MANAGING BRAND SYSTEMS

Managing Brand Systems

Companies often find themselves struggling to manage a number of different brand identities in several different situations & for a variety of audiences. e.g. Hewlett-Packard must manage the mother brand HP in a host of products & markets, and also manage a complex range of inter-related brands of printers, software & hardware products. A Brand System means considering brands as not just individual performers but members of a system of brands that must work to support one another. A Brand system serves as a launching platform for new products / brands & as a foundation for all brands.

Managing Brand Systems

Brand Hierarchy Example 1: Corporate Brand: Toyota Range Brand: Lexus Product Line Brand: Toyota Lexus Sub Brand: Toyota Lexus LS 460 Branded Feature/ Component/ service: Slogan Imagine Driving It, Higher horsepower, Better engine, 50 new luxury features Most appreciated model, has received awards every year since 1990 for design, engg, quality & customer satisfaction

Managing Brand Systems

Brand Hierarchy Example 2: Corporate Brand: P&G Range Brand: Pantene Pro V Product Line Brand: Hair Fall Control/ Smooth & Silky / Nourished Shine Sub Brand: Hair Fall Control Shampoo/ Conditioner Branded Feature/ Component/ service: Strong healthy hair from root to tip, Essential nutrients, prevents breakage

Managing Brand Systems

Understanding Brand Roles
Driver Silver Bullets

Endorser

Brand Roles
Branded Benefits Strategic Brands

Sub Brand Roles

Managing Brand Systems

Driver Role Is a brand that drives Purchase decision Its Identity represents what the customer expects to receive from the purchase It represents the value proposition that is central to the purchase decision E.g. Gillette Sensor Razor customers are buying the technology & performance of the Sensor name, so Sensor is the Driver brand, its name & symbol have a strong identity & clear visibility on the pack, also on mind of the customer. Gillette is the Endorser brand

Managing Brand Systems

In case of Pantene ProV, Hair Fall Range, Hair Fall range is the Driver brand, because it represents the value proposition offered by the product, while Pantene ProV is the Endorser brand

Managing Brand Systems

In case of BMW series or Mercedes series, these are the Driver brands, because customers buy the value proposition represented by BMW or Mercedes, rather than what the model offers However in case of Ford Figo or Chevrolet Beat, there may be Dual Driver brands. The Figo or Beat may have an influence on the purchase decision, yet Ford or Chevrolet too have an active role to play in the same decision Although the Brand strategy may be to make Figo the Driver brand, customers are buying Figo based on its Ford identity

Managing Brand Systems

Dual Driver brands may cause conflicts if the brands belong to different companies. E.g. A conscious decision to withdraw the Intel Inside campaign was taken by Compaq, when they felt that Intel was becoming the Driver brand & eclipsing the Compaq name. Although there were substantial costs & risks involved in doing it, Compaq wanted to make sure that it was the Driver brand for its computers

Managing Brand Systems

Endorser Role A brand in this role, provides support & credibility to the Driver brands claims Because the corporate brand usually represents an orgn with people, culture, values & programs, it is well suited to support the Driver brand ?& hence plays the role of the Endorser E.g. Kelloggs is Endorser for Chocos Apple . iPod, iPad Sony Vaio Honda.. City Cadbury Perk

Managing Brand Systems

The role of the Endorser is to reassure the customer that the product will deliver the promised functional/ emotional/ self-exp benefit because the company behind the brand is a successful orgn The Endorser may have a special credibility with respect to certain areas of expertise such as Kelloggs in breakfast cereals, Honda in car engines, Philips in lighting. This reassurance is particularly important when the product is new or untested like new technology e.g. iPad from Apple

Managing Brand Systems

An Endorser brand may fade later after it provides initial support E.g. In 1994, Levis launched its brand Dockers, which was targeted towards the older men, with a different fit & style. This contrasted with Levis image of young, rugged, urban male and there was a risk of Levis user imagery being diluted by Dockers. So as Dockers became more popular, Levis was dropped from its advertising & promotional campaign. This strategy is also known as Brand Bridging Strategy For Consumer Durable Products & industrial products, The Endorser can signal that the company will make sure that the brand is supported with service & other back-up

