Study material for MBA marketing specialization, APJ Abdul Kalam Technological University kerala. Useful for Brand management subject.

1. Unit 2: Brand strategy decisions Brand Management
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KTU –MBA
APJ Abdul Kalam Technological University
MASTER OF BUSINESS ADMINISTRATION
Study Material
MKT-T5-8 BRAND MANAGEMENT
Mr.Scaria Thomas
Assistant professor
Rajadahani Business school

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Units 2
Brand strategy decisions : Brand architecture – brand portfolio, portfolio roles, portfolio
graphics, portfolio structure and product-market context roles, Brand architecture audit,
Managing Brand
Systems – objectives, brand hierarchies, brand roles, Brand leveraging –line extension,
vertical brand stretch, co-branding and brand extension –horizontal and vertical brand
extensions; Brand Systems Audit
BRAND ARCHITECTURE
Brand architecture is the structure of brands within an organizational entity. It is the way in
which the brands within a company’s portfolio are related to, and differentiated from, one
another. The architecture should define the different leagues of branding within the
organization; how the corporate brand and sub-brands relate to and support each other; and
how the sub-brands reflect or reinforce the core purpose of the corporate brand to which they
belong. Often, decisions about brand architecture are concerned with how to manage a parent
brand, and a family of sub-brands – managing brand architecture to maximize shareholder
value can often include using brand valuation model techniques.
Types
 Corporate brand, umbrella brand, and family brand.
 Endorsed brands, and sub-brands.
 Individual product brand.

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Brand Portfolio
When large businesses operate under multiple different brands, services and companies, a
brand portfolio is used to encompass all these entities under one umbrella. Often, each of
these brands has its own separate trademarks and operates as an individual business entity.
However, for marketing purposes, a brand portfolio is used to group them all together. Brand
portfolios are also used to lessen consumer confusion in regard to who owns particular
brands.
Examples of Brand Portfolios: To better explain what a brand portfolio looks like, consider
the Hilton brand. In addition to the Hilton Hotels and Resorts brand, the company also owns
numerous other business entities, which are all grouped under the brand portfolio name
Hilton Worldwide. A few of the other brands under Hilton Worldwide include the Waldorf
Astoria Hotels and Resorts, Embassy Suites Hotels and Homewood Suites. As another
example, consider PepsiCo. PepsiCo is the brand portfolio name of several food and beverage
companies that include not only Pepsi, but also brands such as Frito Lay, Quaker and
Tropicana.
Dimensions of the brand portfolio strategy
Brand scope: product categories and subcategories, future scope
Product defining roles: master brands, endorser brands, sub-brands, driver roles
Portfolio roles: strategic brands, branded energizers, silver bullets, flanker brands, cash cow
brands
Portfolio structure: brand hierarchy, brand network
Brand portfolio models: branded house, sub- brands, endorsed brands, house of brands

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Brand Portfolio Definition: The Brand Portfolio refers to an umbrella under which all the
brands or brand lines of a particular firm functions to serve the needs of different market
segments. In simple words, brand portfolio encompasses all the brands offered by a single
firm for sale to cater the needs of different groups of people.
Most large firms have a portfolio of brands (P&G). In managing this portfolio there are two
dimensions to consider – Breadth of product mix: number and nature of different product
categories linked to the brands sold – Depth of branding: number and nature of different
brands and lines/models/SKUs (stock-keeping unit) in a product category.
(https://www.slideshare.net/nm91020/6-brand-portfolio-architecture)
Roles Brand Portfolio
1. Flanker Brand 2.Cash Cow Brand 3.Low-End Entry Level Brand 4.High-End Prestige
Brand
Flanker Brand :A Flanker Brand also known as a
Fighter Brand is a new product launched in a market by
the company in the same category wherein an
established brand is already positioned. This is
primarily done for the increased market share as well
as to cater to the need of all the segments of customers
Cash Cow Brand :A cash cow brand is that product in
the brand portfolio that has reached the maturity level in
the product life cycle but is able to bring in profits
necessary for its survival. These brands are not removed
from the market because necessary cash is flowing in
through its sale which is better than incurring heavy cost
on the launch of a new product.
High-End Prestige Brand: A High-End Prestige Brand in
the brand portfolio is the product offered at a high price
with the intention of creating a sense of prestige in the
minds of customers. Other brands in the portfolio also get
the recognition because of the premium brand and its
quality do have a halo effect on each product line
High-End Prestige Brand :A High-End Prestige Brand
in the brand portfolio is the product offered at a high
price with the intention of creating a sense of prestige in
the minds of customers. Other brands in the portfolio also
get the recognition because of the premium brand and its

