Presentation on theme: "Brand-Product Relationship 2 Introduction product brand line brand range brand umbrella brand source brand (or parent brand) endorsing brand Six types."— Presentation transcript:
2 Introduction product brand line brand range brand umbrella brand source brand (or parent brand) endorsing brand Six types of relationship between brand and product (or service)
3 Brand-Product Relationship Product-Brand Strategy To assign an exclusive name to a product, having its own individual positioning Each new product receiving its own personal brand name Brand ABrand BBrand N Product AProduct BProduct N Positioning APositioning BPositioning N Company X Brand portfolio correspond to product portfolio ? for firms focusing their attention on a particular market -by occupying several segments having different types of expectations and needs-< maximizing its share of the market When segments are not too different -Choosing one name per product helps the consumer see each other as being different for highly innovative firms who wish to preempt a positioning -if the first brand in a new segment turns out to be satisfactory, it inherits the pioneer advantage; copy :,. Shelf-space. ? P&G: detergents-Ariel, Tide, Dash Food sector: bring out new specialty product -> product-brand portfolio is extensive Mineral water: evian, perrier – strict indication of identity (Post-it) Branduct (product ->category )
4 Brand-Product Relationship Line-Brand Strategy Line-Brand extends its specific concept across different products Cross Branding; product with complementary features ? Renault: Baccara version; a line brand indicating leather seats, a luxurious interior, etc. beauty-care industry: a complete line of products go with for balding man L Oreal s Studio Line: offering youngsters a structuring gel, etc. ? established by building on the success of the original product with practical variations of a closely associated nature. Eg) typical approach followed by perfumes : It raises the selling power of the brand and creates a strong image of consistency It leads to ease of line extension It reduces launch costs : It lies in the tendency to forget that a line has limits A powerful innovation could slow down its development Eg) Nestle-Bolino
5 ? food sector (Green Giant, Dole), cosmetics, clothes (Benetton, Kookai, etc) kitchen equipment (Moulinex, Seb,.) accessories (Samsonite,.) Brand-Product Relationship Range-Brand Strategy Brand Brand Concept ABCDN Brands bring all their products together under one promise or positioning Brands bestow a single name and a promise on a group of products having the same level of ability ? Building up Brand awareness (which can be shared by products) Refining brand concept Approach: by concentrating on specific products, called vector product -> shared by the other products in the range not directly mentioned : It avoids the random spread of communication by concentrating on one single name Clarins Concept: the specialist In beauty care CreamSolutionsFluidsGelsEtc Soothing line Slimming and forming line Line Y To assist its consumers in making sense of the scientific wording on products : The Brand s opacity as it expands : 1. the brand needed to be nurtured in such a way as to express its individuality 2. The consumer has to be assisted in sifting through the mass of products -> converted to product lines
6 Brand-Product Relationship Umbrella-Brand Strategy Brand ABCN Products or services ABCN Specific Communications By product Or service The same brand supports several products in different markets, each with its own communication and individual promise Yet each product retains its generic name ? Canon: cameras, photocopiers, and office equipment under one name Yamaha: motorcycles, pianos, guitars Mitsubishi: banks, cars, domestic appliances ? favored by multinational corporations marketing worldwide -being already established, their name and reputation is a major asset in entering segments or areas which they had not previously penetrated. -> awareness of the brand brings about immediate approval : Capitalization on one single name Little marketing investment is required : Each division within the organization handles its own communication(to get the best out of the particular market in which it operates) Awareness resulting from the umbrella effect is not sufficient An accident occurring with one product can affect the other products under the same umbrella The more a brand covers different categories, the more it stretches and weakens- greatest handicap is its vertical extension
7 Brand-Product Relationship Source-Brand (Parent) Strategy Parent Brand Personal brand names Brand ABrand BBrand C Promise APromise BPromise C Specific Communication Product A Or Line A Product B Or Line B Product C Or Line C Products Identical to umbrella-brand strategy, Products are now directly named Apart from ? Perfume: no longer come under a generic tag, such as eau de toilette or eau de parfum, but each has its own name, e.g., Jazz, Poison, Opium, Nina, etc -> two tier brand structure known as double-branding endorsing brand source brand: the offspring may have their own Christian names, but are still tied to the family spirit which dominates endorsing brand: products follow their singular paths under a simple common guarantee problem with many brands is that they have converted from source brands to endorsing brands. : ability to impose a sense of difference and depth e.g. chanel: coco and no.5 : overstepping the limitation of the parent brand s core identity; keeping within strict boundaries where brand extension is concerned. : if looking for greater freedom, endorsing-brand strategy is more suited.
