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872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 183
1Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 283
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 383
3
Developing CompetitiveMarketing Strategy
Developing
Value PropositionPositioning Strategy
DevelopingMarket
OfferingProduct amp Price
Communicating
MarketOffering
Framework Of
Marketing
DeliveringMarket Offering
Delivering
Profitable Value
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 483
4Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 583
5
Product Management
Developing and Positioning
New ProductsManaging product through itslife cycle
Building and managing brands
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 683
6Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 783
AGENDAWhat is a Brand
What makes a Brand
Why to make a BrandWhat are the Benefits of Brand to theConsumer
How to Position a Brand
What is Brand PortfolioHow to Manage Brand Portfolio
How to Build both Business amp Brand
7Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8838
What is a Brand
American Management Associationdefines brand as follows
ldquoA brand is a name term signsymbol or design or acombination of them intended to
identify the goods and services of one seller or group of sellers andto differentiate them from those of the competitorsrdquo
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 983
A brand is a set of mentalassociations held by the consumerwhich add to the perceived value of the product or service
These associations should be unique (exclusivity) strong (salient) andpositive (desirable)
Strong brands have an intenseemotional component
9
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1083
Brands have financial value ascustomers are willing to pay morebecause of the beliefs and bonds that
are created over time in their mindsand hearts through the marketing of the brand
A brand is not born but made
A brand name reaches the status of abrand when the name influencesbuyers by evoking desirableassociations such as saliency
differentiability intensity and trust10
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 118311
What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1483
14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1583
The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1883
18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
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45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
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872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 383
3
Developing CompetitiveMarketing Strategy
Developing
Value PropositionPositioning Strategy
DevelopingMarket
OfferingProduct amp Price
Communicating
MarketOffering
Framework Of
Marketing
DeliveringMarket Offering
Delivering
Profitable Value
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 483
4Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 583
5
Product Management
Developing and Positioning
New ProductsManaging product through itslife cycle
Building and managing brands
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 683
6Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 783
AGENDAWhat is a Brand
What makes a Brand
Why to make a BrandWhat are the Benefits of Brand to theConsumer
How to Position a Brand
What is Brand PortfolioHow to Manage Brand Portfolio
How to Build both Business amp Brand
7Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8838
What is a Brand
American Management Associationdefines brand as follows
ldquoA brand is a name term signsymbol or design or acombination of them intended to
identify the goods and services of one seller or group of sellers andto differentiate them from those of the competitorsrdquo
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 983
A brand is a set of mentalassociations held by the consumerwhich add to the perceived value of the product or service
These associations should be unique (exclusivity) strong (salient) andpositive (desirable)
Strong brands have an intenseemotional component
9
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1083
Brands have financial value ascustomers are willing to pay morebecause of the beliefs and bonds that
are created over time in their mindsand hearts through the marketing of the brand
A brand is not born but made
A brand name reaches the status of abrand when the name influencesbuyers by evoking desirableassociations such as saliency
differentiability intensity and trust10
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 118311
What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1483
14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1583
The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1883
18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
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45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 383
3
Developing CompetitiveMarketing Strategy
Developing
Value PropositionPositioning Strategy
DevelopingMarket
OfferingProduct amp Price
Communicating
MarketOffering
Framework Of
Marketing
DeliveringMarket Offering
Delivering
Profitable Value
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 483
4Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 583
5
Product Management
Developing and Positioning
New ProductsManaging product through itslife cycle
Building and managing brands
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 683
6Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 783
AGENDAWhat is a Brand
What makes a Brand
Why to make a BrandWhat are the Benefits of Brand to theConsumer
How to Position a Brand
What is Brand PortfolioHow to Manage Brand Portfolio
How to Build both Business amp Brand
7Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8838
What is a Brand
American Management Associationdefines brand as follows
ldquoA brand is a name term signsymbol or design or acombination of them intended to
identify the goods and services of one seller or group of sellers andto differentiate them from those of the competitorsrdquo
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 983
A brand is a set of mentalassociations held by the consumerwhich add to the perceived value of the product or service
These associations should be unique (exclusivity) strong (salient) andpositive (desirable)
Strong brands have an intenseemotional component
9
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1083
Brands have financial value ascustomers are willing to pay morebecause of the beliefs and bonds that
are created over time in their mindsand hearts through the marketing of the brand
A brand is not born but made
A brand name reaches the status of abrand when the name influencesbuyers by evoking desirableassociations such as saliency
