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TYBMM
Prof He{llant Kombrabai I

BRANDING STRATEGIES

I Branding Strategies
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Multi-product Multi-branding Co- branding Licensing
branding strategy strategy strategy strategy
Godrej makes: ICICI-Big Old Spice
- Godrej navtal Hindustan Lever Bazar Louis Philippe
- Godrej makes: Times-MTv Levis
Storewel Pears Intel-HP Arrow
- Godrej Domex
ColdGold Fair & Lovely
Wheel
Cadbury makes:
- Cadbury Bulsara makes:
Dairymilk Odonil
- Cadbury 5 Star Promise
- Cadbury Perk Sani Fresh
- Cadbury
Bournvita

Generic branding strategy

MULTIPRODUCT BRANDING
also called blanket branding strategy or family branding strategy In this strategy the firm uses
one name for all its products. It i an attempt to leverage corporate brand equity in an attempt to
create product brand recognition. Disney, for example, includes the word 'disney' in the name of
many of it's products. So does JB , epsi, and CocaCola. This can re ·n significant economies of
scope since one advertising campaign can be used for several produ~. It also facilitates new product
acceptance because potential buyers are already familiar with~ name A corporate branding
strategy should only be used if the company is already well known by the target market and also has a
very positive image in their mimil{Itcorporate branding is done well, the corporate name can
become synonomous with a procfifc'~e;~(eg.: Klenex, Tampax). Even purchasers of Charmin
will refer to the prqduct as Klenex.~e · disadvantage with corporate branding is the products
 TYBMM Prof Hemant Kombrabai I

are not tr:~d as individuals, hence there is not adequate focus on the products' unique
characterist~

vanta es
n result in significant economies of. scoE!:_ since one advertising campaign can be used for
several products
Facilitates new product acceptance because potential buyers are already familiar with the riame
Makes possibleJ!ne exteosioQs
Sub-branding combines a family brand with a new brand.
Allows for brand extension; even to enter a completely different product class.

Limitation.
Too many uses for one brand name can dilute the meaning.
The_producfsare not treated as individuals, hence there is not adequate focus on the products'
unique characteristics

~LTI BRANDING
\_!be depth of a branding strategy concerns the number and nature of different brands marketed in the
duct class sold by a ruiii]Why might a finn have multiple brands in the same product category?
e primary reason relates to market coverage. Although, multiple branding was o r i ~. pioneered
General Motors, Proctor, & Gamble is widely recognized as popularizing the practice.

(The main reason to adopt multiple brands is to pursue multiple market segments. These different
\made.et segments may be based on all types of considerations-<liffere~t · e segments, different
- channels of distri~ution, different geographic boundaries, an~ so f~rth. In many cases, multiple
brands have to be mtroduced by a firm because any one brand 1s not view equally favorably by all
the different market segments that the firm would like to target. Some other reasons for introducing
multiple brands in a category-include the following
I.To increase shelf presence and retailer dependence in the store
2.To attract consumers seeking variety who may otherwise switch to another brand
3.To increase internal competition within the firm ·
4.To yield economies of scale in advertising, sales, merchandising, and physical distribut~

Advantages of a Multi-branding strategy

I .The firm can distance<-products from other offerings it markets

rGENERIC BRAND
l._6,.product that i~ n~~ed only by its generic clru:s (e.g., ~rip-~rind coffee, barber shopl9ther products
have both an md1v1dual brand and a genenc class1ficat10-;:;1Maxwell House drip-grind coffee,
Maurice's barber shop). Generic brand products are often thought to be unbranded, but their producer
or reseller name is usually associated with the product, too. This approach is usually associated with
food and other packaged goods, but many other consumer and industrial products and services are
marked as generics.
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TYBMM Prof Hemant Kombrabai I

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CO-BRANDING
As noted previously, a new product can become linked to an existing corporate or family brand that
has its own set of associations through a brand extension strategy. An existing brand can also
leverage associations by linking itself to other existing brands from the same or different company.
Co-branding-also called brand bundling or brand alliances-occurs when two or more existing
brands are combined into a joint product or are marketed together in some fashion Co-branding has
been around for years; for example, Betty Crocker paired with Sunkist Growers in 1961 to
successfully market a lemon chiffon cake mix. Interest in co-branding as a means of building brand
equity has increased in recent years. For example. Leaf Specialty's Heath toffee candy bar has not
only been extended into several new products-for example, Heath Sensations (bite-sized candies)
and Heath Bits and Bits of Brickie (chocolate-covered and plain toffee baking products}--but also
has been licensed to a variety of vendors, such as Dairy Queen (with its Blizzard drink). Ben &
Jerry's (with tl1eir ice cream products), Nestle (with their ice cream bar), and Pillsbury (with their
cake frosting). In the credit card market, co-branding often involves three brands (e.g.. Shell Chase
Bank MasterCard). With airlines, brand alliances can involve a host of brands, such as United
Airlines, Lufthansa, SAS, and Singapore Airlines.

