PRODUCT BRANDING
This is of the type one-brand one product. In
terms of customer perception and information processing, the most
effective way to designate a product is to give it an exclusive name,
which would not be available to any other product. In the product
branding strategy the brand is promoted exclusively so that it acquires
its own identity and image. This way the brand is able to acquire a
distinct position in the customer’s mind. The thrust is on making the
brand acquire its ‘own’ set of associations and stand on its own.
Product branding allows a brand achieve exclusivity and differentiation.
It does not share other products and does not take
on company associations. The company’s name takes a backseat and the
product does not get benefits from the company name. The greatest
advantage in this case is that a brand can be targeted accurately to a
distinct target market or customers because its positioning can be
precise unambiguous. Customers connect easily with product brands since
what the brand represents tends to be clear.
P&G have been follower of the
product branding strategy. P& G’ s into baby care, beauty care,
feminine care, health care, fabric care, home care, food and beverages,
etc. P&G has been an ardent follower of the product brand
strategy. Its brands are stand alones; people don’t even know that they
all share a common root in P&G. the company does not share a
common identity. Thus, a company following product branding is better
positioned to venture into unrelated areas of activity without being a
subject of market scrutiny.
Another advantage is that with an identifiable
brand uniquely positioned and directed at a segment, the firm is able
to cover an entire market spectrum by making multiple brand entries.
The drawbacks of product brands are essentially
cost based. Creating individual brand is costly exercise. Only the
firms that have deep pockets and long staying power can adopt this
strategy.
LINE BRANDING
This is of the type ‘One brand many products’.
Sometimes a brand is launched with a distinct concept e.g. Lakme
(“source of radiant beauty”) Winter Care lotion .The brand appeals to a
distinct market segment who appreciate and like the brand concept. The
core idea is that the brand connects with the consumer group. Now the
customers do not tend to be content with the one product, which the
brand offers. Rather they want additional product which go hand in hand
with the brand concept or application; for example a Lakme user wants
all the products which enhance beauty-beauty lotion, deep pore
cleansing cream, lipsticks, nail enamel, eye make up etc.
Line branding strategy illustrates how well
cultivated brand can be extended on to a host of related products under
a common concept. This strategy seeks to penetrate the
customer rather than penetrating the market. It seeks to
fulfill all complementary needs that surround a basic need. Line brands
start with a product but later extend too a whole range of
complementary products. The products in the line draw their identity
from the main brand. Marketing products as a line enhances the brand’s
marketing power rather than selling them as an individual brand.
Colgate has a whole range
of dental care products. Colgate Total, Colgate Gel, Colgate
toothpowder, as well as the various toothbrushes.
BRAND EXTENSION
Brand extensions, which are a popular means of
introducing new products to the marketplace, fall under the ‘One brand
all products’ type of brand strategies. In a typical brand extension
situation, an established brand name is applied to a new product in a
category either related or unrelated, in order to capitalize on the
equity of the core brand name. Consumer familiarity with the existing
core brand name aids new product entry into the marketplace, and helps
the brand extension to capture new market segments quickly.
Brand extensions come in two primary forms: horizontaland vertical.
In a horizontal brand extension situation, an existing brand name is
applied to a new product introduction in either a related product
class, or in a product category completely new to the firm. A vertical
brand extension, on the other hand, involves introducing a brand
extension. In the same product category as the core brand, but at a
different price point and quality level. In a vertical brand extension
situation, a second brand name or descriptor is usually introduced
alongside the core brand name, in order to demonstrate the link between
the brand extension and the core brand name (e.g. Marriott
Hotels, Courtyard Inn by Marriott). Although a brand
extension aids in generating consumer acceptance for a new product by
linking the new product with a known brand or company name, it also
risks diluting the core brand image by depleting or harming the equity,
which has been built up within the core brand name. An inappropriate
brand extension could create damaging associations, which may be very
difficult for a company to overcome. The different types of brand
extensions are:
Product form extension:
Product launched in a different form usually means
line extension rather than brand extension. But if different product
form constitutes entirely a different product category from customer
behavior perspective, it would be called brand extension. For e.g.
liquid milk and dried milk may not be perceived as the product
category. Similarly chocolate bars and chocolate powder belong to
different product categories.
