1. B®ANDING
™

2. Session 4
Brand strategy,
extensions & activation

3. Last week
• Brand psychology
• Association ownership
• Neuromarketing
• The smart unconscious
• Marshmellow test

4. brand strategy

5. branded house
vs.
house of brands

6. Problem of the brandmanager:
• Different products
• Different type of products
• Different markets
• Different brands
• Different sub brands
• Which product gets which brand?

7. brand
architecture

8. 1. BRAND-PRODUCTMATRIX
This matrix gives an overview of all
the brands and products of the
organization.
In order to get more insight into the
product and brand strategy of the
organization

9. Products
1 2 3 N
Brands 1
2
3
N

10. Products
1 2 3 N
Brands 1 Becel
bread
Becel
liquid
Becel
on bread
Etc.
2 Zwitsal
shampoo
Zwitsal
Baby tissues
Zwitsal
Sun cream
Etc.
3 Glorix
bleach
Glorix
Cleaning tissues
Glorix
Toilet cleaner
Etc.
N Etc. Etc. Etc.

11. 2. BRAND-HIERARCHY
BREADTH
BRAND STRATEGY
DIFFERENT PRODUCTS WITH
THE SAME BRAND

12. Products
1 2 3 N
Brands 1 Becel
bread
Becel
liquid
Becel
on bread
Etc.
2 Zwitsal
shampoo
Zwitsal
Baby tissues
Zwitsal
Sun cream
Etc.
3 Glorix
bleach
Glorix
Cleaning tissues
Glorix
Toilet cleaner
Etc.
N Etc. Etc. Etc.

13. 2. BRAND-HIERARCHY
DEPTH
BRAND STATEGY
DIFFERENT BRANDS

14. Products
1 2 3 N
Brands 1
Becel
Becel
bread
Becel
liquid
Becel
on bread
Etc.
2
Zwitsa
l
Zwitsal
shampoo
Zwitsal
Baby tissues
Zwitsal
Sun cream
Etc.
3
Glorix
Glorix
bleach
Glorix
Cleaning tissues
Glorix
Toilet cleaner
Etc.
N Etc. Etc. Etc.

15. brand
hierarchy

18. Many brands in 1 product
category

20. Advantages?
• Market reach (price segments, distribution
channels, regions)
• To enlarge visibility in stores and to
decrease influence of retailer
• To attract consumers that like variety
• Increasing internal competition

21. BRAND PORTFOLIO:
the collection of all brands an
organization offers within a
specific product category

22. PERFECT
BRAND PORTFOLIO:
maximizing the market reach
with the number of different
brands without brand
cannibalization

23. BRAND HIERARCHY:
Strategic choices determine
the number of brand layers
within an organization

24. Brand hierarchy
1. Corporate / company brand
2. Family brand (umbrella brand)
3. Individual brand
4. Modifier

25. Brand hierarchy
1. Corporate / company (Unilever)
2. Family (Unox)
3. Individual (Cup-a-Soup)
4. Modifier (different flavours)

26. Brand hierarchy
1. Corporate company (Microsoft / MSN)
2. Family (Windows)
3. Individual (Vista, Live)
4. Modifier (Hotmail, Messenger, Search)

27. Assignment:
Create a brand hierarchy for
EA-Games

28. Brand hierarchy
EA-games
• EA
• EA sports
• FIFA
• FIFA 2009, 2010 en 2011street

29. How can products and
brands grow?

30. Ansoff’s product/ market
matrix
• Growth according to the 3 dimensions of
Abell’s business definition model

31. Abell model

32. Ansoff

33. What if a new product is
invented?
1. A new brand, especially for the new
product
2. Using an already existing brand
3. A combination of both

34. 1. A new brand, especially for a new product

35. 1. A new brand, especially for a new product

36. 2. Using an already existing brand

37. 2. Using an already existing brand

38. brand extentions
• line extensions:
The family brand (umbrella) is used on a new related
product group
• category extensions:
The family brand is used for a totally new product
category

39. Line extensions

41. Category extensions

42. Advantages for the new
product
• Better brand image
• Lowering risks for customers
• Better distribution, more trial usage
• Better use of promotional budget
• Lower costs for introduction and follow-up
• Lower costs of brand design

