Designing and Implementing Branding Strategies

CHAPTER 11:
DESIGNING AND IMPLEMENTING

BRANDING STRATEGIES
11.1
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 brandproduct matrix and the brand hierarchy
help to characterize and formulate
branding strategies by defining various
relationships among brands and products.
11.2
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
11.3
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
11.4
Brand-Product Matrix
1
Products
2
3
A
Brands
B
C
Must define:
Brand-Product relationships (rows)
Line and category extensions
Product-Brand relationships (columns)
Brand portfolio
11.5
Important Definitions
Product line
Product mix (product assortment)
A group pf products within a product

category that are closely related
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
11.6
Breadth of a Branding
Strategy
Breadth of product mix
Aggregate market factors

Category factors
Environmental factors
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
11.7
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
11.8
Ford Brand Portfolio
11.9
Designing a Brand
Portfolio
Basic principles:
Maximize market coverage so that no
potential customers are being ignored
Minimize brand overlap so that brands
arent competing among themselves to
gain the same customers approval
11.10
Brand Roles in the Portfolio
Flankers [Not well served by

competitors]
Cash cows [Gillette still sells old
products]
Low-end entry-level
High-end prestige brands
11.11
11.12
Brand Hierarchy
A means of summarizing the

branding strategy by displaying the
number and nature of common and
distinctive brand elements across
the firms products, revealing the
explicit ordering of brand elements
A useful means of graphically
portraying a firms branding
strategy
11.13
Brand Hierarchy Tree:

Toyota
Toyota
Corporation
Toyota
(Trucks)
Corolla
CE
S
LE
Toyota
(SUV/vans)
Camry
SE
LE
XLE
Avalon
Platinum
Edition
XL
XLS
Toyota
(Cars)
Celica
Toyota
Financial
Services
ECHO
Matrix
Lexus
MR2
Spyder
Prius
SE
SLE
11.14
Brand Hierarchy Levels

Corporate Brand (General Motors)
Family Brand (Buick)
Individual Brand (Park Avenue)
Modifier: Item or Model (Ultra)

11.15
Corporate Brand Equity
Occurs when relevant constituents

hold strong, favorable, and unique
associations about the corporate
brand in memory
Encompasses a much wider range of
associations than a product brand
11.16
Family Brands
Brands applied across a range of

product categories
An efficient means to link common
associations to multiple but distinct
products
11.17
Individual Brands
Restricted to essentially one product

category
There may be multiple product types
offered on the basis of different
models, package sizes, flavors, etc.
11.18
Modifiers
Signals refinements or differences in

the brand related to factors such as
quality levels, attributes, functions,
etc.
Plays an important organizing role in
communicating how different
products within a category that
share the same brand name are
11.19
Corporate Image
Dimensions
Corporate product attributes, benefits or

attitudes
People and relationships
Customer orientation
Values and programs
Quality
Innovativeness
Concern with the environment

Social responsibility
Corporate credibility
Expertise
Trustworthiness
Likability
11.20
Brand Hierarchy Decisions
The number of levels of the hierarchy

to use in general
How brand elements from different
levels of the hierarchy are combined, if
at all, for any one particular product
How any one brand element is linked, if
at all, to multiple products
Desired brand awareness and image at
each level
11.21
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
11.22
Levels of Awareness and

Associations
Principle of relevance
Create global associations that are

relevant across as many individual items
as possible
Principle of differentiation
Differentiate individual items and brands
11.23
Linking Brands at 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
11.24
Linking Brands Across

Products
Principle of commonality
The more common elements shared by

products, the stronger the linkages
11.25
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
11.26
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 productspecific marketing
Make a favorable impression on the financial
community
Motivate present employees and attract better
recruits
Influence public opinion on issues
11.27
Using Cause Marketing to

Build Brand Equity
The process offormulating and

implementing marketingactivities
that are characterized by an offer
from the firm to contribute a specified
amount to a designated cause when
customers engage in revenueproviding exchanges that satisfy
organizational and individual
objectives
11.28
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
11.29
Green Marketing
A special case of cause marketing

that is particularly concerned with
the environment
Explosion of environmentally
friendly products and marketing
programs
11.30
Crisis Marketing
Guidelines
The two keys to effectively managing

a crisis are that the firms response
should be swift and that it should be
sincere.
11.31

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CHAPTER 11:

DESIGNING AND IMPLEMENTING

Branding strategy is critical because it is

Branding Strategy or Brand

The branding strategy for a firm

Which brand elements can be applied to

The role of Brand

Clarify: brand awareness

Improve consumer understanding and

Motivate: brand image

Maximize transfer of equity to/from the

Brand-Product relationships (rows)

Line and category extensions

Product-Brand relationships (columns)

Product mix (product assortment)

A group pf products within a product

Brand mix (brand assortment)

The set of all brand lines that a particular

Breadth of product mix

Aggregate market factors

Depth of product mix

The number and nature of different

Ford Brand Portfolio

Brand Roles in the Portfolio

Flankers [Not well served by

A means of summarizing the

Brand Hierarchy Tree:

Brand Hierarchy Levels

Individual Brand (Park Avenue)

Modifier: Item or Model (Ultra)

Corporate Brand Equity

Occurs when relevant constituents

Brands applied across a range of

Restricted to essentially one product

Signals refinements or differences in

Corporate product attributes, benefits or

People and relationships

Values and programs

Concern with the environment

Brand Hierarchy Decisions

The number of levels of the hierarchy

Number of Hierarchy Levels

Employ as few levels as possible

Logic and relationship of all brand

Levels of Awareness and

Create global associations that are

Differentiate individual items and brands

Linking Brands at Different

The relative prominence of brand

Linking Brands Across

The more common elements shared by

Adopt a strong customer focus

Different objectives are possible:

Build awareness of the company and the nature of

Using Cause Marketing to

The process offormulating and

Building brand awareness

A special case of cause marketing