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What is Brand Architecture?


The brand strategy or brand architecture for a firm tells marketers which brand names, logos, symbols and so forth to apply to which new and existing products. It defines both brand boundaries and brand complexity.

House of Brands
This architecture focuses of the branding of multiple sub-brands while the primary brand gets little or no attention.

Branded House
In this methodology, the company is the brand. All products and services within that company will be subsets of the primary brand.

HOUSE OF BRANDS

Advantages
Managers can focus on individual brands and formulate strategies with regard to segmentation, positioning etc Since the brands in the portfolio are independent, the failure of any one brand is not going to have an impact on other brands

Disadvantages
Higher cost of promotion Chances of brand cannibalization within a category

BRANDED HOUSE Advantages


Economies of scale in terms of brand promotion activities Promotional cost of introducing new products into the market will be significantly lower compared to House of Brands.

Disadvantages
The possibility of brand dilution arising out of different products from the same brand Firms strictly adhering to Branded House portfolio model may have to forego many market opportunities if those categories do not fit into the parent brands positioning. The impact of product failures/controversies on entire portfolio

Company Statistics
FORTUNE 500 Rank : 28

Total Number of Brands : 300

Total Net Sales : $85 billion Total Net sales of top 25 Brands : $1 billion
Source: FORTUNE 500

Various Brands

Breadth of Branding Strategy


BREADTH OF PRODUCT MIX Product Categories

Detergents Toothpaste

Bar soaps Deodorants

Shampoos

Diapers

Tissue/ Towel

Sanitary Napkins

Breadth of Branding Strategy


BREADTH OF PRODUCT MIX

Breadth of Branding Strategy


BREADTH OF PRODUCT MIX Toothpaste [2] Gleem Crest Bar soaps [5] Ivory Camay Zest Safeguard Oil of Olay Deodorants [3] Old Spice Secret Sure Shampoos [7] Pantene Head & Shoulder Vidal Sassoon Pert Plus Ivory Physique Wella

Breadth of Branding Strategy


BREADTH OF PRODUCT MIX Tissue/ Towel [4] Charmin Puffs Bounty Kids Fresh Wipes Diapers [2] Pampers Luvs Sanitary Napkins [3] Whisper Always Tampax

Breadth of Branding Strategy


DEPTH OF PRODUCT MIX
Ariel OxyBlu, Ariel Oxyblu Ultramatic, Ariel Front O Mat, Ariel 2in1

Duracell and Duracell Ultra Duracell is available in sizes AAA, AA, C, D, and 9volt while Duracell Ultra is available in sizes AA and AAA sizes Razor range: Gillette Vector, Gillette Mach3, Gillette Mach3 Turbo, Gillette Guard, Gillette Mach3 Turbo Sensitive, Gillette Fusion Shave Care range: Gillette Fusion HydraGel, Gillette Series Sensitive Skin Foam, Gillette Series After Shave

Depth of Branding Strategy


multiple brands in same product category
Primary Reason Market Coverage
Introduced Cheer detergent brand as an alternative to its already successful Tide detergent, resulting in higher combined product category sales

Maximize market coverage & minimize brand overlap


Focused innovation efforts on core brands, which led to numerous successful market-leading brand extensions such as Crest whitening products and Pampers training diapers

Depth of Branding Strategy


Flankers : fighter brands
Purpose: create stronger points of parity with competitors brands so that more important flagship brands can retain their desired position Repositioned its one time top-tier Luvs diaper brand to serve as a price fighter against private labels & store brands to protect premium positioned Pampers brand

Depth of Branding Strategy


Cash Cow
Purpose: some brands may be kept despite low sales as they still manage to hold on to a sufficient number of customers & maintain their profitability with virtually no market support Despite the fact that technological advances moved much of market to Mach3 brand of razors, Gillette still sells its older Trac II, Atra, and Sensor brands. This is because withdrawing these brands may not necessarily result in customers switching to another Gillette brand.