43. Advantages for the family brand
• Clarification of the brand meaning
• A better and innovative image
• New customers and a better market reach
• Revitalizing the family brand
• More extensions possible in the near future
(Mac, iphone  ipad)

44. Disadvantages of brand
extensions
• Confusing customers
• Resistance of the retailers
• No succes and image damage (VW Phaeton)
• Succes but image damage for the family brand
(Jaguar x-type)
• Cannibalization
• Decreasing identification with the product
category

48. Vertical brand extension
• Upward vertical brand extension:
The organization tries to position itself in a more
exclusive price segment

49. Vertical brand extension
• Downward vertical brand extension:
The organization tries to position itself in a less
exclusive price segment

51. advertisement
overload
leads to new
ways of
advertising & branding

52. 1850 … Identification branding: Products/services/quality
1950 … Benefit branding: Product benefits/
What’s in it for me?
1970 … Symbolic branding: Personality/user image/
lifestyle
1995 … Societal branding: Ethics/contribution to society
-------------------------------------------------------------------------------------------
2005 … Experience branding: Consumer experience/
all senses
the evolution of branding

53. brand activation

54. examples
• Consumenten op een onverwacht moment aanspreken: IKEA
• Consumenten op een prikkelende manier aanspreken: BMW

55. Changing consumer
Consumers….
… have more power…
…can buy more products…
…can get a lof information… (!!!)
…can easily contact organizations…
…can get in contact with other consumers very easily… (!!!)

56. To personalize marketing
Experience marketing
One to one marketing
Permission marketing

57. experience economy:
brand activation

58. “... when a consumer buys an
experience, he pays to spend time
enjoying series of memorable
events that a company stages – as
a theatrical play – to engage him in
a personal way...”
The Experience Economy (Pine & Gilmore, 1999)

59. goods, services and experiences
goods
services
experiences
organisation 1
services
goods
experiences
organisation 2
experiences
goods
service
organisation 3

62. Which examples do you have
from your every day life?

63. an example
Commodity: grower
Goods: manufacturer
Service: coffee corner
Experience: premium coffee shop
Ultimate: Café Florian, Venice
2 cts per cup
5-25 cts per cup
50 cts - € 1 per cup
€ 1 - € 4 per cup
€ 5 - € 10 per cup

64. progression of economic value
commoditization
commodities
services
goods
experiences
commoditization
commoditization
customization
customization
customization

65. translation
progression of economic value =
toename van economische waarde
customization =
maatwerk
commoditization =
vereenvoudiging
commodity =
grondstof / bulkgoed

66. experience economy
• to arouse consumers (emotionally)
• customization vs. commoditization
• customers are willing to pay more for
experiences  non-price-competition

67. an example
Commodity:
Goods:
Service:
Experience:
Ultimate:
per movie
per movie
per movie
per movie
per movie
Film,camera,acteurs,actie
DVD, Blu-ray,TV, popcorn
Bioscoop, videotheek, on
demand, drive in,
Popcorngeur, 3D, stoelen,
Pandadroom, ladies night,
infotainment complex,

68. brand activation
1. Traditional media 2. New media

69. Or?
brand activation
1. (Brand)
paid media
2. (Brand)
owned media
3. (Brand)
earned Media

70. brand earned media??

71. Media
type
Definition Examples The role Benefits Challenges
(Brand)
paid
media
Brand pays to
use channels
•Display ads
•Paid search
•Sponsorships
Active role in
enlarging brand
knowledge
•In demand
•Immediacy
•Control
•Overload
•Declining
response rates
•Poor credibility
(Brand)
owned
media
Channels a
brand controls
•Website
•Mobile site
•Blog
•Twitter
Build for longer-
term relationship
with existing
potential
customers
•Control
•Cost efficiency
•Versatility
•Niche audiences
•Long term
•No guarantees
•Not trusted
•Takes time to
find segments
(Brand)
earned
media
When
customers
become the
channel
•Buzz
•Viral
•Experience
Listen and
respond. Interact.
Create. Come
alive
•Most credible
•Transparent and
lives on
•Strong ties with
customer
•Less control
•Can be negative
•Hard to measure

72. so what has changed?
• Permission vs. Interruption
• Creativity vs. Overwhelming
• Extensive segmentation
• Choosing instruments on the fly

73. examples
• commercially
– Magnum Gold
– Pasos de los Toros
– Madame Tresesti
– Adidas
– Legoclick
– Heineken
• non-commercially
– $73,000 bar tab

74. ...a focus on quality of
communication, not on
quantity or reach
more focus on impact...

