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(MBASkills.IN) Brand Architecture and Band Portfolio
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(MBASkills.IN) Brand Architecture and Band Portfolio
1.
1 Soap 2 Shampoo 3 Conditioner 4 Moisturizer A B Brands C Products Brand Architecture
and Portfolio Prof. Sameer Mathur, Ph.D.
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
8.
Brand-Product relationships (rows) Line and category extensions Product-Brand relationships (columns) Brand portfolio Brand-Product Matrix 8©
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
13.
1 Soap 2 Shampoo 3 Conditioner 4 Moisturizer A Brands B Products 13© Sameer
Mathur Dove’s Brand Line
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