BRANDING STRATEGIESBRANDING STRATEGIES

Branding StrategiesBranding Strategies

There are 6 branding strategies:There are 6 branding strategies:

1.1. Product BrandingProduct Branding

2.2. Line BrandingLine Branding

3.3. Range BrandingRange Branding

4.4. Umbrella BrandingUmbrella Branding

5.5. Source/Double BrandingSource/Double Branding

6.6. Endorsement BrandingEndorsement Branding

Product BrandingProduct Branding

The brand is promoted exclusively so that The brand is promoted exclusively so that it acquires its own identity and imageit acquires its own identity and image

The brand acquires its ‘own’ set of The brand acquires its ‘own’ set of associations and a stand of its own. It does associations and a stand of its own. It does not share other products and does not not share other products and does not take on company associations.take on company associations.

Example…Example…P & G

Ariel Tide Pantene Vicks Old Spice

AdvantageAdvantage• A brand can be targeted accurately to a A brand can be targeted accurately to a

distinct target market or customers distinct target market or customers because its positioning can be because its positioning can be –Precise Precise –UnambiguousUnambiguous

The only drawback of using this strategy The only drawback of using this strategy is that creating individual brands are is that creating individual brands are costly exercisecostly exercise

Line BrandingLine Branding

The basic idea about this strategy is how a The basic idea about this strategy is how a firm organizes its portfolio.firm organizes its portfolio.

Line brands start with a product but later Line brands start with a product but later extend to other complimentary or extend to other complimentary or supporting productssupporting products

For example: Lakme started off with a cold For example: Lakme started off with a cold cream and later extended to other cream and later extended to other productsproducts

Example…Example…HLL

Denim AfterShave

Denim DeoDenim

Shaving CreamDenimSoap

Denim Talc

Concept: ‘Who doesn’t have to try too hard’

Share common concept and products complement or support each other

Why line branding???Why line branding???

The chief motivation behind using this The chief motivation behind using this strategy is the ratio between marginal cost strategy is the ratio between marginal cost and marginal gain.and marginal gain.

The firm only promotes the main product The firm only promotes the main product and its concept; the complimentary and its concept; the complimentary products do not require additional products do not require additional investment.investment.

These products ride on the original brand’s These products ride on the original brand’s concept & marketing. concept & marketing.

Range BrandingRange Branding

In line branding the products complement In line branding the products complement or support the main product usage or support the main product usage butbut range branding is not restrictive in this range branding is not restrictive in this sense.sense.

Brands may move beyond product Brands may move beyond product complimentarily.complimentarily.

The nature and facade of products may The nature and facade of products may differ from outside, but they all share differ from outside, but they all share some common competence.some common competence.

Milkman

Ghee Butter Milk Milk shake Cheese

Britannia

Benefits of using this Benefits of using this strategystrategy• Formation of brand equityFormation of brand equity The common name helps in preventing The common name helps in preventing

brand building efforts from getting brand building efforts from getting dissipated in different directionsdissipated in different directions

• The brand can embrace other new products The brand can embrace other new products which are consistent with the brand.which are consistent with the brand.

For exampleFor example: Himalaya Drug Co.’s : Himalaya Drug Co.’s Ayurvedic concepts. New product can be Ayurvedic concepts. New product can be added to it which share its idea without added to it which share its idea without much additional expenditure.much additional expenditure.

On the Flip side….On the Flip side….

If a brand has large number of products to If a brand has large number of products to it then it could become weak due to it then it could become weak due to overstretching.overstretching.

This is known as “RUBBER EFFECT”This is known as “RUBBER EFFECT”

UMBRELLA BRANDING UMBRELLA BRANDING

• Same Brand supports several Same Brand supports several products in different markets.products in different markets.

• Each has its own communication Each has its own communication strategy yet, each retains its own strategy yet, each retains its own generic name.generic name.

Why and When Umbrella Why and When Umbrella BrandingBranding..??..??• THE cost of launching new brands is so high today THE cost of launching new brands is so high today

that it is more sensible to take the umbrella that it is more sensible to take the umbrella brand route.brand route.

