BrandProduct Relationship 1 BrandProduct Relationship Introduction Six types

Brand-Product Relationship 1

Brand-Product Relationship Introduction Six types of relationship between brand product (or service) • product brand • line brand • range brand • umbrella brand • source brand (or parent brand) • endorsing brand 2

Brand-Product Relationship Product-Brand Strategy Company X To assign an exclusive name to a product, having its own individual positioning Brand portfolio correspond to product portfolio Brand A Brand B Brand N Product A Product B Product N Each new product receiving its own personal brand name Positioning A Positioning B Positioning N ▶적용한 사례에는 어떤 것이 있을까? □ P&G: detergents-Ariel, Tide, Dash □ Food sector: bring out new specialty product -> product-brand portfolio is extensive □ Mineral water: evian, perrier –strict indication of identity (Post-it) ‘Branduct’현상을 빚을 수도 있음 (product가->category가 됨) ▶좋은 점과 나쁜 점 □ 좋은 점: ●각자의 브랜드가 독립적이므로, ▶ 언제 이 전략을 쓸까? 실패하더라도 다른 브랜드나 회사이름에 □for firms focusing their attention on a particular market 먹칠을 하지 않는다. -by occupying several segments having different types of expectations and needs-< maximizing its share of the market ● Shelf-space의 영향을 받지 않는다. □ 나쁜 점 □When segments are not too different -Choosing one name per product helps the consumer see each other as being different ● 브랜드 런칭시 막대한 마케팅비용 □for highly innovative firms who wish to preempt a positioning -if the first brand in a new segment turns out to be satisfactory, it inherits the pioneer advantage; copy가 일어남 3

Brand-Product Relationship Line-Brand Strategy Line-Brand extends its specific concept across different products Cross Branding; product with complementary features ▶적용한 사례에는 어떤 것이 있을까? □ Renault: 각 모델에 Baccara version; a line brand indicating leather seats, a luxurious interior, etc. □ beauty-care industry: a complete line of products go with for balding man □ L’Oreal’s Studio Line: offering youngsters a structuring gel, etc. ▶ 언제 이 전략을 쓸까? □established by building on the success of the original product with practical variations of a closely associated nature. Eg) typical approach followed by perfumes ▶좋은 점과 나쁜 점 □ 좋은 점: It raises the selling power of the brand creates a strong image of consistency ● It leads to ease of line extension ● It reduces launch costs □ 나쁜 점: ● It lies in the tendency to forget that a line has limits ● A powerful innovation could slow down its development Eg) Nestle-Bolino ● 4

Brand-Product Relationship Range-Brand Strategy Brands bring all their products together under one promise or positioning Brand Concept Brands bestow a single name and a promise on a group of products having the same level of ability A B C D N ▶적용한 사례에는 어떤 것이 있을까? □ To assist its consumers in making sense of the scientific wording on products Clarins □ 좋은 점: Cream Solutions Fluids Gels Etc Soothing line Slimming and forming line Line Y ▶좋은 점과 나쁜 점 Concept: the specialist In beauty care ○ ○ ● It avoids the random spread of communication by concentrating on one single name ○ ○ ○ □ food sector (Green Giant, Dole), cosmetics, clothes (Benetton, Kookai, etc) kitchen equipment (Moulinex, Seb, . ) accessories (Samsonite, . ) ▶ 언제 이 전략을 쓸까? □ 나쁜 점: ● The Brand’s opacity as it expands ♣해결책: 1. the brand needed to be nurtured in such a way as to express its individuality 2. The consumer has to be assisted in sifting through the mass of products -> converted to product lines □ Building up Brand awareness (which can be shared by products) □ Refining brand concept ♣Approach: by concentrating on specific products, called vector product -> shared by the other products in the range not directly mentioned 5

