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What are the benefits of What context will the brand be created in?
building brands? From an organisation’s perspective, we need to analyse the
context within which the brand is created:
In groups of 3-4 discuss the points below ❖ What market are we in, who is our target market?
❖ What is the customer profile and buyer behaviour of the target
1. In groups think of some brands that you use or are familiar with, e.g. market?
Nike, Gucci, Apple. Briefly highlight the difference between a product and a ❖ Who are or will be our main competitors?
brand. ❖ What do we want our brand(s) to represent?
❖ How do we ensure that our target audience (or audiences)
2. Summarise the benefits of a brand for:
a) The organisation perceives our brand as the superior alternative?
❖ Can we ensure that we have a better market position than our
b) Consumer competitors?
❖ Do we use one brand or several brands to achieve effective
Aim to complete this in 10-15 minutes
market coverage?
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Keller (2001)
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Brand
Essence
How is it What does the
better? company stand
How is it for?
different? What are the
aims?
Differences Source
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Product/Brand ‘Halo Effect’ Strategic Role of Brands
Brand Product
• Design
• Values • Performance
• Brand Image • Ingredients/components
Brand’s Product’s
• Image of stores • Size/Shape
intangible Halo visible and
where sold effect
values and differentiating • Price
• Perceptions of
imagery characteristics • Marketing
brand users Communications
Brand Product
Aspiration Satisfaction
Expectations
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The components of brand identity Dimensions of Brand Personality
Brand Orientation
• Corporate Brand
Philosophy BRAND
• Brand Practices PERSONALITY
• Brand Equity
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Positioning alternative Positioning alternative
brand strategies brand strategies
❖ Product Brand strategy is a ‘portfolio’ approach in which there is a range of
individual products/brands each with their own unique positioning. Procter
and Gamble and Unilever are companies that have a range of individual ❖ Umbrella Brand strategy is where there is a house
brands, some competing with each other (e.g. soap powders like Daz, Ariel, brand (eg: Canon, Honda, Misubishi) but the individual
Vizir and Dash). The concept of ‘brand’ or ‘product management’ has been products are distinctly difference (e.g.: cameras,
attributed to P&G who expanded categories with a wide range of competing
brands.
photocopiers, inks etc.).
❖ Source Brand strategy is similar to Umbrella Brands
❖ Line Brand strategy is an offer extended to products which have synergy where there is a house brand (e.g.: Yves St Laurent
under one brand name (e.g.: different variations of hair treatments). Nestlé perfumes) but the individual products carry their own
introduced a new variation to the ‘countline’ (a chocolate-based bar) - the Kit
Kat ChunKy – to reinvigorate their chocolate bar range when the target
distinctly different brand name (e.g.: Opium, etc.).
market saw no relevance in the original ‘four finger’ bar. ❖ Endorsing Brand strategy is the umbrella brand which
covers all product types, product lines and individual
❖ Range Brand strategy, which involves offering a wide selection of products brands.
under a single area of competence, is most prevalent in the food sector.
Product names (e.g.; ‘fish pie’, ‘haddock pieces’) are kept distinct but they all
carry the overriding brand name (e.g.: Bird’s Eye).
Source: Kapferer (2000, p189) 25 Source: Kapferer (2000, p189) 26
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Summary References
❖ Brands are mainly the mental associations individuals ❖ De Chernatony, L., & Dall’Olmo Riley, F. (1998). Defining
have with a product, but brands may also be described a “brand”: Beyond the literature with experts’
as having a personality. interpretations. Journal of Marketing Management, 14(5),
❖ The main benefit for organisations to build brands is that 417-443.
the products become easily recognisable and add value ❖ Kapferer, J. N. (2012). The new strategic brand
above the product features, and therefore provide management: Advanced insights and strategic thinking.
consumers with brand equity. Brands also help
differentiation. Kogan page publishers.
❖ Schmitt, B. (2012). The consumer psychology of brands.
❖ The brand meaning symbolises the consumers self-
identity to others and membership of groups. Journal of Consumer Psychology, 22(1), 7-17.
❖ Till, B. D., Baack, D., & Waterman, B. (2011). Strategic
❖ Building plans is an integral part of marketing strategy
reflecting its importance for successful business. brand association maps: developing brand insight. Journal
of Product & Brand Management, 20(2), 92-100.
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