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Brand Architecture Strategy (Guidelines (Strong cust focus- recognise…
Brand Architecture Strategy
Brand architecture strategy- r/s btw brands/brand structure within a firm
Steps to develop
Brand potential- sets direction
Brand vision- aspirational, obtainable "higher-order purpose"
Brand boundaries- identify products, benefits, needs brand should offer/meet
"Broad" brand- uses abstract positioning; transferable POD, benefit association across multiple product settings
Brand positioning- competitive frame of reference, POD, POP, brand mantra
Brand extension opportunities- which new products can help realise the brand vision?
Brand extension types- new product under existing brand name
Line- new product within existing categories
Category- new product outside existing categories
How?
Consider equity implications in terms of POPs, PODs
Branding new products- decide specific brand elements to use
Strategy types
Branded house- umbrella corporate/family brand for all products; typically in B2B industries
House of brands- collection of individual brands with different names; typically B2C/consumer product companies
Sub-brand (combination)- uses both parent brand and new name
Leverages existing + new brand associations- signals similarities, differences
Usage- only when there is distinctive complementary benefits
Role
Clarify brand awareness- better consumer understanding about brand and individual products
Improve brand image- maximise equity transfer btw brands and products; improves trial, repeat purchases
Brand portfolio- all brands sold by company in a product category; signals potential to maximise brand equity
Why?
Market coverage- different market/price segments
Increase shelf presence, retailer dependence
Variety
Economies of scale (ads, sales, merchandising, distribution)
Brand roles; distinct market, positioning- differentiate to minimise brand overlap, internal competitions, cannibalisation
Flankers- typically discount brands that has strong POP with competitors; protects flagship brands (allows it to retain desired positioning)
Too attractive- cannibalises higher-priced brand
Too cheap- negative feedback effects on connected brands in portfolio
Cash-cows- milk existing brand equity; brand able to maintain profitability despite zero marketing support
Low-end/entry level- attracts cust to brand franchise; traffic builders; customers may trade up to higher-priced brands
High-end/prestige- adds prestige, credibility to entire brand portfolio
Brand hierarchy- displays brand elements (number, nature) across products in explicit ordering; extension potential
Levels
Corporate/company- 1 brand
Corporate branding- wider association range; affects brand equity, individual product performance
Corporate image dimensions
Benefits- evokes strong association to product esp. quality, innovativeness; affects corporate credibility, brand extension acceptance
People, r/s- reflects employees' characteristics; traits employees exhibit influence consumers' perception about products e.g. retail stores gets equity from employees
Customer-focused corporate image association- company responsive, cares about, has cust's best interests
Values- campaigns to show company's philosophy on issues (social, political, economic)
Socially responsible- contributes to society's welfare
Environmentally concerned- protect environment by effectively using scarce resources
Corporate credibility- marketplace reputation affecting brand choice, consideration
Expertise- competent
Trustworthiness- honest, dependable
Likability- attractive, prestigious
Management
CSR (perception of firm's role in society)- affects cust purchase decisions; sustainable competitive advantage; goes beyond product characteristics
Corporate image campaigns- to create corporate brand associations, downplays product role; firm can express self
Possible goals
Build awareness
Create favourable associations, credibility (+ on financial community)
Link beliefs for product-specific marketing
Motivate present employees, attract better recruits
Influence public opinion on issues
Vs. brand line campaigns- promotes several products associated with a brand line; shows different benefits offered by different products
Corporate name changes- growth opportunities; time and resource consuming process; change name only when market/finances compel its (forfeits existing brand loyal, recognition)
Why? Preserve, enhance brand equity
Company consolidation (merger, acquisition)
Correct public misconceptions about company's business, nature
Corporate strategy shift
Bad original name
Scandal distancing
How?
Combine both, create new, or select brand with higher equity
Based on memorability, meaningfulness, likability, protectability, adaptability, transferability
Pros
Way for firm to express itself without being tied to specific products
Family/range/umbrella- used for 1+ product categories; not necessarily company name e.g. Kit Kat (Nestle)
Benefits
Evokes specific association set- corporate brand hard to retain and link dissimilar products
Efficiently links common association across several products
Lowers cost, higher acceptance to introduce new related product
Products linked to family brand must be carefully evaluated- may backfire on other products sold under same brand
Individual- used for 1 product category (product types may differ e.g. size, flavour)
Pros
Customised brand, marketing strategy- to specific cust group
Minimal risk- to other brands
Cons
Hard, expensive to develop separate marketing programmes
Modifier- designates product model e.g. full-fat vs light yogurt
Signals refinement/differences (e.g. quality levels)
Better product understanding, relevance
Product descriptor- better product understanding
How to design?
Products to introduce
Growth- decide whether to sell more of existing product (market penetration) or launch new (product R&D) according to ROI, cost-benefit resource investment calculations
Survival-extensions achieves brand equity in own categories; avoids "me too" extensions
Synergy- enhances parent brand equity
Levels
Desired awareness/image at each level
Relevance- association should relate to as many brand as possible; efficient, economical
Typically abstract/benefit e.g. Nike's JDI- cuts across product settings, categories
Differentiation- easy to distinguish brands; justify supporting both brands; avoids redundancy
Flagship product- best represent/embodies brand; best-seller, award-winning; product that shot brand to fame
Number of levels
Higher levels- economically communicates common/shared info
Sub-brand- allows for brand-specific beliefs
Combines new, existing brand elements- signals intended fit of new extension + parent brand
Simplicity- provide right amount of branding info to cust; combines shared, separate brand associations
Simple (low-involvement) products- use individual/family brand
Complex products- use more hierarchy levels
Lower level- flexibility to communicate product uniqueness
Brand elements
Link brand elements to multiple products
Commonality- stronger linkage for products sharing more common brand elements
Adapting parts of a brand (using prefix, suffix)- to link product e.g. Mcnugget + Mcmuffin
Logical ordering of brands in a product line- simplifies consumer decision making; communicates product relation; helps develop consumer migration pathways to switch between brands by a company
Combine elements from different levels
Prominence- relative visibility
Affects new product perception, image
Depends on factors like order, size, appearance, asoocations
Branding strategy screen- new product strongly relates to parent brand, high equity carryover likelihood; thus use parent-brand first as sub-brand
Guidelines
Strong cust focus- recognise their knowledge, desires, behaviours
Broad brand platforms- strong umbrella brand for maximum synergy
Avoid overbranding e.g. too many ingredient branding in a high-tech product
Selectively use sub-brands- to complement, strengthen parent brands
Selectively extend brands- establish new/enhance existing brand equity