• Shortening of PLCShortening of PLC

• A consumer has to be exposed to a brand A consumer has to be exposed to a brand repeatedly before he registers it, so it is more repeatedly before he registers it, so it is more economical to build one strong, single brand than economical to build one strong, single brand than spreading your ad budget across 10 different spreading your ad budget across 10 different brands brands

Move Towards Umbrella Move Towards Umbrella BrandingBranding

When not umbrella When not umbrella branding…branding…

• Umbrella brand can be limiting when Umbrella brand can be limiting when a company wishes to move up the a company wishes to move up the value chain or diversify into a value chain or diversify into a different category.different category.

• Umbrella branding worked in the 80s Umbrella branding worked in the 80s and early 90s, when consumer needs and early 90s, when consumer needs were simpler and options were were simpler and options were limited.limited.

EXAMPLE:EXAMPLE:

• In Titan's case, it started off with a single product In Titan's case, it started off with a single product category, but when it decided to enter the budget category, but when it decided to enter the budget segment, it created Sonata as a sub-brand and evolved segment, it created Sonata as a sub-brand and evolved it into an independent brand. Similarly, it created Tanishq it into an independent brand. Similarly, it created Tanishq for jewellery, FasTrack for contemporary watches, and for jewellery, FasTrack for contemporary watches, and Nebula for luxurious 18k jewellery designed by Rohit Bal. Nebula for luxurious 18k jewellery designed by Rohit Bal. In each of these cases, the Titan name would not have In each of these cases, the Titan name would not have worked, because each needed a distinct brand concept.worked, because each needed a distinct brand concept.

Source/Double Branding Source/Double Branding StrategyStrategy

• This strategy combines firm’s name with This strategy combines firm’s name with the product brand name; kind of hybrid of the product brand name; kind of hybrid of umbrella & product brand strategyumbrella & product brand strategy

• Example: Bajaj ChetakExample: Bajaj Chetak– Chetak is the name of the scooterChetak is the name of the scooter– Bajaj is the company behind itBajaj is the company behind it– Hence, brand is Bajaj ChetakHence, brand is Bajaj Chetak

Some more Examples….Some more Examples….

Maruti Suzuki

Maruti 800 Maruti Zen Maruti Alto Maruti Esteem Maruti Baleno

Johnnie Walker

Johnnie Walker Red Label Johnnie Walker Black Label Johnnie Walker Blue Label

ObjectivesObjectives

1.1. The firm’s name brings its equity to the The firm’s name brings its equity to the product. The product benefits from what product. The product benefits from what the company has achieved in the form ofthe company has achieved in the form of

• AwarenessAwareness• ExpertiseExpertise• AttributeAttribute• ReputationReputation

22.The name of the product provides the .The name of the product provides the opportunity to add something unique to opportunity to add something unique to the brand. This is an opportunity for the the brand. This is an opportunity for the customization.customization.

When to choose this When to choose this strategy??strategy??

This decision depends on the company’s field This decision depends on the company’s field of experience, expertise and know-how.of experience, expertise and know-how.

The brands need to be consistent with the The brands need to be consistent with the activity or expertise domain of the firm.activity or expertise domain of the firm.

Hence, motorcycles are the ones which enjoy Hence, motorcycles are the ones which enjoy greater consistency and expertise similarity greater consistency and expertise similarity whereas cars don’t. Hence you see more whereas cars don’t. Hence you see more number of two-wheeler cos. Using this number of two-wheeler cos. Using this strategy.strategy.

Endorsement BrandingEndorsement Branding

• Modified version of double brandingModified version of double branding

• It makes product brand name more It makes product brand name more significant and the corporate brand name significant and the corporate brand name is relegated to a lesser status.is relegated to a lesser status.

• The brand gets an endorsement that it The brand gets an endorsement that it belongs to a specified company. For E.g.:belongs to a specified company. For E.g.:– Kit Kat gives a signal that it is a Nestlé's Kit Kat gives a signal that it is a Nestlé's

productproduct– Similarly, Dairy Milk gives is a Cadbury’s brand Similarly, Dairy Milk gives is a Cadbury’s brand

Cadbury’s

Cadbury’sÉclairs

Cadbury’sPerk

Cadbury’s Dairy Milk

Cadbury’sFive-star

ObjectivesObjectives

1.1. This strategy allows the brand freedom This strategy allows the brand freedom to take an independent direction.to take an independent direction.