The main advantage of co-branding is that a product may be uniquely and convincingly positioned by
virtue of the multiple brands involved. Co-branding can create more compelling points of difference
or points of parity, or both, for the brand than might have been otherwise feasible. As a result, co-
branding can generate greater sales from the existing target market as well as open additional
opportunities with new consumers and channels. Co-branding can reduce the cost of product
introduction because two well-known images are combined, accelerating potential adoption. Co-
branding also may be a valuable means to learn about consumers and how other companies approach
them. In poorly differentiated categories especially, co-branding may be an important means of
creating a distinctive product.

The potential disadvantages of co-branding are the risks and lack of control that arise from becoming
aligned with another brand in the minds of consumers. Consumer expectations about the level of
involvement and commitment with co-brands are likely to be high. Unsatisfactory performance thus
could have negative repercussions for the brands involved. If the other brand is one that has entered
into a number of co-branding arrangements, there also may be a risk of overexposure that would
dilute the transfer of any association. It may also result in distraction and a lack of focus on existing
brands.
Advantages
• Borrow needed expertise
• Leverage equity you don't have
• Reduce cost of product introduction
• Expand brand meaning into related categories
• Broaden meaning
• Increase access points
• Source of additional revenue
Disadvantages
• Loss of control
• Risk of brand equity dilution
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• Negative feedback effects
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• Lack of brand focus and clarity
• Organizational distraction 0

BRAND LICENSING
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Licensing is a contractual agreement whereby a company allows another firm to use its brand name,
patent, trade secret, or other property for a royalty or a fee. Licensing also assists companies in ••
entering global markets with minimal risk. Essentially, a firm is "renting" another brand to contribute
to the brand equity of its own product. ••
A strong brand often has associations that may be desirable in other product categories. To capitalize
on this value, a firm may choose to license its name, logo, or other trademark item to another
company for use on their products and merchandise Traditionally, licensing has been associated with
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characters such as Garfield the cat, Barney the dinosaur, and Disney's Mickey Mouse, or celebrities
and designers such as Martha Stewart, Ralph Lauren, and Tommy Hilfiger. Recently, more ••
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conventional brands such as Caterpillar Harley Davidson, Coca-Cola, and other have licensed their
brands.

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Licensing can be quite lucrative for the licensor. Licensing has long been an important business
strategy for designer apparel and accessories. Designers such as Donna Karan, Calvin Klein, Pierre
Cardin, and others command large royalties for the rights to use their name on a variety of
merchandise such as clothing, belts, ties, and luggage. Over the course of three decades, Ralph
Lauren became the world's most successful designer, creating a $S billion dollar business licensing
his Ralph Lauren, Double RL, and Polo brands to many different kinds of products Everyone seems
to get into the act with licensing. Sports licensing of clothing apparel and other products has grown
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considerably to become a multi-billion dollar business. Even the Rolling Stones released a line of 80
licensed goods (including T-shirts, ties, and a credit card) that were sold at concerts during their ••
Voodoo Lounge tour, via home shopping shows, on computer networks, and through a 16-page
catalog. ••
The rationale for the licensee (i.e., company obtaining the rights to use the' trademark) is that
consumers will pay more for a product because of the recognition and image lent by the trademark.
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For example one marketing research study showed that consumers would pay $60 for cool ware
licensed under the Julia Child name as opposed to only $40 for the identical cool ware bearing the
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Sears name.
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The rationale for the licensor (i.e., the company behind the trademark) relates to profits, promotion,
and iegal protection. In terms of profits, a firm .can expect an average royalty of about S percent of the
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wholesale price of each product, ranging from 2 percent to IO percent depending on the circumstance E:
involved. Because there are no manufacturing or marketing costs, these revenues translate directly to C
profits. Licensing is also seen as a means to enhance the awareness and image of the brand. Linking
the trademark to other products may broaden its exposure and potentially increase the strength, C
favorability, and uniqueness of brand associlltions Finally, licensing may provide legal protection for C
tradem~ks. Licensing the br~nd for use in certain product categories prevents other firms or potential
compet1t?rs fr_om legally usmg the brand name to enter those categories. For example, Coca-Cola C
entered hcensmg agreements in a number of product areas, including radios, glassware, toy trucks C
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