BM Unit 3 final
BM Unit 3 final
UNIT 3- Designing
Marketing Program
Strategic Brand Management is the adept inclusion of techniques where a brand chooses and
measures a suitable branding strategy to gain brand recognition, ensure brand identity and
optimize brand success. Its primary objective is to promote a brand and to have the needed
recognition to beat competitors and become successful. It is a structured process that involves
creating, developing, and maintaining a brand to achieve specific business objectives.
The term “strategic” represents the process of dealing with and managing the assets of a brand
value and long-term plans. A branding strategy can add value to a company’s products and
services.
The strategic brand management process is an ongoing and dynamic effort that requires regular
evaluation and adaptation. Successful brand management leads to a strong and resilient brand
that resonates with customers and achieves its objectives.
Brand Architecture
Brand architecture is the organized structure that defines how a company's brands, sub-brands,
products, and services relate to and interact with each other. It acts as a strategic framework that
helps organizations manage their brand portfolio, guide future growth, and communicate brand
relationships clearly to customers.
Brand architecture determines how different brands within a company support and enhance each
other while maintaining their distinct market positions.
Importance of Brand Architecture
A well-implemented brand architecture brings many benefits:
- Increased clarity in the marketplace: Building a brand architecture helps people understand
your organization and brands the way you want them to. It will achieve clarity of product
offerings for all stakeholders, including consumers and employees.
- Increased revenue through cross-selling: A well-defined framework allows brands to feed off
each other with attractive goods and value propositions tailored to an array of audiences. If a
company can deliver a positive experience with one brand, it offers many opportunities for its
related partners within the brand portfolio.
Increased brand equityBrand equity represents the value of a brand. It is the difference between
the value of a branded product and the value of that product without that brand name attached to
it.
- Increased Brand Equity: All brands serving a specific niche will ultimately drive growth and
positively promote the parent company. The parent company has consequently more ability to
generate new revenue, expand its customer base, and increase the entire organization’s value (=
brand equity).
- Better company culture: Employees understand their brand’s place in the bigger picture and
feel more included. Brand architecture hence creates a sense of belonging.
- Reduced overall brand damage: Threats to the image of a brand do not necessarily have a
direct, negative impact on the brand image of the parent company. Depending on the chosen
brand architecture model, the damage can be contained and not spread across the entire
organization.
- More effective change management: Responding to external influences, all brands must adapt
and change over time. A clear system can aid in managing the process, ensuring that necessary
changes are implemented effectively and efficiently.
The key to successfully coordinating the interrelationships between brands is adopting a system
of brands for their organization, aka a brand architecture model.
It is an all-encompassing brand strategy, giving brands room to grow and market themselves. Yet
they do not operate independently of one another and abide by the corporate brand’s overall
guidelines and strategy.
With continuous improvement and its focus on delivering high-quality products and services,
Apple is a Branded House example that has flourished as a trusted source for innovative tech
products like the iPod, iPhone, iMac, Apple TV+, and iPad. By adopting this brand architecture,
Apple became the first company worldwide to reach a $3 trillion market value.
To clarify the difference between a Branded House vs. a House of Brands architecture: In a
Branded House model, customers are aware of the parent company on every touchpoint with any
sub-brand, whereas in a House of Brands framework, each brand voices its own message and
positions itself as a distinct brand within a defined market segment.
Example: Procter & Gamble is at the forefront when exploring a House of Brands architecture
model in practice. Instead of concentrating on building the parent brand’s reputation, P&G
instills a brand architecture that optimizes the visibility and validity of its 65 individual brands
across 10 product categories for 5 billion consumers worldwide. With global market success for
over 180 years, the corporate brand has scaled its operations yet deliberately gives all the
accolades to the individual brands. The conglomerate House of Brands features many famous
products, including Tide, Crest, Pampers, Ariel, Charmin, Always, Oral-B, Vicks, and Gillette.
Marriott is a Hybrid Brand Architecture example in that some of its properties sport the Marriott
name and logo while others lack an obvious, identifiable connection. For instance, Courtyard by
Marriott, Marriott Bonvoy, and JW Marriott attract different audiences, although the parent
company endorsement is evident. On the other hand, hotel chains such as Sheraton and Westin
convey their own brand identity whether or not the general public recognizes its stature as a sub-
brand to Marriott.
contemporary brand management, storytelling and leveraging the internet and social media have
become integral to brand strategies. Here's how these elements are interrelated and how they
contribute to brand success:
1. Storytelling:
Effective storytelling is a powerful way to convey a brand's values, personality, and unique
selling proposition. Through compelling narratives, brands can engage with their audience on a
deeper, emotional level. Storytelling in contemporary brand management includes:
● Brand Narrative: Craft a cohesive and authentic brand story that explains your brand's
journey, mission, and values. This narrative should resonate with your target audience
and reflect your brand's identity.