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quality do have a halo effect on each product line
MODELS FOR BRAND PORTFOLIOS: Branded House, House of Brands, House Blend
 Branded House: using a single master brand across multiple products and categories
Company takes a single primary brand across the board Eg: Apple
Advantages: •Creates focus on the brand •Maximizes scale
Disadvantages: •May lose its power to differentiate (all new products and new brands must
fit within the primary brand) •Constrain innovation and growth •Risky
 House of Brands: house of brands contains independent, disconnected brands Classic and
most powerful model for a brand portfolio Company owns a number of different brands,
possibly several brands in the same category
Advantages: •Each brand can precisely target a group of customers with a distinct product
offering and positioning •Company can stretch the brand to cover another target market
•Easy to make global •Creates a distinct corporate brand •Minimize risk because of
diversification
Disadvantages: •Hard to manage due to complexity •Senior management cannot focus on
each brand individually •Company is forced to devote resources to marketing the corporate
brand
 House Blend – This is an architecture based on the development of sub-brands with the
added credibility of the existing parent brand. Google, for example, started as a search
engine then continued to establish the primary brand through offerings such as Gmail,
Calendar, and Maps. Eventually, they began to acquire other, smaller tech companies such
as Blogger, Picasa, and YouTube. These acquisitions maintained their existing brands but
gained credibility through the primary brand of Google.
Portfolio Graphics
Pattern of visual representation Brand and context logo, tagline, symbols....
Purpose is for signal relative driver role, Signal separation of brand, Denote portfolio
structure.
Brand architecture audit: An audit is the starting point for developing and establishing a
brand architecture framework. ... This is crucial to understand and assess the existing
relationships between the different brands in the portfolio and how they layer up to a set of
master product names and the corporate brand name.
Managing Brand Architecture
In developing and managing brand architecture strategy, there are at least four key
components to consider: 1) brand architecture audit; 2) brand architecture principles; 3) brand
architecture models alternatives; and 4) the brand naming decision tree. In our experience,

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many organizations place too much emphasis, too early, on brand architecture models and
frameworks without first auditing their existing architecture and then defining the brand
architecture principles that underlie the various frameworks. Here is a brief overview of each
major component.
Brand Architecture Audit
A brand architecture audit is a necessary starting point to define the “as is” or current state of
your organization’s brand architecture. Depending upon the size and complexity of your
organization, this can be a fairly simple or very elaborate exercise. The brand architecture
audit should focus on two key areas: business performance and brand structure.
Business performance involves assessing the performance of the various products
and brands within the brand portfolio, in terms of sales, profits and growth potential.
Which brands and products contribute the most to your business today and in the
future?
Brand structure involves understanding — from the eyes of your customer — how
they experience the current brands and product today, across all the various brand
touchpoints. This involves auditing and then visually representing how customers
experience your brand — including logos, website, advertising, collateral material, at-
retail, etc. Practically speaking, this can be done in a conference room or using a
brand touchpoints wheel. Is the brand architecture visual depiction clear, consistent
and logical or do opportunities exist to improve the structure?
Once you complete the “as is” assessment step, it’s time to consider and develop a set of
brand architecture principles to guide strategic decision-making.
http://equibrandconsulting.com/services/brand-consultant/brand-architecture/managing
https://www.slideshare.net/rashidjaved925059/sunsilk-brand-audit-ppt
Brand Hierarchy Brand hierarchy is a means of summarizing the brand strategy by
displaying the numbers and nature of common
and distinctive brand elements across the firms
product revealing the explicit ordering of brand
elements.
1) Corporate branding is the practice of
using a company's name as a product
brand name. It is an attempt to use
corporate brand equity to create brand
recognition. Example- IBM, Heinz,
Hershey, Coca-Cola, etc….
2) Family branding: When a group of products are given the same brand name i.e.
different products of company are marketed under one brand name. Example- 1.
AMUL- Amul milk, Amul Butter, Amul cream, Amul Dahi, Amul chocolate etc… 2.