differentiability intensity and trust10
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 118311
What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1483
14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1583
The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1883
18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 483
4Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 583
5
Product Management
Developing and Positioning
New ProductsManaging product through itslife cycle
Building and managing brands
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 683
6Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 783
AGENDAWhat is a Brand
What makes a Brand
Why to make a BrandWhat are the Benefits of Brand to theConsumer
How to Position a Brand
What is Brand PortfolioHow to Manage Brand Portfolio
How to Build both Business amp Brand
7Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8838
What is a Brand
American Management Associationdefines brand as follows
ldquoA brand is a name term signsymbol or design or acombination of them intended to
identify the goods and services of one seller or group of sellers andto differentiate them from those of the competitorsrdquo
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 983
A brand is a set of mentalassociations held by the consumerwhich add to the perceived value of the product or service
These associations should be unique (exclusivity) strong (salient) andpositive (desirable)
Strong brands have an intenseemotional component
9
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1083
Brands have financial value ascustomers are willing to pay morebecause of the beliefs and bonds that
are created over time in their mindsand hearts through the marketing of the brand
A brand is not born but made
A brand name reaches the status of abrand when the name influencesbuyers by evoking desirableassociations such as saliency
differentiability intensity and trust10
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 118311
What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1483
14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1583
The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1883
18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
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45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
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52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 583
5
Product Management
Developing and Positioning
New ProductsManaging product through itslife cycle
Building and managing brands
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 683
6Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 783
AGENDAWhat is a Brand
What makes a Brand
Why to make a BrandWhat are the Benefits of Brand to theConsumer
How to Position a Brand
What is Brand PortfolioHow to Manage Brand Portfolio
How to Build both Business amp Brand
7Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8838
What is a Brand
American Management Associationdefines brand as follows
ldquoA brand is a name term signsymbol or design or acombination of them intended to
identify the goods and services of one seller or group of sellers andto differentiate them from those of the competitorsrdquo
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 983
A brand is a set of mentalassociations held by the consumerwhich add to the perceived value of the product or service
These associations should be unique (exclusivity) strong (salient) andpositive (desirable)
Strong brands have an intenseemotional component
9
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1083
Brands have financial value ascustomers are willing to pay morebecause of the beliefs and bonds that
are created over time in their mindsand hearts through the marketing of the brand
A brand is not born but made
A brand name reaches the status of abrand when the name influencesbuyers by evoking desirableassociations such as saliency
differentiability intensity and trust10
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 118311
What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
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34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
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35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
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40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
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41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
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45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
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52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
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53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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6Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 783
AGENDAWhat is a Brand
What makes a Brand
Why to make a BrandWhat are the Benefits of Brand to theConsumer
How to Position a Brand
What is Brand PortfolioHow to Manage Brand Portfolio
How to Build both Business amp Brand
7Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8838
What is a Brand
American Management Associationdefines brand as follows
ldquoA brand is a name term signsymbol or design or acombination of them intended to
identify the goods and services of one seller or group of sellers andto differentiate them from those of the competitorsrdquo
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 983
A brand is a set of mentalassociations held by the consumerwhich add to the perceived value of the product or service
These associations should be unique (exclusivity) strong (salient) andpositive (desirable)
Strong brands have an intenseemotional component
9
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1083
Brands have financial value ascustomers are willing to pay morebecause of the beliefs and bonds that
are created over time in their mindsand hearts through the marketing of the brand
A brand is not born but made
A brand name reaches the status of abrand when the name influencesbuyers by evoking desirableassociations such as saliency
differentiability intensity and trust10
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 118311
What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1483
14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1583
The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1883
18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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AGENDAWhat is a Brand
What makes a Brand
Why to make a BrandWhat are the Benefits of Brand to theConsumer
How to Position a Brand