Brand-Product Relationship Umbrella-Brand Strategy The same brand supports several products in different markets, each with its own communication and individual promise Yet each product retains its generic name Products or services A B Specific Communications By product Or service A B ▶적용한 사례에는 어떤 것이 있을까? □ Canon: cameras, photocopiers, and office equipment under one name □ Yamaha: motorcycles, pianos, guitars □ Mitsubishi: banks, cars, domestic appliances Brand C N ▶좋은 점과 나쁜 점 □ 좋은 점: Capitalization on one single name ● Little marketing investment is required □ 나쁜 점: ● Each division within the organization handles its own communication(to get the best out of the particular market in which it operates) ● Awareness resulting from the umbrella effect is not sufficient ● An accident occurring with one product can affect the other products under the same umbrella ● The more a brand covers different categories, the more it stretches and weakens- greatest handicap is its vertical extension ● ▶ 언제 이 전략을 쓸까? □ favored by multinational corporations marketing worldwide -being already established, their name and reputation is a major asset in entering segments or areas which they had not previously penetrated. -> awareness of the brand brings about immediate approval 6

Brand-Product Relationship Source-Brand (Parent) Strategy Identical to umbrella-brand strategy, Apart from Products are now directly named Parent Brand Personal brand Brand A names Specific Promise A Communication Product A Products Or Line A Brand B Brand C Promise B Promise C Product B Or Line B Product C Or Line C ▶적용한 사례에는 어떤 것이 있을까? □ Perfume: no longer come under a generic tag, such as eau de toilette or eau de parfum, but each has its own name, e. g. , Jazz, Poison, Opium, Nina, etc -> two tier brand structure known as double-branding ▶좋은 점과 주의할 점 □ 좋은 점: ability to impose a sense of difference and depth e. g. chanel: coco and no. 5 ● ▶ endorsing brand와의 차이점 □ source brand: the offspring may have their own Christian names, but are still tied to the family spirit which dominates □ endorsing brand: products follow their singular paths under a simple common guarantee ♣ problem with many brands is that they have converted from source brands to endorsing brands. □ 주의할 점: overstepping the limitation of the parent brand’s core identity; keeping within strict boundaries where brand extension is concerned. ♣해결책: if looking for greater freedom, endorsing-brand strategy is more suited. ● 7

Brand-Product Relationship Endorsing-Brand Strategy It gives its approval to a wide diversity of products grouped under product brands, line brands or range brands Promise A Product B Or Line A Or Line B Brand A Each product is still free to show its originality; hence the wide variety of names and symbols Promise B Promise C Placed lower down in its basic reassuring role Brand B Product C Or Line C Brand C Promise N Product N Or Line N Brand N Endorsing Brand ▶좋은 점 ▶적용한 사례에는 어떤 것이 있을까? □ GM: Pontiac, Buick, Oldsmobile, Chevrolet, etc □ Kellogg: Country Store, Rice Krispies, Frosties, etc ( Kellogg normally tends towards product brands-Frosties, All Bran, Corn Flakes, etc refers to particular products) □ Nestle: Crunch, Golden Graham, Nescafe, etc ♣표시형식: indicated either by an emblem next to the brand or as a simple name □ 좋은 점: ● grater freedom of maneuverability which it confers e. g. Nestle: baby food, children; s chocolate, coffee, soup market ● profits from the advantages offered by specifically named products. ● less costly ways of giving substance to a company name and allowing it to achive brand status. 8

Brand-Product Relationship Conclusion In reality, firms adopt hybrid configurations in the form of a range, umbrella, parent, or endorsing brand, according to the products. 9

Brand-Product Relationship A Case of Brand Proliferation Use the name of one of its existing primary brands, to capitalize on them and nourish them. (3 M) Overhead projectors, cameras Medical adhesives Extra, Magic Post-it Video cassettes W Y Z “Racoon” (nick name) ▶New philosophy emphasizes 3 M’s role as an endorsement brand. Generic denomination Schotch Brite (3 M medical division) □ Corporate Branding Policy Committee 설립 Establish corporate guidelines for brand use ● Review the brand’s world strategies ● Approve any new brand requests ● Schotch 3 M Sometimes with the 3 M endorsement, sometimes alone brand proliferation and dilution of identity -세계 29대기업임과 동시에 6만개이상의 제품을 판매, But 인지율은 매우 낮음 (65%보조상기율, 25% 친숙도) □ New guidelines introduced 1. The trademark 3 M should endorse all products (with one exception, a cosmetic line) 2. No products would carry more than two brands. 3. All brands will be global, which means no more creation of local brands. 4. □ 신브랜드 개발을 위한 전제조건 5. brand proliferation Policy It has 1, 500 product brands, which are correspondingly specialized, and each one receives too little financial support to be properly supported. Furthermore, the effect is to create a screen, Hiding the corporation 3 M. Will the product create a new primary demand? (Post-it) Sub brands -allowed only when the primary brand alone does not accomplish sufficient differentiation 1989: 73 new brands created 1991: 4 created brand portfolio: 1500 -> 700개로 줄임. 10

