PBL 6 (11.3.)

PROBLEM
How to create a brand strategy?

Learning objectives

1. Brand strategy

• What is a brand strategy?

According to Business Dictionary brand strategy is a long-term marketing support for a brand, based on the definition of the characteristics of the target consumers. It includes understanding of their preferences and expectations from the brand.

2. Brand portfolio

According to Kapferer companies can also expand by creating new brands to the side of existing ones.

He also states that the benefits of having a small brand portfolio is that it is easier to promote only a few products, especially in the retail market. As the distribution trade and industrial production have also become more concentrated, it makes sense to have small brand portfolios. Consumers also become confused by the growing number of brands. Brand internationalisation has become more common but not all brands are suitable for international markets.

However Kapferer also states that it is logical to have a multi-brand portfolio as a consequence of a differentiation strategy. Market growth might make it necessary to have multiple brands as no single brand can develop a market on its own. Multiple brands allow for best market coverage.

According to Business Dictionary brand portfolio is the total collection of trademarks that a company applies to its products or services. Each make of brand within a business' brand portfolio might be registered under applicable trademark laws and can represent a valuable asset to a company that is often actively promoted to potential customers.

Source: https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCTQyiBu3Ne_SJLH3QqPeSGAO2UonCG6JRffVTkRdParuFb3x5e6_-FC1D9yZKNJXbNDgmdWUTdNiML92b7ADIYbtsAGtQS2A1_WfiDTJ0SSVrlbRv_ZriAUl6_ueZ5LS7Cqb5bYkIsBKC/s1600/hugo+boss.PNG

Source: http://www.brandingstrategyinsider.com/images/old/6a00d83451b74a69e2017d3c0c3738970c-pi.jpg

Source: http://www.activistebrands.com/assets/_resampled/resizedimage500211-brand-architecture-01.jpg

Sources:
http://www.businessdictionary.com/definition/brand-strategy.html
http://www.businessdictionary.com/definition/brand-portfolio.html
Kapferer, J.N. 2008. The New Strategic Brand Management: Creating and Sustaining Brand Equiti Long Term. Kogan Page. 4th Edition.