Branding strategies

Structure
A. INTRODUCTION

1. Overview and Strategy Blueprint

2. Marketing Strategy: Analysis &
perspectives

C. WHERE DO WE WANT TO BE?

B. WHERE ARE WE NOW?
3. Environmental & Internal Analysis:
Market Information & Intelligence

4. Strategic Marketing Decisions,

Choices & Mistakes
5. Segmentation, Targeting
& Positioning Strategies
6. Branding Strategies
7. Relational & Sustainability
Strategies

D. HOW WILL WE GET THERE?

E. DID WE GET THERE?
14. Strategy Implementation, Control
& Metrics

8. Product Innovation & Development

Strategies
9. Service Marketing Strategies
10. Pricing & Distribution
11. Marketing Communications
12. E-Marketing Strategies
13. Social and Ethical Strategies

Learning Objectives
Provide an overview of the complex nature of branding
Examine the ways in which consumers attach meaning to brands
Discuss ways in which brand managers can streamline brand
costs
Identify the various ways in which brand managers can
strategically create relationships between their brands and
consumers
Present several strategic assessment tools that will aid the brand
manager in assessing the nature of brand meaning and value

Introduction
Branding is a major component of product strategy
Brands communicate valuable information to the
consumer
To the customer perception is reality
The ability to develop and nurture effective brands
is probably the single most important skill set within
the marketers professional toolkit

Strategic Brand Management

Two important questions:

(1) How can we use brand strategy to

reduce our overall costs ?
(2) How can brand strategy differentiate
our offerings and help us build a
meaningful relationship with our target
consumer?

Branding and Functionality

American Marketing Association defines a brand as a
name, symbol, word, sign design or combination that
differentiates one or more offerings of a seller or
group of sellers from the competition.
Brands perform a series of functions for both the
buyer and seller.
For the buyer brands help with product identification, signal
quality, provide social status
For the seller brands facilitate customer identification, breed
customer familiarity, identify specific product offerings,
differentiate offering, make the offering distinct, enhance
brand loyalty

Brand Identity
Brand has a core identity, which is its essence.
Brand can also be imbued with organizational attributes
(e.g., innovative, young, socially-responsible, etc.) and
certain expectations in terms of geographic coverage (e.g.,
local vs. global).
Brand can become synonymous with a particular person.

A brand is a complex entity, and it potentially means

different things to different people.
Aaker (2004) emphasizes that successful brand companies
have a clear idea of their brand identity.

Corporate vs. Product Branding

There is an important difference between company or

corporate branding and its effects versus the use of product
brands or family branding.

When a company uses a distinctive corporate brand name,

then everything that it does using that name must be
consistent as the name will become synonymous with a
certain set of expectations.

The use of different brand names for different quality levels

is a good way to handle this kind of perceptual issue

Where corporate branding becomes particularly critical is

when the company produces a great variety of products that
are quite distinct from each other and wants to present itself
as a good corporate citizen.

Brand Equity

David Aaker Model of Brand

Equity
Brand Equity

Brand
Loyalty
Attracting new
customer is 5 times
Costlier than
Retaining
Existing customer

Brand
Awareness
Measures the
Knowledge about
The brand

Other
Perceived
Brand
Proprietary
Quality Associations
Assets
Reason to buy,
point of
differentiation

Create positive
feelings and
attitudes

Trade secrets,
Patents, IP

Brand Architecture
A brand portfolio can contain a variety of different types of
brand.
The brand relationship spectrum developed by Aaker &
Joachimsthaler 2000b, helps with brand architectural analysis.

House of brands at one extreme to branded house at the other

P&G and Colgate Palmolive represent a house of brands
Virgin , Himalayas represent Branded House

A house of brands allows the company to potentially:

Avoid incompatible brand associations

Signal breakthrough advantages
Own a new product class association
Avoid channel conflict

Brand Architecture
The next category after house of brand is the
endorsed brand, which builds on its connection
to a known brand, this connection can be strong
or weak.
Sub-brands are strongly connected to the parent
brand and build additional associations. Sony
waio
Branded house: The corporate name has the
dominant driving position for a variety of product
offerings.

Brand Leveraging
leveraging attaching the name to other
company offerings
Co-branding
Bringing together two separate company
brands to be marketed together to create
a new joint offering and additional value
for the customer.

Brand value calculation (interbrand

methodology)
Brand value is the net present value (NPV) of the
forecast brand earnings, discounted by the brand
discount rate. The NPV calculation comprises both
the forecast period and the period beyond,
reflecting the ability of brands to continue
generating future earnings.

Cost Reduction, Brand Efficiency and

Brand Health
New brand valuation mechanisms
Brand health Berg, Matthews and OHare (2007) suggest
that the proper assessment of brand health involves the
interrelating of five metrics:
- Brand leadership
- Brand liabilities
- Brand attractiveness
- Brand distinctiveness
- Brand satisfaction.
Brand audit: Comprehensive examination of the various
sources of brand equity from the perspective of the
company as well as the consumer.

INTERNAL MARKETING

Papasolomou and Vrontis (2006) found that when the company

treats its own employees as customers, it enhances the potential
for the creation of a service culture, which in turn will help to
create a stronger brand.
In order to create a service culture, a company should view
employees as internal customers, meet or exceed service
standard expectations, provide training and development for
employees to make service their first priority, and offer a series
of employee incentives to improve performance.

Brand Wheel (Ward ,1999)

Values : aspects of the firm in relation to its place in society

Personality: Personality trait that are associated with the brand
If this brand were a animal/bird, what it would it be?
If this brand were a person, how would you describe?

Lovemarks, the latest brand thinking

Table 6.1: Brands vs. Lovemarks
Brand

Lovemark

stands for information

focuses on relationship

recognized by consumers

loved by people

is generic

is personal

presents a narrative

creates a love story

promises quality

presents a touch of sensuality

is symbolic

is iconic

is defined

is infused

is a statement

is a story

a set of defined attributes

is wrapped in mystery

is a set of values

is a spirit

is professional

is passionately creative

needs an advertising agency

needs an ideas company

LOVE MARKS (Pawle and Cooper (2006)

Conclusion
Strategic Brand management not only requires understanding
of brand costs and profits but also consumer perceptions of
brand meaning, image and value.
Tactical decisions must never be attempted without a clear
understanding of the perceptual implications of those
decisions.
The company that regularly assesses its brand equity will be
in a better position to maintain its relevance with its target
markets and ensure not only its long-term brand survival, but
also its profitability and market leadership.