SlideShare a Scribd company logo
1 of 30
1
Soap
2
Shampoo
3
Conditioner
4
Moisturizer
A
B
Brands C
Products
Brand Architecture and Portfolio
Prof. Sameer Mathur, Ph.D.
Sameer Mathur
Marketing Professor 2009 – 2013
Ph.D. and M.S. (Marketing) 2003 – 2009
Marketing Professor 2013 –
Indian Institute of Management,
Lucknow
2
© Sameer Mathur
Harshit Khaitan
BTech, IIT Kanpur
2
Overview
© Sameer Mathur 3
Brand Architecture
• The role of Brand Architecture
• Brand-Product Matrix
• Breadth of a Branding Strategy
• Depth of a Branding Strategy
Brand Portfolio
• Designing a Brand Portfolio
• Brand Roles in the Portfolio
• Flankers
• Cash cows
• Low-end entry-level
• High-end prestige brands
The number and nature of common or
distinctive BRAND ELEMENTS applied to
the different products sold by the firm
Brand Architecture
4© Sameer Mathur
1 2 3 4
A
Brands B
C
Products
1) Clarify: Generate Brand Awareness
Improve consumer understanding and
communicate similarity and differences between
individual products
Twin roles of Brand Architecture
5© Sameer Mathur
2) Motivate: Manage Brand Image
Maximize transfer of equity to/from the brand to
individual products to improve trial and repeat
purchase
Twin Roles of Brand Architecture
6© Sameer Mathur
1 2 3 4
A
Brands B
C
Products
Brand-Product Matrix
7© Sameer Mathur
Brand-Product
relationships
(rows)
Line and
category
extensions
Product-Brand
relationships
(columns)
Brand
portfolio
Brand-Product Matrix
8© Sameer Mathur
Product Line
A group of products within a product category
that are closely related
1 2 3 4
A
Brands B
C
Products
9© Sameer Mathur
A
Brands B
C
D
Products
10© Sameer Mathur
HUL’s Bathing Soaps
E
Brands F
G
H
Products
11© Sameer Mathur
HUL’s Bathing Soaps
Brand Line
All products, original as well as line and
category extensions, sold under a particular
brand
1 2 3 4
A
Brands B
C
Products
12© Sameer Mathur
1
Soap
2
Shampoo
3
Conditioner
4
Moisturizer
A
Brands B
Products
13© Sameer Mathur
Dove’s Brand Line
Brand mix (brand assortment)
The set of all brand lines that a particular
SELLER makes available to buyers
Product mix (product assortment)
The set of all product lines and items that a
particular SELLER makes available to buyers
14© Sameer Mathur
Breadth of product mix
Aggregate market factors
Category factors
Environmental factors
Breadth of a Branding Strategy
15© Sameer Mathur
Aggregate Market Factors
Market Size
Market
Growth
Stage in
product life
cycle
Sales
cyclicity
Seasonality Profits
16© Sameer Mathur
Category Factors
Threat of new
entrants
Bargaining
Power of new
buyers
Bargaining
power of
supplier
Current
category
rivalry
Pressure
from
substitutes
Category
Capacity
17© Sameer Mathur
Environmental Factors
Technological Political Economic
Regulatory Social
18© Sameer Mathur
19
Depth of a Branding Strategy
The number and nature of different brands
marketed in the product class sold by a firm
Also Referred to as BRAND PORTFOLIO
© Sameer Mathur
20
Depth of a Branding Strategy
WHY? 1)To pursue different market segments,
different channels of distribution, or different
geographic boundaries
WHY? 2) Maximize market coverage and
minimize brand overlap
© Sameer Mathur
21
HUL Brand Portfolio21© Sameer Mathur
Two Basic Principles
1) Maximize MARKET COVERAGE so that no
potential customers are being ignored
2) Minimize BRAND OVERLAP (Cannibalization)
so that brands aren’t competing among
themselves to gain the same customer’s
approval
Designing a Brand Portfolio
22© Sameer Mathur
Flankers
Cash cows
Low-end entry-level
High-end prestige brands
Brand Roles in the Portfolio
23© Sameer Mathur
Despite the Mach being technologically much
advanced , Gillette still sells its older models
Cash Cows
Some brands despite of their dwindling sales
are kept around to hold on to a sufficient
number of customers and maintain their
profitability with virtually no marketing
24© Sameer Mathur
Low-End Entry-Level or High End Prestige Brands
Line extension or brand variants in a certain
product category that vary in price and quality
Leverages associations from the other brands
while distinguishing themselves on the basis
of their price and quality dimensions
25© Sameer Mathur
Low-End Entry-Level
To attract customer to the brand franchise
“trade up” these customers to a higher-priced
brand
26© Sameer Mathur
BMW 3-series
Rs 30.40- 81.90*lakh
27© Sameer Mathur
High End Prestige Brands
To add prestige and credibility to the entire
brand
Chevrolet Corvette ZR1
28© Sameer Mathur
Summary
© Sameer Mathur 29
Brand Architecture
• The role of Brand Architecture
• Brand-Product Matrix
• Breadth of a Branding Strategy
• Depth of a Branding Strategy
Brand Portfolio
• Designing a Brand Portfolio
• Brand Roles in the Portfolio
• Flankers
• Cash cows
• Low-end entry-level
• High-end prestige brands
Credits
© Sameer Mathur 30
http://www.gillette.com/en/IN/home.aspx
http://www.hul.co.in/investorrelations/AnnualReports/
http://www.bmw.com/com/en/newvehicles/3series/overview.html
http://www.chevrolet.com/2013-corvette-zr1-sports-car.html
K. L. Keller, M. G. Parameswaram, I. Jacob. (2011) . Strategic Brand Management(3rd