What is Brand PortfolioHow to Manage Brand Portfolio
How to Build both Business amp Brand
7Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8838
What is a Brand
American Management Associationdefines brand as follows
ldquoA brand is a name term signsymbol or design or acombination of them intended to
identify the goods and services of one seller or group of sellers andto differentiate them from those of the competitorsrdquo
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 983
A brand is a set of mentalassociations held by the consumerwhich add to the perceived value of the product or service
These associations should be unique (exclusivity) strong (salient) andpositive (desirable)
Strong brands have an intenseemotional component
9
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1083
Brands have financial value ascustomers are willing to pay morebecause of the beliefs and bonds that
are created over time in their mindsand hearts through the marketing of the brand
A brand is not born but made
A brand name reaches the status of abrand when the name influencesbuyers by evoking desirableassociations such as saliency
differentiability intensity and trust10
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 118311
What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
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41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
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53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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What is a Brand
American Management Associationdefines brand as follows
ldquoA brand is a name term signsymbol or design or acombination of them intended to
identify the goods and services of one seller or group of sellers andto differentiate them from those of the competitorsrdquo
Prof Carlos Wolff
872019 Brand Management [24910]
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A brand is a set of mentalassociations held by the consumerwhich add to the perceived value of the product or service
These associations should be unique (exclusivity) strong (salient) andpositive (desirable)
Strong brands have an intenseemotional component
9
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1083
Brands have financial value ascustomers are willing to pay morebecause of the beliefs and bonds that
are created over time in their mindsand hearts through the marketing of the brand
A brand is not born but made
A brand name reaches the status of abrand when the name influencesbuyers by evoking desirableassociations such as saliency
differentiability intensity and trust10
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 118311
What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1483
14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1583
The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
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35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
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40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
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41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
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45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
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52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
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53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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A brand is a set of mentalassociations held by the consumerwhich add to the perceived value of the product or service
These associations should be unique (exclusivity) strong (salient) andpositive (desirable)
Strong brands have an intenseemotional component
9
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1083
Brands have financial value ascustomers are willing to pay morebecause of the beliefs and bonds that
are created over time in their mindsand hearts through the marketing of the brand
A brand is not born but made
A brand name reaches the status of abrand when the name influencesbuyers by evoking desirableassociations such as saliency
differentiability intensity and trust10
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 118311
What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1483
14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1583
The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1883
18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
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35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
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41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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Brands have financial value ascustomers are willing to pay morebecause of the beliefs and bonds that
are created over time in their mindsand hearts through the marketing of the brand
A brand is not born but made
A brand name reaches the status of abrand when the name influencesbuyers by evoking desirableassociations such as saliency
differentiability intensity and trust10
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 118311
What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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What makes a name acquirethe power of a brand is theproduct or service togetherwith people at points of contact with the market the
price the places thecommunication ndash all thesources of cumulative brand
experience
What is a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1283
Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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Several elements constitute themaking of a brand
bull Brand identity (association)
bull Brand awareness (brand salience)
bull Brand meaning (performance and imagery)
bull Brand response (judgments and feelings)
bull Brand resonance (relationships and loyalty)
12
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 138313
The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
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872019 Brand Management [24910]
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27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
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35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand is not a product butit gives the product meaningand defines its identity
Identity is anything that isdirectly or indirectly linked or
associated in memory to abrand
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
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35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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14
