Managing Brand Systems 8

8/3/2019 Managing Brand Systems 8

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MANAGING BRANDSYSTEMS


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Managing Brand Systems

Companies often find themselves struggling to manage anumber of different brand identities in several differentsituations & for a variety of audiences.

e.g. Hewlett-Packard must manage the mother brand HP in ahost of products & markets, and also manage a complexrange of inter-related brands of printers, software & hardwareproducts.

A Brand System means considering brands as not just

individual performers but members of a system of brands thatmust work to support one another.

A Brand system serves as a launching platform for newproducts / brands & as a foundation for all brands.


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Managing Brand SystemsBrand Hierarchy Example 1:Corporate Brand: Toyota

Range Brand: Lexus

Product Line Brand: Toyota Lexus

Sub Brand: Toyota Lexus LS 460

Branded Feature/

Component/ service: SloganImagine Driving It,

Higher horsepower, Betterengine, 50 new luxury features

Most appreciated model, has received awards every year since

1990 for design, engg, quality & customer satisfaction


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Managing Brand SystemsBrand Hierarchy Example 2:Corporate Brand: P & G

Range Brand: Pantene Pro V

Product Line Brand: Hair Fall Control/ Smooth &

Silky / Nourished ShineSub Brand: Hair Fall Control Shampoo/

Conditioner

Branded Feature/

Component/ service: Strong healthy hair from root

to tip, Essential nutrients,

prevents breakage


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Managing Brand SystemsUnderstanding Brand Roles

Driver

Endorser

StrategicBrands

Sub Brand Roles

Branded Benefits

Silver Bullets

Brand Roles


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Managing Brand SystemsDriver 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 thepurchase decision

E.g. Gillette Sensor Razorcustomers are buying the

technology & performance of the Sensor name, so Sensor

is the Driver brand, its name & symbol have a strongidentity & clear visibility on the pack, also on mind of the

customer. Gillette is the Endorser brand


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Managing Brand Systems

In case of Pantene ProV, Hair Fall Range, Hair Fallrange is the Driver brand, because it represents the value

proposition offered by the product, while Pantene ProV

is the Endorser brand


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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, theremay 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


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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 Intelwas 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


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Managing Brand SystemsEndorser 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 tosupport the Driver brand ?& hence plays the role of the

Endorser

E.g. Kelloggs is Endorser for Chocos

Apple . iPod, iPadSony Vaio

Honda.. City

Cadbury Perk


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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 tocertain 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. iPadfrom Apple


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Managing Brand Systems An Endorser brand may fade later after it provides initial

support

E.g. In 1994, Levis launched its brand Dockers, which wastargeted 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 beingdiluted by Dockers. So as Dockers became more popular,Levis was dropped from its advertising & promotionalcampaign. This strategy is also known as Brand BridgingStrategy

For Consumer Durable Products & industrial products, TheEndorser can signal that the company will make sure thatthe brand is supported with service & other back-up


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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


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Managing Brand SystemsStrategic 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 manysqueezed margins, declining

sales, industry dynamics, too much expenditure to turn it

around


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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


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Managing Brand SystemsSub 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


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Managing Brand SystemsThe SubBrand the foll tasks:

1. Describe offerings2. 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 Plaxanti- plaque mouthwash & Colgate

Total toothpaste both indicate function of the products


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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 suggestingthat 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 customer-

home/office/business/professionals like photographers, etc


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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


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Managing Brand Systems Sub-brands provide a way to offer diff products or serve

diff markets under one brand name & minimize customerconfusion & 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 inthe 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 offervarious themes as holiday packages ranging from basic to

ultra luxury as well as separate packages for corporates &

business destinations.


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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 prohibitivelyexpensive

To stretch the existing identity of the brand to newerproducts may be a liability as it dilutes the identity &associations

E.g. Garnier has used its brand name to market variousproducts for men & women in bodycare,


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Managing Brand Systemsskin care, hair care, deodorants, hair styling & hair color. Thebrand 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


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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.

Shockermodifier brands & modified brands

Kelloggs is the modifier in Kelloggs Corn flakes, Cornflakes is modified in Kelloggs Corn flakes


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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


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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 designsevery 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.


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Managing Brand Systems5. Support Vertical & Horizontal Extensions

(more in detail in Ch 9Leveraging Brands)

Branding Benefits

1. Branding a FeatureOral 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.


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Managing Brand SystemsWhen 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 ComponentAdding a branded component provides a point of

differentiation because of the association the consumer has

with the component


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Managing Brand SystemsCadburys Bournville is seen as a rich dark chocolate which

you have to earn because every cocoa is not suitable tobecome 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 Cadburyshas 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 & laptopsCost benefits for both brands are seen as costs of

manufacturing & advertising are shared


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Managing Brand Systems3. 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


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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.

Managing Brand Systems 8

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