CHAPTER 11: DESIGNING AND IMPLEMENTING BRAND

STRATEGIES

1. Learning Objectives:
After reading this chapter, you should be able to
1. Define the key components of brand architecture.
2. Outline the guidelines for developing a good brand portfolio.
3. Assemble a basic brand hierarchy for a brand.
4. Describe how a corporate brand is different from a product brand.
5. Explain the rationale behind cause marketing and green marketing.

2. List of Contents: Chapter 11 Designing and Implementing Brand

Strategies

1. Brand Architecture
1.1 Brand-Product Matrix
1.2 Breadth of a Branding Strategy
1.3 Depth of a Branding Strategy

2. Brand Hierarchies
2.1 Levels of a Brand Hierarchy
2.2 Corporate Image Dimensions

3. Designing a Brand Hierarchy

3.1 Number of Hierarchy Levels
3.2 Levels of Awareness and Associations
3.3 Linking Brands at Different Levels
3.4 Linking Brands Across Products

4. Brand Architecture Guidelines

5. Corporate Brand Campaign

6. Using Cause Marketing to Build Brand Equity

3. Description of Contents:
Branding strategy is critical because it is the means by which the firm can help consumers
understand its products and services and organize them in their minds.

Two important strategic tools: The brand-product matrix and the brand hierarchy help to
characterize and formulate branding strategies by defining various relationships among brands
and products.

1. Brand Architecture

The branding strategy for a firm reflects the number and nature of common or distinctive brand
elements applied to the different products sold by the firm. Which brand elements can be applied
to which products and the nature of new and existing brand elements to be applied to new
products.

 The role of Brand Architecture

 Clarify-brand awareness

o Improve consumer understanding and communicate similarity and

differences between individual products

 Motivate-brand image

o Maximize transfer of equity to/from the brand to individual products to

improve trial and repeat purchase

1.1 Brand-Product Matrix

 Must define:

o Brand-Product relationships (rows)

  Line and category extensions

o Product-Brand relationships (columns)

 Brand portfolio

 Important Definitions

 Product line: A group of products within a product category that are closely related.

 Product mix (product assortment): The set of all product lines and items that a
particular seller makes available to buyers.

 Brand mix (brand assortment): The set of all brand lines that a particular seller makes
available to buyers.

1.2 Breadth of a Branding Strategy

 Breadth of product mix

 Aggregate market factors

 Category factors

 Environmental factors

 Depth of product mix

o Examining the percentage of sales and profits contributed by each item in the
product line.

o Deciding to increase the length of the product line by adding new variants or
items typically expands market coverage and therefore market share but also
increases costs.

1.3 Depth of a Branding Strategy

 The number and nature of different brands marketed in the product class sold by a firm.

 Referred to as brand portfolio.

 The reason is to pursue different market segments, different channels of distribution, or

different geographic boundaries.
  Maximize market coverage and minimize brand overlap.

2. Brand Hierarchy

 A means of summarizing the branding strategy by displaying the number and nature of
common and distinctive brand elements across the firm’s products, revealing the explicit
ordering of brand elements.

 A useful means of graphically portraying a firm’s branding strategy.

Figure 11.1: Brand Hierarchy Tree: Toyota

2.1 Brand Hierarchy Levels

 Corporate Brand Equity

 Occurs when relevant constituents hold strong, favorable, and unique associations about
the corporate brand in memory.

 Encompasses a much wider range of associations than a product brand.

 Family Brands

 Brands applied across a range of product categories.

 An efficient means to link common associations to multiple but distinct products.

 Individual Brands

 Restricted to essentially one product category.

 There may be multiple product types offered on the basis of different models, package
sizes, flavors, etc.

 Modifiers

 Signals refinements or differences in the brand related to factors such as quality levels,
attributes, functions, etc.

 Plays an important organizing role in communicating how different products within a

category that share the same brand name.
2.2 Corporate Image Dimensions

 Corporate product attributes, benefits or attitudes

 Quality
 Innovativeness

 People and relationships

 Customer orientation

 Values and programs

 Concern with the environment

 Social responsibility

 Corporate credibility

 Expertise
 Trustworthiness
 Likability

3. Brand Hierarchy Decisions

 The number of levels of the hierarchy to use in general.

 How brand elements from different levels of the hierarchy are combined, if at all, for any
one particular product.
 How any one brand element is linked, if at all, to multiple products?
 Desired brand awareness and image at each level.

3.1 Number of Hierarchy Levels

 Principle of simplicity: Employ as few levels as possible.

 Principle of clarity: Logic and relationship of all brand elements employed must be
obvious and transparent.

3.2 Levels of Awareness and Associations

  Principle of relevance: Create global associations that are relevant across as many
individual items as possible.

 Principle of differentiation: Differentiate individual items and brands.

3.3 Linking Brands at Different Levels

 Principle of prominence: The relative prominence of brand elements affects perceptions

of product distance and the type of image created for new products.

3.4 Linking Brands Across Products

 Principle of commonality: The more common elements shared by products, the

stronger the linkages.

4. Brand Architecture Guidelines

 Adopt a strong customer focus

 Avoid over-branding

 Establish rules and conventions and be disciplined

 Create broad, robust brand platforms

 Selectively employ sub-brands as means of complementing and strengthening brands

 Selectively extend brands to establish new brand equity and enhance existing brand
equity.