In this type of strategy, the firm’s name In this type of strategy, the firm’s name sits back as an assurance of quality but sits back as an assurance of quality but does not pass specific associations to the does not pass specific associations to the brand.brand.

22.. The brand is expected to carve out its The brand is expected to carve out its own image. It acts more or less as an own image. It acts more or less as an independent entity.independent entity.

For instance….For instance….

Cadbury’sCadbury’s brand have their own brand have their own unique position and image. unique position and image. Cadbury’s support the brands to the Cadbury’s support the brands to the extent that they transfer certain extent that they transfer certain qualities or associations which qualities or associations which enhance customer’s trustenhance customer’s trust

Important to note…Important to note…

Consistency is very important otherwise Consistency is very important otherwise the endorsement may just be perceived as the endorsement may just be perceived as hollow.hollow.

For Example: Nestlé's Mithai Magic failed For Example: Nestlé's Mithai Magic failed as it did not go well with the Nestlé's as it did not go well with the Nestlé's endorsementendorsement

Aaker’s brand Aaker’s brand architecturearchitecture

AAKER’S MODELAAKER’S MODELBrand

relation-ship

spectrum

House of brands

Sub-brands

Endorsed brands

Brandedhouse

DifferentIdentity

GE capitalGE Appli-

ance

NotConnected(RCA-GE)

Token Endorse-

MentDocker’s,LS &Co

C0-driversGilletteMach 3

ShadowEndorse

(tide)

Linked Namenestea

StrongEndorse-

MentObsession

ByCK

MasterBrand as

DriverHP

DeskJet

Same identity

virgin

A house of brandsA house of brands

• Equivalent to product brandingEquivalent to product branding– Not connectedNot connected– Shadow endorserShadow endorser

•Lexus, saturnLexus, saturn

•Shadow endorser has a minimal effect on Shadow endorser has a minimal effect on image of brand but provides credibililty in image of brand but provides credibililty in many segmentsmany segments

Endorsed brandsEndorsed brands

• Brands are still independent but are Brands are still independent but are endorsed by corporate brand e.g. polo jeans endorsed by corporate brand e.g. polo jeans by ralph laurenby ralph lauren– Token endorserToken endorser– To provide some reassurance and credibility still allowing max. freedom to To provide some reassurance and credibility still allowing max. freedom to

endorsed brand for creating its own associationsendorsed brand for creating its own associations– Will be more successful ifWill be more successful if– It is well knownIt is well known– Is consistently presentedIs consistently presented– Has a strong visual metaphor symbolHas a strong visual metaphor symbol– Appears on familty products that are well regardedAppears on familty products that are well regarded

– Linked nameLinked name– E.g. McPuff, provides benefits of separate name, yet providing E.g. McPuff, provides benefits of separate name, yet providing

advantages of link of master brandadvantages of link of master brand

Subbrands Subbrands

• Brands connected to master brand, Brands connected to master brand, and augment or modify the and augment or modify the associations of master brand, e.g. associations of master brand, e.g. sony walkman, nike forcesony walkman, nike force

• Subbrand as codriverSubbrand as codriver– When masterbrand and subbrand have When masterbrand and subbrand have

major rolesmajor roles– Master brand is performing more than Master brand is performing more than

master role e.g. gillete mach3master role e.g. gillete mach3

A branded houseA branded house

• Master brand moves from being Master brand moves from being primary driver to dominant driver primary driver to dominant driver across multiple offerings e.g. virgin across multiple offerings e.g. virgin rail, virgin colarail, virgin cola

• Equivalent to umbrella brand, Equivalent to umbrella brand, maximises synergy, provides leveragemaximises synergy, provides leverage– Same brands with different identitiesSame brands with different identities

•2 implicit assumptions a) there can be 2 implicit assumptions a) there can be different brand identities in different contexts different brand identities in different contexts b)there is a single identity everywhere b)there is a single identity everywhere

Brand architectureBrand architecture

• An organising structure of brand An organising structure of brand portfolio that species the brand roles portfolio that species the brand roles and relationships among brandsand relationships among brands

Brand architecture control process and stages