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Managing Brands
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Brands System Objectives
Exploit commonalities to generate synergy.
A set of brands may be related by brand name(Weight Watchers or Kraft) or a partial name
(such as the Hewlett-Packard Jet series), yethave different identities because differentproducts or markets are involved. The challengeis to exploit commonalities in order to generate
synergy in the form of enhanced brand impact orreduced execution.
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Brands System Objectives
Reduce brand identity damage.
Differences between brand identities in differentcontexts and roles have the potential to undercut
a brand. The challenge is to manage the systemto avoid such undesirable outcomes.
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Brands System Objectives
Achieve clarity of product offerings.
A system goal should be to reduce confusionand achieve clarity among the product offerings.
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Brands System Objectives
Facilitate change and adaptation.
All brands need to adapt and change inresponse to external forces. A system can help
manage the process so that needed changeswill occur in a timely and effective manner.
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Brands System Objectives
Allocate resources.
Each brand role requires resources. Too often abrand investment decision is based on an
insular analysis of the brand-related business,and therefore neglects the impact a brand canhave on the other brands in the system and failsto adequately consider future brand roles.
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Brand Hierarchies
Brand
Hierarchies
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Brand Hierarchies
At the top of the hierarchy is the corporate brand, whichidentifies the corporation behind the product or serviceoffering.
A range brandis a brand that ranges over severalproduct classes.
Beneath the range brand, if one exists, is the productlinebrand. These are the brands associated with theorganization s specific products
Basic product brands can be refined through sub-branding
Finally the brand can be further delineated by thebranding of product features or of services associatedwith the product.
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Brand Roles
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Brand Roles
DRIVER ROLES
A driver brand is a brand that drives thepurchase decision; its identity represents what
the customer primarily expects to receive fromthe purchase.
The brand that plays the driver role representsthe value proposition that is central to the
purchase decision and use experience.
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Brand Roles
THE ENDORSER ROLE
In the endorser role, a brand provides supportand credibility to the driver brand's claims.
Because the corporate brand usually representsan organization with people, culture, values andprograms, it is well suited to support a driverbrand, and thus it often plays the endorser role.
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Brand Roles
SILVER BULLETS
A silver bulletis a sub-brand or branded benefitthat is employed as a vehicle for changing or
supporting the brand image of a parent brand.The term was first coined by Regis McKenna,who observed that the images of corporatebrand names in the high-tech world wereinfluenced by key products. While Regis calledproducts such as these silver bullets, the focushere is on brands.
Silver bullets among brands are not hard to find.The Sony Walkman supports the innovativeminiaturization identity that is central to Sony.
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HOW MANY BRANDS?
Deciding whether to introduce a new brandname involves gauging the trade-off betweenthe value that the brand might create and the
cost that it might incur. For some brand roles, such as descriptive or
ingredient/feature brands, the brand may requirelittle investment to establish because the name
itself communicates adequately. In other cases,the cost and risk is high and a substantial payoffmust be expected.
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HOW MANY BRANDS?
The four questions posed below help structure theissues.
1. Is the brand sufficiently different to merit a newname?
A new name is usually worthwhile when there is a needto signal that the product is not just a variant of whatwent before.
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HOW MANY BRANDS?
2. will a new name really add value? Because some firms do not take full advantage of
existing core brands, they end up with too many differentbrands to support and manage. 3M was one firm thathad this problem. Their decentralized, entrepreneurialorganization encouraged a proliferation of names. Eachnew product group wanted a name that was specificallyconceived for its product; the result was that a host ofbrands emerged each year. To place a lid on newnames, a high-level committee of top executives began
to meet regularly to approve any new names. Theiractions reduced the number of new names to a trickle.One key criterion was that the new brand name mustreally add value over the coupling of an existing 3Mbrand (such as 3M or Scotch) with a descriptive brandname.
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HOW MANY BRANDS?
3. will an existing brand be placed at risk if it Is used on
a new product?
This question reflects the second criterion used at 3M. Ifthe use of an existing brand risks damaging or confusingits core identity or perceived quality, then there is anargument for a new brand.
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HOW MANY BRANDS?
4. will the business support a new brand name?
A third 3M criterion is that the new business must belarge enough to support the necessary brand-buildinginvestment. In addition, there must be an expectation
that the brand will be around for a long time so that if thename is successfully established, the investment will beworthwhile. The fact is that it is costly to establish andmaintain a brand name, and the cost is alwaysunderestimated.
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BRANDING BENEFITS
A problem facing many brands is that theiridentity is difficult to communicate because itlacks distinctiveness, credibility, or memorability.
The solution may lie in branding features,components, or service programs that providecustomer benefits.
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BRANDINGAFEATURE
BRANDINGAFEATURE
BRANDINGACOMPONENT
BRANDINGASERVICEPROGRAM
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BRANDING A FEATURE
Oral-B has long been at the high end of the toothbrushmarket as "the brand more dentists use." In the early1990s, though, its position came under attack fromJohnson & Johnson s Reach toothbrush and two new
entrantsColgate's Precision and Procter & Gamble'sCrest. A sleepy category quickly became vicious. Oral-Bresponded with a new product given a descriptive brandname: the Advantage Plaque Remover toothbrush. Two
key features of its unique design were themselvesbrandedthe Power Tip bristles at the end of the brush,and the Action Cup shape that conformed to teeth andgum contours. Oral-B had already branded the Indicatorbristles which changed color when the brush becomesworn.
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BRANDING A COMPONENT
An approach similar to branding a newfeature is to brand a component oringredient or, more commonly, to make
visible a component or ingredient that hasan established brand name.
Gateway computers with "Intel Inside."
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Branding a service
Branding a service is an often-overlooked way to build brand strength. Hyatthas branded several services for its business travelers, including thefollowing:
Hyatt Business PlanProvides work space, a phone, and a fax machine in
your hotel room, plus access to copiers, printers, and business suppliesright on your floor
Hyatt Gold PassportAllows customers to earn points redeemable fortravel awards
Touch and GoAutomatic check-in via an 800 number
Regency Club
Access to a private floor with special services Meeting ConnectionA team that helps plan meetings
Hyatt has even packed all five programs into a range brand called the BusinessPortfolio, "where we go the extra mile to keep you up to speed." It provides
a focus for the relationship between the business customer and Hyatt