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VIDEOCON- T.V., Washing machine, Air Conditioner, etc…. 3. JOHNSON
&JOHNSON- Johnson & Johnson Baby soap, Johnson & Johnson Baby hair oil,
Johnson & Johnson Baby body lotion etc….
3) Individual branding, also called individual product branding or multi branding. It is
the marketing strategy of giving each product in a portfolio its own unique brand
name. The advantage of individual branding is that each product has an image and
identity that is unique. The disadvantage are difficulty, complexity & expense
involved in developing separate marketing programs to build sufficient levels of
brand equity. Examples- Procter & Gamble- Head & shoulders, Rejoice, Pantene,
Gillette, Herbal essence etc… HUL- AXE, Kissan, ELLE 18, Pepsodent, Dove, Knor,
Pears, LUX, RIN, Clear, Vaseline, hamam, Domex, Liril 2000, etc…
4) Modifier refers to word, phrase or clause that functions as an
adjective or adverb to qualify the meaning of other word.
Regardless of whether corporate, family or individual brands
are employed it is often necessary to further distinguish brand
according to the different types of items or models involved.
Brand Leveraging
A brand leveraging strategy uses the power of an existing brand to expand the product
class or to support a company’s entry into a new product category. Brand leveraging is an
important form of new product introduction because it provides consumers with a sense of
familiarity by carrying positive brand characteristics and attitudes into a new product
category.Instant recognition of the brand is established, and consumers with a favorable
brand opinion are likely to try a new product they perceive to have similar quality level and
attributes as their original favourite
Leveraging strategy

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1)Line Extension :When a variant is added to an existing
brand it is called Line Extension. The variant could be in
terms of flavor, package size, colour, form,nutritional
content or special additives which targets a sub-set of
consumers .The objective is to satisfy different consumer
needs or market segments by providing more variety. Eg:-
Nestle Maggi is available in different flavors like masala,
chicken, tomato,curry and cuppa mania Eg: Pril Bar’s
Mango-vinegar variant in Uttar Pradesh Nestle has also
launched Atta noodles and Maggi Cuppa Mania
Why Line Extension ? -segments
competition
2) Advantages of stretching the brand vertically
 Offers a premium version of existing brand to quality conscious consumers. Eg: Nano
Twist with loaded features, Alto K 10 Eg: Credit Card - Silver, Gold, Titanium,
Signature Eg: Cadbury’s Dairy Milk Silk
 Helps target value conscious consumers by trading down. Eg: Stripped down version of
Mr. Muscle and Evian water Eg: Stripped down version of Original DVD without bonus
content (show pack)
 To counter competition during maturity stage of the brand when price is the only
deciding factor in consumer’s purchase decision
 To expand market opportunities in other countries where per capita income is low
Disadvantages of stretching the brand vertically
 Damage to the core brand as consumers may feel that premium charged to them was not
justified
 Increase in volume may not justify the reduction in price
 Reduction in margins of trade channel partners
3) Brand Extension : When an existing brand name is used to introduce a new product in a
different product category. Eg: Ponds => Talc, Cold Cream, Facewash, Moisturising
lotion,etc Eg: Horlicks=> Nutribar, Foodles Eg: Catch => Table Salt, Black Salt, Pepper,etc
Eg: Kingfisher => Beer, Airlines, Mineral water, Training Academy Eg: Dabur=> Amla Hair
Oil, Chawyanprash,Pudin Hara Note: Ponds Toothpaste was a failure

