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1. Ashesi University
COURSE TITLE : STRATEGIC BRAND
MANAGEMENT
SEMESTER : SPRONG 2016
MODULE 9: Designing and Implementing a
Branding Strategy I: Brand Architecture, Brand-
Product Matrix, Brand Hierarchy
Lecturer: Ebow Spio

2. Learning Outcomes
• Explain how to maximize brand equity across all the
different brands and products of the firm
• Appreciate how a firm determines which brand
elements to choose to apply across the products it
offers for sale (Branding Strategy or brand
architecture)
• Explain brand terminologies and concepts such as
brand architecture, brand-product matrix, brand
portfolio, brand hierachy,
• Explain how cause marketing can build brand equity

3. 11.3
Branding strategy
• Branding strategy is critical because it is the
means by which the firm can help consumers
understand its products and services and
organize them in their minds.
• Two important strategic tools: The brand-
product matrix and the brand hierarchy help
to characterize and formulate branding
strategies by defining various relationships
among brands and products.

4. 11.4
Branding Strategy or Brand
Architecture
• The branding strategy for a firm reflects the
number and nature of common or distinctive
brand elements applied to the different
products sold by the firm.
– Which brand elements can be applied to which
products and the nature of new and existing brand
elements to be applied to new products

5. 11.5
The role of Brand Architecture
• Clarify: brand awareness
– Improve consumer understanding and
communicate similarity and differences between
individual products
• Motivate: brand image
– Maximize transfer of equity to/from the brand to
individual products to improve trial and repeat
purchase

6. Developing Brand Architecture
Strategy
3 Steps or Requirements
1.Defining the Potential of the brand in terms of
its “market footprint”
2.Identifying the Product and Service Extensions
that will allow the brand achieve that potential
3. Specifying the brand elements and positioning
associated with the specific products and services
for the brand

7. Developing Brand Architecture
Strategy : Defining the Brand Potential
• 1. Brand Vision : Management’s view of the brand’s long
term potential. It relates to the brand’s “higher order purpose”
e.g. eliciting joy, enabling connections, evoking pride, inspiring
exploration etc.
Crayola : Known for crayons. Now Crayola Chalk, Crayola Glitter
Glue, Crayola Scissors hence Brand Meaning of “Colourful Arts
and crafts for kids”
Brand Essence is to find “What if “ in each child”
“ We believe in unleashing, nurturing and celebrating the colourful
originality in every child. We give kids an invitation that ignites,
colours that inspire, and tools that transform original thoughts
into visible form. We give colourful wings to the invisible that
grow in the hearts of children. Because we believe that creatively
alive kids grow into inspired adults.”

8. Developing Brand Architecture
Strategy : Defining the Brand Potential
2. Defining Brand Boundaries: Identifying the
products or services the brand should offer, it
should supply and the needs it should satisfy
based on its brand vision and positioning.
3. Crafting the Brand Positioning: The unique
and valuable place the brand seeks to occupy in
the minds and hearts of consumers relative to
its competitors.

9. Developing Brand Architecture Strategy :
Identifying Brand Extension Opportunities
2. Identify new products and services to achieve
that potential through a well-designed and
implemented brand extension strategy.
Line Extension : New product introductions
within existing category e.g. Close Up White
Category Extensions: New product
introductions outside existing categories etc.
Sunlight Dishwash, Dove Deodorant

10. Developing Brand Architecture Strategy :
Branding New Products and Services
3. Branding New Products and Services
•This involves deciding the specific brand
elements to use for any particular new product
or service associated with the brand.
•New products and services must be branded in
a way to maximize the brand’s overall clarity
and understanding to consumers and customers

11. 11.11
Brand-Product Matrix
• Must define:
– Brand-Product relationships (rows)
• Line and category extensions
– Product-Brand relationships (columns)
• Brand portfolio
1 2 3 4
A
B
C
Products
Brands

12. 11.12
Important Definitions
• Product line
– A group pf products within a product category
that are closely related
• Product mix (product assortment)
– The set of all product lines and items that a
particular seller makes available to buyers
• Brand mix (brand assortment)
– The set of all brand lines that a particular seller
makes available to buyers

