DESIGNING AND

IMPLEMENTING
BRANDING STRATEGIES

CHAPTER 11

11.1
 Strategic Brand Management Process
Identify And Establish Brand Positioning And Value
Competitive frame of
Mental maps POPs and PODs Brand mantra
reference

Plan And Implement Brand Marketing Programs

Mixing And Matching Of Brand Integrating brand marketing Leveraging secondary
Elements activities association

Measure And Interpret Brand Performance

Brand equity
Brand value chain Brand audits Brand tracking
management system

Grow And Sustain Brand Equity

Brand portfolios and Brand expansion Brand reinforcement
Brand-product matrix 6.2
hierarchies strategies and revitalization
 Contents
 Brand architecture
 Brand Hierarchy
 Design a Brand Strategy
 Using Cause Marketing to Build Brand Equity
 Review

11.3
Section 1

BRAND ARCHITECTURE

11.4
 Branding strategy
 Branding strategy is critical because it is the
means by which the firm can help consumers
understand its products and services and
organize them in their minds.
 Two important strategic tools: The brand-
product matrix and the brand hierarchy help to
characterize and formulate branding strategies
by defining various relationships among
brands and products.

11.5
 Branding Strategy or Brand
Architecture
 The branding strategy for a firm reflects the
number and nature of common or distinctive
brand elements applied to the different products
sold by the firm.
 Which brand elements can be applied to which
products and the nature of new and existing brand
elements to be applied to new products

11.6
 The Role of Brand Architecture
 Clarify: brand awareness
 Improve consumer understanding and
communicate similarity and differences between
individual products
 Motivate: brand image
 Maximize transfer of equity to/from the brand to
individual products to improve trial and repeat
purchase

11.7
 Brand-Product Matrix
Products
1 2 3 4
A
Brands B
C

 Must define:
 Brand-Product relationships (rows)
 Line and category extensions
 Product-Brand relationships (columns)
 Brand portfolio
11.8
 Important Definitions
 Product line
 A group pf products within a product category that
are closely related
 Product mix (product assortment)
 The set of all product lines and items that a
particular seller makes available to buyers
 Brand mix (brand assortment)
 The set of all brand lines that a particular seller
makes available to buyers
11.9
 Breadth of a Branding Strategy
- Bread of product mix -
 Three main sets of factors determine the
inherent attractiveness of a product category.
 Aggregate market factors: Market size, market
growth, stage in PLC, sales cyclicity, seasonality,
profits.
 Category factors: Threat of new entrants,
bargaining power of buyers, suppliers, internal
rivalry, category capacity.
 Environmental factors: Technological, Political,
Economic, Regulatory, Social

11.10
 Breadth of a Branding Strategy
- Depth of product mix -
 Examining the percentage of sales and profits
contributed by each item in the product line
 Deciding to increase the length of the product
line by adding new variants or items typically
expands market coverage and therefore market
share but also increases costs.

11.11
 Depth of a Branding Strategy
 The number and nature of different brands
marketed in the product class sold by a firm
 Referred to as brand portfolio
 The reason is to pursue different market
segments, different channels of distribution, or
different geographic boundaries
 Maximize market coverage and minimize
brand overlap

11.12
Ford Brand Portfolio

11.13
 Depth of a Branding Strategy
- Designing a Brand Portfolio -
 Basic principles:
 Maximize market coverage so that no potential
customers are being ignored
 Minimize brand overlap so that brands aren’t
competing among themselves to gain the same
customer’s approval

11.14
 Brand Roles in the Portfolio
 Flankers (fighter brands)
 P&G Luvs brand to protect Pampers brand
 Cash cows.
 Low-end entry-level
 BMW introduces BMW 1-seiries
 High-end prestige brands
 Chevrolet introduces Corvette

11.15
Section 2

BRAND HIERARCHY

11.16
 Brand Hierarchy
 A means of summarizing 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
 A useful means of graphically portraying a
firm’s branding strategy

11.17
 Brand Hierarchy Tree: Toyota
Toyota
Corporation

Toyota Toyota Toyota Toyota Lexus

(Trucks) (SUV/vans) (Cars) Financial
Services

Corolla MR2
Camry Avalon Celica ECHO Matrix Prius
Spyder
Platinum
CE SE Edition
S LE XL SE
LE XLE XLS SLE

11.18
Brand Hierarchy Levels
Corporate Brand
(General Motors)

Family Brand
(Buick)

Individual Brand
(Park Avenue)

Modifier
Item or Model (Ultra)
11.19
 Corporate Image
 Consumers and others may be interested in
issues of corporate reputation (image) beyond
product characteristics and associations.
 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
 See the figure 11-6: Determinants of corporate
Image.
11.20
Social Conduct Contributions’ Employees’ Conduct Product
•Environment Conduct •Respect •Features
•Citizenship •Charities •Salary •Performance
•Quality of life •Educational Org. •Advancement •Conformance
•Communities •Arts Org. •Durability
•Quality
Business Conduct •Reliability
•Reputation •Repairability
•Innovation •Style
•Financial strength
•Mgt quality
Company Communications
Sales Force •Advertising
•Size & coverage
image •Publicity
•Competence •Promotions
•Courtesy •Direct mail
•Reliability •Telemarketing
•Responsiveness