5. Corporate Brand Campaign

 Different objectives are possible:

 Build awareness of the company and the nature of its business

 Create favorable attitudes and perceptions of company credibility

 Link beliefs that can be leveraged by product-specific marketing

 Make a favorable impression on the financial community

 Motivate present employees and attract better recruits

  Influence public opinion on issues.

6. Using Cause Marketing to Build Brand Equity

Cause-related (or cause marketing) has been defined as "the process of formulating and
implementing marketing activities that are characterized by an offer from the firm to contribute a
specified amount to a designated cause when customers engage in revenue-providing exchanges
that satisfy organizational and individual objectives." Many companies sponsor charitable
activities such as the Special Olympic, Live Aid, and AIDS in Africa etc.

6.1 Advantages of Cause Marketing

 Building brand awareness

 Enhancing brand image
 Establishing brand credibility
 Evoking brand feelings
 Creating a sense of brand community
 Eliciting brand engagement

6.2 Green Marketing

 Green Marketing is a special case of cause marketing that is particularly concerned with the
environment. Explosion of environmentally friendly products and marketing programs.
Environmental issues have long affect on marketing practices. There are some
recommendations:

- Green your product before forced to.

- Communicate environmental aspects and issues of products, especially recycled content.

- Deliver on performance and price.

- Dramatize environmental tangible benefits.

Case

Case 11.1: CRAYOLA

Crayola, known for its crayons, first sought to expand its brand meaning by making some fairly
direct brand extensions into other drawing and coloring implements, such as markers, pencils,
paints, pens, brushes, and chalk. The company further expanded beyond coloring and drawing
into arts and crafts, with extensions such as Crayola Chalk, Crayola Clay, Crayola Dough,
Crayola Glitter Glue, and Crayola Scissors. These extensions established a new brand meaning
for Crayola as “colorful arts and crafts for kids.” Crayola says its brand essence is to find the
“what if” in each child: “We believe in unleashing, nurturing and celebrating the colorful
originality in every child. We give kids an invitation that ignites colors that inspire, and tools that
transform original thoughts into visible form. We give colorful wings to the invisible things that
grow in the hearts of children. Because we believe that creatively alive kids grow into inspired
adults.” Subsequent category extensions allowed kids to use their imagination to create colorful
jewelry, glow-inthe- dark animation, and comic books.2

Source: www.crayola.com, accessed December 30, 2011.

Collected From: “Strategic Brand Management: Building, Measuring, and Managing Brand
Equity”, Kevin Lane Keller, 4th Edition, PEARSON

Case 11.2: PRADA

Miuccia Prada is one of the most highly rated fashion designers worldwide. Prada launched a
groundbreaking black nylon handbag with a distinct Prada logo in the early 1990s, which
remains one of the most iconic and desirable handbags to date. Prada is renowned for its
innovative use of textiles, classic cuts that last beyond a season, demure ladylike styles, and
high-quality finish. It has consistently invested in marketing. Miu Miu, also referred to as
Prada’s “little sister,” provides an entry point into the Prada brand and has consistently enjoyed
strong financial results and a positive consumer reaction. Miu Miu was launched to enable
Miuccia Prada to continue to experiment with and communicate her design passions, which she
has had to subdue with Prada following its huge commercial success. Consumers like Miu Miu
for its provocative and sensual avant-garde style. Prada consistently performs despite economic
downturns. Prada was listed on the Hong Kong stock exchange in 2011 and now plans to double
its stores worldwide in three years, with a focus on China. The company has continued to extend
its product range since its inception. It penetrated the eyewear and fragrances markets in 2000
and launched a mobile phone in 2006. Prada and Miu Miu branded sunglasses are produced
under a license agreement by Luxottica Group (LG). Prada perfumes are produced by the Puig
Group. Prada Group has sold well over 1 million Prada phones in partnership with LG. Prada has
successfully developed its Miu Miu sub-brand by keeping its appeal and positioning distinct
from the parent Prada label. All Prada products are clearly labeled with the coveted Miu Miu or
Prada logo.

Source: Prada Group Fact Sheets, March 2012, www. pradagroup.com; Prada 2011 Annual
Report, www.pradagroup.com; Prada Case Study, January 2011,www.marketline.com; “Prada
to Open 50 New Stores in China in Next 3 Years,” 5 October 2011, www chinaretailnews.com;
www.thinkfashion.com; www.purseholic.com.

Collected From: “Strategic Brand Management: Building, Measuring, and Managing Brand
Equity”, Kevin Lane Keller, 4th Edition, PEARSON
Questions:

1. Consider Square Toiletries Ltd. As an example and characterize its brand portfolio and
brand hierarchy. How would you improve the company’s branding strategies?

2. What are some of the product strategies and communication strategies that General
Rahimafroz could use to further enhance the level of perceived differentiation between its
divisions?

3. Consider the any Bangladeshi local company having strong corporate reputations. By
examining their Web sites, can you determine why they have such strong corporate
reputations?

4. Pick a company. As completely as possible, characterize its brand portfolio and brand
hierarchy. How would you improve the company’s branding strategies?

5. Contrast the branding strategies and brand portfolios of market leaders in two different
industries. For example, contrast the approach by Anheuser-Busch and its Budweiser
brand with that of Kellogg in the ready-to-eat cereal category.