Fighting brand strategy examples

INTRODUCTION

The strategic opportunity matrix identifies four major strategic alternatives for company growth: market penetration, market develop- ment, product development, and diversification (Ansoff, 1957). Brands are fundamental compo- nents of each of these strategic growth options, and the company’s MARKETING STRATEGY depends strongly on decisions surrounding brand strategies (see BRAND STRATEGY) within the larger context of MARKETING PLANNING.

Evolving over time, brand strategies range from corporate brands to individual brands. This evolution is driven by competitor innova- tions, changes in customers’ wants and needs, and overall neglect that leads to atrophy of brand value (Capon et al., 2001). The potential harm to BRAND VALUE, brand equity (see PERCEP- TION OF BRAND EQUITY), and CUSTOMER EQUITY has long-term ramifications for shareholder value. Both business-to-consumer and business-to-business companies should plan strategically with respect to brand architecture. That is, all companies must understand the various strategies for brand growth so as to create brand value/equity and customer equity which lead to long-term shareholder value.

Brand growth strategies. The five major strate- gies for brand growth are line extension strategy, brand extension strategy, cobranding strategy, flanker strategy, and new brand strategy. There are no hard and fast rules as to when one brand growth strategy takes precedence over another. Brand growth requires a unique blend of art and science. Careful monitoring of the marketplace with respect to competition and customer desires is critical to brand growth strategy formulation.

Line extension strategy. The line exten- sion strategy, probably the most common brand growth strategy, is a powerful tool in a product manager’s toolbox. A line extension is when a parent brand is used to brand a new product that targets a new market segment within the product category served currently by the parent brand (Keller, 2007). A fairly common example

of the line extension strategy is Crest tooth- paste. A quick scan of the Procter and Gamble website highlights the depth of line exten- sions. For example, Crest toothpaste comes in a wide variety of product offerings: Pro Health, Weekly Clean, Whitening Expressions, Whitening, Cavity Protection, Tartar Protec- tion, Sensitive Teeth, Flavors, Baking Soda, Gels, Liquid Gels, Paste, Striped, and For Kids.

In the Crest example, the relationship between the core brand (Crest) and the line extensions is that Crest serves as the endorser of the exten- sions. A consumer may purchase whitening toothpaste for the benefits of whitening, but purchase Crest Whitening for the assurance of the Crest brand. Yet, Whitening would likely carry no weight as a stand-alone brand without the endorsement of Crest. In other instances of line extension, both the core brand and line extension exert influence on consumer decision making. The Toyota Avalon, Toyota Camry, and Toyota Corolla are examples of line exten- sions where the core brand (Toyota) and the extensions (Avalon, Camry, and Corolla) are important designators of brand building power.