Brand Architecture

Brand value
Brand culture (accepted truth about product) can
greatly enhance brand value
Difference between what a consumer will pay for
branded product and a physically identical
product without brand
Reputational value perceived product quality
Relationship value trusted as a long term partner
Experiential value
Shape experience of
product
Symbolic value
which expresses values
& identities

BRAND ARCHITECTURE
Handling of a large product portfolio
Brand-product relationship
Six models in the brand-product
relationship
The
The
The
The
The
The

product brand;
line brand;
range brand;
umbrella brand;
source brand and;
endorsing brand

The Product Brand Strategy

It involves the assignment of a particular
name to one, and only one, product as
well as one exclusive positioning.
The result of this strategy is that each
new product receives its own brand
name that belongs only to it
For example, Procter & Gambledetergent market by brands ariel,
vizir,dash and soap market by camay
,zest etc.

 The Line Brand Strategy

This strategy involves the exploitation of
successful concept by extending it but by
staying very close to the product
For example, LOreal hair line products
The Range Brand Strategy
It bestow a single brand name and
promote through a single promise a range
of products belonging to the same area of
competence
For example, in food sector it is heinz,
green giant etc.

 Umbrella Brand Strategy

The same brand supports several
products in different markets.
Each of them has its own advertising
tool and its own communications
The main advantage of umbrella
strategy is the capitalisation on one
single name and economies of scale
on an international level
For example, TATA, Palmolive etc.

 Source Brand Strategy

This is identical to umbrella brand strategy
except for the point that they are no longer
called by one generic name
Two tier brand structure
Sub-branding
For example, AMUL Masti Dahi
Endorsing Brand Strategy
It gives approval to a wide variety of products
grouped under product brands, line brands or
range brands
The brand endorsement can be indicated in a
graphic manner by placing the emblem or in a
nominal way
For example, Johnson products with duck

Brand Equity
FinancialGoodwill, over a period of
time
What is to be measured
Clear understanding of concept
Consumer way of determining the brand

What are the measures

Critical, Continuous, Creative
You can manage what is under your control

How to measure

Brand Equity
Brand doesnt exist in isolation it has to be
understood in relation to category
Differential account of brand reflecting in
behavior
The brand image consumer feels, thinks
and experiences(the cognitive and
affective mixes)

Brand Equity BRANDZ

Model
Strong
Nothing else
beats it
Does it offer
something better
than others
Can it
deliver?
Does it
offer me
something
Do I know
about it

relationship/ high
share of category
expenditure

Weak
relationship/Low
share of category
expenditure

Brand Equity - Resonance

Branding
Stages of brand
Model
objective at each
development

stage
Brand
building
blocks

Re
so
na
nc
e

Brand

Jud
gm
ent
s
Perfor
manc
e

Feel
ing
s
Imager
y

Salience

Adapting to Market
Brand
Kernel
Brand
style
Brand
themes

 Meaning evolve over a period of

time, It is relational, Categories also
get redefined -Brand Management.
Aligning of People, Structure,
Processes.
Engagement and Complexity should
not disable our thinking/knowledge.

Major Brand
Decisions
Brand
Brand Name
Name Selection
Selection
Selection
Selection
Protection
Protection

Brand
Brand Sponsor
Sponsor

Manufacturers
ManufacturersBrand
Brand
Private
PrivateBrand
Brand
Licensed
Licensed Brand
Brand
Co-branding
Co-branding

Brand
Brand Strategy
Strategy
Line
LineExtensions
Extensions
Brand
Brand Extensions
Extensions
Multi-brands
Multi-brands
New
New Brands
Brands

Brand
Strategy

Brand Name

Product Category
Existing

New

Existing

New

Line
Extension

Brand
Extension

Multibrands

New
Brands

Brand Strategy
Line Extension
Existing brand names extended to new forms,
sizes, and flavors of an existing product
category.

Brand Extension
Existing brand names extended to new product
categories.

