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Branding Strategies Prof. Chaitali.. Content All 5 Types of Branding Strategies with their...

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  • Slide 1
  • Branding Strategies Prof. Chaitali.
  • Slide 2
  • Content All 5 Types of Branding Strategies with their Advantages & Disadvantages. All 5 Types of Branding Strategies with their Advantages & Disadvantages. Brand Product Matrix Brand Product Matrix Branding Strategy-Meaning Branding Strategy-Meaning Brand Hierarchy Brand Hierarchy
  • Slide 3
  • Branding Strategies Multi Product Branding Multi Branding Strategies Generic Branding Strategies Co-Branding Licensing
  • Slide 4
  • 1.Multi Product Branding It is also called blanket branding strategy or family branding strategy In this strategy the firm uses one name for all its products. A corporate branding strategy should only be used if the company is already well known by the target market and also has a very positive image in their minds. Disney, for example, includes the word 'disney' in the name of many of it's products.
  • Slide 5
  • Advantages of Multi Product Branding Strategies Can result in significant economies of scope since one advertising campaign can be used for several products Facilitates new product acceptance because potential buyers are already familiar with the name Makes possible line extensions Sub-branding combines a family brand with a new brand. Allows for brand extension; even to enter a completely different product class.
  • Slide 6
  • Limitations of Multi Product Branding Too many uses for one brand name can dilute the meaning. The products are not treated as individuals, hence there is not adequate focus on the products' unique characteristics
  • Slide 7
  • 2. Multi Branding Strategies The depth of a branding strategy concerns the number and nature of different brands marketed in the product class sold by a firm. Multiple branding was originally pioneered by General Motors, Proctor, & Gamble is widely recognized as popularizing the practice. The main reason to adopt multiple brands is to pursue multiple market segments.
  • Slide 8
  • Some other reasons for introducing multiple brands in a category-include the following: 1.To increase shelf presence and retailer dependence in the store 2.To attract consumers seeking variety who may otherwise switch to another brand 3.To increase internal competition within the firm 4.To yield economies of scale in advertising, sales, merchandising, and physical distribution Example: HULs Surf Excel, Wheel, Rin.
  • Slide 9
  • Advantages of Multi Branding The firm can distance products from other offerings it markets The image of one product is not associated with other products the company markets The products can be specifically targeted If the product fails, the effect on other products is minimized
  • Slide 10
  • Disadvantages Corporate House is not easily trackable, surely Individual brand can be tracked but not the Group. Corporate House is not easily trackable, surely Individual brand can be tracked but not the Group. It is time consuming and expensive than corporate branding. It is time consuming and expensive than corporate branding.
  • Slide 11
  • 3.Generic Branding A product that is named only by its generic class (e.g., drip-grind coffee, barber shop). Generic brand products are often thought to be unbranded, but their producer or reseller name is usually associated with the product, too. This approach is usually associated with food and other packaged goods, but many other consumer and industrial products and services are marked as generics.
  • Slide 12
  • Advantages & Diadvantages of Generic Branding Strategy Advantages: Advantages: The product name is replaced by the category head. It leads in their own category competetors. DISADVANTAGES: DISADVANTAGES: Normally these are by small Companies who had pioneered in the category and Quality is not upto the standard. It is named since years and no modifications in the quality is done.
  • Slide 13
  • 4. CO-BRANDING A new product can become linked to an existing corporate or family brand that has its own set of associations through a brand extension strategy. Co-brandingalso called brand bundling or brand alliancesoccurs when two or more existing brands are combined into a joint product or are marketed together. Example: Hero Honda.
  • Slide 14
  • Advantages of CO-BRANDING Borrow needed expertise Leverage equity you don't have Reduce cost of product introduction Expand brand meaning into related categories Increasing access points Source of additional revenue
  • Slide 15
  • Disadvantages of Co-Branding Loss of Control Risk of brand equity dilution Negative feedback effects Lack of brand focus and clarity Organizational distraction
  • Slide 16
  • 5. Brand Licensing Licensing is a contractual agreement whereby a company allows another firm to use its brand name, patent, trade secret, or other property for a royalty or a fee. Essentially, a firm is "renting" another brand to contribute to the brand equity of its own product. Traditionally, licensing has been associated with characters such as Garfield the cat, Barney the dinosaur, and Disney's Mickey Mouse.
  • Slide 17
  • The rationale for the licensee (i.e., company obtaining the rights to use the' trademark) is that consumers will pay more for a product because of the recognition and image lent by the trademark. The rationale for the licensor (i.e., the company behind the trademark) relates to profits, promotion, and legal protection. In terms of profits, a firm can expect an average royalty of about 5 percent of the wholesale price of each product, ranging from 2 percent to 10 percent depending on the circumstance involved.
  • Slide 18
  • Advantages It broaden its exposure and potentially increase the strength, favorability, and uniqueness of brand associations. No Marketing & Manufacturing cost is involved. To enhance the awareness and image of the brand. Provides legal protection for trademarks.
  • Slide 19
  • Limitations if the product fails to live up to consumer expectations, the brand name could become tarnished. manufacturers can get caught up in licensing a brand that might be popular at the moment but is really only a fad and produces short-lived sales. Mis-use of Trademark by Licensee.
  • Slide 20
  • Other Branding Strategies Composite Branding: Another form of Co-branding, which is having a composite brand building of two brands to provide a enhanced consumer benefit at reduced cost. Example: Nokia & Airtel. Composite Branding: Another form of Co-branding, which is having a composite brand building of two brands to provide a enhanced consumer benefit at reduced cost. Example: Nokia & Airtel. Mixed Branding: It is a strategy where both corporate & product branding strategies are used. Mixed Branding: It is a strategy where both corporate & product branding strategies are used. Ingredient Branding: One form of Co-brandingis to become Branded ingredients in another brand. Example Dell Uses Sony Batteries, BournvilleTV Advt. Ingredient Branding: One form of Co-brandingis to become Branded ingredients in another brand. Example Dell Uses Sony Batteries, BournvilleTV Advt.
  • Slide 21
  • BRAND PRODUCT MATRIX PRODUCT1234 BRANDS A B C D
  • Slide 22
  • The rows of the matrix represent brand-product relationships and capture the brand extension strategy of the firm in terms of the number and nature of products sold under the firm's brands. A brand line consists of all productsoriginal as well as line and category extensionssold under a particular brand. Thus, a brand line would be one row of the matrix. A potential new product extension for a brand must be judged by how effectively it leverages existing brand equity from the parent brand to the new product, as well as how effectively the extension, in turn, contributes to the equity of the parent brand.
  • Slide 23
  • The columns of the matrix, on the other hand, represent product-brand relationships and capture the brand portfolio strategy in terms of the number and nature of brands to be marketed in each category. 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. Thus, a brand portfolio would be one particular column of the matrix.
  • Slide 24
  • Definition: A product line is a group of products within a product category that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. A product mix (or product assortment) is the set of all product lines. Thus, product lines represent different sets of columns in the brand-product matrix.
  • Slide 25
  • Branding Strategy-Meaning The branding strategy for a firm reflects the number and nature of common and distinctive brand elements applied to the different products sold by the firm. A branding strategy for a firm can be characterized according to its breadth (i.e., in terms of brand-product relationships and brand extension strategy) and its depth (i.e., in terms of product-brand relationships and the brand portfolio or mix).
  • Slide 26
  • Factors affecting Breadth of Product Mix Aggregate Market factors Aggregate Market factors Category factors Category factors Environmental factors Environmental factors
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