Distribution Service Supports Price

channels •Installation •Education •List price
•Locations •Repair quality & •Manuals •Volume discounts
•Service time •Customer training •Rebates
•Competence •Availability of parts •Financial items •Financial items
11.21
 Corporate Brand Equity
 A corporate brand is distinct from a product brand in
that it can encompass a much wider range of
associations.
 A corporate brand name may be more likely to evoke
associations of common products and their shared
attributes or benefits; people and relationships,
programs and values; and corporate credibility.
 These associations can have an important effect on
the brand equity and market performance of
individual products.
11.22
 Family Brands
 Brands applied across a range of product
categories (also called range/umbrella brands)
 As products become more dissimilar, it may be
harder for the corporate brand to retain any
product meaning or to effectively link the
disparate products.
 May be distinct from the corporate brand:
 company-level associations may be less salient.
 Can evoke a specific set of associations across a
group of related products.
11.23
 Individual Brands
 Restricted to essentially one product category
 Advantage:
 Customize the brand and all its supporting marketing
activity to meet the needs of a specific customer group.
 Doesn’t harm other company brands in case of its
failure.
 Disadvantage:
 Difficulty, complexity, and expense of developing
separate marketing programs to build sufficient levels
of brand equity.
11.24
 Modifiers
 Signals refinements or differences in the brand related
to factors such as quality levels, attributes, functions,
etc.
 Quality level: Johnnie Walker Red Label, Black Label, Gold
Label.
 Attributes: Wrigley’s Sprearmint, Doublemint, and Juicy
Fruit flavors of chewing gum)
 Functions: Kodak’s 100-, 200-, 400-speed 35mm and APS
film..
 Plays an important organizing role in communicating
how different products within a category that share the
same brand name are
11.25
 Product Descriptor
 Not considered a brand element per se.
 It may be an important ingredient of branding
strategy.
 It helps consumers understand what the
product is and does and also helps to define
the relevant competition in consumers’ minds.

11.26
 Corporate Image Dimensions
Corporate
product
People and Values and Corporate
attributes,
relationships programs credibility
benefits or
attitudes

Concern with Expertise

Quality the
environment

Customer
Trustworthiness
orientation

Social
Innovativeness
responsibility
Likability

11.27
Section 3

DESIGN A BRAND STRATEGY

11.28
 Brand Hierarchy Decisions
 The number of levels of the hierarchy to use in
general
 The desired brand awareness and image at each
level
 Combinations of brand elements from different
levels of the hierarchy, if any, for any one
particular product
 How any one brand element is linked, if at all,
to multiple products
11.29
 Number of Hierarchy Levels
 Principle of simplicity
 Employ as few levels as
possible
 Principle of clarity
 Logic and relationship of
all brand elements
employed must be
obvious and transparent

11.30
 Levels Of Awareness And Image At
Each Level
 Principle of relevance
 Create global
associations that are
relevant across as many
individual items as
possible
 Principle of
differentiation
 Differentiate individual
items and brands

11.31
 Combining Brand Elements from
Different Levels
 Principle of prominence
 The relative prominence of brand elements affects
perceptions of product distance and the type of
image created for new products.

11.32
 Combining Brand Elements from
Different Levels
PEPSI Vitacola Vitacola By PEPSI
 The new product will  The new product would
take on many of the most likely take on a more
associations common to distinct positioning.
other PEPSI-branded  PEPSI name will function
products like cola. more for awareness and
perhaps transfer broader,
more abstract associations,
such as perceived quality
or brand personality.
11.33
 Linking Brands Across Products
 Principle of commonality
 The more common elements shared by products,
the stronger the linkages between the products.

11.34
11.35
11.36
 Brand Architecture Guidelines
 Adopt a strong customer focus
 Avoid over-branding
 Establish rules and conventions and be
disciplined
 Create broad, robust brand platforms
 Selectively employ sub-brands as means of
complementing and strengthening brands
 Selectively extend brands to establish new
brand equity and enhance existing brand
equity
11.37
 Corporate Brand Campaign
 Different objectives are possible:
 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

11.38
Section 4
USING CAUSE MARKETING
TO BUILD BRAND EQUITY

11.39
 Using Cause Marketing to Build
Brand Equity
 The process of formulating and implementing
marketing activities that are characterized by
an offer from the firm to contribute a specified
amount to a designated cause when customers
engage in revenue-providing exchanges that
satisfy organizational and individual objectives

11.40
 Advantages of Cause Marketing
 Building brand
awareness
 Enhancing brand image
 Establishing brand
credibility
 Evoking brand feelings
 Creating a sense of
brand community
 Eliciting brand
engagement
11.41
 Green Marketing
 A special case of cause marketing that is
particularly concerned with the environment
 Explosion of environmentally friendly
products and marketing programs

11.42
 Crisis Marketing Guidelines
 The two keys to effectively managing a crisis
are that the firm’s response should be swift and
that it should be sincere.

11.43
Section 5
REVIEW

11.44