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Branding strategy and Brand extension analysis

A brand is a name, term, icon or design or combo of them, intended to identify the products or services of one seller or group of sellers and to distinguish them from those of competitors

A brand is a link between the business's marketing activities and the customer's perception

Components of an Brand

Effective Product Noticeable:- Sign,

Advertising, Packaging etc

Distinctive Identity reinforced by

Added Values Invisible: Resources and

Competencies, Strong R&D, effective advertising, costs

Benefits of Branding


Benefit of Branding


Branding helps it be easier to select from competing products, if different brands offer different benefits. Brands help consumers cope with information overload

Brands can support 'dreams' and do it yourself image

Branding can confer account of reference groups


Enables extra value to be added to the product

Creates an impression in the consumer's head; encourages re-purchase

Differentiates the product, especially if fighting products are similar

Reduce the importance of price

Encourages a 'move' strategy

Other products/services can exploit the brand image


A brand can be an intangible asset; though it is not on the financial assertions, a strong brand promises to generate future cash inflows and earnings. That is called brand equity

Brands build market talk about, which can generate high income through

Higher Volume

Higher Value (higher prices)

Higher control over distributors

Brand Strategy

Company Brand - The business name is the most dominant feature of the branding (Mercedes)

The company brand coupled with an individual brand (Umbrella Branding) - e. g. Kellogg's Corn Flakes, Apple Jacks etc - This program both legitimizes (the business name) and individualizes (the individual product name). It allows new brands to be launched quickly and relatively cheaply.

Range Brand - Businesses group types of product under different brands

Individual name - Each product has a unique name. E. g. Procter & Gamble - Striking, Tide etc. The primary advantage is that an unsuccessful brand does not adversely affect either the firm's other products, or the firm's reputation generally.

Choice of Brand Strategy

Company and/or Umbrella Brand Name



Cheap (Only 1 Marketing effort)

Not well suited for Segmentation

Easy to establish new products under umbrella brand

Harder to acquire distinct identity

Good for Internal Marketing

Risk that failing in a single area may damage the brand

Variable Quality

Range Brands offer some of the advantages of an umbrella brand with an increase of precise targeting

Individual Brand Name



Ideal for exact segmentation


Crowds out competition by offering more choice


Damage limitation to Company's reputation

Brand Values

Added Prices - The subjective beliefs of Customers - are in the heart of creating brands (Doyle)

Most consumer buying decisions, therefore, do not rely upon the functionality of the product but are bought for "emotional" reasons and branding reduces the necessity to choose

Sources of Brand Values




Customer's actual consumption of the brand can give negative or positive associations

User Associations

Brands get a graphic from the sort of people using them; brands might be associated with particular personalities


Belief in a brandname may improve its effectiveness


Design attracts people's visual sensibilities

Manufacturer's Name

The Company's reputation may support the brand.

Brand Identity

Brand Personality is the message sent out by the brand through its product form, name, aesthetic indicators and advertising. This is different from the Brand Image which is the way the Target Market perceives the brand.

Aspects of the Brand




Fundamental, unchanging aspect of a brand


The brand's culture, personality, the personal information it conveys etc


These are the way the brand communicates through appearance of the product

Clearly, the styles are simpler to change than the style, which is more easy to change than the primary.

Step Method of Designing Brands

Step 1: Have a quality product (Fit for use)

Step 2: Build the basic brand

Marketing Mix requirements should

Support product performance

Differentiate the brand

Be consistent with positioning

Deliver the core product in an attractive way

Step 3: Augmentations - include extra services, promises etc

Step 4: Getting its potential - so that Customers won't acknowledge substitutes easily

Step 5: Maintain Brand Value - Utilizing the Marketing Combination to persuade Customers to rebuy

Step 6: Build Brand Devotion - Customers who rebuy and are devoted because:

Revenue from them is more predictable

Existing Customers are cheaper than new ones

Step 7: Know where to stop in producing the brand.

Implementing the Brand Strategy.

Brands that reach their potential have five characteristics (Doyle)

A quality product underpinning the brand

Being first to market, giving early on mover advantages

Uniquely positioning concept; quite simply they are exactly positioned

Strong communication underpinning the brand

Time and consistency

Brand Planning Process



Market Analysis

An summary of trends in the macro & micro environment and so includes Customer and Rival research and the identification of any Infestations factors which may impact our brand

Brand Situation Analysis

Analysis of the brand's personality and individual attributes. This represents an internal audit and a simple evaluation of the brand's character

Targeting Future positions

This is the main of the brand strategy as it incorporates all the steps learned above into a view of the way the market will develop and what tactical response is best suited. The strategy can be considered under three headings a. Goal Marketplaces b. Brand positions and c. brand scope

Testing new offers

Once the strategy has been chose the next thing is to develop specific components of the marketing blend and test the brand strategy for clarity, reliability and competitiveness with the target market

Planning and evaluating performance

The environment of the brand budget, establishing the kind of support activity needed and measurement of results against targets. Information on traffic monitoring of performance feeds into the Market research of the brand management process.

Brand Extension

Brand Extension consists of using the same brand, successfully established in a single market or channel, to enter other (Doyle). It is termed Brand stretches when the market segments are incredibly different.

Examples of Brand Extension

Tesco & Dixon's releasing themselves and Online sites providers

Penguin Books starting its own brand of compact discs

Swatch becoming involved with motor vehicles

Conditions for Brand Extension

The core ideals of the brand must be highly relevant to the new market

The new market area must not affect the key principles of the brand by connection. Failure in one activity can adversely affect the key brand.

Advantages of Brand Extension




It is less costly to extend a brand than to determine a fresh one from scratch

Customer Perception

Customer targets of the brand have been developed, so this lower risk for the client encourages trial

Less risky

Failure rate of new brands

Dis-Advantages of Brand Extension




The brand personality might not carry over efficiently to another portion. The brand principles might not be relevant to the new market


The brand must be strong already


The brand still needs a differential benefit over competitors


Excessive extensions can dilute the prices of the brand

Revitalizing Brands

Revitalization means increasing the sales quantity through: a. New Market segments e. g. Overseas b. New Sections c. Increased Utilization (eating breakfast time cereal as a snack throughout the day)

Repositioning Brands

Repositioning is a competitive strategy directed to change position to increase market share

Type of Position



Relates to the genuine product features and design


Change the buyer's notion about the brand


Alter values about competing brands

Change Emphasis

The emphasis in the advertising can change over time

Success Requirements for Branding

Worlwide research suggests that beneficial qualities of the brand are that they ought to:

Suggest benefits (Ultra Brite toothpaste, Slim Fast etc)

Suggest qualities such as action or colour e. g. Shake N Vac

Be easy to pronounce, acknowledge and remember

Be acceptable in all marketplaces both linguistically and culturally

Be distinctive

Be meaningful

Global or Local Brand

The key dissimilarities between a standardized global brand methodology and a strategy based upon exploiting global marketing opportunities are as defined below.

The standardized global brand procedure requires:

A standardized product offering to market segments that have exactly similar needs across cultures

A common method of the marketing combine and one which is as almost standardized as may be, given dialect differences

An approach established upon global marketing opportunities displays:

A identification that the sources of the company may be adapted to fulfill marketing opportunities in various ways taking into account local needs and preferences but on a global basis

A determination to sub-optimize the great things about having a single global brand to be able to maximize the advantages of meeting specific needs more closely

For a global company marketing products, which is often brand name, there are two further insurance plan considerations.

The issue of deciding if and exactly how to protect the company's brands and

Whether there should be one global brand or a variety of national brands for a given product.

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