BRANDING STRATEGIES

Defining Strategy
A Strategy is a systematic plan for achieving a specific goal or result. Whereas a Branding Strategy can be defined as a plan of execution conducted for a brand in order to increase the brands market & optimize brand functioning.

A branding strategy can also be described as a plan for the systematic development of a brand which enables it to meet its agreed objectives. Product Branding Line Branding Range Branding

Umbrella Branding Source/Double Branding Endorsement Branding

Product Branding Product Branding follows the concept of One Brand, One Product. This strategy allows products to have a unique identity & Image. In this strategy brand becomes almost synonymous with the product. Like Colgate for toothpaste or surf for detergent. In this strategy company name is not known to the customer.

Example of Product Branding- P &G has different brands like Tide, Ariel, Pantene, Pampers, Crest, etc. all have different image & identity. All these products are not seen as the same or being offered for the same company.

Advantages of Product Branding

Brand becomes Synonymous with the product. If a brand is unsuccessful, its failure does not affect the other brands of the company. Firms following product branding can venture into unrelated market area.

Disadvantages of Product Branding

It takes a significant amount of investment in time, money & effort to establish a new brand.

Line Branding

Line Branding involves exploiting a successful concept by extending it but staying very close to the initial product. Line brand starts with one product but later extend to complementary products. Focus in line branding is on complementary products.

Example of Line Branding

Gillette has razors, shaving gels, aftershave. All these products complement each other.

Advantages of Line Branding

Reinforces selling power of the brand & create strong brand image. Reduces launch cost of other products in the same line. New products can use existing distribution system

Disadvantages of Line Branding

Only a limited number of products can be introduced in a line. One cannot innovate too much in a line.

Range Branding

A Range brand encompasses many products under single banner. A Range of products belonging to the same area of competence are promoted through a single promise. In range branding, brand moves beyond product complementarity that is it moves away from a line

Example of Range Branding

Britannia has a sub brand- Milkman which stocks products like ghee, milk, milkshake, cheese, butter, etc. But the area of competence is the same, all are dairy products.

Advantages of Range Branding

Reinforces selling power of the brand & create strong brand image. Reduces luanch cost of other products in the same range. New products can use existing distribution system.

Disadvantages of Range Branding

An unsuccessful product will affect the other products of the same brands.

Umbrella Branding

Umbrella branding uses one brand name. But, it covers diverse kinds of products which are more or less related. Umbrella brand can offer a line or range of products.

Example of Umbrella Branding Sony brand offers camera, phones, laptops, desktops, ipods.

Advantages of Umbrella Branding

Capitalization on the single brand name results in economies of scale the in national & international market.
Brand awareness allows launch of new products under the umbrella.

Disadvantages of Umbrella Branding

Umbrella brand is a generalistic brand instead of being a specialist. Companies following this strategy dont earn high revenues. A debacle in one product may influence other products. An over stretched brand fails.

Source/Double Branding
Source Branding is when Product Brand Name+ Firms name, both are used. In source branding product brand name & firms name have equal status & common core value. Source/ Double Branding may br described as Cooperate Umbrella branding.

Example of Source/ Umbrella Branding

Maruti+ Wagon R ; Maruti is an established car manufacturing Company in India, so lends equity whereas Wagon R name distinguishes it from 800, Grand Vitara, Swift & others.

Advantages of Source/ Double Branding

Firms name or source name brings equity to the product. The name of the product brand or sub-brand adds something unique & brings distinction or differentiation.

Disadvantages of Source/ Double Branding

The brand needs to be consistent with the activity or expertise domain of the firm.

Endorsement Branding

In endorsement branding a company endorses its brands & products. Unlike source branding firms name takes a back seat but is disclosed to the target audience. Product brand name is more significant. Its a balance between product & umbrella branding.

Example of Endorsement Branding

It is known to everyone that Nescafe, Milo, Cerelac, Lactogen are all Nestle Products. Nestle endorses its products but these products on their own have a distinct image & equity. But these products are dominant & are brands in their own right.

Advantages Endorsement Branding

Corporate name gives a guarantee to the product brand name. Also lends a quality assurance.

With this strategy company enjoys the freedom to venture in other product categories.

Disadvantages Endorsement Branding

May enjoy freedom of diversification but it has to be consistent with the brand.

Differences between six branding strategies

Umbrella Single Image Double Product+ firm image Endorsement Source brand passes on generic Image More Independence Range Brand signifies area of expertise Products Stem Line Focus on Complem entary Products Products mutually reinforce each other Customer s need is taken care of by the line Product Individual image

Narrow Expansion Boundaries

Some Independence

Boundary less

Generic Association

Expansion in Limited Area

Can cover Multiple Area

Related Products

Unique Association