75. “...a brand is a perfect
tool for transferring
information, meanings and
feelings through media...”

76. values
brand
community

79. “...Kiss has licensed its name
to more than 2,000 product
categories, from lunch boxes
and comic books to credit
cards and condoms to become
nearly a one-billion-dollar
brand..."

81. “...a b(r)and is a perfect
tool for transferring
information, meanings and
feelings through media...”

82. brand
media
community
music

83. try to work together
give me your brand and you get mine

84. target group
sub-target group
brand X
band X

87. values
tokio
hotel
community
• young
• creative
• urban
• metro-sexual

88. values
tokio
hotel
community
• young
• creative
• urban
• metro-sexual

91. a community gives
input to the meaning
and value of the brand:
“…if you’re like us, you use
brand X…”

92. a band gives input to
the meaning and value
of the brand:
“…if the band srews up,
so does the brand…”

97. THE DIXIE CHICKS

98. THE DIXIE CHICKS
The Dixie Chicks are a country music group, comprising three
women; Martie Maguire, Natalie Maines, and Emily Robison.
Together, they have sold over 36 million albums as of May, 2008.
The group formed in 1989 in Dallas, Texas, and was originally
composed of four women performing bluegrass and country music,
busking and touring the bluegrass festival circuits and small
venues for six years, without attracting a major label. After the
departure of one bandmate, the replacement of their lead singer,
and a slight change in their repertoire, the Dixie Chicks achieved
massive country music and pop success, beginning in 1998 with
hit songs like "Wide Open Spaces", "Cowboy Take Me Away", and
"Long Time Gone". The women became well-known for their
independent spirit and outspoken comments on controversial
subjects, including politics.

99. THE DIXIE CHICKS
• “Wide open spaces”
• “Long time gone”
• Lipton

101. Lipton is one of the world's best known and best-selling brands of
both hot leaf and ready-to-drink tea. It is currently owned by
Unilever. Over the course of a
century, Lipton has become a dominant tea brand in many
markets. The brand is well-represented in many countries
across the globe, including the US, Russia, Saudi Arabia,
France, Japan, Australia, and Sweden.
Compared to other tea brands, Lipton has always had a strong
focus on innovation, given its continuous launch of both leaf tea
and ready to drink tea products. Products target the mass
market and are generally positioned in the middle of the price
spectrum for tea. Due to its size, Lipton is also a dominant player
in tea expertise in the world.

102. In 1991, Unilever created a first joint venture with
PepsiCo, the Pepsi Lipton Partnership, for the
marketing of ready to drink (bottled and canned)
teas in North America. this was followed by a
second joint venture, Pepsi-Lipton International
(PLI) in 2003, covering many non-US markets. PLI
was expanded in September 2007 to include a
number of large European markets. Both PepsiCo
and Unilever control 50% of the shares of these
joint ventures.

104. Shut up & sing
• Deel 1

105. An ad for Lipton Iced Tea that features the Dixie Chicks is
temporarily on hold, according to people familiar with the
situation. The country music group’s lead singer in March during
a concert was made comments critical of President Bush in the
days leading up to the country’s war with Iraq.
A spokeswoman for Unilever, which jointly markets Lipton with
PepsiCo in the Pepsi-Lipton Tea Partnership, would not
comment on why the Dixie Chicks ad is not running but said,
“Lipton has a number of different advertising and promotional
plans in the works and has opted for now to run the commercials
that currently are on air.”
It’s uncertain when or if the ad will run. The ads were to have
debuted in May to coincide with the group’s first world tour in
three years.
Three current 30-second spots, which focus on getting back to a
healthy way of living, started running in May in the slots
designated for the Dixie Chicks ad, according to one person
familiar with the situation. The person said the ads were rushed
into production after comments made by Natalie Maines, the
group’s lead singer, caused a furor among some country music
fans.

106. uitleg werkvorm
• kies uit de volgende categorie telkens 1
onderdeel:
– 1. music brands
– 2. community
– 3. values
– 4. corporate brands
• maak koppelingen tussen de 4 entiteiten
door middel van het volgende model
• onderbouw de keuzes die je maakt

107. questions? /comments

108. thank you!