8 Brand-Product Relationship Endorsing-Brand Strategy Promise APromise BPromise CPromise N Product A Or Line A Product B Or Line B Product C Or Line C Product N Or Line N Brand A Brand BBrand CBrand N Endorsing Brand Placed lower down in its basic reassuring role It gives its approval to a wide diversity of products grouped under product brands, line brands or range brands Each product is still free to show its originality; hence the wide variety of names and symbols ? GM: Pontiac, Buick, Oldsmobile, Chevrolet, etc Kellogg: Country Store, Rice Krispies, Frosties, etc ( Kellogg normally tends towards product brands-Frosties, All Bran, Corn Flakes, etc refers to particular products) Nestle: Crunch, Golden Graham, Nescafe, etc : indicated either by an emblem next to the brand or as a simple name : grater freedom of maneuverability which it confers e.g. Nestle: baby food, children;s chocolate, coffee, soup market profits from the advantages offered by specifically named products. less costly ways of giving substance to a company name and allowing it to achive brand status.
9 Brand-Product Relationship Conclusion hybrid configurations In reality, firms adopt hybrid configurations in the form of a range, umbrella, parent, or endorsing brand, according to the products.
10 Brand-Product Relationship A Case of Brand Proliferation W 3M Schotch Schotch Brite (3M medical division) Medical adhesives Overhead projectors, cameras Racoon (nick name) YZ Post-it Video cassettes Extra, Magic Sometimes with the 3M endorsement, sometimes alone Generic denomination , But (65%, 25% ) brand proliferation and dilution of identity It has 1,500 product brands, which are correspondingly specialized, and each one receives too little financial support to be properly supported. Furthermore, the effect is to create a screen, Hiding the corporation 3M. brand proliferation Policy Use the name of one of its existing primary brands, to capitalize on them nourish them. and nourish them.(3M) New philosophy emphasizes 3M s role New philosophy emphasizes 3M s role as an endorsement brand. as an endorsement brand. Corporate Branding Policy Committee Establish corporate guidelines for brand use Review the brand s world strategies Approve any new brand requests New guidelines introduced 1. 1.The trademark 3M should endorse all products (with one exception, a cosmetic line) 2. 2.No products would carry more than two brands All brands will be global, which means no more creation of local brands. Will the product create a new primary demand? (Post-it) Sub brands -allowed only when the primary brand alone does not accomplish sufficient differentiation 1989: 73 new brands created 1991: 4 created brand portfolio: 1500-> 700.
11 Brand-Product Relationship Selection Criteria Choosing a brand policy is not a stylistic exercise, but a strategic decision to promote products with a long-term brand capital aim. FranceAbroad Specific type of Bordeaux wine Multiproduct name Consumer is more accustomed to interpreting the various pointers to specification on wine label: region, vintage, type of vine, year Consumer may not fully appreciate the meaning of appellation, vintages, and other details. The Carvet brand has meaning only when it can offer a plus which other Bordeaux cannot No appreciable wine-producing Industry Umbrella brand Umbrella brand covering many generic French regional wines Product brand range- brand policy Club Med. product brand - Hilton, Sheraton, Meridien, Sofitel, range- brand policy Economy hutted villages Luxury golf hotels … …. ….. Club Med Unitary Brand name & Advertising Campaign Despite their differences, all these products share the same model and values. Their common features speak louder than their differences. 1.The product or service 2.Consumer habits 3.The firm s competitive position Carvet Club Med Denominative policy results from a recognition of the brand s duties as expected by the customer, When compared with the function and meaning of other product-. range-, and line-brand names, Including objective and subjective quality indicators such as packaging, advertising and the retailer s own prescription and advice.
