branding strategy decision

branding decisions

Decisions a company makes regarding how its product should be branded and promoted

Who will sponsor the brand

Manufacturers brand and middlemen’s brand

Types of brand names

Family brand, generic brand, individual brand

Branding strategies

Line extension brand extension, multiple brands, new brands

Line extension Advantages

Gives customer more choices

Attacks different customer preferences

Helps compete with competitors

Line extension disadvantages

Original brand identity may be lost due to excessive extensions

Customers may be confused

May not increase sales if customers simply switch from the company’s existing products

Brand extension

Using a existing brand name to introduce a product in a completely new product category

Brand extension advantages

Save time and money because brand is already known

New products can gain acceptance more easily

Successful extensions can strengthen brand Equity

Create more brand visibility

Brand extension disadvantages

Can dilute the original brand image and positioning

Unsuccessful product can damage the reputation of the parent brand

Customers may be confused about what the brand represents

Multiple brands

Introducing additional brand names in the same product category to cater to different market segments

Multiple brands advantages

Caters to different market segments

Provide price flexibility

Protect the main brand from price reduction

Helps attract more customers

Multiple brand disadvantage

Companies brand may compete against each other instead of competitors brands

Marketing expenses can increase

New brands

A company creates a completely new brand name when entering a new product category

Features of new brand

A completely new brand name is introduced

Used when entering a new product category

Requires considerable Investment

Company must estimate whether expected sales and profit justify the cost

Features of a global brand

Worldwide recognition

Global consumer needs

Universal promotional strategy

Consistent brand identity

Factors involved in global brand building

Product superiority

Distribution strategy

Cost competitiveness

Types of brand equity perspectives

Brand orientated approach

Customer orientated approach

Financial orientated approach

Value for Customers Brand equity

Helps information processing

Enhances customer confidence

Final usage satisfaction

Value for Marketers Brand equity

Increases marketing effectiveness and efficiency

Greater customer loyalty

Allows premium pricing

Creates distribution channel leverage

Five Elements of Brand Equity

Brand name awareness

Brand associations

Received quality

Proprietary brand assets

Brand loyalty

Brand equity models

Brand asset valuator

Aaker model

Brand z

Brand resonance

Benefits of Brand Licensing

Gets the right to use an established brand.

Benefits from the marketing power and reputation of the brand.

Can achieve quicker business growth.

Can attract customers more easily.

Steps in the Licensed Product Process

Licensor selects

Finds licensees

Product development

Approval

Selling

Features of Brand Franchising

The franchisee uses the franchisor's brand name.

The franchisee follows the franchisor's business model.

The franchisor maintains considerable control over operations and processes.

The franchisor provides branding and marketing support.

The franchisee pays the franchisor.

The franchise agreement defines the relationship between both parties.