Managing Brand Systems

E.g. Servicing of Aquaguard Water Purifiers by Eureka Forbes, availability of Printer cartridges by HP for their entire range of Printers, Service centres & availability of spare parts for Honda cars A customer investing huge amount of money & time in such a product will want to know that there are resources & commitment behind the brand from its orgn In such cases, the brand performs both the roles of Driver & Endorser simultaneously as the value proposition is provided by the product & the support by the orgn e.g. HP

Managing Brand Systems

Strategic Brands Marketing budgets are usually spent on growing brands & problem brands It then becomes a Strategy to allocate resources by classifying brands into Divestment candidates/brands, Milkers & Strategic brands A Divestment candidate is a brand which faces an unattractive market with weak position, does not fit in the future vision of the orgn Reasons could be many squeezed margins, declining sales, industry dynamics, too much expenditure to turn it around

Managing Brand Systems

A Milker is a brand that may be tired but has some real strengths, may have a core customer base that supports its margins & the brand can be supported with minimal resources, it also provides a positive cash flow to fund other brands A Strategic Brand is one which fits into the future of the orgn, it may represent a meaningful qty of sales & profits in future, it is already a large dominant brand, can maintain its market position, or is a new product which can become a major success E.g. Lux is a Milker brand for HUL whereas Dove is a Strategic Brand

Managing Brand Systems

Sub Brand Roles A Sub Brand is a brand that distinguishes a part of the product line within the brand system E.g. Ford uses Sub Brand Figo to distinguish a specific model, its characteristics & personality from another model such as Fiesta. Both belong to Ford but each is a different product The SubBrand can be a Driver or a Descriptor brand E.g. Chocos has a Driver role for Kelloggs but Chocolate Horlicks is a Descriptor brand It is imp to know the roles of subbrands & also determine what roles are involved in each case

Managing Brand Systems

The SubBrand the foll tasks: 1. Describe offerings 2. Structure & clarify offerings 3. Augment or modify identity 4. Exploit market opportunities 5. Facilitate horizontal or vertical extension strategy 1. Describe Offerings : Communicates the product class/features/target segment/function of the brand E.g. Colgate Plax anti- plaque mouthwash & Colgate Total toothpaste both indicate function of the products

Managing Brand Systems

Colgate is the driver brand, driving purchase decision & define use experience for both products The advantage is that the sub-brand does not divert attention from the driver brand (Plax/ Total does not detract from the Colgate brand name) A descriptive sub-brand can specify segments by suggesting that the products provide functional & emotional benefits sought by the target segment E.g. HP printers come in various target segments like Colour Printers, Multi-function printers, LaserJet Printers & Specialty printers to suit each type of customerhome/office/business/professionals like photographers, etc

Managing Brand Systems

Companies create a family of descriptive brands by using a common prefix or suffix to relate sub-brands e.g. McDonalds is known for sub-branding its products by adding the Mc pre-fix as in McChicken, McVeggie, McMuffin, McGrill, etc

2. Structure & Clarify Options Companies create new products/services to either meet needs of a poorly served segment of customers or to reach a niche segment which has been left out by the company Unfortunately the more products the company offers, the more confused the consumers become

Managing Brand Systems

Sub-brands provide a way to offer diff products or serve diff markets under one brand name & minimize customer confusion & brand dilution The customer understands that the new product fits within the brand system& possesses aspects of brand identity but also that the new product is different from other products in the brand system E.g. Taj Group of hotels own about 96 hotels in India & have acquired a few palaces belonging to royal families in India, now converted to luxury hotels. Therefore, they offer various themes as holiday packages ranging from basic to ultra luxury as well as separate packages for corporates & business destinations.

Managing Brand Systems

The holiday themes are Royal Retreats, Romantic Rendezvous, Family Vacations, Culture Carnivals & Soothing Spa Sojourns. Each offers a diff experience & price to suit every budget.

