83
1 Prof. Carlos Wolff 

Brand Management [24.9.10]

Embed Size (px)

Citation preview

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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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]

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 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 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

872019 Brand Management [24910]

httpslidepdfcomreaderfullbrand-management-24910 8383