Brand-Product Relationship Selection Criteria Choosing a brand policy is not a stylistic exercise, but a strategic decision to promote products with a long-term brand capital aim. 1. 2. 3. Carvet France Specific type of Bordeaux wine The Carvet brand has meaning only when it can offer a plus which other Bordeaux cannot The product or service Consumer habits The firm’s competitive position Club Med Abroad Multiproduct name Club Med는. product brand 전략을 쓰는 대부분의 호텔 -Hilton, Sheraton, Meridien, Sofitel등과는 달리, range -brand policy를 policy 적용한다 Economy hutted villages … …. …. . Luxury golf hotels No appreciable wine-producing Industry Club Med Unitary Brand name Consumer is more accustomed to interpreting the various pointers to specification on wine label: region, vintage, type of vine, year Consumer may not fully appreciate the meaning of ‘appellation’, vintages, and other details. & Advertising Campaign Despite their differences, all these products Product brand Umbrella brand covering many generic French regional wines share the same model and values. Their common features speak louder than their differences. Denominative policy results from a recognition of the brand’s duties as expected by the customer, When compared with the function and meaning of other product-. range-, and line-brand names, Including objective and subjective quality indicators such as packaging, advertising and the retailer’s own prescription and advice. 11

Brand-Product Relationship Selection Criteria Major corporations selling to both industrial and consumer markets must decide how much emphasis they will put on product brands and how much visibility they will give to the corporate name Trend now exists in favor of corporate branding For a long time, corporations remained hidden for security purposes: in the event of problems with one of brands, The corporation would not be hurt. Reciprocally, the brands would not suffer from corporate problems. However, the advantages in the uncommon event of crisis are now outweighed by certain disadvantages. Ie) Unilever: is starting an endorsement policy in Europe and adds its corporate name in small type under its Persil Akzo: remained largely unknown; gained a poor image in terms of its technology because of this lack of visibility Johnson’s: all products are endorsed by Johnson’s, despite their being strong product brands in their own right. ICI Branding policy ● A Top-down policy (umbrella-brand policy) -a range of technical products which remain unbranded (polyurethanes) ● A hand-in-hand policy (endorsement-brand policy) -adds its corporate reputation and reassurance on technology and quality for the customers of famous mass-market brands (Dulux-paint) ● A product brand-only policy (makes no reference at all) -Tactel(fiber-fashion industry) is far removed from the imagery of the chemical industry GE ● The monolithic one (GE as an umbrella brand) -GE signs the product or company as single-brand (GE Silicones, GE Aircraft Engines, GE Motors) ● The endorsement type -GE signs adjacent to a specific product or company name (GE-X) ● The holding type -GE is discretely mentioned in such term as (X, member of the GE group) ● The autonomous product or company -making no reference to GE All companies must define strict guidelines with which to face these naming and branding decisions. Guidelines bring rationality and coherence to decisions so far made according to each manager’s Subjectivity. They become a tool of consensus and delegation. This is all the more necessary if the 12 Company is international and sells innumerable products.

