Branding Guru Lecture II

Brand Strategy

· Philip Kotler stressed on the importance of brand strategy. "It's more important than ever for marketers to prove they can deliver value, reading Brand Strategy can help you build a compelling case." Professor Philip Kotler - Marketing Department - Kellogg School of Management, Northwestern University
· Brand strategy is the marketing plan or ideas which based on the brand's vision and driven by the principles of differentiation and sustained consumer appeal. The brand strategy should influence the total operation of a business to ensure consistent brand behaviors and brand experiences.

Example

Nike has developing a brand strategy and the company thinks that they require some key components as below: -
· Knowing the target market by identifying for the market segment.
· Understanding and articulating the brand values in-house – Nike Stress on the “Just do it”
· Testing and refining brand values with the target market - conduct focus groups to validate the brand values and develop the strategic messaging.
· Communicating clearly and consistently across the right media formats at advertisement, internet media, event, promotion
· Delivering on the brand promise


Line Extension

A company introduces a brand line extension by using an established product’s brand name to launch a new, slightly different item in the same product category in terms of new flavors, package sizes, nutritional content or product containing special additives.

Line extension refers to the parent brand is used to target a new product that targets a new market segment within a product category currently served by the parent brand, Line extensions often involve a different flavour or ingredient variety.

Line Extension Benefits
- Expand company shelf space presence
- Gain more potential customers
- Offer customers more variety
- Greater marketing and production efficiency
- Increased profits

Line Extension Threats
- Potential for failure, which may damage products within the brand
- Possible intra-firm competition

Example

Diet Coke is a line extension of the parent brand Coke. While the products have distinct differences, they are in the same product category and the extension (Diet Cok) is very dependent initially on customer recognition of the brand name Coke.
Coca Cola (parent brand) and Coke Light (sub-brand).


Category Extension

Category Extension refers to the parent brand is used to enter a new product category from that currently served by the parent brand.

Example

Pepsi soft drinks (parent brand) and Pepsi shoes (category or brand extension).