Companion Product:
Brand extension is in the form of companion
products is perhaps the most common. The idea perhaps is to capitalize
on product complementarily. The consumer may view both products jointly
and hence, provide scope for launching brand extension.
Customer franchise:
A marketer may extend a product range in order to
meet the needs of a specific customer group. For instance, a company
may launch a variety of products meant for e.g. nursery going school
children. The focus here is not customer base but their diverse needs.
Company expertise:
Brand extensions often come in the forms of
different product category introductions using a common name but
emanating from a common expertise pool. This strategy is particularly
true in Japanese countries.
Brand distinction:
Many brands achieve distinction in the form of a
unique attribute, benefit or feature, which gets uniquely associated
with the brand. In such situations the company can work backwards to
launch different products, which essentially cash in on this
distinction. For example, Parachute may
have the expertise of coconut nourishment in customers mind over time.
This would give the company Marico the
opportunity to launch a variety of products exploiting this distinction.
Brand image or prestige:
A brand extension may involve a foray in to
unrelated product categories based on a brand’s exclusive image or
prestige. Brand exclusivity or prestige bestows great extension
opportunities. This is particularly true of designers and artist brands.
UMBRELLA BRANDING
This again is of the type ‘One brand all
products’. An umbrella brand is a parent brand that appears on a number
of products that may each have separate brand images. Firms have a
short-run incentive to reduce quality and save costs, as consumers can
only observe quality ex post.
Videocon’s range of home appliances –
air conditioners, refrigerators, televisions, washing machines, etc.
Phillips also has a whole range of home appliances under the brand name
Phillips-the mixers, irons, televisions, etc.
Umbrella branding scored well on the dimension of
economics. Investing in a single brand is less costly than trying to
build a number of brands. By leveraging a common name across a variety
of products, the brand distributes its investment. Hence umbrella
branding works out to be an economical strategy. Using an umbrella
brand to enter into new markets (Tata making a foray into the
automobile car market) allows considerable savings. The
brand bestows the new product advantages of brand awareness,
associations and instant goodwill.
One first explanation for brand extensions is that
umbrella branding is a form of economies of scope, as it economizes on
the costs of creating a new brand. Brands have an intrinsic value
(status or otherwise) and are therefore like a “public good” in the
sense that the more products are sold under the same brand the greater
the total value created. A different perspective on brand extensions is
that, in a world where consumers are uncertain about product
characteristics (due to horizontal or vertical differentiation), brands
may play an informational role. Umbrella branding may reduce
uncertainty about a new product's attributes, a fact that increases
value if consumers are risk averse. Considering these factors it can be
said that umbrella branding is a superior strategy when there is a
significant overlap between the set of buyers of each of the firm's
products. This result extends the well-known notion that brand
extensions and umbrella branding are only successful if there is a good
fit between the different products under the same umbrella.
The main danger associated with umbrella branding
is that since many products share the common name, a debacle in one
product category may influence the products because of shared identity.
ENDORSEMENT BRANDING
Endorsement branding strategy is a modified
version of double branding. It makes the product brand name more
significant and corporate brand name is relegated to a lesser status.
The umbrella brand is made to play an indirect role of passing on
certain common generic associations. It is only mentioned as an
endorsement to the product brand. By and large, the brand seeks to
stand on its own.
The brand gets the endorsement that it belongs to
specified company.
Kit Kat gives the signal that it belongs
to Nestle and Dairy Milk conveys that it belongs to Cadburys. Cinthol’s
communication stresses that it is a Godrej product.
Though these brands enjoy their unique image,
somewhere in the image the makers association is also a part.
Endorsement branding strikes a balance between umbrella and product
branding.
In case of Cadbury’s and Nestle, the brands
mentioned above have their own unique position and image. Cadbury’s or
Nestle support the brands to the extent that they transfer certain
qualities or associations, which enhance customer’s trust. Brands are
identified by their own name.
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