● Content Marketing: Develop a content strategy that includes blog posts, videos,
podcasts, and other content formats. Share stories that align with your brand's mission
and address the interests and concerns of your audience.
● User-Generated Content: Encourage customers to share their stories and experiences
with your brand. Share user-generated content to build trust and authenticity.
● Visual Storytelling: Use visuals like images and videos to complement your brand
narrative. Visual content can be more engaging and memorable.
● Consistency: Maintain a consistent tone and style in your storytelling to reinforce your
brand identity.
Contemporary brand management strategies emphasize the power of storytelling, the internet,
and social media in building and maintaining strong brands. By combining these elements
effectively, brands can engage their audience, create emotional connections, and adapt to the
dynamic online landscape.
Brand Extensions
Brand extensions are marketing strategies in which a company uses an established brand name to
introduce new products or services that are related to the core offerings but may cater to different
market segments or address varied customer needs. The objective of brand extensions is to
leverage the equity and reputation of an existing brand to increase sales, expand market share,
and reduce the costs and risks associated with introducing entirely new brands.
Here are key aspects to consider when planning and implementing brand extensions:
2. Target Audience:
● Understand the needs and preferences of the target audience for the brand extension. It
may differ from the audience of the core brand.
3. Brand Equity Transfer:
● Leverage the existing brand's equity and reputation to instill confidence in the new
offering. Consumers should associate the extension with the established brand's quality
and reliability.
4. Quality Assurance:
● Maintain the same level of quality and consistency as the core brand to preserve trust and
credibility.
7. Consumer Feedback:
Gather feedback from consumers about their perceptions of the brand extension. This
information can guide refinements in the product or marketing strategy.
Line Extension
Line extension involves introducing variations or extensions of existing products within the same
category. For example, a company that produces soft drinks may introduce new flavors or
packaging options for its existing line of beverages. This type of brand extension allows
companies to cater to different consumer preferences and capitalize on the success of their
established products.
Category Extension
Category extension takes brand extension a step further by expanding into a different product
category while leveraging the existing brand name. This means that a company known for
producing personal care products may venture into the skincare category using its well-known
brand name. By doing so, they can benefit from the recognition and trust associated with their
existing brand while entering new markets.
Co-branding
Co-branding occurs when two established brands collaborate to create a new product or service.
This type of brand extension combines the strengths and reputations of both brands to attract
consumers and generate interest in the joint offering. For example, McDonald's and Oreo, Nike
and Apple, BMW and Louis Vuitton.
Each type of brand extension offers unique advantages and opportunities for businesses looking
to expand their product portfolio. Whether it's introducing variations within an existing product
line, venturing into new categories, or collaborating with other brands, these strategies allow
companies to tap into new markets while leveraging their established brand equity.
One of the key benefits of brand extension is the ability to tap into existing brand awareness and
loyalty. When a well-established brand introduces new products or ventures into new markets, it
can leverage its strong reputation and customer base to attract attention and generate sales. This
allows companies to reach new audiences without starting from scratch.
Moreover, successful brand extensions enable companies to expand their product offerings while
maintaining their core identity. For example, a popular fast-food chain may introduce new menu
items that cater to different tastes or dietary preferences. By doing so, they not only appeal to
their existing customer base but also attract new customers who may not have considered them
before.
Brand Reinforcement
The Brand Reinforcement majorly focuses on maintaining the Brand Equity by keeping the
brand alive among both the existing and new customers.
Brand reinforcement includes regular monitoring of a product at all the levels of product life
cycle ( viz. Introduction Stage, Growth Stage, Maturity Stage and Decline Stage) to keep a check
on the changes in the tastes and preferences of customers.
The marketers adopt this strategy to remind customers about the brand and its long-lasting
benefits. In order to keep the brand in the minds of the customer, several innovations, researches,
and creative marketing programs are made in line with the changing marketing trends.
Apart from innovation and research the brand reinforcement can be done through various
marketing programs such as:
1. Advertising is one of the most common and easy tool of brand reinforcement. By showing the
ads frequently on TV, Internet, Bulletins, Billboard, Radio, etc. can make the brand deep-rooted
in the minds of the customer.
2. Exhibition provides a vital platform to the brands where the product with any new feature can
be demonstrated to the customer. Products seen in real gives an experience to the customer, and
some image gets created in their minds.
3. Event and Sponsorship act as an aide to the brand reinforcement. The companies sponsor big
events like sports, political rallies, education, award functions, etc. with the objective of
reminding the customer about their product and creating the positive image in the minds of new
prospects.
4. Showroom layout also plays a vital role in strengthening the brand image in the minds of the
customer. The way the brands are placed in the retail outlets or stores reminds the customer about
the product and also influences new users through its appeal.
5. Promotion is the most frequently used tool of brand reinforcement. Several companies adopt
this strategy wherein some special offers, freebies, discounts, gift packs, etc. are given along with
the product. This is done with the intention to retain the existing customers and attract new
customers simultaneously.