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Types of Brand Extensions
 Image related extension Eg: Britannia has an image of confectionary brand or food
products brand and hence has launched cakes, biscuits and breads. OR Amul is known
for milk products and hence has launched butter,ghee,cheese,milk,etc.
 Un related Extension: Extension to unrelated product category Eg: Wills Cigarettes to
Wills lifestyle apparels.
 Complementary Product Extension Eg: Colgate Tooth paste and Colgate tooth brush
Eg: Eveready Battery and Eveready Torches.
 Expertise related extension: Eg: Maruti venturing into 2 wheelers Hero venturing into
4 wheelers Inox venturing into multiplexes.
 Distinct feature related extension Eg: Himani Navratna Hair Oil & Navratna Cool
Talc Class Exercise (Group) – Name a brand that has been extended and the type of
extension.
Brand Extension
Range Brands A range brand is one that creates an identity that works across
product classes. A range brand is some times called a mega-brand. Eg: Colgate , Gillette,
Adidas /Nike/Reebok
Ad-Hoc Brand Extension This kind of extension is used as a strategy for response to
a short term event. It is not planned to last. Ad Hoc brands are generally built on internal goal
based strategy. They are based on either monetary value or sentimental value that the
company gains by introducing a new brand extension. Eg: Pepsi launched Pepsi Blue during
Cricket World Cup 2003,Pepsi Gold during World Cup 2007, and Pepsi Atom during IPL
2013.
4)Co-Branding
Co-Branding also called-Brand Bundling or Brand Alliance; is when two or more existing
termed as marketing partnership between two brands. The objective is to combine the
strength of two brands , in order to increase the premium consumers are willing to pay. It
makes the co-branded product more resistant to copying. It combines the different perceived
properties associated with these brands to make a single product
Types of Co-branding
Ingredient branding:- A branded ingredient or component, that has its own brand identity, is
used to produce another renowned brand/product. This ingredient or constituent brand is sub-
ordinate to the primary brand. - Usually the ingredient brand is the biggest supplier to the
primary brand. The ingredient brand should be unique and should be a major brand or should
be protected by a patent.
PCs -Intel Inside; Stereos -Dolby ; Sunsilk -Keratin Micro Technology; Orient Fans –
PSPO

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Composite Branding The bundling of two brands to provide an enhanced customer benefit or
reduced cost. Composite co-branding refers to use of two or more renowned brand names in a
way that can collectively offer a distinct product/service that could not be possible
individually
Egs: Reliance CDMAS with LG handset Nokia with Vodafone Airtel with iPhone
Coca-Cola with McDonalds Audi Cars with Bang & Olufsen Sound System Channel V
Racing Pack & AXN Action Pack
MULTI BRAND STRATEGY: A company launches multiple brands for the same product
category . Each brand caters to a distinct market segment . Each brand has a distinct brand
identity and personality
Advantages of multi brand strategy : A company can target the entire market with different
brands catering to each separate market segment. A company can enjoy economies of scale
because key ingredients / raw materials are the same for each product. A consumer gets wide
range of options to choose from .A company is able to capture larger shelf space at retail end.
Disadvantages of multi brand strategy : All brands may not be successful thus leading to
wastage of marketing and advertising expenses. The company may spread it self very thin if
it launches too many brands with small market share for each brand. If there is no difference
between two brands, one may cannibalize the other.

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Reference:
Branding in competitive marketplace: Rajat K Basiya
https://www.slideshare.net/DGMediaSchool/brand-leveraging
http://equibrandconsulting.com/services/brand-consultant/brand-architecture/managing
https://en.wikipedia.org/wiki/Brand_architecture
https://www.slideshare.net/sdusane1/brand-portfolio-70018033