This document discusses strategic brand management. It defines a brand as a name, symbol, or design that identifies a seller's goods or services. For buyers, brands can reduce search costs, risks, and perceived risk. For sellers, brands can facilitate repeat purchases, new product introductions, promotional effectiveness, premium pricing, market segmentation, and brand loyalty. The challenges of brand management include competitive pressures, market fragmentation, complex strategies, bias against innovation, and short-term pressures. Strategic brand analysis involves analyzing products, markets, customers, competition, and brands. Tracking brand performance and analyzing product life cycles, finances, performance, research, and positioning are also discussed.

1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Strategic Brand
Management

2. A product is anything that is potentially
valued by a target market for the
benefits or satisfaction it provides,
including objects, services,
organizations, places, people, and ideas
STRATEGIC BRAND MANAGEMENT

3. A brand is a name, term, design, symbol, or any other
feature that identifies one seller’s good or service as
distinct from those of other sellers.
American Marketing Association

4. For Buyer, Brand can Reduce …
customer
search
costs
the social and
psychological
risks
the buyer’s
perceived risk

5. FOR SELLERS, BRANDS CAN FACILITATE:
repeat purchases
the introduction of new products,
promotional effectiveness
premium pricing
 market segmentation
brand loyalty

6. Brand Management Challenges
Intense Price and Other Competitive Pressures
Fragmentation of Markets and Media
Complex Brand Strategies and Relationships
Bias Against Innovation
Pressure to Invest Elsewhere
Short-Term Pressures

7. Responsibility for Managing Products
Product/Brand Management
Product Group/Marketing Management
Product Portfolio Management

8. Strategic Brand Management
Brand Identity Strategy
Brand Strategy Over
Time
Managing the Brand
Portfolio
Leveraging the Brand
BRAND
EQUITY
MANAGEMENT
STRATEGIC
BRAND
ANALYSIS

9. STRATEGIC BRAND ANALYSIS
Analyses Product Product Line Portfolio of
Product Lines
□ Market and
Customer
□ Competition
□ Brand(s)

10. Tracking Brand Performance
Performance
Objectives
Select Method(s) for
Evaluation
Identify Problem
Products
Decide How to
Resolve the
Problem

11. Analyzing Brand
Performance
Product life cycle
analysis
Financial
analysis
Product
performance
analysis
Research
studies Standardized
information
services
Brand
positioning
analysis

12. Product Life Cycle Analysis
 Determining the length and rate of change of the PLC
 Identifying the current PLC stage and selecting the
product strategy that corresponds to that stage
 Anticipating threats and finding opportunities for
altering and extending the PLC

13. • Product Performance Analysis
 Management’s performance criteria
 Strengths and weaknesses relative to portfolio
• Brand Positioning Analysis
 Perceptual maps for brand comparison
 Buyer preferences
• Other Product Analysis Methods
 Information Services
 Research studies
 Financial analysis

14. BRAND EQUITY
Company/Customer Value of
Brand Name and
Symbol of
a Product
Determined by the brand’s
set of
assets (and liabilities)

16. BRAND IDENTITY STRATEGY
Four Brand Identity Perspectives
Product
Organization
Person
Symbol

17. Line
of
Products
Private
Branding
Corporate
Branding
BRAND FOCUS
Combination
Branding

18. MANAGING BRAND
STRATEGY
Proactive efforts should be
devoted to managing each brand
over time.

19. Strategies for Improving Product Performance
Product line
Strategy
Add
new
product(s)
Cost
reduction
Product
improvement Alter
marketing
strategy
Eliminate
specific
product(s)

20. MANAGING THE BRAND PORTFOLIO
Leverage
Commonalities to
Generate Synergy
Allocate
Resources
Reduce
Brand
Identity
Damage
Facilitate Change
and Adaptation
Achieve Clarity
of Product
Offerings
BRAND PORTFOLIO
OBJECTIVES

21. Strategies for Brand Strength
Adding a
New Line
Brand
Building
Strategies
Fighter
Brands
Brand
Revitalization
Removing
Orphan
Brands

22. BRAND
EXTENSION
LINE
EXTENSION
Extensions of the
brand name to other
product categories
Minor variants of a single
product are marketed under
the same brand name
BRAND LEVERAGING STRATEGY

23. LINE EXTENSIONS BRAND
EXTENSIONS
Horizontal
Extension
Vertical
Extension
Another
Product
Class
Range
Brand
Co-
Branding
Up from
Core
Brand
Down from
Core
Brand
LEVERAGING ALTERNATIVES

24. BRAND LEVERAGING IN UPSCALE AND VALUE
MARKETS
Vertical Brand Extensions*
Core
Brand
New
Up-Market
Brand
New
Down-Market
Brand
Core
Brand
* ONE OF THE MOST DIFFICULT
BRAND PORTFOLIO CHALLENGES

25. BRAND EXTENSION DECISIONS
Identify product
categories for
which the product
fits and adds value.
Identify related
product category
opportunities
Evaluate each
category
Select the most
promising
extension concept
Develop a viable
Brand Strategy

26. CO-BRANDING
Co-branding (dual branding) involves two or more established
brands making a joint offer of their product brands —

27. BRAND LEVERAGING EVALUATION CRITERIA
Brand Relevance/Differentiation
Capabilities/Perceived Value Match
Market/Segment Opportunity
Cannibalization Risks
Potential for Core Brand Damage
Clarity of Product Offerings
Estimated Financial Performance
Brand Equity Impact

28. SEVEN DEADLY SINS OF BRAND
MANAGEMENT*
Failure to fully understand the meaning of the brand.
Failure to live up to the brand promise.
Failure to adequately support the brand.
Failure to be patient with the brand.
Failure to adequately control the brand.
Failure to properly balance consistency with the brand.
Failure to understand the complexity of brand equity