Thus, each firm tries to maintain its brand position in the minds of all the prospective customers
such that the life of the product gets extended and remain in the race of competition.
● Start by conducting a comprehensive assessment of your brand portfolio. Identify all the
brands, product lines, and sub-brands your company owns.
2. Brand Hierarchy:
● Establish a clear brand hierarchy that defines the relationships and roles of each brand
within the portfolio. This hierarchy helps clarify how brands relate to one another.
3. Brand Architecture:
● Develop a brand architecture that outlines how brands are organized and structured,
including parent brands, sub-brands, and endorsed brands. Ensure that the architecture
aligns with the company's overall strategy.
● Clearly define the role and objectives of each brand within the portfolio. Determine
whether a brand is a market leader, a challenger, a niche player, or has another specific
role.
● Identify the specific target audiences for each brand within the portfolio. Ensure that each
brand's messaging and positioning are tailored to meet the needs and preferences of its
audience.
6. Competitive Positioning:
● Analyze the competitive landscape for each brand and ensure that it has a clear and
distinctive positioning compared to competitors.
7. Investment and Resource Allocation:
● Allocate resources, budgets, and marketing efforts based on the strategic importance and
growth potential of each brand. Some brands may require more significant investments,
while others may be in maintenance mode.
8. Brand Rationalization:
● Explore opportunities for brand extensions and product innovation within the portfolio,
leveraging the equity and reputation of existing brands.
- Focus on delivering a consistent and positive customer experience across all brands within the
portfolio. This can involve streamlining customer service and user interfaces.
- Develop marketing and communication strategies that reinforce the value and positioning of
each brand within the portfolio. Consider cross-promotion opportunities.
- Ensure that the use of trademarks, logos, and brand names adheres to legal and trademark
regulations, especially when dealing with international markets.
- Continuously monitor and evaluate the performance of brands within the portfolio. Collect data
on market share, customer satisfaction, brand equity, and financial metrics.
The brands in the Brand Portfolio play the following different roles:
1. Flanker Brand: A Flanker Brand also known as a Fighter Brand is a new product launched in a
market by the company in the same category wherein an established brand is already
positioned. This is primarily done for the increased market share as well as to cater to the need
of all the segments of customers.e.g. Armani’s brand portfolio is one of the best examples to
explain the concept of a flanker brand. In it, the brands are distinguished on the basis of price
and customer segment.
2. Cash Cow Brand: A cash cow brand is that product in the brand portfolio that has reached
the maturity level in the product life cycle but is able to bring in profits necessary for its
survival. These brands are not removed from the market because necessary cash is flowing
in through its sale which is better than incurring heavy cost on the launch of a new
product.E.g. The best example of cash cow brand is Gillette Company that is keeping the old
brands viz. Gillette Atra, Gillette sensor and Gillette Trac II in its brand portfolio despite new
razor technology such as Mach III turbo and Gillette Fusion.
3. Low-End Entry Level Brand: A low Entry Brand in a brand portfolio includes the product
which is offered at less price. The low priced product is added to the portfolio to ensure the
purchase at least once and bring the customer into the brand family.Once the customer
becomes a part of the family, he is then persuaded for the purchase of the higher-priced
product in near future.E.g. Hero MotoCorp explains this concept very accurately wherein low
priced bikes viz. CD Dawn, CD Deluxe are added in the brand portfolio to gain the customer
base along with the high priced bikes such as Karizma, Ignitor, Impulse, Achiever, etc.
4. High-End Prestige Brand: A High-End Prestige Brand in the brand portfolio is the product
offered at a high price with the intention of creating a sense of prestige in the minds of
customers. Other brands in the portfolio also get the recognition because of the premium
brand and its quality do have a halo effect on each product line.E.g. Tata is the best example to
elucidate high-end prestige branding.
2. Consistent Messaging:
● Maintain consistency in your brand's messaging across all advertising channels and
touchpoints. This consistency helps reinforce the brand's identity and message.
5. Storytelling:
● Leverage storytelling in your advertising to create emotional connections with your
audience. Tell stories that align with your brand's values and mission.
6. Brand Voice:
● Maintain a consistent brand voice in your advertising content. Whether your brand is
authoritative, playful, or empathetic, ensure that the tone and language are in harmony
with your brand identity.
7. Creative Excellence:
● Invest in creative and compelling advertising that stands out and engages your audience.
High-quality advertising enhances brand perception.
8. Cross-Channel Consistency:
● Ensure that advertising messages and creative assets are consistent across various
advertising channels, including digital, social media, print, television, radio, and outdoor
advertising.
Effective integration of advertising with brand management requires a holistic approach and
ongoing coordination. The goal is to use advertising as a means to tell your brand's story, convey
its unique value, and create a lasting impression on your audience. When done well, integrated
advertising can help build brand equity, increase brand awareness, and drive customer loyalty.