By Nico / Yuwan Zhang
In the previous article ,I have mentioned the definition of brand ,brand elements ,branding ,brand equity and how to build a brand . In this article we will talk more about how to apply the established brand to a new product or product category , what kind of tool need to be used ? and what kind of procedure we need follow ?
Brand architecture strategies to help leverage and broaden the brand of product
The role of brand architecture is twofold:
• To clarify brand awareness: Improve consumer understanding and communicate similarity and differences between individual products and services.
• To improve brand image: Maximize transfer of equity between the brand and individual products and services to improve trial and repeat purchase.
To help marketers determine which products and services to introduce, and which brand names, logos, symbols, and so forth to apply to new and existing products , we need use brand architecture strategies which incorporate three steps :
(a)-Defining Brand Potential in terms of a market footprint: to help define the brand potential and provides a clear sense of direction for the brand ,including :
Articulate the brand vision: the management’s view of the brand’s long-term potential
Define the brand boundaries: be careful to not over-brand, or attempt to support too many brands.
Craft brand positioning: Brand positioning puts some specificity into a brand vision. 1.competitive frame of reference 2.PODs 3.POPs 4.brand mantra
(b)- Identifying Brand Extension Opportunities or selecting the product and service extensions that will allow the brand to help achieve that potential: Brand extension: firm uses an established brand name to introduce a new product, including :
Line extension: parent brand to new product, e.g., iPhone - iPhone XR
Category extension: parent brand to new product category, e.g., Apple - iPhone
Vertical extension: upwards: downwards:
Advantages of brand extensions : Facilitate new product acceptance ---Reduced risk for
customers, channel members; Reduced cost for company (branding, packaging); Feedback
to parent brand---broaden brand meaning, enhance image ; new customers ;revitalize
brand .
Disadvantages of brand extensions : Confuse or frustrate consumers ;Retail resistance; Fail
and hurt brand image ; Cannibalization ; Dilute brand meaning ; No new brand
development
(c)- Specifying Brand Elements for Branding New Products and Services: New products and services must be branded in a way to maximize the brand’s overall clarity and understanding to consumers and customers. What names, logos, symbols, etc. should we apply to new products?
To successfully execute these three processes above, marketers should use brand portfolio analysis.
Brand Portfolios :All the brands sold by a company in a product category ; Relevant customer segments eg: overlap? Basic principles: maximize market coverage, but minimize brand overlap ;
Brand Hierarchy is a useful means of graphically portraying a firm’s branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products, revealing their explicit ordering. Including : Corporate Brand Level ; Family Brand Level; Individual Brand Level; Modifier Level ; Product Descriptor
Managing the brand over time and geography
Managing Brands is what marketers must do , they need manage brand equity over time by reinforcing the brand meaning, making adjustments to the marketing program to identify new sources of brand equity ,including :
(a)-Reinforcing brands we reinforce brand equity by marketing actions that consistently convey the meaning of the brand to consumers in terms of brand awareness and brand image.
Maintaining brand consistency : (1) consistency of marketing support; (2) consistency of brand associations. Being consistent does not mean, however, that marketers should avoid making any changes in the marketing program
Brand Flashbacks Retro branding/nostalgia marketing . Older, heritage brands can reach into their past in different ways to develop successful new marketing campaigns.
Protecting sources of brand equity - brand crises: Apology and admission ;Bolstering brand image ;Not just me ;Downplay crisis ; Limit damage ; Denial ;Counterattack/attack accuser . Brand crisis in digital era :Untrue information spreads 6 times faster than true information ;Rage is the fastest emotion to spread online ;Brands need to be ready to respond to a crisis ideally within minutes, but within hours at the very longest
Product- and nonproduct-related associations - product-related: innovations, manufacturing, and merchandising ;nonproduct-related: user and usage imagery
(b)-Revitalizing brands For a successful turnaround, brands sometimes have to return to their roots to recapture lost sources of equity. In other cases, the brand meaning has had to fundamentally change to recapture market leadership.
Expanding brand awareness: depth & breadth of brand awareness - identifying additional or new usage opportunities ; identifying completely different ways of use
Improving brand image: new target markets ; repositioning the brand ; changing brand elements
(c)-Adjusting brand portfolio Managing brand equity and the brand portfolio requires taking a long-term view and carefully considering the role of different brands in the portfolio and their relationships over time. Sometimes, a brand refresh just requires cleaning up the brand architecture
Acquiring new customers
Retiring brands
Obsoleting existing products
Global Branding In general, in entering a new market of any kind, it is necessary to identify differences in consumer behavior (how consumers purchase and use products and what they know and feel about brands) and adjust the branding program accordingly (through the choice of brand elements, nature of the supporting marketing program, and leverage of secondary associations).
Advantages : Lower marketing costs ; Consistent brand image ;Uniformity of marketing practices
Disadvantages : Different consumer needs, wants, product usage ;Different consumer responses to brand elements - brand name, logo, slogan, … Different legal environment :advertising to children ;prescription drugs ;alcohol
“Consumers own brands, and your brand is what consumers will permit you to have.”
References
Keller & Swaminathan,1997,Strategic Brand Management: Building, Measuring, and Managing Brand Equity.