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Brand Architecture & Brand Strategy Presented by: Ipsita Saha Medhavi Singh Yamini Devpura -P&G and ITC

Brand Architecture & Brand Strategy

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Page 1: Brand Architecture & Brand Strategy

Brand Architecture & Brand Strategy

Presented by:

Ipsita SahaMedhavi SinghYamini Devpura

-P&G and ITC

Page 2: Brand Architecture & Brand Strategy

What is brand Architecture?

• It tells marketers which brand names, logos, symbols etc. apply to which new and existing products

• branding strategies on the other hand helps deciding, whether a firm is or should be employing an umbrella corporate or family brand for its entire product range or a collection of individual brands

• Brand architecture defines both brand boundaries and brand complexity

Page 3: Brand Architecture & Brand Strategy

Things like ….

• Which different products should share the same brand name?

• How many variations of that brand name should we employ?

Page 4: Brand Architecture & Brand Strategy
Page 5: Brand Architecture & Brand Strategy

Brand Strategy

• It is the marketing practice of creating a name, symbol or design that identifies and differentiates a product from other

products • It is how, what, where, when and to whom and what

a brand plans to communicate & deliver its message, visually and verbally. Where to advertise & the distribution channels are also part of brand strategy

• Consistent, strategic branding leads to a strong brand equity

Page 6: Brand Architecture & Brand Strategy

There are six major branding strategies:

i. The Product-Brand Strategyii. The Umbrella Strategyiii. The Masterbrand Strategyiv. The Maker’s Mark Strategyv. The Endorsing Brand Strategyvi. The Source Brand Strategy

Page 7: Brand Architecture & Brand Strategy

Procter & Gamble (P&G)

• Procter & Gamble Co. is a Fortune 500 American multinational corporation

• Founded in 1837 and headquartered in Downtown Cincinnati, Ohio, P&G manufactures a wide range of consumer good

• It mainly operates in:Beauty & Grooming segmentHousehold Care segment

Page 8: Brand Architecture & Brand Strategy

Product-brand Strategy

• It is the marketing strategy of giving each product in a portfolio, its own unique brand name and identity

• This facilitates the positioning of each product, by allowing a firm to position its brands differently

• In this strategy, the company is not identified at all

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Page 10: Brand Architecture & Brand Strategy

Procter & Gamble

• Procter & Gamble follows the product-brand strategy.

• Procter & Gamble does not strongly identify itself with each of its brands (Ariel, Tide, Pampers, Dash, Swiffer, Pringle etc.).

• This makes it possible to function in the same market, for example washing powders, with a portfolio of apparently competing brands.

Page 11: Brand Architecture & Brand Strategy

• P&G gives its brands distinguishing:

symbol (logo, emblem, colour, form, packaging and design) word object concept (significance) which makes them unique from each other.

• It assigns a particular name to one, and only one product as well as assigns one exclusive positioning to the product. This results in new product receiving its own brand name that belongs only to it.

For example: Products of P&G, say: Camay is a seductive soap whereas Zest is a soap for energy.

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• To keep the product at its height and original positioning, P&G continuously renews its products

• The Ariel formula has been often improved since it was launched in 1969

• Often, to emphasise an important improvement to the product, P&G added a number after the brand

name of its product, for eg: Dash 1, Dash 2, Dash 3

• To keep up with changing consumer habits, the brand name was applied to various formats, for example, in packaging: packets, drums, in powder or liquid form

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• P&G occupies many segments with different needs and expectations • therefore, has greater share of the market and becomes category leader. For eg: P&G has four detergent brands

• Segments catered by Procter & Gamble are closely related, therefore choosing one name per product helps customers perceive the differences between the various brands.

• Thus, although all detergents of P&G have same composition, the proportion of these may vary according to the factor that is being optimized: stain removal properties, care for synthetic materials, color fast control or suitability for hand washing.

• The association of a specific name for a type of need underlines the physical difference between the products.

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• Product brand strategy allows firms to take risks in new markets.

• Procter & Gamble launched a product brand: Vizir,when the future of the concept of liquid detergent was uncertain.

• Launching it under the name Ariel liquid would have threatened Ariel’s brand image asset and • launching it under the name Dash would have incurred the risk of

associating a potentially powerful concept with a weak brand.

• Thus, it went on with the launch of an altogether new product brand.

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• Product brand strategy allows the firm freedom to move into new markets, since the name of the company behind it remains unknown to the public

• Procter & Gamble moved from the creation of: soap, Ivory in 1882 to the culinary aid, Crisco in 1911 & Chipso in 1926 to machine detergent, Dreft in 1933 &Tide in 1946 dishwashing agent, Joy in 1950 and Dash in 1955 the toothpaste, Crest in 1955 the peanut-butter, Jif in 1956 Pampers in 1961 coffee, Folgers in 1963 the antiseptic mouthwash, Scope, as well as household paper rolls, Bounce in 1965 Pringle chips in 1968

• Since each brand is independent of the others, the failure of one of them has no risk of negative spillover on the others, or on the company name.

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• The distribution parameter favours product brand strategy.

• The shelf space accorded by a retailer to a company depends on the number of (strong) brands that it has.

• But when a brand covers many products, the retailer stocks only certain products and not others.

• In the case of product brands, there is only one product per brand, or one product line per brand, therefore, the products get more shelf space

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• The Product Brand Strategy is an ideal one for growing markets where a small market share could mean higher volumes.

• In this strategy, new products do not benefit from the renown of one of the already existing brands since the firm gives the brand a completely distinct and exclusive function and almost no hints about its origin.

• Also, since they represent an entire category of products on their own, they have to invest twice as much in advertising and promotion.