12 Brand-Product Relationship Selection Criteria All companies must define strict guidelines with which to face these naming and branding decisions. Guidelines bring rationality and coherence to decisions so far made according to each manager s Subjectivity. They become a tool of consensus and delegation. This is all the more necessary if the Company is international and sells innumerable products. Trend now exists in favor of corporate branding Major corporations selling to both industrial and consumer markets must decide how much emphasis they will put on product brands and how much visibility they will give to the corporate name For a long time, corporations remained hidden for security purposes: in the event of problems with one of brands, The corporation would not be hurt. Reciprocally, the brands would not suffer from corporate problems. However, the advantages in the uncommon event of crisis are now outweighed by certain disadvantages. Ie) Unilever: is starting an endorsement policy in Europe and adds its corporate name in small type under its Persil Akzo: remained largely unknown; gained a poor image in terms of its technology because of this lack of visibility Johnson s: all products are endorsed by Johnson s, despite their being strong product brands in their own right. A Top-down policy (umbrella-brand policy) -a range of technical products which remain unbranded (polyurethanes) A hand-in-hand policy (endorsement-brand policy) -adds its corporate reputation and reassurance on technology and quality for the customers of famous mass-market brands (Dulux-paint) A product brand-only policy (makes no reference at all) -Tactel(fiber-fashion industry) is far removed from the imagery of the chemical industry The monolithic one (GE as an umbrella brand) -GE signs the product or company as single-brand (GE Silicones, GE Aircraft Engines, GE Motors) The endorsement type -GE signs adjacent to a specific product or company name (GE-X) The holding type -GE is discretely mentioned in such term as (X, member of the GE group) The autonomous product or company -making no reference to GE ICIGE Branding policy
13 Brand-Product Relationship Product Names: What Autonomy? The choice between these policies depend greatly on the strength of the brand and its will, the strength of its new products, and the force of its commercial strategy. Firms that have extensive growth policy in an effort to capture a larger share of the market -Range. (P&G- ) Firms opt for an intensive policy by developing their sales to existing customers - range. (ex-Apple; MacWrite, MacPaint, etc) 7 forms of strategy; Increasing degrees of autonomy The product do not have their own names -stamp of the powerful brand; Ie) Lacoste shirt, socks, sweaters … - product status. ie) St. Michael, Sony -not suitable for weak brands, Since they are unable to inject a common quality or spirit into the products bearing their name The brand dominates The product -emphasizes a brand whose image is reflected in every model. -The customers will will discover all the objective and subjective attributes which go to make up the brand identity. ie) Mercedes: call its models the 190, 200, and so on. In naming, it provides A forceful reminder of The source brand -Each product is simply a variation on the brand s values deriving from a common core. ie)Diorssimo, Miss Dior … -strict association between brand and product allows the rising brand to express its identity and system of values by means of those little extra touches. -The principle should not be applied to too many products at one time. Ie) Nescafe, Nesquick, Nestea.. Wish to show an association between brand and products through suffix, -The brand takes them under Its exclusive wing, expressing their innovative qualities. Ie) Lancome: Niosome, Noctosome … Wish to show an association Between brand and products through term (ex:prefix) Ie) Clarins: multi-tensing gel, multi- restoring fluide - generic name. 1. Prefix. 2. Clarins chose to capitalize on term: multi infers a complete course of treatment, corresponding to the Clarins identity and intent. ->product line rather than mono products The relationship between product and brand is bottom-up -Nominal and semantic detachment allows brand to extend without destabilizing the heart of the brand. Ie) Dior s Capture and Poison perfumes, Johnson s Pledge -Exhausted or weak brands. Ie)car industry; Renault R5, R own-name policy. Clio, Chamade. Totally autonomous product brand, with no offshoots or Affiliations Ie) Signal, Crest, Persil, Jif, and Sun