edition). India: PEARSON

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(MBASkills.IN) Brand Architecture and Band Portfolio

  • 2. Sameer Mathur Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 Marketing Professor 2013 – Indian Institute of Management, Lucknow 2 © Sameer Mathur Harshit Khaitan BTech, IIT Kanpur 2
  • 3. Overview © Sameer Mathur 3 Brand Architecture • The role of Brand Architecture • Brand-Product Matrix • Breadth of a Branding Strategy • Depth of a Branding Strategy Brand Portfolio • Designing a Brand Portfolio • Brand Roles in the Portfolio • Flankers • Cash cows • Low-end entry-level • High-end prestige brands
  • 4. The number and nature of common or distinctive BRAND ELEMENTS applied to the different products sold by the firm Brand Architecture 4© Sameer Mathur 1 2 3 4 A Brands B C Products
  • 5. 1) Clarify: Generate Brand Awareness Improve consumer understanding and communicate similarity and differences between individual products Twin roles of Brand Architecture 5© Sameer Mathur
  • 6. 2) Motivate: Manage Brand Image Maximize transfer of equity to/from the brand to individual products to improve trial and repeat purchase Twin Roles of Brand Architecture 6© Sameer Mathur
  • 7. 1 2 3 4 A Brands B C Products Brand-Product Matrix 7© Sameer Mathur
  • 9. Product Line A group of products within a product category that are closely related 1 2 3 4 A Brands B C Products 9© Sameer Mathur
  • 10. A Brands B C D Products 10© Sameer Mathur HUL’s Bathing Soaps
  • 11. E Brands F G H Products 11© Sameer Mathur HUL’s Bathing Soaps
  • 12. Brand Line All products, original as well as line and category extensions, sold under a particular brand 1 2 3 4 A Brands B C Products 12© Sameer Mathur
  • 14. Brand mix (brand assortment) The set of all brand lines that a particular SELLER makes available to buyers Product mix (product assortment) The set of all product lines and items that a particular SELLER makes available to buyers 14© Sameer Mathur
  • 15. Breadth of product mix Aggregate market factors Category factors Environmental factors Breadth of a Branding Strategy 15© Sameer Mathur
  • 16. Aggregate Market Factors Market Size Market Growth Stage in product life cycle Sales cyclicity Seasonality Profits 16© Sameer Mathur
  • 17. Category Factors Threat of new entrants Bargaining Power of new buyers Bargaining power of supplier Current category rivalry Pressure from substitutes Category Capacity 17© Sameer Mathur
  • 18. Environmental Factors Technological Political Economic Regulatory Social 18© Sameer Mathur
  • 19. 19 Depth of a Branding Strategy The number and nature of different brands marketed in the product class sold by a firm Also Referred to as BRAND PORTFOLIO © Sameer Mathur
  • 20. 20 Depth of a Branding Strategy WHY? 1)To pursue different market segments, different channels of distribution, or different geographic boundaries WHY? 2) Maximize market coverage and minimize brand overlap © Sameer Mathur
  • 21. 21 HUL Brand Portfolio21© Sameer Mathur
  • 22. Two Basic Principles 1) Maximize MARKET COVERAGE so that no potential customers are being ignored 2) Minimize BRAND OVERLAP (Cannibalization) so that brands aren’t competing among themselves to gain the same customer’s approval Designing a Brand Portfolio 22© Sameer Mathur
  • 23. Flankers Cash cows Low-end entry-level High-end prestige brands Brand Roles in the Portfolio 23© Sameer Mathur
  • 24. Despite the Mach being technologically much advanced , Gillette still sells its older models Cash Cows Some brands despite of their dwindling sales are kept around to hold on to a sufficient number of customers and maintain their profitability with virtually no marketing 24© Sameer Mathur
  • 25. Low-End Entry-Level or High End Prestige Brands Line extension or brand variants in a certain product category that vary in price and quality Leverages associations from the other brands while distinguishing themselves on the basis of their price and quality dimensions 25© Sameer Mathur
  • 26. Low-End Entry-Level To attract customer to the brand franchise “trade up” these customers to a higher-priced brand 26© Sameer Mathur
  • 27. BMW 3-series Rs 30.40- 81.90*lakh 27© Sameer Mathur
  • 28. High End Prestige Brands To add prestige and credibility to the entire brand Chevrolet Corvette ZR1 28© Sameer Mathur
  • 29. Summary © Sameer Mathur 29 Brand Architecture • The role of Brand Architecture • Brand-Product Matrix • Breadth of a Branding Strategy • Depth of a Branding Strategy Brand Portfolio • Designing a Brand Portfolio • Brand Roles in the Portfolio • Flankers • Cash cows • Low-end entry-level • High-end prestige brands
  • 30. Credits © Sameer Mathur 30 http://www.gillette.com/en/IN/home.aspx http://www.hul.co.in/investorrelations/AnnualReports/ http://www.bmw.com/com/en/newvehicles/3series/overview.html http://www.chevrolet.com/2013-corvette-zr1-sports-car.html K. L. Keller, M. G. Parameswaram, I. Jacob. (2011) . Strategic Brand Management(3rd edition). India: PEARSON