Lecture 3: BRANDING Flashcards
Brand
a brand is a name, term, sign, symbol, design or a combination of these, that identifies the products or services of one seller (or group of sellers) and differentiates them from those of competitors.
Brand’s 2 functions
identification function (with respect to core elements)
differentiation function (with respect to competitors)
Brand identity
how you want to be perceived
Each brand needs to have a clear, structured, easily understandable communicable brand identity, which has to reflect the brand’s positioning
* It represents a brand’s DNA -> durable and difficult to change
Brand Image
the perceptions about a brand as reflected by the brand associations (hopefully unique and positive) held in consumer memory
Means to express brand identity
o Vision (or vision statement): declaration of an organization’s objectives (-> broad). Internally and externally communicated. Where the company wants to go. Big picture
o Mission (or mission statement): communicates the purpose of the company: what does it want to accomplish? Internally and externally communicated. The purpose of the product-company how to go to the big picture
Brand Elements
Name
Slogan
Logo
Tone
Character
Packaging
Brand Elements have to be..
memorable, meaningful, likeable, adatable, transferable, protectable
(mimilatap)
3 categories of brand
-Manufacturer brands : developed and marketed by the manufacturers of the product (Cola)
-Own label/ private label brands : developed and marketed by wholesalers or retailers (Great Value by WALMART)
- Generic brands : : indicate the product category (i.e. generic in pharmceuticals) ot associated with any specific company or brand name
Line Extension
(Same Category, New Line)
when a brand introduces new variations of an existing product within the same category.
-> Ferrero introducing Kinder Bueno or Kinder Joy. Both are still chocolates but cater to different tastes or formats.
The category remains the same, but there are variations in flavor, size, or type.
Brand Extension
(New Category)
When a brand uses its name to enter a new product category that is different from what it’s traditionally associated with.
* Example: Montblanc creating wallets.
* Montblanc is known for luxury pens, but by making wallets, they’re entering the leather goods category.
This strategy leverages the brand’s equity (reputation) to enter a completely new category.
2 Brand Strategies
a. Endorsement Branding
b. Ingredient Branding
c. Co-Branding
Endorsement Branding
A well-known brand supports or endorses a sub-brand.
Example: Nestlé endorsing KitKat, with the Nestlé logo appearing subtly on packaging.
Ingredient Branding
A brand highlights an important component or ingredient provided by another brand to add value.
Example: Intel processors used in laptops (e.g., “Intel Inside”).
Co-Branding
Two brands work together to create a single product or experience.
Example: Nike collaborating with Apple for fitness tracking shoes.
Other Brand Strategies
a. Corporate Branding
b. Multi-Brands
c. New Brands
Corporate Branding
The entire organization promotes itself under one unified name and identity.
Example: Apple markets itself as a cohesive brand across all products (MacBooks, iPhones, iPads).
Multi-Brands
(Same category, new brand name)
A company creates multiple brands in the same category to target different market segments.
Example: Procter & Gamble owns Tide, Ariel, and Gain, all laundry detergents targeting different customer preferences.
New Brands
(New Category + New Brand Name)
his strategy involves creating an entirely new brand for a new product category, instead of extending the existing brand name.
Companies use this strategy when the existing brand name does not align with the values, target audience, or identity of the new product category.
- Unilever owns multiple consumer goods brands like Dove, Axe, and Lifebuoy, each targeting different markets and segments.
Local Branding
These are brands developed and marketed to serve the specific needs of a local market (e.g., a country or region). They are deeply rooted in the culture, tastes, and preferences of that location.
Deep-Rooted Bond with Local Consumers
Adapted to Local Tastes/Needs
Logistics: Distribution networks are optimized for local efficiency.
Strong Community Ties:Local brands often support regional events or initiatives to foster goodwill and loyalty.
- Purpose:
To cater specifically to the cultural and regional needs of a local population, creating a sense of belonging
Global Branding
These brands are standardized and marketed globally to reach a broad, international audience. They focus on universal values and messages to appeal to diverse cultures and regions.
- Standardization:
* Products and branding are consistent across multiple countries.
Coca-Cola tastes the same and uses the same logo worldwide. - International Exposure and Market Reach:
Global brands leverage massive international advertising and distribution networks to dominate markets
Nike and McDonald’s are instantly recognizable anywhere in the world.
Brand Portfolio Model
Bastion brand in the middle
Flanker brand in the right and left
Prestige up
Fighter down
Bastion Brand
The main, flagship brand that represents the company’s core identity and generates the majority of revenue.
- Coca-Cola for The Coca-Cola Company.
Prestige Brand
A premium or luxury brand within the portfolio that caters to high-end customers, creating an aspirational image.
* Chanel Beauty under Chanel.
Flanker Brand
A brand positioned to target specific niches or fill gaps in the market, often appealing to segments the core brand might not directly address.