Recent Developments
Current recession proving to be very difficult Under pressure from investors Altering its brand architecture Changing from house of brands architecture to one of brand endorsement in which P&G logo now exists alongside each product Purpose : need to be more open with consumers Reasons for shift: First - the company is on a mission to shave more than 6bn from its operating budget by 2016 Second - related to P&Gs competitors

BRANDED HOUSE

Company Statistics
OPERATING COMPANIES in 7 Business Sectors

NET SALES - $ 100.09 billion

32 Public Listed Tata Enterprises

Source : Tata Website

BRAND ARCHITECTURE
One Name One Visual
Single Master Brand

Branded House
Client Trust the brand

Brand Promise important than feature

Product Mix
IT &Comm
Engineering

Material

Services

Energy

Consumer Products

TCS

Tata Motors

Tata Steel

Indian Hotel

Tata Power

Titan

TaTa Sky

Voltas

Tata Capital

Infinity Retail

Tata Teleservices

Chemicals

Tata Chemicals

Breadth & Depth of Product Mix


Cars and Utility Vehicles(12), Trucks and Buses, Defense(12) and Homeland Security(4).

Upper Upscale (TAJ), Upscale(Vivanta), Value Segment (Gateway Hotels, Ginger) , Fun Elements (Taj Safari, Taj Salon)
Source Tata Website

Product Line Tata Motors

Nano

HATCHBACK

SEDAN

UTILITY VEHICLE
Tata Safari,Sumo, Dicor,Gold, Grande

CROSSOVER

Indica,Vista

Manza, Indigo

Tata Aria

Why Branded House - TATA


Helps to fill Institutional Voids Communication Infrastructure Underdeveloped Interplay between the mother brand and sub brand (Indica V2)

Strong Brand Name Enter into Uncharted Territories( Chroma)


Source Business Line Article

Various Divisions

Samsung is a South Korean conglomerate, which was founded in 1938. It is one of the most well known brand in the world and ranks 8th in the Interbrands most valuable brands, 14th in Fortune 500 & 8th in the Gartner Supply Chain Top 25. Its the 3rd most innovative company in the world just behind Apple & Google.

SAMSUNG Electronics ELECTRONICS Breadth of Product Mix Breadth of Product Mix

Digital Media
Semiconductors

Telecommunication LCD Digital Appliances

Electronics Breadth of Product Mix

LCD Digital Appliances

Telecommunication

Semiconductors

Computer Devices Digital Displays Consumer Electronic Devices Home Appliances

SDRAM, SRAM Mobile application Processor FLASH MEMORY Smart Card Image Sensors

Digital Media

FAX Machines Mobiles Satellite receivers

TFT LCD OLED Display

Electronics (Mobiles) Depth of Product Mix


Tablet Smartphone 6 Smartphone 33 Others - 19

o SAMSUNG name is today found on everything from ships, mobile phones, to laptops and semiconductor chips o SAMSUNG has been trying to position itself as a premium lifestyle brand but several of its businesses do not match this positioning o Brand name spread too thinly today o Hard to monitor the interaction of various brands within the SAMSUNG portfolio o Should work on the brand personality

BRANDS UNDER GAP

BRAND ARCHITECTURE

Hybrid

Branded House

House of Brands

GapKids

BabyGap

Gap Maternity

GapBody

Banana Republic

Old Navy

Athleta

INTERMIX

PROBLEM
2000-2002 stock fell to $10

29 months of store sales decline

3 brands were sitting on each other Push the brands further apart by positioning them differently

CURRENT POSITIONING

Gap Banana offers Republic iconic ,yet offers modern modern, clothing covetable and accessories workplace style for adults for ,kids Must At INTERMIX Piperlime Athleta, haves is offers we at a boutique prices design a curated that the that no ultimate mix inspires one ofcan on-trend, performance customers believe. irresistible Everything with apparel a fresh pieces and has and great gear that for and professional babies. men and women. style every celebrate unique and active mix quality, each of woman, products, customers and from shopping brands personal the weekend experience andsense price warrior points of is style actually . towith the fun fiercely an intimate, driven competitive individualized athlete approach

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