Post on 21-Nov-2014
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Single Vs. Umbrella branding
in the context of ITC and Tata Motors
Presentation bySARAH MARY MATHEW
Sem 2, MBAMACFAST, Tiruvalla
Kerala, India
Individual branding
Individual branding, also called multi branding, is the marketing strategy of giving each product in a product portfolio its own unique brand name.
Individual branding is where each product is promoted as its own separate entity by using different brand names for different products
Advantages of Individual Branding
Each product has its own unique image
It facilitates the positioning process i.e., one can position all products differently without making trade-offs.
It works best when your company has several unrelated products
The company does not tie its reputation to the product- If the product fails or appears to have low quality, the company’s name or image is not hurt.
Additionally the term individual branding is used for keeping the brands of a company unchanged after a merger and acquisition
Drawbacks of Individual Branding
split markets
split efforts
possibility of imbalance within your company.
‘One brand all products’- umbrella branding
An umbrella brand can be referred to as a brand when a group of products possess the same brand name which is known as a family brand or an umbrella brand. Different products having different brand images are put together under one major brand or parent brand and are marketed by the firm
Umbrella branding uses a single brand name, and in some cases same logo, for different products.
Umbrella Brand Strategy The same brand supports several products in different markets. Each of them has its own advertising tool and its own communications The main advantage of umbrella strategy is the capitalization on one single name and economies of scale on an international level
Umbrella Branding benefits or advantages They offer sale across many categories and markets
For all the different products and services, advertising, promotion tools can be combined.
It's a motivator for employees
Benefits from economies of scale and product range efficiency
Promotion is very cheap and easy for products falling under umbrella branding. New products can be launched with limited spending
Launching of a new product under umbrella gains recognition easily as it is introduced in the market which has already accepted the brand image.
Disadvantages of Umbrella Branding
•Quality of brands within umbrella brand may vary
•Impact of bad publicity can damage the umbrella brand
•Easy to over extend the umbrella brand
•More difficult to achieve a distinct brand identity
SINGLE VS. UMBRELLA BRANDING
Brands are not just labels to discriminate product offerings in the market.But today, brands represent the intangible value that is created by the firm through the marketing effort. This results in preference for the brand and willingness to pay a premium.
There are cases where the umbrella brand has added value. Such as in case of Johnson n Johnson.
But this need not be the case always.
If the brand is diluted as a result of the product association, or the brand has specific meanings that do not rhyme well with the product category, umbrella branding is not good strategy.
Eg: A ‘Harpic’ chocolate or ‘Dettol’ ice cream may never be attempted.
Since brands are expensive to create and maintain, it makes sense for a firm to leverage the strength of an already established brand across product categories.
Managing several independent brands as separate entities without cannibalizing each other is not easy.
Many firms can find the challenge of managing multiple brands intimidating.
Therefore, the trend towards umbrella brands is inescapable and has many advantages
Purpose of umbrella branding1. It is easy to identify the new brand in the company under
umbrella branding by the customers.2. It gives uniformity to all the brands falling under it may be
through one designated approach of advertising, promotion, packing etc.
3. It is a very economical strategy to be implemented.4. It is probably the best way to enter into new segments or
introduce a new product to market.5. It will be very profitable for firms which are having different
quality of brands and different images of brands if followed properly.
6. It is the branding strategy that gives the probability of a brand extension for every possible quality of profile.
This being the case, the drawbacks of family marketing only occur if one product's standards drop or are not maintained, as this reflects negatively on the group as a whole.
ITC From a leading cigarette manufacturer to an umbrella group that
offers a diversified product mix
Why they did this ? •Huge Imposition of Govt. on Cigarette Market •To reduce dependence on cigarette business
How they did ? •The Company’s relentless efforts to create value through International quality products. •Significant investments in technology and product development •Strong portfolio of brands have enabled it to maintain its leadership position in terms of market standing and share. •Customization of product •Brand image enhancement
1910
ITC was incorporated under the name Imperial Tobacco Company of India Limited.
1970 The name of the Company was changed from Imperial
Tobacco Company of India Limited to India Tobacco Company Limited
1974 The name was again changed to I.T.C. Limited.
Thus removing the full stops the Company's name has caused for its diversification into different range of
products
The Company's multi-business portfolio encompassing a wide range of businesses
• Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches
Fast Moving Consumer
Goods•Luxury Collection, Welcome
Hotels, Fortune Hotels and Welcome Heritage.
Hotels
•Paperkraft -Classmate•Colour Crew Paperboards
& Specialty Papers
Packaging
Agri-Business
Information Technology
The Company's multi-business portfolio encompassing a wide range of businesses
Tata Motors India’s largest automobile company, formerly known as Tata Engineering and Locomotive Company
1945Established in 1945, it is also among the world’s top five manufacturers of medium and heavy trucks and the world’s second largest medium and heavy bus manufacturer 1954The company, began manufacturing commercial vehicles with a 15-year collaboration agreement with Daimler Benz of Germany.
It has, since, developed Tata Ace, India’s first indigenous light commercial vehicle
1991Entered the passenger vehicles segment and now ranks second in India in this market
1998Tata Indica, India’s first indigenously manufactured passenger car
2005Tata Safari, India’s first sports utility vehicle
2008The Nano, the world’s cheapest car.
Most recently, Tata Motors acquired Jaguar/Land Rover from Ford Motor in 2009 for more than $2 billion.
PRODUCT PROFILE OF TATA MOTORS Passenger car & utility vehicle:
Tata Sumo(1994)Tata Indica(1998)Tata Manza(2002)
Tata Indigo marina(2004)Tata Safari(2005)
Tata Xenon XT(2006)Tata Indigo(2007)
Tata Winger(2007) Tata Magic(2007)Tata Vista(2008) Tata Nano(2008)
Tata Aria(2010)Tata Xover()
Commercial Vehicles: Tata Ace
Tata Starbus Tata Globus
Tata marcopolo bus Tata Novus Tata 407EX
Military Vehicles: Tata LSV Tata 407 Troop Carrier Tata Winger Passenger Mini Bus
Jaguar
Land Rover
Your goal is for people to feel comfortable with your product.
Whether you choose an individual or family marketing strategy, you want them to understand that your product is out there, waiting to benefit
them.
If you can earn this understanding, even in a tiny corner of the consumer's mind, as a company you
have won a great victory.