Type of Branding Strategy in Brand Management

1.  Brand Strategy concepts & Types
 Umbrella Brand
 Flanker Brand
 Line Extension and Brand Extension
 House of Brand
 Branded House

2.  To understand brand strategy, one must first understand branding.
 In simple terms, branding is the process of quantifying the value and authenticity of
an organization, product, or service. It is a clear set of characteristics, benefits, and
attributes that define a particular brand. Many people are often confused about
branding and marketing.
 Branding is what drives marketing because branding is strategic and marketing is
tactical.
 In contrast, brand strategy defines rules and guidelines on how, what, where, when
and to whom you communicate your brand messages. A well-defined and executed
brand strategy leads to a consistent brand message, a strong emotional connection
with customers, and higher brand equity.

3.  Umbrella Branding / Family Branding
 Co-Branding / Complementary branding
 Brand Extension
 Line Extension
 House of Brand
 Flanker Brand / fighter branding
 Branded House

4.  Umbrella branding is also known as family branding is one of the marketing
strategies involving the use of a single brand name for the sale of two or more
related products or services. Umbrella branding is generally practiced by
companies with positive brand equity which means the brand is recognized for its
value in a certain marketplace.
 The basic idea behind this strategy is to enhance marketability of products and it
follows the psychological concept that any product that carriers the same brand
name is produced using the same high standards of quality.
Different Brand Extensions
under a single Brand –
Palmolive.

5.  This strategy decreases a firms marketing costs due to the consumer brand
association through which consumers already recognize some of the brands, making
new products more simply identifiable.
 The market entry for umbrella branded products is comparatively economical since
reputable brands can take benefit of past marketing efforts.
 A business benefits from advertising efficiencies since umbrella branding focuses on
the promotion of a one brand rather multiple ones.
 Finally, the success of single umbrella branded product may translate to other
products under the similar corporate umbrella due to the positive brand equity.
Advantages:
 A key risk of utilizing umbrella branding is that it may be ineffective in promoting new
products if the company does not have strapping brand equity.
 Secondly the consumer’s familiarity with one umbrella branded product may affect
their perception of other products and services.
 Consequently if one umbrella branded product does not meet or satisfy the consumer's
expectations, the other products sold using the same brand are also likely to suffer.
Thus, the company may face the problem of negative brand equity.
Disadvantages:

6. TATA GROUP
Tata is a multinational multi-brand group. It portraits stability, trust and “Made in
India” philosophy. vehicle manufacturer that started in India. Some of the well
known and trusted companies under Tata umbrella are -
 Tata Motors
 Tata Consultancy Services
 Tata Technologies
 Tata Consumer Products
 Tata Communication
 Tata Chemicals
 Tata Power
 Tata Mutual Fund

7.  A flanker brand is a new brand introduced into the market by a company that already
has an established brand in the same product category.
 The new brand is designed to compete in the category without damaging the existing
item’s market share by targeting a different group of consumers.
 This strategy, also called fighter branding.
Its brand portfolio is eclectic and contains
brands that suit a massive variety of
categories and needs.
Nestle Cereals – Cherrios and Lion Cereals
Nescafe – Original, Nespresso, Gold,
Cappuchino
Health Drinks – Nesquick, Milo, Boost,
Resource
Nestle

8. Advantages:
 Allows a company to interest new customers from various market segments.
 Monitors the sales results of various brands.
 Gains more space for the company resulting in a much greater dependence of
the retailer on the company's brands.
 Makes it possible to offer several brands.
 Protects the company through giving a product its own unique name.
 Costly Affair - Company has to make a lot of expenditure while launching a product and
if the sales of the product do not happen according to company estimates that it will be
a loss-making proposition because sales of product should at least be able to cover the
costs associated with making and launching of product.
 Brand Dilution - Flanker brand product is basically a modified product and does not
offer something new to customers and when the company launches flanker brand of its
popular product than there is a risk that the original brand gets diluted which will have a
negative impact on the overall brand of the company.
Disadvantages :

9.  The concept of Product Line Extension can be defined as a business strategy where
the firm plans to expand its established product brand name with the new range of
items in the product category.
 The Product Line Extension can be in the form of new colors, forms, shapes, sizes,
flavors, packaging, and ingredients.
 The main idea and agenda behind the same are to increase the sales and reach of
the already established product at the market place.
Example
Unilever Glow and Lovely – Multi-vitamins, BB,
Anti-marks, Ayurvedic, Men’s Instant fairness.
Lux – Soft Touch, Velvet touch, Creamy
Perfection, Fresh Splash.

