Unit 4: GROWING AND SUSTAINING BRAND EQUITY

BRAND ARCHITECTURE

Meaning:

• Brand architecture shows us how the sub-brands of a larger whole are organized, and how
they all relate to each other.

• It shows how the brands and sub-brands of the company are organized and how they
relate to each other.

TYPES OF BRAND ARCHITECTURE

1:Monolithic/Master Brand:

• Its the top-level corporate brand, also called the Parent Brand.

• The parent brand name is used on all the products and services offered by the company.

2. Hybrid/Endorsed ( declare one’s public approval or support of):

• Here, all the sub-brands are linked to the corporate brand by means of either a verbal or
visual endorsement.

• Each sub-brand retains its distinctive positioning, yet operates under a main brand

3. Branded:

• It allows for a Master Brand to have competing brands in the same segments.

• All the sub-brands operate under the main brand.

MULTI BRANDING STRATEGY

• a manufacturer sells two or more brands in the same product segment, it is known
as multi-brand strategy.
• E.g. Hindustan Unilever Limited (HUL) offers Lux, Dove, Hamam, Lifebuoy, Pears,
Liril, Breeze and Rexona (bathing soap segment)
These brands eat into each other’s market share but keep the competitors away
ADVANTAGES OF MULTI BRANDING STRATEGY
1. There is less room in the market for competing products.
2. The manufacturer's dominance is strengthened.
3. Brand hoppers can be maintained within the brand system.
4. Internal competition between brand managers is fostered.
 DISADVANTAGES OF MULTI BRANDING STRATEGY

1 Oversaturation of the market.

2 Loss of credibility for the manufacturer brand/confusion among customers due to

insufficient differentiation between products.
3 Subsequent cannibalization of the brands.

MULTI PRODUCT BRANDING

• Multi-product branding involves releasing multiple products with the same brand
name.
• E.g. Adidas. They have Adidas shoes, socks, t-shirts, jackets, track pants, football,
shin pads, etc.
• These are different products, but all branded as Adidas.
ADVANTAGES OF MULTI PRODUCT BRANDING
1. Easy adoption of the new product by an already loyal customer base.
2. Facilitates the acceptance of new products by the retailer.
DISADVANTAGES OF MULTI PRODUCT BRANDING
1. Dilution of Brand Name:
• One of the potential problems with using multi-product branding is that it can
dilute the effectiveness of the brand name.
• When consumers see the brand name everywhere on many different types of
products, they may not necessarily put the same faith in the brand as they once
did.
• This can lead to lower sales in all of the different product categories a brand
encompasses.
2 All Products Tied Together:
• It means that the performance of one product may be linked to the performance of
all the other products of that brand.
• Marketer has to make sure that all the products share the same level of quality.
 • 3. Expectations from New Products:
• Another potential problem a marketer may face in using multi-product branding is
expectations from the new products.
• E.g. if a brand has a certain standard of excellence in the eyes of the public, every
new product is scrutinized.

GENERIC BRANDING
• A generic brand is a type of consumer product that lacks a widely recognized name
or logo because it typically isn't advertised.
• Generic brands are usually less expensive than brand-name products due to their
lack of promotion.
• E.g. Shoppers’s Stop having their own generic brand ‘Stop.’

CO-BRANDING
• Co-Branding is the marketing strategy wherein two or more well-known brands combine to
facilitate the sale and marketing of a joint product.

• In other words, when two or more brands join hands with the objective of
increasing the market share by producing the joint product and carrying the
marketing activities jointly is termed as Co-Branding.
• Co-Branding is also called Dual Branding or Brand Bundling, implying the
combination of brands.
• A typical example of an International co branding exercise is when Dell computers
or HP computers advertise with Intel.
• Intel as a processor is known for its computing power and hence is assumed to be
far above the rest. Naturally, when Dell claims that it has ‘Intel Inside’ this benefits
the brand tremendously.
• TYPES OF CO-BRANDING
1: Ingredient Co-branding:
• It implies using a renowned brand as an element in the production of another
renowned brand.
• E.g. Dell computers has co-branding strategy with Intel processors.
• The ingredient brand should be unique.
• It should either be a major brand or should be protected by a patent.
 Ingredient co-branding leads to better quality products, superior promotions, more
access to distribution channel and greater profits
• 2: Composite (made up of several parts) Co-branding:
• It refers to use of two renowned brand names in a way that they can collectively
offer a distinct product/ service that could not be possible individually.
• E.g. Flipkart Axis Bank Credit Card
BRAND LICENSING
• It is a licensing agreement that gives permission to a company to produce or
market a product or service from the original owner.
• A licensing agreement allows a company (a licensee) which markets a product or
service to rent a brand from a brand owner (a licensor).
• The responsibility of licensee is to produce, promote and distribute the product
while the licensor gets royalties for its brand.
• After license branding, a licensee gets access to the logos and trademarks
associated with the brands.
• Association with the brand gives marketing power to the licensee’s products.
• E.g. Arvind Mills represent Arrow, Cherokee, ELLE, Nautica, USPA, AEROPOSTALE,
CHILDRENS PLACE, Ed Hardy, GAP and Kipling.
• The Murjani Group is the licensee for Calvin Klein Jeans, FCUK and Tommy Hilfiger.
Beverly Hills Polo Club (BHPC) is licensed to Spencers Retail.

DIFFERENT STAGES OF BRAND LICENSING

1. The licensor chooses the product they wish to license.
2. The licensee will create a prototype of the product and come up with a final
production piece and sample.
3. The licensor will approve the licensing deal.
4. The licensee will begin selling products to retailers.

UNDERSTANDING THE DIFFERENT LICENSING TERMS

1. Licensing - Leasing a copyrighted or trademarked brand identity. This encompasses
the tagline, brand name, logos, and signature to use in the company's product line.
2. Licensor - The owner of the rights to the brand to be leased.
3. Licensee - The business who is seeking the rights to lease the brand.
 4. 4. Contractual Agreement - The document that will lay out the terms of how the licensee
may use the brand and how the licensor expects to be compensated.

1. 5. Royalty - Typically in a brand licensing contract, the licensee will be required to

pay a minimum payment as a royalty on sales of the product or service

BRAND PORTFOLIO

Brand Portfolio:

• A brand portfolio is the collection of smaller brands that fall under a larger, overarching
'brand umbrella' set by a firm, company, or conglomerate.

• For instance, The Coca Cola Company's brand portfolio encompasses brands like Sprite,
Fanta, and Powerade in addition to its flagship beverage.

BRAND ANALYSIS

• Brand analysis is a marketing process comprised of analyzing a company’s branding

methods and strategies.

THE BRAND-PRODUCT MATRIX

• It is a graphic representation of all the brands and products sold by a company.

• It helps to highlight the range of brands and products sold by a company.

 1. New Product:

• An existing brand launching a new product in the market.

• E.g. Cadbury brand entering into the market of biscuits with innovative concepts and ideas
and sub-branding it as ‘Oreo.’

• A new product is developed with a series of new brand ideas and meaning to the customers.

2. .Flanker Brand:

• New brand is introduced into a category where the company already has established
products.

• E.g. Cadbury introducing a new brand with the established product i.e. Cadbury Gems.

3. Line Extension:

• A current brand name is introduced into a category where the company already has
established products.

E.g. Cadbury Dairy Milk introducing a new category i.e. ‘Dairy Milk Silk

4. Franchise Extension:

• A familiar brand is taken to a product category where it is unknown.

• E.g. Cadbury entering into a beverage category i.e. ‘Cadbury Bournvita.’

BREADTH OF A BRANDING STRATEGY

• The product mix breadth of a business refers to all of the products being sold by a
particular brand or company.

• It is the variety of product lines that a store offers.

• Brand Awareness can be distinguished in terms of two key dimensions: depth and breadth.

DEPTH OF A BRANDING STRATEGY

• Depth of brand awareness refers to how easily consumers can recall or recognise the
brand.

• Breadth of brand awareness refers to the range of purchase and the consumption
situations that come to mind.
BRAND HIERARCHY

• Brand Hierarchy is the systematic branching structure of a brand's distinctive elements for
its sub-products.

CORPORATE BRAND (NESTLE)

FAMILY BRAND (NESCAFE)

INDIVIDUAL BRAND (NESCAFE CLASSIC)

MODIFIER (NESCAFE CAPPUCCINO)

1. Corporate Brand:

• It is the highest level of the hierarchy.

• Consists of only one brand – corporate brand or company brand.

2. . Family Brand:

• Also known as ‘range brand’ or ‘umbrella brand.’

• Is used in more than one product category but is not necessarily the name of the company.

3. Individual Brand:

• Restricted to essentially one product category.

• There may be multiple product types offered on the basis of different models, package sizes,
flavours etc.

4. Modifier:

• It means a specific item or model type or particular version of a product.

