BRANDING (3)

1. BRANDING (3) Sports and Entertainment Marketing IDC 4U7

2. LESSON OBJECTIVES • To re-cap thelast lesson; • To become familiar with the types of brands: • Manufacturer Brands • Intermediary Brands • Generic Brands • To understand Manufacturers’ brand strategies: • Multiproduct Branding • Multi-branding • Co-branding

3. RE-CAP: PREVIOUS LESSON • Brand loyalty: • How faithful a customer is to a particular brand, regardless of pressure from competing brands • Brand loyalty is expressed through repeat purchases • Recall: How is a customer moved through the stages?

4. TODAY: BRANDS AND STRATEGIES • There are three types of Brands: • Manufacturer Brands • Intermediary Brands • Generic Brands

5. MANUFACTURER BRANDS • Owned by the producer of the product • Producer responsible for marketing the brand • Examples: HP, Apple, Sony, Adidas, Champion..

6. INTERMEDIARY BRANDS • Carries a name developed by the wholesaler or retailer • Sell manufacturer’s products under their own private labels • Examples: SportChek brand, FootLocker brand

7. GENERIC BRANDS • Represent a general product category and does not carry a (recognized) company or brand name. It is non-destinctive. • Example: grocery store items • Not common in the sports industry

8. GENERIC BRANDS • It is often inaccurate to describe these products as "lacking a brand name", as they usually are branded, albeit with either the brand of the store in which they are sold or a lesser-known brand name which may not be aggressively advertised to the public

9. GENERIC BRANDS • Examples: Band-Aid Adhesive Bandage

10. QUICK CHECK – TURN TO YOUR PARTNER • In partners explain to each other what you just learned: • What is a manufacturer brand? • What is an intermediary brand? • What is a generic brand?

11. BRAND STRATEGIES • Brands can be marketed using the following strategies:  • Multi-Product Branding: the manufacturer uses one name for all its products • Multi-Branding – Each product in a product line has a distinctive name. • Co-Branding: combines one or more brands to increase customer loyalty and sales for each product.

12. MULTI-PRODUCT BRANDING • Multi-Product Branding: the manufacturer uses one name for all its products (eg. Nike) • Multiple products carry the same brand name (Nike for women & men, Nike shoes, Nike jerseys etc.) • Includes brand extension: using the existing brand name for an improved or new product in the product line

13. MULTI-BRANDING • Multi-Branding – Each product in a product line has a distinctive name. • This strategy is used for products that target different consumers. • .. &/or to prevent competitors from taking market share (how?)  potential Cannibalization? • Proctor & Gamble (P&G)

14. CO-BRANDING • Co-Branding: combines one or more brands to increase customer loyalty and sales for each product. • E.g. Visa co-branded with Aeroplan; other loyalty affiliations 

15. CO-BRANDING EXAMPLES

16. CO-BRANDING EXAMPLES • Fiat & Mattel come together to create the “Barbie 500” car • Lip gloss in the glove compartment (!)

17. ACTIVITY – NEW TABLE PARTNERS • Start out in your new table • Consider the Advantages or Disadvantages of the three types of Brand Strategies for Manufacturers • One person from each group will be asked to come up and explain one section.

18. DE-BRIEF – ADVANTAGES & DISADVANTAGES

19. MULTI-PRODUCT ADVANTAGES • The promotion of one item, promotes the other • Efficiency of advertising money • It facilitates acceptance of new products by retailer and consumer • Creates further brand awareness • Easy for the consumer to maintain brand loyalty

20. MULTI-PRODUCT DISADVANTAGES • Can delete the effectiveness of the brand name. When consumers see the brand name everywhere on many different types of products, they may not necessarily put the same faith in the brand as they once did (dilute the image). • When you put your brand name on many different types of products, you eventually may have a hard time managing them all • If you want to change the brand identity – effort to change all • Artificially raises expectations of a new product

21. MULTI-PRODUCT DISADVANTAGES • Negative ties. For example, if your brand covers household products such as soap and cleaners but it also covers beef products, a beef recall could lead to a bad perception associated with the other products in the lineup. You have to make sure all of the products in your line share the same level of quality

22. MULTI-BRANDING ADVANTAGES • obtaining greater shelf space and leaving little for competitors' products, • saturating a market by filling all price and quality gaps, • catering to brand-switchers users who like to experiment with different brands, and • keeping the firm's managers on their toes by generating internal competition • The customer gets to choose from a host of brands and products in a single visit to a single outlet • Products appeal to many different target markets

23. MULTI-BRANDING ADVANTAGES • Each product is unique and distinct • If one product isn’t doing well it won’t effect the others through association

24. MULTI-BRANDING DISADVANTAGES • Offering multiple choices often leaves the buyer confused • Difficult for a retailer to recommend a brand to the customer because that would amount to underselling the other brands • If a dislike for one product of the brand, then a negative association with other products of the brand • Harder to create brand loyalty because each product is separate • More resources (including financial) to market each product • No relationship amongst products • Registering/trademarking each brand name is expensive

25. CO-BRANDING ADVANTAGES • Awareness for a wider market/audience • Offers combined benefits for consumers • Can familiarize consumers with an unknown brand through association • Allows brands to expand into different markets • Can increase revenues • Gives each product a new personality

26. CO-BRANDING ADVANTAGES • It can enhance both partners if there is a good fit with the company's products, values, and image. Enables one brand to benefit from the "halo of affection" that belongs to another. That was the rationale behind Nike's original 1984 alliance with Michael Jordan, and the effort has been a positive relationship for both parties. • Cost savings. That's one reason you increasingly see fast-food restaurants like Swiss Chalet and Harveys sharing the same building—and sometimes the same counter, menu boards, and staff.

27. CO-BRANDING ADVANTAGES • A powerful way of introducing one company's products and services to the loyalists of another. • The best example of this is the now-legendary "Intel Inside" campaign, which launched a brand that few consumers had ever heard of into the stratosphere by piggybacking on the equity of big computer makers such as IBM and Compaq – now intel is found in over 300 computer manufacturers.

28. CO-BRANDING DISADVANTAGES • If one company does poorly it could pull the other company down with it – brand image could be compromised • Each company may have a different vision – causing confusion to consumers and business management • One brand might undersell the other or vice versa

29. WHAT NEXT? Branding Strategies http://www.youtube.com/watch?v=H-RaxV2as8s&feature=related