not under REAL?

Do they work?

Which brand will win in Oats?

Do they work?

What's next?

Do they work?

Do they work?

Do they work?

1.

2.
3.

4.
5.
6.
7.

Guidelines for brand

Brands should not extension
be extended unless they are wellknown, have high awareness and a good reputation
among the new target market.
Brand extensions must be a logical fit with consumers
expectations.
Brand extensions must have leverage in the new category
a transfer to the new product of a distinctive property
associated with the parent brand that gives the brand
extension an edge in the new category.
Brand extensions that could create confusion or a
negative image for the parent should not be undertaken.
Brands should not be stretched to too many diverse
categories risking dilution in the long run.
Brands that consumers use synonymously with a category
(generic) should not be extended to other categories.
Brand extensions must make business sense.

Thank You

Brand Perimeters

No Go Area
Threat to brand
capital

Definitions
Brand Extension : Use an existing brand name
to launch a new product
Sub / parent Brand : New brand combined with
an old brand. The new brand is the sub brand
and the old brand is the parent brand
Family brand : if the parent brand is already
associated with other extensions
Line Extensions : Apply an extension to target a
new segment in the same category
Category Extensions : Apply an extension to
target a completely new category of products