One of the most important identityof the brand is through the
appearance of the brand(physique) in terms of chosenname colours logo andpackaging Ex Kodakrsquos yellow
The most common association isthat of product attributes orcustomer benefits Colgaterepresents clean white teeth and
Close-Up generates fresh breath
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
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872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
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872019 Brand Management [24910]
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34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
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35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
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40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
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41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
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45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
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52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
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53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
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872019 Brand Management [24910]
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68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
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72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
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81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
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H t B ild b th
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may represent some culture ndashbackground and values
Mercedes personifies German values Nikecelebrates the virtues of individualism
The brand can project certain personality This is the character of the brand
IBMrsquos personality is seriously professional
while Applersquos is young and creative
15
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
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872019 Brand Management [24910]
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18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
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19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
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21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
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872019 Brand Management [24910]
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27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
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872019 Brand Management [24910]
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30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
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31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
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32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
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34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
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35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
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40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
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41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
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45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
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WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
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50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
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51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
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52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
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53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
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54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
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HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1683
The brand may project how it seeksto relate to the customer
An aspirational brand like Arrowinvites you to join an exclusive class
The brand may reflect the image of the target audiences in the brandrsquoscommunications eg Coca-colareflects young people in its adseven though the actual market ismuch wider
16
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1883
18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1783
The brand makes customer see herself or himself (self-image)in relation to the brand
Even if they do not practice any sports Lacoste clientsinwardly picture themselves as members of a sports club
17
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1883
18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1883
18
Lacoste Identity Prism
Physique Personality
Relationship Culture
Customersrsquo
Reflection
Customersrsquo
Self projection
LACOSTE
Quality shirtTennisGolf Sportswear
DiscreteWithout fancy
Socialconformityanddistinction
IndividualismAristocraticidealsClassicism
Neither hyperfemininenor hypermasculine Belonging to a club
Picture of Sender
Picture of RecipientProf Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 1983
19
A brandrsquos associations areassets that can differentiate
provide reasons to buy instilconfidence and trust affectfeelings towards a product and
the use experience andprovide the basis for brandextension
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
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82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2083
A key step in creating a brand is to determine the brandrsquos
identity or vision ndash the associations that the brand aspires to
represent
The process of creating a brand identity or vision can providea good framework for making business strategy decisions
20
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2183
21
Having created the brandidentity the awareness and
presence of the brand is to bebuilt economically andefficientlyBrand awareness has several
benefitsFirst awareness provides thebrand with a sense of familiarity
and people like the familiar
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2283
22
Second name awareness canbe a signal of presence