Brand-Product Relationship Product Names: What Autonomy? 7 forms of strategy; Increasing degrees of autonomy The product do not have their own names The brand dominates The product -stamp of the powerful brand; -emphasizes a brand whose Ie) Lacoste shirt, socks, sweaters… image is reflected in every model. -사치품에만 쓰여지는 것이 아니라 product status를 올리기 위해 사용되기도 함. ie) St. Michael, Sony 등 -The customers will discover -not suitable for weak brands, Since they are unable to inject a common quality or spirit into the products bearing their name the brand identity. Totally autonomous product brand, with no offshoots or Affiliations Ie) Signal, Crest, Persil, Jif, and Sun all the objective and subjective attributes which go to make up ie) Mercedes: call its models the 190, 200, and so on. In naming, it provides A forceful reminder of The source brand -Each product is simply a variation on the brand’s values deriving from a common core. ie)Diorssimo, Miss Dior… -strict association between brand product allows the rising brand to express its identity and system of values by means of those little extra touches. -The principle should not be applied to too many products at one time. Ie) Nescafe, Nesquick, Nestea. . The relationship between product and brand is bottom-up -Nominal and semantic detachment allows brand to extend without destabilizing the heart of the brand. Ie) Dior’s Capture and Poison perfumes, Johnson’s Pledge -Exhausted or weak brands에 좋음. Ie)car industry; Renault의 경우 R 5, R 9에서 1990년 ‘own-name’ policy로 바뀜. Clio, Chamade의 이름을 달고 나타남. Wish to show an association between brand products through suffix, -The brand takes them under Its exclusive wing, expressing their innovative qualities. Ie) Lancome: Niosome, Noctosome … Wish to show an association Between brand products through term (ex: prefix) Ie) Clarins: ‘multi-tensing gel’, ‘multirestoring fluide’ -단순한 generic name 아님. 1. Prefix가 모든 제품에 나옴. 2. Clarins chose to capitalize on term: ‘multi’ infers a complete course of treatment, corresponding to the Clarins identity and intent. ->product line rather than mono products The choice between these policies depend greatly on the strength of the brand its will, the strength of its new products, and the force of its commercial strategy. ☞ Firms that have extensive growth policy in an effort to capture a larger share of the market -Range로 제품 출시하기 보다 특정한 이름을 가지고 부각시키는 것이 좋다. (P&G-세제) ☞ Firms opt for an intensive policy by developing their sales to existing customers - range로 제품을 출시하는 것이 좋다. (ex-Apple; Mac. Write, Mac. Paint, etc) 13

Brand-Product Relationship Retailer Brand Policies similar firms competing in the same area [Retailer sector] Wide range of brand policies Umbrella brand Retailer brands have typically been umbrella brands, exclusive to the retailer, each covering a number of groceries cosmetics products within a similar sphere Sainsbury: began as far back as 1869 Houseware Co-op: officially register its brand in France in 1929 Þ The retailers saw these products in an essentially defensive role, a reaction against reluctant manufactures who were not supplying them. Carrefour (1976) – 1. a new type of retailer brand known as ‘banner’. => signifies an attacking strategy. Umbrella brand 로 많은 제품군을 cover함. 단일 색상 패키지로 retailer signature없이 emblem의 guarantee만 있음. 2. ‘banner’의 성공으로 인해 ‘freedom’이라는 새로운 product line을 출시함. => stance: national brands처럼 좋으면서 값싼 3. 다른 Retailer들에게 응급 상황을 가져다 줌. 경쟁이 치열해지면서 대형 할인점에는 generic과 unbranded 제품이 난무하기 시작함. 이들은 National brand 보다 quality가 떨어지며 값은 30~40%가량 더 싸며 package상 아무 장식도 없음. 4. 소비자 인식상 값싼 generic 제품과 banner brand와 차이에 대한 혼돈이 빚어짐. ☞ banner 브랜드는 retailer의 이미지를 강화시키고 새로운 품질을 개선 시키는데에 목적이 있었으나 이러한 혼돈으로 말미암아 Banner brand는 retailer의 이미지를 오히려 악화시키기에 이르렀다. 5. 결국 Carrefour는 ‘freedom’ line을 접고, 대신 corporate branding policy를 출시함. ‘Own brand’ or ‘Private label’-different name from that of the retailer, Ie) Marks & Spencer - St. Michael. -share one essential difference from their earlier counterparts -in many cases they are product or line brands, designed to capture customers from the market leader, hence the name ‘counter brands’. □ tactic: 1. Major brand를 타겟으로 잡는다 2. 타겟과 가장 흡사하게 브랜드 네임과 패키지, 외관 디자인 및 색상을 결정하여 차이점을 눈에 띄지 않게 한다. ☞ 유사한 모방과 저렴한 가격으로 major brand의 R&D 투자와 품질, 마케팅의 이익을 누릴 수 있다. ※ retailer의 shelf에 물건이 빠질 것을 두려워하여 불공정한 경쟁에 대한 법적인 조치를 취하는 것을 꺼린다. 14

Brand-Product Relationship Retailer Brand Policies Brand Owner Brand’s Main Purpose Manufacturer To capture clientele of A targeted brand Retailer Counterbrand To personalize the product Product brand Own-label To incorporate the Product among others Line brand Range brand Own-label Umbrella brand (Banner brand) Retailer named brand To identify the product source Source brand Endorsing brand To indicate the manufacturer Corporate branding 15

