Brand Management: Developed by Cool Pictures & Multimedia Presentations

Chapter
Brand Management
Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Managing the Brand Portfolio
• A strong brand is a global marketing asset.

• Co-branding
– A strategic alliance where two or more brands are combined
in an offer.
• Brand strategy decisions
– Use of the corporate name.
– Family brands for a wide product line.
– Individual brands for each item in the product line.
• Private (store) branding
– Umbrella branding with the intermediary’s name.
– Separate brand names.
Nestle’s Branding Tree
Examples
7,500 Local Brands •Texicana
Responsibility of local •Brigadeiro
markets •Rocky
•Soils
140 Regional Strategic

Brands •Macintosh •Herta
Responsibility of strategic •Vittel •Alpo
•Contadina •Findus
business unit and regional
•Stouffer’s
management
45 Worldwide Strategic •Kit Kat •Mighty Dog

Brands •Polo •Smarties
Responsibility of general •Cerelac •After Eight
management at strategic •Baci •Coffee-Mate
business unit level
10 Worldwide Corporate •Nestle •Maggi
Brands •Carnation •Perrier
•Buitoni •L’Oreal
SOURCE: Adapted from Andrew J. Parsons,”Nestle: The Visions of Local Managers,”The McKinsey Quarterly, no 2, 1996, 5-29;see also http://www.nestle.com; http://brand/index.asp.
Private Brand Strategy
Strategy Rationale Circumstance
No participation Refusal to produce Heavily branded markets; high

private label distinctiveness; technological
advantage
Capacity filling Opportunistic High brand shares where
Market control Influence category sales distinctiveness is less; more
switching by consumers
Competitive leverage Stake in both markets
Chief source of business Major focus Little or no differentiation by
Dedicated producer Leading cost position consumers
SOURCES:Adapted from Sabine Bonnot, Emma Carr and Michael J. Reyner, “Fighting Brawn with Brain,” The McKinsy Quarterly 40 (no 2. 2000): 85-92; and Francois
Glemet and Rafael Mira, “The Brand Leader’s Dilemma,” The Mckinsey Quarterly 33 (no 2. 1993):4.
Brand Positioning
• Perceived fit • Positioning is

between a particular defined relative to:
product offering and – competitive
the needs of target offerings
market – consumer needs
Brand Positioning
Physical Positioning
• How a firm’s product compares to the competition’s
on some set of objective physical characteristics
Perceptual Positioning
• How a firm’s product compares to the competition’s
on some set of subjective characteristics
Positioning Strategy
• Attribute or Benefit
• Quality and Price
• Use or User
Brand Equity
• BMW Best engineered

• Coke Fun and excitement
• Cartier Quality
Corporate Branding
Product/Brand Strategic Alternatives
Brand
Different Same
Different Local Transnational
Product
Same Multinational Global
Global Brands Positioning
Local Market Segment

Universal Unique
Uniform Nike IKEA

Positioning
Adapted Volvo Levi’s
Branding Issues
• Demand spillover
– Media coverage
– Internet expusre
• Global customers
• Scale economies
• Importance of brands within country
– Country of origin
– Expertise
– Prestige
Local Market Branding
Expectations
• Asian consumers typically

have more concern with
brands
– conglomerates have
brands encompassing
large range of goods
(e.g., Mitsubishi food
products)
The Brand Portfolio
• Brand extensions vs.

– Creation of new brands
– Brand ownership (brand tiers)
• Brand hierarchies
Brand Globalization Potential
• Word meanings • Trademark and name

• Word appeal availability
– Pleasantness of – Access to desired name
associations – Protection against close
– Suitability of associations imitations by others (e.g.,
– Pronounciability Lindows)
– Pleasantness of sound • Complementarity with other
product line items
– Writing and pictoral
• Growth plans—regional vs.
apearance
internatinal
Implementation
• Brand building (see promotion material)

• Fade-in/fade-out
• “Endorsement branding”
– For implementation
– For distinction of lower tier brand
• Double branding
Positioning a Brand
• Position relative to existing brands?

– Same
– Generally better
– Foreign image
– Lower price
– Special, unique benefit
• Appeal across segments?
• Usage occasion/need

Brand Management: Developed by Cool Pictures & Multimedia Presentations

Uploaded by

Copyright:

Available Formats

Brand Management: Developed by Cool Pictures & Multimedia Presentations

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Brand Management: Developed by Cool Pictures & Multimedia Presentations

Uploaded by

Copyright:

Available Formats

Chapter

• A strong brand is a global marketing asset.

140 Regional Strategic

45 Worldwide Strategic •Kit Kat •Mighty Dog

Strategy Rationale Circumstance

No participation Refusal to produce Heavily branded markets; high

• Perceived fit • Positioning is

• BMW Best engineered

Different Local Transnational

Same Multinational Global

Local Market Segment

Uniform Nike IKEA

• Asian consumers typically

• Brand extensions vs.

• Word meanings • Trademark and name

• Brand building (see promotion material)

• Position relative to existing brands?

You might also like