13. 11.13
Breadth of a Branding Strategy
• Breadth of product mix
– Aggregate market factors
– Category factors
– Environmental factors
• Depth of product mix
– Examining the percentage of sales and profits
contributed by each item in the product line
– Deciding to increase the length of the product line
by adding new variants or items typically expands
market coverage and therefore market share but
also increases costs

14. 11.14
Depth of a Branding Strategy
• The number and nature of different brands
marketed in the product class sold by a firm
• Referred to as brand portfolio
• The reason is to pursue different market
segments, different channels of distribution,
or different geographic boundaries
• Maximize market coverage and minimize
brand overlap

15. 11.15
Ford Brand Portfolio

16. 11.16
Designing a Brand Portfolio
• Basic principles:
– Maximize market coverage so that no potential
customers are being ignored
– Minimize brand overlap so that brands aren’t
competing among themselves to gain the same
customer’s approval

17. 11.17
Brand Roles in the Portfolio
• Flankers
• Cash cows
• Low-end entry-level
• High-end prestige brands

18. 11.18
Brand Hierarchy
• A means of summarizing the branding strategy
by displaying the number and nature of
common and distinctive brand elements
across the firm’s products, revealing the
explicit ordering of brand elements
• A useful means of graphically portraying a
firm’s branding strategy

19. 11.19
Brand Hierarchy Tree: Toyota
Toyota
Corporation
Toyota
(Trucks)
Toyota
(SUV/vans)
LexusToyota
Financial
Services
Toyota
(Cars)
Corolla PriusAvalon Celica ECHO Matrix
MR2
Spyder
Camry
CE
S
LE
SE
LE
XLE
Platinum
Edition
XL
XLS
SE
SLE

20. 11.20
Brand Hierarchy Levels
Family Brand (Buick)
Corporate Brand (General Motors)
Modifier: Item or Model (Ultra)
Individual Brand (Park Avenue)

21. 11.21
Corporate Brand Equity
• Occurs when relevant constituents hold
strong, favorable, and unique associations
about the corporate brand in memory
• Encompasses a much wider range of
associations than a product brand

22. 11.22
Umbrella or Family or Range Brands
• Brands applied across a range of product
categories e.g. Sunlight, Dove, Nivea
• An efficient means to link common
associations to multiple but distinct products

23. 11.23
Individual Brands
• Restricted to essentially one product category
• There may be multiple product types offered
on the basis of different models, package
sizes, flavors, etc.

24. 11.24
Modifiers
• Signals refinements or differences in the
brand related to factors such as quality levels,
attributes, functions, etc.
• Plays an important organizing role in
communicating how different products within
a category that share the same brand name
are. E.g. Johnnie Walker Red Label, Black
Label, Gold Label Scotch whiskey, Wrigley’s
Spearmint, Doublemint, Juicy Fruit etc.

25. 11.25
Corporate Image Dimensions
• Corporate product attributes, benefits or attitudes
– Quality
– Innovativeness
• People and relationships
– Customer orientation
• Values and programs
– Concern with the environment
– Social responsibility
• Corporate credibility
– Expertise
– Trustworthiness
– Likability

26. 11.26
Brand Hierarchy Decisions
• The number of levels of the hierarchy to use
in general
• How brand elements from different levels of
the hierarchy are combined, if at all, for any
one particular product
• How any one brand element is linked, if at all,
to multiple products
• Desired brand awareness and image at each
level

27. 11.27
Number of Hierarchy Levels
• Principle of simplicity
– Employ as few levels as possible
• Principle of clarity
– Logic and relationship of all brand elements
employed must be obvious and transparent

28. 11.28
Levels of Awareness and Associations
• Principle of relevance
– Create global associations that are relevant across
as many individual items as possible
• Principle of differentiation
– Differentiate individual items and brands

29. 11.29
Linking Brands at Different Levels
• Principle of prominence
– The relative prominence of brand elements affects
perceptions of product distance and the type of
image created for new products

30. 11.30
Linking Brands Across Products
• Principle of commonality
– The more common elements shared by products,
the stronger the linkages