Multi-brands
New brand names introduced in the same
product category.

New Brands
New brand names in new product categories.

BRAND EXTENSIONS
Using an existing brand name to
promote a product in a different
category, is Brand Extension.
The key difference between line and
brand extension is the product category.
In line extension the Product Category
remains constant whereas in brand
extensions product category is a
variable.

BRAND EXTENSIONS
Ponds Cold cream, Toilet soap
Shampoo, Tooth paste, Moisturizing
lotion, Talc & Face wash.
LG

Television,
Refrigerators,
Computer monitors, Microwaves, Air
Conditioners, Washing Machines &
Mobile phones.
Park Avenue Shirts, Shaving cream,
Jeans, Belts, Perfumes, Soap & Razor.

LINE EXTENSION
The parent brand is used to brand a
new product that targets a new
market segment with in a product
category currently served by the
parent brand.
A line extension often adds a different
flavor or ingredient variety, a
different form or size, or a different
application for the brand.

CATEGORY EXTENSION
The parent brand is used to enter a
different product category from that
currently served by the parent brand.

Why Brand Extensions?

Leveraging brand equity/value by
introduction of logical & complementary
new product categories
E.g HP
Product Innovation to surpass consumer
expectations
It increases awareness of the brand name
Increases profitability from offerings in
more than one product category.(widening
the net to catch new consumers.)
Its a great way to reinforce a brand, reach
out to new customers, create a BUZZ

Why Brand Extension?

Cost of New launches

Promotional Efficiency
Consumer Benefits
Feedback effects
Returns

Advantages Of Brand
Extensions
Improve brand image
Reduce risk perceived by
Customers
Permit consume variety-seeking

Advantages Of Brand
Extensions
Clarify brand meaning
Brand

Original
Product

Extension
Products

New
Brand
Meaning

Weight
Watchers

Fitness
Centre

Low-calorie
foods

Weight loss
&
maintenanc
e

Sunkist

Oranges

Vitamins,
juices

Good
health

Kelloggs

Cereal

Nutri-grain
bars,
Special K
bars

Health
snacking

Advantages Of Brand
Extensions
Increase the probability of gaining
distribution and trial
Increase efficiency of promotional
expenditures
Reduce costs of introductory & follow-up
marketing programs (save 40-80%)
E.g. Apple iPods
Avoid costs of developing a new brand
Allow for packaging & labeling efficiencies

Advantages Of Brand
Extensions
Enhance the parent brand image
Bring new customers into brand
franchise and increase market
coverage
Revitalize the brand
Permit subsequent extensions

Disadvantages Of Brand
Extensions
Can fail & hurt parent brand image
Xerox Computers-synonymous with
copiers & no one believed they could
make computers
Can succeed but cannibalize sales of
parent brand
Amul Butter-reduced salt butter
is slowly eating up Amul normal butter

Disadvantages Of Brand
Extensions
Can succeed but diminish
identification with any one category
Can succeed but hurt the image of
parent brand

Disadvantages Of Brand
Extensions
Can confuse or frustrate
consumers
Can encounter retailer resistance
Can dilute brand meaning
Can cause the company to forgo
the chance to develop a new
brand

When are Brand Extensions

Appropriate?
When Prior Brand equity exists
Consumer must see some
connection between the proposed
extension and the parent brand.
The proposed extension contributes
to and reinforces the overall brand
equity of the parent brand.

Conditions For Evaluating

Consumers Brand
Extension

Consumers have some awareness

& positive associations about the
parent brand
At least some of these positive
associations will be evoked by the
brand extension
Negative association are not
transferred from the parent brand
Negative associations are not
created by the brand extension

Evaluating Brand
Extension Opportunities
Define actual & desired consumer knowledge
Identify possible extension candidates
Evaluate potential of the extension candidate
Evaluate potential candidate feedback effects
Consider possible competitive advantages & reactions
Design marketing campaign
Evaluate extension success & effects on parent brand
equity