Branding Strategy

Serial No 7
Chapter 14
 What is a Brand?
A brand is a name, sign, symbol or design, or
a combination of them, intended to identify the
goods or services of one seller or group of
sellers and to differentiate them from those of
competitors.
 Advantages of branding
• Easy for the seller to track down problems and
process orders
• Provide legal protection of unique product features
• Branding gives an opportunity to attract loyal and
profitable set of customers
• It helps to give a product category at different
segments, having separate bundle of benefits
• It helps build corporate image
• It minimises harm to company reputation if the brand
fails
 Brand Equity
• According to Armstrong and Kotler, brand equity is the
positive differential effect that knowing the brand name has
on customer response to the product or service.

• There are four consumer perception dimension to score the brand equity:
1. Differentiation (what makes the brand stand out),
2. Relevance (how consumers feel it meets their needs),
3. Knowledge (how much consumers know about the brand), and
4. Esteem (how highly consumers regard and respect the brand).
 Brand parity
• A view of the consumers in which they perceive that in many
product categories many of the available brands in the market
are more or less same in terms of various products attributes.
Instead of strongly preferred brand consumers buy from a set
of acceptable brands, choosing whichever on sale that day.

• For example: Coke and Pepsi

 Umbrella Brand
• Umbrella Branding: is a marketing strategy that
involves selling several related products under one
brand name
• Products from different categories under one brand
• Dangerous to the brand if the principal brand fails
• Umbrella branding is also known as family branding

• For Examlple: AMUl - Amul Butter, Amul Cheese,

Amul Milk, Amul Icecream, Amul Chocolates etc
 Brand Name Decision

A great brand name is one of the most powerful forces in

branding, marketing and advertising. It is at once the story
about what makes you different from your competitors and the
emotional tug that connects you with your audience

 Product benefits
 Easy to pronounce
 Should be distinctive
 Should not have poor meanings in other languages and
countries
• Brand Name Decision consists of four types of decision-
making:

1. Individual brand name. That is, the decision of each product using
a different brand. Use of individual brand name for each product to a
different market position and is helpful to increasing sales and
confrontation competitors, it can also disperse risks, so that
enterprises will not be because of the reputation of certain products
affected by the poor performance.
2. Family brand name: All products use a common family of brand
names. Which means that enterprises of all products using the same
brand. For those who enjoy high reputation of the well-known
enterprises, all brand name products adopt a unified strategy to take
full advantage of its brand name effect, so that enterprises of all
products sold.
3. Separate family name for all product: The major categories
of products using a different family of brand names. Enterprises to
use this strategy, the general is to distinguish between different
categories of products, a product category of products to use the
common brand family
• For example: Toyota (Corolla, Carina, Crown, Mark II, Hilux,
Avensis)
4. Individual brand name and corporate name and use. That
is, the decision of its different types of products are
taking a different brand name, brand name and before
adding the names of enterprises. Such strategies of the
enterprises for the development of new products
• For example: Nestle Nedo and Nestle Milo
• Brand strategic decision
• Brand strategy consists of the following
decision-making:
1. Product line expansion strategy
2. Brand extension strategies
3. Multi-brand strategy
4. Brand strategy of cooperation
5. Brand Repositioning
 Brand strategy
 Product Line expansion Strategy- Consist of introducing additional items in the
same product category under the same brand name , such as new flavors,
forms, color, added ingredients, package sizes etc .
 For example Lux soap comes in different variants like Lux Crystal Shine, Lux
International etc. So when Lux comes with a new variant, it is a line expension.

 Brand extension –
 When a firm uses an established brand to introduce a new product, it is called brand
extension. Brand Extension becomes the umbrella concept which can be used
whenever a brand uses its name to any new product. Such as Amul and Nivea

 Multi-brands – Marketing of two or more similar and competing products by the same
firm under different and unrelated brands. For example: Crest toothpaste, Pantene
shampoo, Gillette shaving cream, Pringles potato chips and Duracell batteries-P & G

 Brand cooperation strategy –brands bearing two or more well known brand
names. (Same company co-branding, two different companies co-branding). Sony
Ericson, McDonald and Pepsi, HP Compaq
 Brand Repositioning:
– Over a period of time, market dynamics change.
– As a result, a brand may need to be repositioned.

• Brand Repositioning is the act of redefining the placement of a company

and/or product. Positioning involves:

– Placement within a market segment

– Placement of the product relative to other products/services categories
and application
– Placement versus competitors' products/services – How well does the
product/service satisfy the customers’ needs versus the competition?
– Placement in the minds of decision makers and influencers
 Packaging
• Includes the activities of designing and producing the
container for a product
• Packaging is done at three levels
- Package could be:
– Primary: Old spice after shave bottle (P&G).
– Secondary: Cardboard box.
– Shipping: Corrugated box of 6 dozen Old Spice
• Well designed packages created for:
– Consumer: Convenience value.
– Producer: Promotional value.
 Packaging as a marketing tool
• Various factors have contributed to packaging’s increasing used as a marketing
tool. These are
 Self Service:
– In many outlets today, self service is growing in importance hence
good packaging is important in order to:
– Attract Attention
– Describe product/ product feature.
– Create consumer’s confidence.
– Make favorable overall impression.

 Consumer Affluence:
– With increase affluence (wealth), consumers are willing to pay a little more
for convenience/ appearance/ dependability/ prestige of better packaging.
 Company Brand/ Image:
– Well designed packaging has the power of instant brand
recognition this is being understood by most companies.

 Innovation packaging:
– Innovative packaging can bring benefits to consumer &
profits to companies.
– Example: Pidilite:
 Labeling
Labeling:
 The silver foil in dairy milk chocolate is the Package, while the
written material cover is the Labeling.
– Labeling is a subset of packaging.
– Labels are mandatory for package products.
– Labels could range from a single tag attached to a product, to an
elaborately designed graphic that is part of packaging.

 Function of Label could be:

– Identify product.
– Describe product.
– Grade product.
– Promote product.
 Current consumer law requires label to
convey:
– Product price.
– Grade (if applicable).
– Manufacturing date.
– Percentage label (% of important ingredients).
– Batch Number.