31. 11.31
Brand Architecture Guidelines
• Adopt a strong customer focus
• Avoid over-branding
• Establish rules and conventions and be
disciplined
• Create broad, robust brand platforms
• Selectively employ sub-brands as means of
complementing and strengthening brands
• Selectively extend brands to establish new
brand equity and enhance existing brand
equity

32. 11.32
Corporate Brand Campaign
• Different objectives are possible:
– Build awareness of the company and the nature of its
business
– Create favorable attitudes and perceptions of company
credibility
– Link beliefs that can be leveraged by product-specific
marketing
– Make a favorable impression on the financial community
– Motivate present employees and attract better recruits
– Influence public opinion on issues

33. 11.33
Using Cause Marketing to Build Brand
Equity
• The process of formulating and implementing
marketing activities that are characterized by
an offer from the firm to contribute a specified
amount to a designated cause when customers
engage in revenue-providing exchanges that
satisfy organizational and individual objectives

34. 11.34
Advantages of Cause Marketing
• Building brand awareness
• Enhancing brand image
• Establishing brand credibility
• Evoking brand feelings
• Creating a sense of brand community
• Eliciting brand engagement

35. 11.35
Green Marketing
• A special case of cause marketing that is
particularly concerned with the environment
• Explosion of environmentally friendly
products and marketing programs

36. 11.36
Crisis Marketing Guidelines
• The two keys to effectively managing a crisis
are that the firm’s response should be swift
and that it should be sincere.

37. Key Points
1. Branding strategy is important as a means of enabling
consumers to understand and connect with the brand,
since it can help consumers organize a company’s
products and services in their minds.
2. Designing a brand strategy involves decisions
regarding the number of levels to use, how brand
elements at different levels will be combined for a
given product, and how brand elements will be linked
to multiple products.
3. Each successive level in a brand hierarchy allows the
firm to communicate additional, specific information
about products.
4. In general, associations for a higher-level brand should
be relevant to as many brands below it as possible,
while brands at the same level should be as
differentiated as possible.

38. Tutorial
1. Assign students the task of identifying pairs
of competing brands with different branding
strategies
2. Contrast the branding strategies and brand
portfolios of market leaders in two different
industries

39. Brand Architecture in Practice :
The Case of Premium Foods
• Premium Foods : Produce maize products and other
branded cereals for House of Grains to market. It is
intended to
• Develop House of Grains into a food marketing outfit
which provides Ghanaians with high quality and
nutritious products from the finest grains.
• Products from House of Grains will be fortified with
vitamins, minerals and other essential food nutrients
to differentiate them from artisanal products.

40. Brand Architecture in Practice :
The Case of Premium Foods
• The purpose of House of Grains is to promote the
physical well being of Ghanaians.
• House of Grains will serve as a house of brands with
several cereal products having their individual brand
names.
• The focus will be on each individual brand, however,
each brand will enjoy a shadow endorsement from the
high quality credentials of House of Grains as each
packaging will carry the House of Grains logo.
• The House of Grain logo will be synonymous with
premium quality nutritious grains and products.

41. Brand Architecture in Practice :
The Case of Premium Foods
• LOVIT – a maize brand is the first brand from the
House of Grains stable. Each brand may have several
products or variants with a descriptor to differentiate
the variants from the other products or variants.
Descriptor will convey an important attribute or
quality cue.
• House of Grains is starting with maize products
because maize products constitute by far the biggest
size of the staple foods market in Ghana. Consumers
of maize products span various socio economic
groups, ethnic groups and ages.

42. 11.42
Brand Architecture in Practice :
The Case of Premium Foods
House O’ Grains
Premium Foods
Modifier: Lovit Soft, Lovit Smoth
Individual Brands : Lovit, Mavlos

43. Brand Architecture in Practice :
The Case of Premium Foods
Cereal Brand Descriptor Product Key Usage
Maize LOVIT Soft Maize
Flour
- Tuo Zafi
- Banku
- Omo Tuo
Maize LOVIT Smooth Maize Meal - Porridge
Sorghum/Millet Mavlos?

44. Brand Architecture in Practice :
The Case of Premium Foods