Managing Brand Equity

Managing brand equity concerns those activities that take a broader and more diverse perspective of a brands equity
Understanding how branding strategies should reflect corporate concerns and be adjusted, if at all, over time or over geographical boundaries or market segments

 The choice of branding strategy depends upon a number of different factors, including corporate objectives and capabilities, consumer behavior, and competitive approaches. Consequently, strategies differ significantly between firms and even across products within firms. In addition to designating the optimal hierarchy, a company must also design marketing support programs that create the desired awareness and associations at each level. In general, associations for a higher-level brand should be relevant to as many brands below it as possible, while brands at the same level should be as differentiated as possible.
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 Chevrolet initially used its "bowtie" logo in the year 1913. It is asserted to have been intended from wallpaper Durant once saw in the French hotel. One more theory is that it is the stylized version of the shape of Switzerland or cross on flag of Switzerland, Louis Chevrolet's origin. In the year 1915, Durant was in process of creating Chevrolet manufacture facilities in Canada. Later that year, in a luncheon gathering in New York along with "Colonel Sam" McLaughlin, whose McLaughlin Car Company produced McLaughlin-Buick cars, it was decided that Chevrolets with McLaughlin-designed bodies will be added to Canadian company's manufactured line. 3 years later, the 2 Canadian operations were purchased by GM to turn out to be GMs of Canada Limited.
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Branding Strategies
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

Brand Hierarchy Levels

A brand hierarchy can involve multiple levels:
Corporate Brand Family Brand Individual Brand Individual Item or Model (Modifier)

Brand Hierarchy Decisions

In creating the hierarchy, it is important to decide:
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
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Designing the Brand Hierarchy

Decide on the number of 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.

Decide on the levels of awareness and types of associations to be created 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

Designing the Brand Hierarchy

Decide on how to link brands from different levels for a product
Principle of prominence: The relative prominence of brand elements affects perceptions of product distance and the type of image created for new products

Decide on how to link a brand across products

Principle of commonality: The more common elements shared by products, the stronger the linkages
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Brand-Product Matrix
1 A Brands B C Products 2 3 4

Must define . . .
Brand-Product Relationships (ROWS)
Line & Category Extensions

Product-Brand Relationships (COLUMNS)

Brand Portfolio
breadth, refers to the number and nature of products that bear the same brand name, depth, refers to the number and nature of brands in the same product category.
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 Breadth: the number and nature of products that bear the same brand name. Dove-soap,shampoo-different types,deo-spray etc. Depth: the number and nature of brands in the same product category. Dove, Sun silk,Halo,Head & Shoulders,

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Managing Brand Portfolios

Multiple brands are often employed in a category for market coverage
Target different market segments

Basic principle of brand portfolios

Maximize coverage Minimize overlap

Basic economics guideline ...

A portfolio is too big if profits can be increased by dropping brands. A portfolio is not big enough if profits can be increased by adding brands
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Brand Consolidation & Focus

Number of factors are driving this trend
Movement from transactions to relationships with consumers Value of strong power brands Difficulty of brand management
Cost Need for efficiencies

Importance of top-down brand management

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CIA3
select a brand with a multiple-level brand hierarchy and analyze the supporting marketing communications program to determine how the upper- and lower-level names are linked and differentiated. Conduct a review of ---------brand portfiolio. How successful have they been at reducing/increasing the number of brands? What lessons are to be learned from their strategies?
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