Breakdowns in the Brand-Product Relationship: A Few Classic Examples Brand-Product Relationship Brand-product relationship organization aims at optimally managing the image flows. ws d di ng flo an br en sc Horizontal flows between the products -themselves can be a source of added value and may lead the consumer to try more products. at e • De Regenerate brand -thanks to a bottom-up image flow er • B en Descending flows; from the brand to the products -whenever their sales could be increased by the application of a source-effect. Re g • P 1 Pn Horizontal flows between the products All brand architectures는 initial goals를 성취하도록 노력해야 한다. 16

Breakdowns in the Brand-Product Relationship: A Few Classic Examples Brand-Product Relationship Classic cases of failure 1. A brand disappearing behind one of its products -the most frequent case; Parent brand가 서서히 실체를 잃음. -향후의 제품도 그 (힘을 잃은) parent brand로 출시할 예정이었을 경우 문제는 더욱 심각해짐. -brand range의 한 제품이 뜻밖의 성공을 거두었을 때 잘 일어나는 현상 Ie) Anais-Anais의 성공은 Cacharel의 identity를 잃게함 Honeywell또한 컴퓨터 사업을 접었는데에도 불구하고 과거의 과대한 광고로 인해 소비자 머리 속에 컴퓨터 회사라는 인식이 자리잡음. 2. Brand-product disconnection -When the company prefers to remain in the background, its image is not nurtured by its best-selling products and cannot act as an endorsement brand on other products. ie) Essilor: Varilux의 endorse 역할을 못함. Seiko, Nikon등에 밀림 Corning -소비자는 Pyrex를 브랜드가아닌 ware로 착각할뿐아니라 corning과 연계하지도 못한다. 3. Excessive use of product name-제품마다 브랜드를 도입 4. Range disruption or breakage -명확한 identity구축과 구체적인 seg에서의 판매를 강화할 수 있지만 브랜드와 소비자 사이의 스크린을 만드는 것과 같다. -parent brand나 source brand를 사용할 경우 단순한 endorsing brand로 value나 core identity가 약하므로 특정한 제품을 단독 브랜드화한다. 하지만 brand core는 지녀야하며 이것으로부터 멀어질 수록 특정 브랜드 name이 필요함으로 double branding이 적합하다. ie) Kellogg’s: health and nature을 brand core로 가져가고 전제품을 Generic name화. (eg. Kellogg’s Corn Flakes 등) 예외- Choco pops, Frosties 등과 같이 less health oriented, with more fun and gimmicks -> receive double branding -모든 브랜드는 ‘brand map’을 적용해야함. -in case of a range brand, the products of the range must work in synergy and complementarity to fulfill the brand mission, but it often happens that many products in a range have their separate lives, unexpected and even contradictory. Ie) Johnnie Walker - a classic case of vertical disruption of the brand. (a brand suffers when it signs both a basic, low-priced product and a top-class, premium-priced product. ) -Black label은 johnnie walker 심볼을 배제한체 출시하였고, Red label은 과다한 가격인하 정책과 리베이트로 인해 싸구려 위스키로 이미지 전락. -> johonnie walker의 자산 하락 -> brand reposition을 꾀하고자 range를 선택함. (johnnie walker와 black label의 평형을 찾아 병에 표시함. Black label 위급인 Gold label과 Premier 신제품으로 range 확대. Johnnie walker symbol의 연합 역할. ) Product with no mention ● of brand Brand core ● Product with a specific name and a small mention only of the brand ● Core product A ‘brand map’ visual layout of brand-product relationships, distances and structure 5. The insistence on certain accounting methods. -특정한 몇몇개의 제품을 communication하여 같은 line에 있는 제품에 대해 동시에 효과를 보려고 하는 접근에서 오는 오류. -한 두개의 line에 대한 재정 support로 인해 특정 제품에만 몰두하면서도 모든 제품 range에 benefit을 가져올 것이라고 생각하지만 사실상 광고된 line의 특징들이 다른 제품 line에 그대로 적용되어 같은 이미지로 overshadow 된다. ie) Playtex-Cross Your Heart, Super Look bras 등의 특정한 제품만 광고하다가 브랜드 캠페인으로 바꿈. 17