MM6016
BRANDING AND MARKETING COMMUNICATION
BRANDING STRATEGY
Master of Business Administration
School of Business and Management
Institut Teknologi Bandung
1
What is Strategy?
• Creation of unique and valuable position,
involving different set of activities
• Requires trade offs in competing –
choosing what to do and what not to do
• Involves creating fit with company’s
activities
Michael E. Porter (2000), What is Strategy? Harvard Business Review
2
Branding Strategy
Deciding what a company should do
and should not do in building the
equity of a brand so that it will fit the
company’s branding objectives and
overall activities of the company
3
Branding Strategy from An Extended
BVC Perspective
The Focal
Company’s
Extended Network
Competitors’ Extended
Network
Competition
Branding
Strategy &
Investment
Brand Equity
Branding Context
Brand Market
Performance
Market
4
Branding Strategy Steps
http://saudiasahi.com/images/strategy-overview.jpg
5
Results of Situation Assessment
•
Brand awareness problems:
–
–
•
Brand Association problems:
–
–
–
–
•
Weak association
Missing association
Unclear association
Too much association
Perceived quality problems:
–
–
–
–
–
•
Brand is not recognized
Brand is not Top of Mind
Bad quality
Inconsistent quality
Lower quality compared to competitors
Quality does not meet standard
Lack of important quality aspect
Brand loyalty problems:
–
–
Attitudinal loyalty problem: e.g. Lack of net promoters
Behavioral loyalty problem: e.g. Few repeat buyers
6
Brand Awareness Problems
Try yourself with the following brands:
• Mega Net
• Arke
• Atari
Try to mention some brands under the following categories:
- Energy drinks
- Sneaker
- Emergency light
7
Brand Association Problems
8
Sunsilk Co-Creation
Respondents’ Perceptions
No
Variable
Mean
Top Two Box
No
1
2.49
48.88%
1
2.4
44.14%
2
2.36
38.91%
3
4
Sunsilk Gives Beautiful Hair All Day
Sunsilk as a Brand that Solves Various
Hair Problem
Sunsilk Gives Visible Result to its
Users
Sunsilk is a Trusted Brand
2.72
68.33%
4
5
Sunsilk is a Modern Brand
2.67
65.84%
5
6
Sunsilk Makes its Users Feel Confident
2.38
43.40%
6
2
3
Variable
More Convinced that Sunsilk Gives
Beautiful Hair All Day
More Convinced that Sunsilk as a
Brand that Solves Various Hair
Problem
More Convinced that Sunsilk Gives
Visible Result to its Users
Establish Sunsilk Image as Trusted
Brand
More Convinced that Sunsilk is a
Modern Brand
Enhance image of Sunsilk as a Brand
that Makes its Users Feel Confident
Mean
Top Two Box
2.67
65.83%
2.75
66.84%
2.68
63.59%
2.96
80.55%
3.11
88.03%
2.84
73.31%
Source: Anjani, A.H., 2011. ANALYSING INFLUENCE OF SUNSILK CO-CREATION TOWARD PERCEPTION OF
SUNSILK IN BANDUNG, Undergraduate Final Project, School of Business and Management, Institute of Technology
Bandung
Panther’s key
Brand associations
Toyota’s much
wider key
Brand associations
10
Panther is strong in:
DISTRIBUTION & SERVICE
While weak in:
PRODUCT & PROMOTION
Perceived
Quality
Problems
11
Brand
Loyalty
Problem
Brand loyalty is relatively
lower than average
12
12
Branding Strategy Alternatives
• Single brand strategy:
– Brand revitalization
•
•
•
•
Expanding brand awareness
Brand elements redesign
New and completely different usage of brand
Brand repositioning
– Brand reinforcement
• Brand fortification
• Brand leveraging
• Multiple brand strategy
– Brand extension
– New brand/brand portfolio strategy
13
When to Use Branding Strategy?
• Case 1: Kartu Halo
• Case 2: Orchid Ecotel
• Case 3: McDonald’s McCafe Initiative
14