commitment and substanceThe logic is that if a name isrecognised there must be areasonThird the salience of a brandwill determine if it is recalledat a key time in the
purchasing process
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2383
Having created the brand identity andawareness the next step is toactually establish the brand meaning
in the mind of the target customersthrough positive brand experience
Brand meaning relates to theperformance of the brand and the
imagery of the brandBrand performance relates to how theproduct or service meets customerrsquosfunctional needs
23
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2483
24
Brand imagery deals with theextrinsic properties of the product orservice including the ways in whichthe brand attempts to meetcustomerrsquos psychological or socialneeds
The next level is the response (judgments and feelings) the brand
receives from the target customers Brand judgments focus on
customerrsquos own personal opinionsand evaluations
Brand feelings are customerrsquos
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2583
It is necessary to manage all the customersrsquobrand contacts so that they meet or exceedthe customersrsquo expectations associated withthe brand
This would call for emphasizing not onlyfunctional benefits but also process benefits (which makes transactions between buyersand sellers easier quicker cheaper andmore pleasant) and relationship benefits (which rewards the consumers for continuedrelationships with the company)
25
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2683
The final level of the brand is the brand resonance which refers to the nature of relationship thatcustomers have with the brand and the extent to
which customers feel that they are ldquoin syncrdquo withthe brand
26
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2783
27
Resonance is characterized interms of the intensity or depth of the psychological bond customershave with the brand as well as theactivity engendered by this loyalty
Brand Loyalty is concerned withhow and why customers are willingto enter into a relationship with aparticular company (rather thanmerely conducting singletransactions with it)
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2883
28
The brand loyalty is based
essentially on trust andconfidence This trust and confidence is
built over extendedinteractions between thecustomer and thebrandsupplier
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 2983
29
Elements Of BrandTrust
Brand TrustCompetence
Probity
Continuity
CaringValue
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3083
30
Competence technicalcapability to completely make
the product or effectivelydeliver the service they areoffering Back
Probity belief that thecompany will conduct itstransactions with a customer
in an honest and fair way Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3183
31
Continuity belief that thecompany has the resources
and commitment necessary toremain in the business arearelevant to the customer
This is particularly importantin relation to products whichhave a long lifetime Back
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3283
32
Caring the companyrsquos employeesare sufficiently motivated to care
about the quality of service orperformance they deliver Back Value Resonance it is concerned
whether or not the brandcompany
expresses values which theindividual consumer aspires toincorporate in their personal lifestyle
What Makes a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3383
33
Pyramid
1Identity =Who are you
2 Meaning =What are you
4 Relationships =
What about youand me
Deep broadbrand
awareness
Positiveaccessible
reactions
Intense
activeloyalty
Salience
P e r f o
r m a n
c e I m a g e r y
Strong favorableunique brandassociations
J u d
g m e n t s
3Response= What
about you
F e e l i n g
s
Resonance
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3483
34
Why to Make a BrandBuilding a strong brand identityawareness positive brandresponse and brand loyaltylead to a strong brand equityBrand equity is a set of assets
linked to a brandrsquos name andsymbol that add to the valueprovided by a product or serviceto a customer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3583
35
Brand equity results incustomers showing a
preference for one productover another when they arebasically identical
The extent to which customersare willing to pay more for theparticular brand is a measure
of brand equity
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3683
The creation of significant brand equity involvesreaching the top of the brand pyramid (brandresonance) and will occur only if the right building
blocks are put into place
36
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3783
37
Branding gives the companythe opportunity to attract loyal
and profitable set of customers
The reputation of the brand is
a source of demand and lastingattractiveness the image of superior quality and added
value justifies a premium
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3883
38
A dominant brand is an entry barrier to competitors because it acts as asa reference in its categoryIf it is a prestigious or a trendsetterin terms of style it can generatesubstantial royalties by granting
licensesStrong brands help build thecorporate image making it easier tolaunch new brands and gain
acceptance by distributors and
Why to Make a Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 3983
WHAT ARE THE BENEFITS OF
THE BRAND FOR CONSUMER
39
Function
Identification To be clearly seen to quicklyidentify
the sought-after products
Consumer Benefit
Practicality To allow savings of time andenergy
through identical repurchasingand
loyaltyGuarantee To be sure of finding the same qualityno matter where or when you buy theproduct
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4083
40
Function
ptimization To be of buying the best product in its
category the best performer for aparticular purpose
Consumer Benefit
CharacterizationTo have a confirmation of yourself
image that you present to othersContinuity Satisfaction brought aboutthrough
familiarity and intimacy with thebrand that you have been
consuming
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
a are e ene s
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4183
41
Function
edonistic Satisfaction linked to the attractivenessof the brand to its logo to itscommunication
Ethical Satisfaction linked to the
responsible behaviour of of the brand in itsrelationship with society
Consumer Benefit
a are e ene sof the Brand for
Consumer
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4283
HOW TO POSITION A BRAND
Positioning a brand means emphasizing thedistinctive characteristics that make it differentfrom its competitors and appealing to public
It results from an analytical process based on thefollowing questions
42Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4383