10.  When the firm comes up with the business strategy of Product Line Extension, it
attracts the same line of the target audience who are looking out for a variety in
the product category. The strategy elevates the excellent levels of customer
service and overall satisfaction.
 With more number of products in a similar line and type, the brand gets more
shelf space in the retail stores. This enhances its market reach and market
share, along with the benefit of brand enhancement.
 With the product brand already established in the market and the minds of the
consumers, the firm can save its marketing and promotional expenditure on the
Product Line Extension of the same category.
Advantages:
Disadvantages :
 Many a time if the firm is not well researched about the market dynamics and the
evolving tastes of the customers, the Product Line Extension can backfire and affect the
sales and brand value of the original product.
 Quite a number of times the marketers go overboard on the front of marketing and
promotional expenditure with the Product Line Extension that adds to the overheads of
the firm.
 If the Product Line Extension if not very well received by the target audience, it affects
the brand loyalty and value of the original product.

11.  A brand extension is when a company uses one of its established brand names on a new
product or new product category.
 The strategy behind a brand extension is to use the company's already established brand
equity to help it launch its newest product.
 The company relies on the brand loyalty of its current customers, which it hopes will make
them more receptive to new offerings from the same brand.
Dettol
It Has extended its brand image as antiseptic
product to extend its portfolio to Sanitizer,
Shaving Cream, Bandage, Pain relief spray and
Soaps.

12. Advantages:
Disadvantages :
 Extending the brand name too far may lead to a loss of reliability, especially if the
brand extension happens in an unrelated market. Thus, companies have to know
which product categories will work and where they can actually use the brand name.
 If the new product is not that great, it may spell trouble for the core brand’s image.
 Just because the core brand will lend its brand awareness to the new product, it
doesn’t mean companies don’t have to invest at all. In fact, if they don’t, all their
effort may even have the opposite effect.
 They can help the product be easily accepted.
 They can also improve the overall brand image.
 Consumers’ perceived risk can go down with brand extensions.
 Since the company has established the brand name as trustworthy and popular, they can
also increase the interest of consumers and make them consider a new product. That also
leads to better distribution.
 Less money spent on introductory and follow-up marketing programmers.
 Packaging and labelling are more efficient, as the machines can print out the same labels.

13.  There is a single master brand, one trademark followed by descriptive names for
each product/service.
 One system (promise, personality, visual and verbal identity) used for all the
products/services that corporate develops.
 The parent brand is primarily important only to the investment community.
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Examples

14.  Lowest risk of spillover effects to other brand in case of product failure.
 Freedom to introduce new products as needed.
 Development of very clear Brand images.
 Presence in different market niches, targeting different audiences.
Advantages:
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 Most expensive.
 Challenging to manage complex portfolio.
 Constraints for brand equity.
 Every brand needs its own strategy.
 Identity and marketing activities is a financial burden.
 Success will not be directly attributed to the parent brand.
Disadvantages:

15.  Also know as Monolithic branding strategy.
 This direction leverages the corporate brand for all offerings.
 Streamlines decision-making.
 Maximizes resources and leverages brand equity across all products and services.
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Examples

16.  Easier for consumers to recognize.
 It increases brand awareness.
 Focusing brand marketing on a single brand strategy and brand image.
 Clearest strategy overall.
 Least expensive.
 Maximizes the Brand Equity.
Advantages:
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 Any negativity associated with a service/product is attributed to the brand.
 Highest risk of dilution.
 Constraint for growth within a cohesive portfolio.
Disadvantages: