Branding architecture and strategies

vane spend a pennying architecture and strategies flaw distinguishes a partys merchandise from its competitors and an identified product or avail that closely satisfies customers needs and wants. Brand is an as sight to a connection and reflects the quality of customer helping. Branding is all rough the customers faith of the product or service and makes the segmentation easier for the caller-out. The difference between a company and its competitors should be communicated by tell on, because it makes a company unique. BMW, Toyota, Luis Vuitton, NEXT, Debenhams, Nike and Coca Cola ar the well- cognize discolorations that command wrong premium and stimulate deep customers committedness.Branding is the collection of actual and emotional characteristics associated with a particular identified product or service that differentiates it from the rest of grocery storeHand-out notes by tutor Anthony smithBranding is an principal(prenominal) aspect of marketing to build a n oticeable image of a company. Mercedes Benz is an automobile gull that commands a premium with their engineering, per course of instructionance, quality, customer service and after sales service. Toyota shares all these attributes but still they were not positioned as premium in the customers forefront. Toyota then formed Lexus as a premium brand with the partnership of both Toyota and Lexus shared engineering, design elements and customer service to successfully make do the big automobile brands like Audi, BMW and Mercedes Benz.How-to-branding.comBrand ArchitectureBrand architecture refers to the hierarchy of brands at bottom a single company. It is the interrelationship of the parent company, subsidiary companies, products, and service, and should mirror themarketing dodging.Kompanigroup.comHow an organization structures various products, services or other entities within its portfolio and how they relate to one another.Brandinstitue.comIn the growing economy we can see diffe rent companies merging with each other and form the strategy for each of the targeted group in which every product can bring its own brand name. Good and clear brand architecture clues a company towards brand positioning and also helps to get sustainable warring advantage.There are three different types of brand architecture strategies.Corporate/monolithic Branding StrategyIn this strategy company takes on a unified brand for all products and target markets. This strategy brings simplicity, and cost deficiencies can be achieved as opposed to multi-branding architecture, in which a in somatic brand plays a smaller role.Microsoft, Intel, Disney, CNN, SONY, Nike, Virgin and coca cola etc. are the best examples of corporate branding. Corporate banding makes the advertising easier for the company as they fairish advertise their name and slogan. . Coca cola is recognizable in every continent of the initiation by its red curved bottle and logo. SONY is a corporate brand as its name is attached to everything, from its DVDs to play station.The founder of SONY, Akio Morita, once said I have al ways believed that the company name is the life of an enterprise. It carries responsibility and guarantees the quality of the product. Therefore corporate strategy leads a company to sustainable financial outcomes.Brandingstrategyinsider.com.Adhistry.wikispaces.comGoogle.co.ukMulti/ individual(a) Branding StrategyMulti Brand Strategy refers to a marketing strategy under which two or more than than two similar products of a riotous are marketed under different brand names.Finance.mapsofworld.comIt is very difficult for a brand to position itself in a diversified environment where the customers needs and wants are different. Therefore, company can fill different market segments through diversifying its product range. VW, PG, Unilever and Diageo are the best examples of multi branding. PG is the prime example, having a multiple shampoo brand to do work different customers, li ke head shoulder for dandruff, Pentene for healthy hear and Sassoon for professional saloon experience. Through multi branding a company can target more than one segment in the market and fill the price gaps. Multi branding is a good strategy but sometime it fails because of the poor management. Due to misfortune it could harm the family brand name.VW took many years to change the negative brand image of Skoda from the customers mind.Helen Meek. et al, 2001Google.co.ukEndorsed BrandingA brand that carries the endorsement of asource brand (the parent company).Brandbuild.euEndorsements add integrity and assurance of the indorsed sub brand in customers mind without everyplacepowering it with its own draw. Endorsed branding is suitable for the company, using varied product portfolio, e.g. Nestle, Cadbury, Unilever etc.Nestle written on theKit Kat,Cadbury written on Dairy Milk to provide credibility and assurance to the product.Some companies give independence to the endorsed brands like Unilever give freedom to the Heartbrands such as Feast, Magnum and Cornetto and they have their own marketing campaigns and target market. Some companies has firm relationship between company name and product, e.g. Ford does it with the model Mustang, people using either the brand name Mustang or the full name Ford Mustang.Google.co.ukBrand ElementsBrand elements are those trademarkable devices that identify and differentiate the brands. There are certain elements of a brand, like names, logos, symbol, characters, slogans, design, features etc. some important elements are mentioned be first-class honours degree.Kotler et al, 1996Brand NameName is the most portentous element of the brand. This is the only part of the brand which should never be changed. It help customers to identify distinguish product from competitors. It is not necessary the brand name is associated with the company and can be different. But if the brand name is linked with the quality of the product either high or low, then all good mustiness be of the same standard. MS is the prime example of providing quality products through St Michael Brand as one can see its tag on the cloths and pabulum and household goods as well.Brand ImageBrand image is fundamental way through which a customer recognises and believes a brand. It gives a company an personal identity and creates a better image in the mind of the customers. Brand image is unique that clearly reflects the image of the organisation and different from the competitors. To build a mightily wing image in the customers mind, the company must have to focus on brand identity.Brand PersonalityBrand personality is the goodwill of the brand. It is associated with the benefits and attributes of the brand. Brand personality is unique and long lasting it is the emotional attachment of the consumers with the product, e.g. Sony and Panasonic, both are the giants of electronic sector, although both got same features, some peoples prefer one of the other because of their trust on the product by long time.Brand AssociationAssociations, according to Aaker (1991) represent the bases for purchase decisions and for brand loyalty.The way consumers perceive brand is a give away determinant of long-term business-consumer relationships. Hence, edifice strong brand perceptions is a top priority for many firms today.Morris, 1996It is the perception of the customers towards a brand attributes and quality. Brands can be associated with the name, colours, symbols, attitudes, expressions and well etc. Mercedes Benz is associated with the luxury drive and excellent engineering, Nike with its Slogan, Nokia with its sound, and Coca Cola with its red colour, Colgate toothpaste with cavity protection and Microsoft with Bill Gates.Renault has launched a successful campaign for its model Clio and utilise the famous French footballer Thierry Henry and Sesame Steet in the Va Va Voom advertisement. This campaign resulting attract more male customers than females. This is how celebritys association to the brand benefits organisation.Kotler et al, 1996Brand association gives the foundation garment of buying and brand loyalty to the customers. Companies invariably try to associate their brands with the positive things to create good image of the product in the mind of customers.Brand association developed if the product is desirable, durable and satisfies the customers needs. Positive customers perception about the product makes a brand stronger. It is formed on the basis of Product attributes, Advertisement, Relevant price, Quality, repute and big entity association, Competition and Display points.Brand positioning situation is the place in consumers mind that you want you brand to own. For example, Hallmark caring shared, and Disney Family Fun entertainment.Positioning is not what you do to a product positioning is what you do to the mind of the prospect.Ries and Trout, 1981Brand positioning is successfully built t hrough continuous communication with the customers about the product to its targeted market, through advertisement, brand name and its packing.Brand positioning refers to the position in the customers mind, it does not relate to market position. Brand positioning is associated with the market segmentation. The right market segment is to be targeted for the brand positioning. Brand positioning is all about a customers perception about the product. There are certain ways for a brand to be positioned, e.g. offering specific benefits, targeting a specific segment, pricing and distribution.Brand positioning is an important concept in which a company can decide where it wants to position its brand in its field relative to competition. Brand positioning is a thinking that guides a company to build a relationship between the brand and customers. Brand positioning gives space in the customers mind, so the company become in the better position to control over its own brand image.Price and qua lity are the most common attributes are considered in the brand positioning. To get a good position in the customers mind the company introduce brand of a good quality with on competitive price. The quality of the product must be at least equivalent or better from the competitors.Quality perception is the most powerful element of the brand positioning. Once a company is successful in building a powerful perception of quality will result in building a powerful brand. Psychological element is dominant to some issue in building a quality perception as some peoples psyche is that the product with high price tag is of good quality.Communicating brands through their specific features is another way to position brands, e.g. Clinic all clear, Dare to wear Black or Pakistan and India surf excel is advertised as stain remover, pasture Excel hena. Culture is another strong aspect to the brand positioning. Different companies use cultural symbols to differentiate products from their competito rs. Examples including, Air India advertise through Maharaja, Tata tea, Hamara Bajaj etc.Treedeuce.comBrand ExtensionBrand extensionis a marketing strategy in which a firm that markets a product with a well-developed image uses the same brand name but in a different product category.Brandexpress.netWhen a firm uses its brand in another product form, or even within another product class, then the firm is stretching the brand (also referred to as brand extension).Iain Ellwood, 2002Virgin is the good example of brand extension as they rat everything from records to airline travel, to cola drinks to wedding parties from clothing to cosmetic and computers. This is successful in brand extension because it has the ability to connect the customer directly and give them values. umteen firms attempt to extend their brands but all the brand extensions are not suitable or desirable. An drawn-out brand always works best in a top to down direction. It is always easy for a company to bring brand extension from relatively cheaper product line. Ralph Lauren and Gucci are the best example. Ralph Lauren extended from luxury clothing to jeans and bed linen while Gucci brand is extended from luxury clothes to oven gloves, cooking aprons and dog toys. An extended brand has a low introductory cost because the customers, traders and retailer are well aware of the product. Brand extension brings options to the customers through variety of products. If the product is of lower quality, will result in damaging in overall