HOW TO POSITION A BRAND
bull A brand for what This refers to brand promiseand consumer benefit aspect
bull A brand for whom This refers to the targetaspect
bull A brand for when This refers to the occasionwhen the brand will be consumed
bull A brand against whom This question defines themain competitors
43Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4483
HOW TO POSITION A BRAND
Brand positioning indicate what thebrandrsquos essential difference and raisondrsquoetre is in comparison with otherproducts and brands of that category
The aim of positioning is to identifyand take possession of a strong
purchasing rationale that gives us areal or perceived advantage
44Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4583
45
Cadburys-Dairy Milk-IwmvCadburys-Dairy Milk-IIwmv
Cadburys-Dairy Milk-IIIwmv
Cadbury Pappumpg
Cadbury - Khush Hoon Kha Makhampg
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4683
WHAT IS BRAND PORTFOLIO
The brand portfolio includes all the brands managedby the organization
bull
A corporate brand is a brandthat represents the corporationndash or more generally anorganization ndash and reflects its
heritage values culturepeople and strategy
46Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4783
WHAT IS BRAND PORTFOLIO
bullA master (or parent) brand is theprimary indicator of the offeringthe point of reference
bullGE is a master brand underwhich company sellsrefrigerators aircraft engines
and variety of other goodsbullCrest is a master brand thatdefines a line of dental productsfrom PampG
47Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4883
WHAT IS BRAND PORTFOLIO
bull The subbrands are brands thatmodifies a master brand (whichremains the primary frame of reference) by adding to or changingits associations (such as anattribute a benefit or personality)
bull
Example Pepsi Twist Pepsi BlueSony Walkman Toyota Corolla
48Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 4983
WHAT IS BRAND PORTFOLIObull An umbrella brand defines a grouping of product offerings (Microsoft OfficeWord Microsoft Office Excel etc)under one common brand (MicrosoftOffice)
bull A cash cow brand is a brand that maybe stagnant or slowly declining butthere is a hardcore loyal customer basethat is unlikely to leave the brand Thebrand does not require muchinvestment Example Sony Walkman
49Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5083
50
Co-branding occurs when twodifferent companies pair their
respective brands in acollaborative marketing effortEach brand sponsor expects
that other brand name willstrengthen brand preferenceor purchase intention
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5183
51
Product Category
Bran
dNam e
Existing New
Existing
New
Line Extension
Multi-Brand
Brand Extension
New Brand
BRAND PORTFOLIO
Prof Carlos Wolff
h i d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5283
52
Line extensions occurs when acompany introduces additional
items in the same productcategory under the samebrand name usually with new
flavours forms colours addedingredients package sizesand so on
Eg Colgate Herbal Colgate
What is BrandPortfolio
Prof Carlos Wolff
Wh i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5383
53
Brand extension occurs when a
company decides to use anexisting brand name to launcha product in the new category
Eg Dettol Dettol Soap
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5483
54
BrandLine extension offers a
number of advantagesInstant recognition and earlieracceptanceSaves considerable
advertisement costs
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5583
55
BrandLine extension alsoinvolves risks
The new product mightdisappoint buyers and damagetheir respect for companyrsquosother products
The brand name may lose itsspecial positioning in theconsumerrsquos mind through overextension - a phenomenon
called ldquobrand dilutionrdquo
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5683
56
A company will often introduceadditional brands in the sameproduct category
One of the motives for multibranding is to establish differentfeatures andor appeal to differentbuying motives
It also enables the company tolock up more distributor shelf space and protect its major brandby setting up flanker brands
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5783
If a brand is attacked by a competitor with a valueoffer or unique position any response can risk itsimage and brand equity
The solution is to use a flanker or fighting brand tofight a competitor thereby insulating the originalbrand from the fray
57
What is BrandPortfolio
Prof Carlos Wolff
Wh t i B d
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5883
For example when Pepsi launched aclear cola Coke came out with aflanker brand Tab Clear which
positioned the new sub-category ashaving inferior taste
Philip Morris introduced a discountbrand of cigarettes Basic as a no-frills flanker brand designed toprotect Marlboro and preserve itspremium price position
58
What is BrandPortfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 5983
HOW TO MANAGE BRAND
PORTFOLIOA brand needs to gain and maintainrelevance or no amount of
differentiation or loyalty will matterRelevance means that the brand willbe considered for a product categoryor sub-category and that the productcategory or sub-category will beneeded
59Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6083
HOW TO MANAGE BRAND
PORTFOLIOTo become considered a brand musthave both sufficient visibility andperformance credibility
Toyota Corolla and Chevrolet Prism were for many years made to thesame design by the same factory
The Prism until it was discontinued
was discounted more and still hadsales less than one-fourth of Corollabecause a perceived quality gap hadprecipitated a relevance problem
60Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6183
HOW TO MANAGE BRAND
PORTFOLIOIt may therefore be wise to invest inbuilding the fewest number of thestrongest brands needed to cover
and compete in all the desiredmarkets
Resist adding new brands that arenot needed and be disciplined aboutremoving existing brands from theportfolio if they are not needed
61Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6283
HOW TO MANAGE BRAND
PORTFOLIOOf its 250 brands PampGrsquos top tenbrands account for half of its salesand more than half of its profits
The bottom 1200 brands in Unileverrsquos 1600 brand portfolio accounted foronly 8 of the companyrsquos total sales in1999
The vast majority of Nestlersquos profitscome from a tiny percentage of morethan 8000 brands worldwide
62Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6383
HOW TO MANAGE BRAND
PORTFOLIOManaging mammoth multi-brand portfoliosespecially within the same product categorypresents following major problems
bull
Insufficient differentiationbull Inefficiency
bull Lower market power
