Managing branding new

MANAGING BRANDING

Salva Maneesh Varma

MANAGING BRANDING

How to signify at the same time :

. a common reference of brand offerings

. how they differ from each other

. What the Brand stands for.

MANY DIFFERENT TYPES OF BRANDS B2B B2C Web Trade Local Regional National International Worlwide (meta)

Corporate Commercial Non-business

Countries Official bodies Charity org. Politics/Polticians

BRANDING OPTIONS

Product Brand : Exclusive name to a single product to assure individual positionning (Tide, Martini ……)

Line Brand : Extend a concept across different product in segmented market or across similar markets (Renault ….)

Range Brand : Use same name and promise in product categories with same ability (Green Giant …..)

Umbrella Brand : Support products in different markets with each its own promise, Danon

Source Brand : Support sub-brand names as above

Endorsing Brand : Approve/garanty wide variety of product brands, line and range brands GE

Marque : Endorsing (Corporate) Brand …..

WHY EXTEND BRANDS ?

increasing competition between less & larger players with global aspirations and ability to communicate globally

towards saturation of markets similarity of brands’ offers attributes decreasing brand loyalty react to declining markets nourish the brand perceived vitality

WHAT IS THE BRAND STRETCHING ?

It is the transfer of brand values on the new market

It shows that the brand is not related directly to one sector but has values that can transcend different products categories

WILLS IN INDIA

CATERPILLAR MOVED INTO SHOES AND CLOTHING

SWATCH MOVE INTO JEWEL

BRAND STRETCHING RISKS

Distort/Dilute the values of the Brand

Lose the original consumers

CHEVIGNON BRAND DILUTION

modern, adventurous, exquisite

PIERRE CARDIN BRAND DILUTION

KEYS TO SUCCESS IN BRAND EXTENSION

Brand identity

Brand extension Market’s values

RelevanceFit

Added value

ECONOMIC EVIDENCES OF BRAND EXTENSIONS

Higher survival rate of productsHigher chances of success, due to :

. trial rate

. conversion rate

. loyalty rate (repurchase)Lower launch cost

WHY NOT EXTEND BRANDS ?

Unclear/no Brand Identity High brand switching pattern Unwatched Overheads Cost increase No sufficient resources for success No sufficient “Fit” and Relevance

CATEGORY EXTENSIONS

succeeded Adidas cosmetics Harley Davidson

cosmetics Colgate toothbrush

failed Campbell ketchup Bic parfumes Levi’s suits Xerox computers Clorox washing

powder Calgon washing

powder Crystal Pepsi un-cola

THE VIEW FROM HONDA

“We are the most international of the Japanese companies. At the moment we are the most diversified, and we will be more diversified in the future. Still, I think it would be very hard to build a one-type world car. In the end, I don’t think it would be very efficient.”

---Nobuhiko KawamotoPresident and CEO, Honda Motor Company

- JOHN F. WELCH, JR.

"Our vision has been described to you for a decade. We believed that only businesses that were number-one or number-two in their markets could win in the increasingly competitive global arena. Those that could not were to be fixed, closed or sold."

Chairman and CEO, General Electric

THANK YOU