brand value.Iain Ellwood, 2002Caterpillar is one of the biggest non-sporting footwear companies in the world with its brand CAT. This is basically a construction and mining equipment manufacturing company that extended their brand in this potential segment. It was perceived that it is the biggest mistake of the caterpillar but the extension was a big success.Sometimes the brand extension, implemented wrongly due to less understanding. LEGO is a Danish toy manufacturin g company, decided to extend its brand and launched its own product line of cloths, watches and video games but it was ignored by its target market, that result half of its employee are redundant back in 2004.Kotler et al, 2009Michelin and Goodyear are the French companies, famous for making rubber tyres and having a number of brand extensions. Michelin brand extensions are car and cycle related product, footwear and clothing, sports and leisure and personal accessories. On the other hand Goodyear becomes the partner of the Adidas to make a serial publication of driving shoes.Kotler et al 2006We can see normally financial services providers have not attempted to extend their brands, and only concern with their original market. On the other hand, there are too many non-financial service providers extended directly to the financial services. E.g. Tesco extended its market to Tesco banking and Tesco insurance.Benefits of brandingTo customersPeople buy brands, because they are well awar e of the quality of the product and save time and efforts. Buying a branded product can give customers a peace of mind and credibility. Most of the branded products have warranty policies, which gives customers assurance of a quality product. Some big companies having product replacing policies, e.g. DeWalt a power tool manufacturing company, fill in the product immediately in case of damage.To intermediaries/stakeholdersThere are certain benefits of branding to different stakeholders, that directly/indirectly effecting the organisation.Multinational organisations always have the strategy for social, environmental and economic issues, so Companies contribute to the societies in which they operate. Brands follow government regulations to minimise any adverse effect to the environment and pays tax and create origin opportunities that help governments to control over unemployment.Employees always attract to innovative companies where learning opportunities are always there to enhance their career. Multinational companies give assurance of the affair security and give career path at the time of recruiting them.Instead of supplying goods directly to retailers, companies distribute goods through agents or distributers. Distributers get long-term agreements from the known brand companies and also benefits from the goodwill of from that brand. Retailer can get benefits from the companys overall marketing campaign.Sustainable competitive advantageWhen two or more firms compete within the same market, one firm possesses a competitive advantage over its rivals when it earns (or has the potential) to earn a persistently higher rate of loot.Grant, 2002It is very important for every organisation to be successful in long term. Effective corporate branding is certainly the main source of getting sustainable competitive advantage in the market. Worlds famous corporate brands do not sell products, they sell concepts, e.g. Coca Cola does not sell a soft drink, it sells dive rsion and Microsoft does not sells computers, it sells possibility.Brand designers create a corporate brand identity through promotional material and advertising campaign to establish a corporate identity.There are certain brand characteristics that lead a company to get sustainable competitive advantage. A well designed logo and a strong identity system can give a company an edge over its competitors.Through Brand IdentityA unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organisation members.Aaker, 2004Brand identity is the way a company aims to identify or position itself or its product or service.Kotler et al, 2009Brand identity is the first thing that a customer experience and plays a major role in getting a sustainable competitive advantage in the market. Brand attributes are is a bag of features that shows the personality of a brand and the se attributes help to create brand identity.Brand identity is supported by emotional and unique elements and values, serve to distinguish the brand in the market, in particular for progressively competitive environments, service organisations and recreational sectors.Brand identity creates a distinct identity that is very hard for the competitors to duplicate.The main elements to build a strong brand identity are human resources, organisational culture, organisational structure, stationary, company cards, company dcor, packing, catalogue, market and innovation etc.Kotler et al, 2009Through Brand loyaltyBrand loyalty is considered as ultimate reward for a brand as it is another factor which leads a company to get a sustainable competitive advantage. Customers always prefer to buy those brands they are loyalty with, even though that is expensive and have close substitutes in the market.Apples iPod is a product to listen mp3/mp4 music, and the big electronic giants like Sony, Panasoni c and so many other companies have same product with same features at the relatively low price than Apples iPod. Majority of the customers buy iPod just because they are loyal with the brand.Through Brand EquityBrand is a symbol of extremely precious part of legal property, that can control consumer doings and it also provides the protection of persistent future revenues to the firm. Brand equity is called the metre that is directly or indirectly accrues by these various benefits.Kapferer, 2005 keller, 2003Companies invest huge amount of money to develop brand equity. Brands with high equity win the space in the market because of the uniqueness, reliable services and continuous and effective relationship with the customers.Stronger brand image takes a company to financial advantage through the brand equity. Brand equity leads a company to charge perineum prices for the product to raise their profit margin.