14 Brand-Product Relationship Retailer Brand Policies similar firms competing in the same area [Retailer sector] Wide range of brand policies Carrefour (1976) – 1. a new type of retailer brand known as banner. => signifies an attacking strategy. Umbrella brand cover. retailer signature emblem guarantee. 2. banner freedom product line. => stance: national brands 3. Retailer. generic unbranded. National brand quality 30~40% package. 4. generic banner brand. banner retailer Banner brand retailer. 5. Carrefour freedom line, corporate branding policy. Own brand or Private label -different name from that of the retailer, Ie) Marks & Spencer - St. Michael. -share one essential difference from their earlier counterparts -in many cases they are product or line brands, designed to capture customers from the market leader, hence the name counter brands. tactic: 1. Major brand 2.,. major brand R&D,. retailer shelf. Umbrella brand cosmetics groceries Houseware Retailer brands have typically been umbrella brands, exclusive to the retailer, each covering a number of products within a similar sphere Sainsbury: began as far back as 1869 Co-op: officially register its brand in France in 1929 The retailers saw these products in an essentially defensive role, a reaction against reluctant manufactures who were not supplying them.
15 Brand-Product Relationship Brand Owner ManufacturerRetailerBrand s Main Purpose To capture clientele of A targeted brand To personalize the product To incorporate the Product among others To identify the product source To indicate the manufacturer Counterbrand Own- label (Banner brand) Retailer named brand Product brand Line brand Range brand Umbrella brand Source brand Endorsing brand Corporate branding Retailer Brand Policies
16 All brand architectures initial goals. Brand-Product Relationship Breakdowns in the Brand-Product Relationship: A Few Classic Examples Descending flows; from the brand to the products -whenever their sales could be increased by the application of a source-effect. B PnP1 Descending flows Regenerate brand Horizontal flows between the products Regenerate brand -thanks to a bottom-up image flow Horizontal flows between the products -themselves can be a source of added value and may lead the consumer to try more products. Brand-product relationship organization aims at optimally managing the image flows.
17 Brand-Product Relationship Breakdowns in the Brand-Product Relationship: A Few Classic Examples Classic cases of failure 1. A brand disappearing behind one of its products - the most frequent case; Parent brand. - ( ) parent brand. -brand range Ie) Anais-Anais Cacharel identity Honeywell. 2. Brand-product disconnection -When the company prefers to remain in the background, its image is not nurtured by its best-selling products and cannot act as an endorsement brand on other products. ie) Essilor: Varilux endorse. Seiko, Nikon Corning - Pyrex ware corning. 3. Excessive use of product name - - identity seg. -parent brand source brand endorsing brand value core identity. brand core name double branding. ie) Kellogg s: health and nature brand core Generic name. (eg. Kellogg s Corn Flakes ) - Choco pops, Frosties less health oriented, with more fun and gimmicks -> receive double branding - brand map. A brand map visual layout of brand-product relationships, distances and structure Brand core Core product Product with no mention of brand Product with a specific name and a small mention only of the brand 4. Range disruption or breakage -in case of a range brand, the products of the range must work in synergy and complementarity to fulfill the brand mission, but it often happens that many products in a range have their separate lives, unexpected and even contradictory. Ie) Johnnie Walker - a classic case of vertical disruption of the brand. (a brand suffers when it signs both a basic, low-priced product and a top-class, premium-priced product.) -Black label johnnie walker, Red label. -> johonnie walker -> brand reposition range. (johnnie walker black label. Black label Gold label Premier range. Johnnie walker symbol.) 5. The insistence on certain accounting methods. - communication line. - line support range benefit line line overshadow. ie) Playtex-Cross Your Heart, Super Look bras.