bull Management complexity
63Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6483
HOW TO MANAGE BRAND
PORTFOLIOAn effective brand rationalization process has fouressential steps
bull Conduct a brand portfolio audit
bull Determine the optimal brand portfoliobull Select appropriate brand deletion strategies
bull Develop a growth strategy for the survivingbrands
64Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6583
HOW TO MANAGE BRAND
PORTFOLIOIn general there are four criteria forevaluation of a brand portfolio
bull
Brand Equitybull Awareness
bull Reputation
bull Differentiation
bull Relevance
bull Loyalty
65Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6683
HOW TO MANAGE BRAND
PORTFOLIOBusiness Strength
bull Sales
bull ShareMarket Position
bull Profit Margin
bull Growth
Strategic Fit
bull
Extendabilitybull Business Fit
66Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6783
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6883
68
BrandMarketShare()
Regional Presence
Region1
Region2
Region3
Region4
Region5
Region6
A
B
CD
E
F
Brand Portfolio Audit
Top half of the box Market positionD = Dominant (1 in the region)S = Strong (2 or 3 in the region)W = Weak (4 or less in the region)NP = Not present in the region
Bottom half of the box Brand positioningQuality value upscale fun adventurousPremium safe reliable trustworthyaggressive cheap etc
SFun
WValue
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 6983
HOW TO MANAGE BRAND
PORTFOLIODetermine the optimal brandportfolio
Companies utilize twocomplementary processes todetermine optimal portfolio
bull Overall corporate portfolio approach
bull Benefits-based segmentation approach
The first approach is a relatively top-down process
69Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7083
HOW TO MANAGE BRAND
PORTFOLIOIt broadly evaluates the brand portfoliousing a few simple figures such asminimum sales market share position
growth rate and geographical reach
The benefits-based segmentation approach examines the number andtypes of need-based segments that existwithin each individual category in whichthe firm competes
70Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7183
HOW TO MANAGE BRAND
PORTFOLIOSince a company must position everyband against an unique segment of consumers this bottom-up process helps
manager to determine the optimal brandportfolio in terms of individualcategories and implementation
The benefits-based approach works well
for companies where managers want torationalize a group of brands thatcompete in the same category
71Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7283
72
On the other hand if companieswith hundreds of brands across
categories want to rationalizetheir entire brand portfolio atone go then it would be betterto start with the corporateportfolio-based approach to
determine the overall directionand then move to the benefits-based segmentation approach
How to Manage Brand
Portfolio
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7383
HOW TO MANAGE BRAND
PORTFOLIOSelect appropriate brand deletion strategies
Companies should sell non-core brands thatwill not likely become competitors but could
offer value to others
Companies should milk for profits thosebrands that have some customer franchise butare neither core to the firmrsquos direction nor
valuable to others
73Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7483
HOW TO MANAGE BRAND
PORTFOLIOCompanies may safely eliminate minorbrands with poor sales
To migrate loyal customers a companycan issue them coupons or samples forthe most adjacent surviving brand inthe portfolio
Finally company can merge two brandsinto one if the lesser brand is stillmaintaining significant sales in a corecategory
74Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7583
HOW TO MANAGE BRAND
PORTFOLIOMerging sometimes referred to asbrand transfer or brand migrationreduces number of brands without
losing sales because marketingmigrates the associated customers tothe surviving brand
Depending on the competitive and
corporate pressures companieschoose between adopting a quick change versus a gradual brandtransfer strategy
75Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7683
HOW TO MANAGE BRAND
PORTFOLIOA quick change with a new brand nameworks when a firm wants to break clearly from past
Example Sandoz and Ciba-Geigy toNovartis
Merged companies can quickly drop onebrand
Example Swiss Banks UBS and SBS toUBS
This works well when one brand issignificantly stronger than the other
76Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7783
HOW TO MANAGE BRAND
PORTFOLIOIf both brands have strong brandfranchises then a firm can adopt agradual brand migration strategy bysub-branding or dual branding duringthe transition before eventuallydropping the weaker one
Example D2 Vodafone in GermanyOmnitel Vodafone in Italy changed toVodafone over a period of two years
77Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7883
HOW TO MANAGE BRAND
PORTFOLIODevelop a growth strategy for thesurviving brands
As part of the brand deletion process
managers must identify opportunities tobuild fewer stronger brands throughenhancements and investments
Brand enhancement can be done by
migrating useful characteristics from thedeleted brands to the remaining ones
78Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 7983
HOW TO MANAGE BRAND
PORTFOLIOBrand investment redirects theresources freed from the discontinuedbrands to the surviving brands
By merging brands companies cangenerate substantial savings throughgreater economies of scale in supply
chain sales and marketingExamples PampG HUL
79Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8083
HOW TO MANAGE BRAND
PORTFOLIOWith growing retailer power and moreglobal customers companies cannotsustain weaker brands and must
embark on brand rationalizationBrand rationalization should be a topmanagement concern as in theimmediately short run it usually
lowers firmrsquos revenuesHowever at the end brandrationalization is profitable
80Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8183
81
How to Build both
Business and Brand The brand is not all it captures
the fame but is made possible
by the business model Brand and business model are
intimately intertwined
Dellrsquos high brand value hascertainly been largelycontributed by Dellrsquos businessmodel
Prof Carlos Wolff
H t B ild b th
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8283
82
The goal of strategy is to build asustainable advantage over
competition and brands are oneof the very few ways of achievingthis
The business model is another
There are several alternativebusiness models ProductLeadership OperationalExcellence and Customer
Intimacy
How to Build both
Business and Brand
Prof Carlos Wolff
872019 Brand Management [24910]
httpslidepdfcomreaderfullbrand-management-24910 8383