BRANDING STRATEGIES
Branding Strategies
There are 6 branding strategies:
1. Product Branding
2. Line Branding
3. Range Branding
4. Umbrella Branding
5. Source/Double Branding
6. Endorsement Branding
Product Branding
The brand is promoted exclusively so that it
acquires its own identity and image
The brand acquires its ‘own’ set of associations
and a stand of its own. It does not share other
products and does not take on company
associations.
Example…
P&G
Ariel
Tide
Pantene
Vicks
Old Spice
Advantage
• A brand can be targeted accurately to a distinct
target market or customers because its
positioning can be
–Precise
–Unambiguous
The only drawback of using this strategy is that
creating individual brands are costly exercise
Line Branding
The basic idea about this strategy is how a firm
organizes its portfolio.
Line brands start with a product but later
extend to other complimentary or supporting
products
For example: Lakme started off with a cold
cream and later extended to other products
Example…
HLL
Denim Deo
Denim
Denim After
Shaving Cream
Shave
Denim
Soap
Denim
Talc
Concept: ‘Who doesn’t have to try
too hard’
Share common concept and products complement or support each other
Why line branding???
The chief motivation behind using this strategy
is the ratio between marginal cost and marginal
gain.
The firm only promotes the main product and its
concept; the complimentary products do not
require additional investment.
These products ride on the original brand’s
concept & marketing.
Range Branding
In line branding the products complement or
support the main product usage but range
branding is not restrictive in this sense.
Brands may move beyond product
complimentarily.
The nature and facade of products may differ
from outside, but they all share some common
competence.
Britannia
Milkman
Ghee
Butter
Milk
Milk shake
Cheese
Benefits of using this strategy
• Formation of brand equity
•
The common name helps in preventing brand
building efforts from getting dissipated in
different directions
The brand can embrace other new products
which are consistent with the brand.
For example: Himalaya Drug Co.’s Ayurvedic
concepts. New product can be added to it which
share its idea without much additional
expenditure.
On the Flip side….
If a brand has large number of products to it
then it could become weak due to
overstretching.
This is known as “RUBBER EFFECT”
UMBRELLA
BRANDING
• Same Brand supports several products in
different markets.
• Each has its own communication strategy
yet, each retains its own generic name.
Why and When Umbrella
Branding..??
• THE cost of launching new brands is so high today that it
is more sensible to take the umbrella brand route.
• Shortening of PLC
• A consumer has to be exposed to a brand repeatedly
before he registers it, so it is more economical to build
one strong, single brand than spreading your ad budget
across 10 different brands
Move Towards Umbrella Branding
When not umbrella
branding…
• Umbrella brand can be limiting when a
company wishes to move up the value
chain or diversify into a different category.
• Umbrella branding worked in the 80s and
early 90s, when consumer needs were
simpler and options were limited.
EXAMPLE:
• In Titan's case, it started off with a single product
category, but when it decided to enter the budget
segment, it created Sonata as a sub-brand and evolved
it into an independent brand. Similarly, it created Tanishq
for jewellery, FasTrack for contemporary watches, and
Nebula for luxurious 18k jewellery designed by Rohit Bal.
In each of these cases, the Titan name would not have
worked, because each needed a distinct brand concept.
Source/Double Branding Strategy
• This strategy combines firm’s name with the
product brand name; kind of hybrid of umbrella
& product brand strategy
• Example: Bajaj Chetak
– Chetak is the name of the scooter
– Bajaj is the company behind it
– Hence, brand is Bajaj Chetak
Some more Examples….
Maruti Suzuki
Maruti 800
Maruti Zen
Maruti Alto
Maruti Esteem
Maruti Baleno
Johnnie Walker
Johnnie Walker Red Label
Johnnie Walker Black Label Johnnie Walker Blue Label
Objectives
1. The firm’s name brings its equity to the
product. The product benefits from what the
company has achieved in the form of
•
•
•
•
Awareness
Expertise
Attribute
Reputation
2.The name of the product provides the
opportunity to add something unique to the
brand. This is an opportunity for the
customization.
When to choose this strategy??
This decision depends on the company’s field of
experience, expertise and know-how.
The brands need to be consistent with the
activity or expertise domain of the firm.
Hence, motorcycles are the ones which enjoy
greater consistency and expertise similarity
whereas cars don’t. Hence you see more
number of two-wheeler cos. Using this strategy.
Endorsement Branding
• Modified version of double branding
• It makes product brand name more significant
•
and the corporate brand name is relegated to a
lesser status.
The brand gets an endorsement that it belongs
to a specified company. For E.g.:
– Kit Kat gives a signal that it is a Nestlé's product
– Similarly, Dairy Milk gives is a Cadbury’s brand
Cadbury’s
Cadbury’s
Éclairs
Cadbury’s
Perk
Cadbury’s
Dairy Milk
Cadbury’s
Five-star
Objectives
1. This strategy allows the brand freedom to take
an independent direction.
In this type of strategy, the firm’s name sits
back as an assurance of quality but does not
pass specific associations to the brand.
2. The brand is expected to carve out its own
image. It acts more or less as an independent
entity.
For instance….
Cadbury’s brand have their own unique
position and image. Cadbury’s support the
brands to the extent that they transfer
certain qualities or associations which
enhance customer’s trust
Important to note…
Consistency is very important otherwise the
endorsement may just be perceived as hollow.
For Example: Nestlé's Mithai Magic failed as it
did not go well with the Nestlé's endorsement
Aaker’s brand architecture
AAKER’S MODEL
Brand
relationship
spectrum
House
of brands
Not
Connected
(RCA-GE)
Shadow
Endorse
(tide)
Token
EndorseMent
Docker’s,
LS &Co
Subbrands
Endorsed
brands
Branded
house
Linked
Name
nestea
Strong
Master
Different
Endorse- C0-drivers
Brand as Identity
Ment
Gillette
Driver
GE capital
Obsession Mach 3
HP
GE AppliBy
DeskJet
ance
CK
Same
identity
virgin
A house of brands
• Equivalent to product branding
– Not connected
– Shadow endorser
• Lexus, saturn
• Shadow endorser has a minimal effect on image of
brand but provides credibililty in many segments
Endorsed brands
• Brands are still independent but are endorsed by
corporate brand e.g. polo jeans by ralph lauren
– Token endorser
– To provide some reassurance and credibility still allowing max. freedom to
endorsed brand for creating its own associations
– Will be more successful if
– It is well known
– Is consistently presented
– Has a strong visual metaphor symbol
– Appears on familty products that are well regarded
– Linked name
– E.g. McPuff, provides benefits of separate name, yet providing
advantages of link of master brand
Subbrands
• Brands connected to master brand, and
augment or modify the associations of
master brand, e.g. sony walkman, nike
force
• Subbrand as codriver
– When masterbrand and subbrand have major
roles
– Master brand is performing more than master
role e.g. gillete mach3
A branded house
• Master brand moves from being primary
driver to dominant driver across multiple
offerings e.g. virgin rail, virgin cola
• Equivalent to umbrella brand, maximises
synergy, provides leverage
– Same brands with different identities
• 2 implicit assumptions a) there can be different
brand identities in different contexts b)there is a
single identity everywhere
Brand architecture
• An organising structure of brand portfolio
that species the brand roles and
relationships among brands
Brand architecture control process and stages