3. Augment/ Modify Identity An analysis of a new business area often shows that the development of a new brand would be prohibitively expensive To stretch the existing identity of the brand to newer products may be a liability as it dilutes the identity & associations E.g. Garnier has used its brand name to market various products for men & women in bodycare,

Managing Brand Systems

skin care, hair care, deodorants, hair styling & hair color. The brand name is now synonymous with gender-neutral associations. E.g. Tropicana is known for its fresh juices & their ads have spoken of 100% pure & natural juice without concentrate. Its a quality claim for this product category & competitors are unlikely to use this theme in their ads. Their new campaign lets make breakfast 100% is solidifying the brands quality position & thus reducing competitors to exploit a niche segment. Strong brands have clear, well-defined identity & personality

Managing Brand Systems

However, this may turn to be a disadvantage when the brand extends to new products or new markets Brands like Surf have close association with just one product class (detergents) & hence reduced ability to stretch their identity to other product classes A sub-brand can help to break the brand out of this box Another interesting term was provided by C.Park & A. Shocker modifier brands & modified brands Kelloggs is the modifier in Kelloggs Corn flakes, Corn flakes is modified in Kelloggs Corn flakes

Managing Brand Systems

In Kelloggs Cornflakes, Cornflakes are perceived first as healthy breakfast cereal, then the endorser brand Kelloggs.

4. Exploit Market Opportunities When a emerging niche is detected by an orgn, a sub-brand for that segment is tailored/ developed, usually with minimum investment If the segment grows, the sub-brand can be allowed to stay for long term business If the segment is short lived, the sub-brand can be allowed to die, without putting the core brand in any risk

Managing Brand Systems

This strategy is called Strategic Opportunism, it provides a way for a firm to be flexible & quick on its feet when coping with a dynamic & uncertain environment Nike is a particularly good company at Strategic Opportunism, it introduces hundreds of new shoe designs every year, for 30 different sports. It identifies segments & creates sub-brands. Strong emotional ties are formed with the target customers by innovation in products & celebrity athlete endorsers.

Managing Brand Systems

5. Support Vertical & Horizontal Extensions (more in detail in Ch 9 Leveraging Brands) Branding Benefits 1. Branding a Feature Oral B has been the leader in the tooth brush market as the brand which dentists use. In 1990s, its leadership position was under attack from J&Js Reach toothbrush, Colgates Precision & P&Gs Crest. Oral B responded with a new toothbrush with a descriptive brand name Advantage Plaque Remover toothbrush. It had already branded its Indicator bristles which change colour when brush is worn out.

Managing Brand Systems

When designing a new or improved product, there should be more design features that enable the brand to excel & these features should be communicated well. E.g. Iron Shakti in Kelloggs DHA in Bournvita Lil Champs Moisturizing Milk in Dove Soap/ Shampoo Multi-vitamin in Fair & Lovely Fairness Cream 2. Branding a Component Adding a branded component provides a point of differentiation because of the association the consumer has with the component

Managing Brand Systems

Cadburys Bournville is seen as a rich dark chocolate which you have to earn because every cocoa is not suitable to become a Bournville & only special ones with the right colour, flavour & taste are selected from Ghana to be used in the manufacturing of this chocolate Consumers automatically make associations that Cadburys has spent centuries in the art of chocolate making & hence what they offer is the best. (perceived quality) Another example is that of Intel, most popular branded component of PCs & laptops Cost benefits for both brands are seen as costs of manufacturing & advertising are shared

Managing Brand Systems

3. Branding a Service Banks, Hotels, Airlines often brand services for its various class of customersbusiness plans, family plans, Gold/Silver/ Platinum class, etc Silver Bullets Is a sub-brand or a branded benefit that is employed for changing or supporting brand image of parent brand Term coined by Regis McKenna Etios Liva is a silver bullet for Toyota, that shows that Toyota can design & build cars in the small car segment

Managing Brand Systems

Silver bullets deserve extra resource allocations in forms of advtg & product developmt A branded benefit (feature/component/service) can also play a silver bullet role by supporting the brand image Tata Tea has created the Jaago Re club that reflects the social causes/ issues that are faced by citizens & anyone interested in tackling these issues or voicing their opinions or commenting can join the club Saffola has its website Saffolalife.com where you can find your hearts age by filling a simple questionnaire.