BRAND EXTENSION

• Brand Extension is the marketing strategy wherein a new product is launched under the
existing brand name.

• Brand Extension is the use of an established brand name in new product categories.

• Brand Extension is the introduction of a new product that relies on the name and
reputation of an established product.

TYPES OF BRAND EXTENSION

1. Line Extension:

• When new products are introduced within the same category as parent brand.

• E.g. HUL launching different soaps under the soap category with the parent name of HUL.

2. Category Extension:

• When new products are introduced in different categories than the parent brand.

• E.g. Google entered to email services apart from search engine.

ADVANTAGES OF BRAND EXTENSION

1. It makes acceptance of new product easy:

• It increases brand image.

• Consumers can easily relate to the new product and form expectations on the basis of their
prior experience with the brand.

• Wholesalers and retailers can be convinced easily to maintain the stock of a new product
on the basis of their relationship with the brand.

• The launching campaign will be less costly since it will not require the introduction of both
the brand and the product. The full attention can be given to the product itself.

• Cost of developing new brand is saved.

2. There are feedback benefits to the parent brand and the organisation:

• The image of parent brand is enhanced.

• It revives the brand.

• The customer’s loyalty will be enhanced with the extension.

• It increases market coverage as it brings new customers .

• The successful extension will help in subsequent extensions.

DISADVANTAGES OF BRAND EXTENSION

1. It may discourage innovation as it may lead to companies producing too many ‘lookalike’
products.

2. Brand extension in unrelated markets may lead to loss of reliability if a brand name is
extended too far.

3. There is a risk that the new product may generate implications that damages the image of
the core/original brand.

4. If the new product is not that great, it may spell trouble for the core brand’s
image( Spillover Effect).

5. If the brand extensions have no advantage over competitive brands in the new category,
then it will fail.

MANAGING BRANDS OVER TIME

Brand Reinforcement:

• Brand Reinforcement refers to an activity associated with getting those consumers who
have tried a particular brand to become repeat purchasers along with attracting new users.

• Brand Reinforcement majorly focuses on maintaining the Brand Equity by keeping the
brand alive among both the existing and new customers.

Strategies used for Brand Reinforcement:

1. Promotion:

• Many companies take up this strategy wherein they offer their customers various kinds of
special offers, discounts, freebies etc. along with the product.

2. . Exhibition:

• It is a platform where a product can be introduced and demonstrated to the customers.

• It gives satisfaction to the customers regarding the quality of the product.

3. Advertising:

• It is done by showing advertisements on a frequent basis on television, radio, bulletin

boards, newspapers, internet, billboards etc.

4. Event and Sponsorship:

The companies decide to take up the sponsorship of various big events such as sports events,
political rallies, educational fests, award functions, etc. with the sole purpose of reminding the
customers about their product
Brand Revitalisation:

• It is a marketing strategy adopted when a product reaches the maturity stage and the
profits have fallen drastically.

• It is an attempt to bring the product back in the market and secure the sources of equity
i.e. customers.

• Need for Brand Revitalisation:

• Brand Relevance:

• It plays an important role in acquiring the market, hence, it should be able to fulfill the needs
of the target market.

• 2. . Increased Competition:

• Due to increased competition in the market it becomes necessary for any or every product to
go under brand revitalisation, in order to

• cope up with the competition from the competitor.

• 3. Globalization:

• The company need to revive the brand before selling its product in international markets, to
make it universally adaptable.

• 4. Reputation:

• Brand revival becomes necessary to resolve specific issues which harm the company’s
goodwill; or unnerves employees or consumers

• 5. Pertinence ( Appropriateness):

• Brand revival becomes essential when the company no longer serves the purpose of the
consumers and tends to go old-fashioned for them.

• 6. Expansion:

• The company has to go for brand revitalization for fulfilling the requirements of a larger
organization

• Strategies for Brand Revitalisation:

• Usage of a Product:

• The usage of a product can be increased by continuously reminding the customers about the
brand through advertisements.

• 2. . Untapped Market:

• The untapped market can be occupied by understanding the needs of the new market
segment.

• Brand revitalisation can be done to cater to the needs of the new customers
• 3. Repositioning:

• Another way of revitalising the brand is through Repositioning.

• It means changing any of the 4 P’s of Marketing Mix i.e. product, price, place and promotion

• 4. Augmenting the Product and Services:

• A company should try to give something extra along with the product, that is not expected
by the customer.

• Some additional benefits can revive the brand in the market.

• .