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Brand Architecture & Brand Strategy

Procter & Gamble follows a product-brand strategy where each product is given its own unique brand name and identity rather than associating multiple products under a single corporate or family brand name. This allows P&G to position each product differently and take risks in new markets more easily. Some examples of P&G product brands include Tide, Ariel, Pampers, Swiffer, and Crest. The product-brand strategy provides benefits such as flexibility in new markets, risk mitigation if a product fails, and maximizing shelf space from retailers.

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Medhavee Singh
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1K views17 pages

Brand Architecture & Brand Strategy

Procter & Gamble follows a product-brand strategy where each product is given its own unique brand name and identity rather than associating multiple products under a single corporate or family brand name. This allows P&G to position each product differently and take risks in new markets more easily. Some examples of P&G product brands include Tide, Ariel, Pampers, Swiffer, and Crest. The product-brand strategy provides benefits such as flexibility in new markets, risk mitigation if a product fails, and maximizing shelf space from retailers.

Uploaded by

Medhavee Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Brand Architecture & Brand

Strategy
-P&G and ITC

Presented by:
Ipsita Saha
Medhavi Singh
Yamini Devpura
What is brand Architecture?
• It tells marketers which brand names, logos,
symbols etc. apply to which new and existing
products
• branding strategies on the other hand helps
deciding, whether a firm is or should be employing
an umbrella corporate or family brand for its entire
product range or a collection of individual brands
• Brand architecture defines both brand boundaries
and brand complexity
Things like ….

• Which different products should share the


same brand name?

• How many variations of that brand name


should we employ?
Brand Strategy
• It is the marketing practice of creating
a name, symbol or design that
identifies and differentiates a product from other
products

• It is how, what, where, when and to whom and what


a brand plans to communicate & deliver its message,
visually and verbally. Where to advertise & the
distribution channels are also part of brand strategy

• Consistent, strategic branding leads to


a strong brand equity
There are six major branding strategies:

i. The Product-Brand Strategy


ii. The Umbrella Strategy
iii. The Masterbrand Strategy
iv. The Maker’s Mark Strategy
v. The Endorsing Brand Strategy
vi. The Source Brand Strategy
Procter & Gamble (P&G)
• Procter & Gamble Co.  is a Fortune
500 American multinational corporation

• Founded in 1837 and  headquartered


in Downtown Cincinnati, Ohio, P&G
manufactures a wide range of consumer good

• It mainly operates in:


 Beauty & Grooming segment
 Household Care segment
Product-brand Strategy
• It is the marketing strategy of giving each product
in a portfolio, its own unique brand name and
identity

• This facilitates the positioning of each product, by


allowing a firm to position its brands differently

• In this strategy, the company is not identified at all


Procter & Gamble
• Procter & Gamble follows the product-brand strategy.

• Procter & Gamble does not strongly


identify itself with each of its brands
(Ariel, Tide, Pampers, Dash, Swiffer,
Pringle etc.).

• This makes it possible to function in the same market,


for example washing powders, with a portfolio of
apparently competing brands.
• P&G gives its brands distinguishing:

 symbol (logo, emblem, colour, form, packaging and design)


 word
 object
 concept (significance) which makes them unique from each other.

• It assigns a particular name to one, and only one product as well as


assigns one exclusive positioning to the product. This results in new
product receiving its own brand name that belongs only to it.

For example: Products of P&G, say:


Camay is a seductive soap whereas
Zest is a soap for energy.
• To keep the product at its height and original positioning, P&G
continuously renews its products

• The Ariel formula has been often improved


since it was launched in 1969

• Often, to emphasise an important improvement to the product,


P&G added a number after the brand
name of its product, for eg: Dash 1, Dash 2,
Dash 3

• To keep up with changing consumer habits, the brand name was


applied to various formats, for example, in packaging: packets,
drums, in powder or liquid form
• P&G occupies many segments with different needs and expectations
• therefore, has greater share of the market and
becomes category leader.
For eg: P&G has four detergent brands

• Segments catered by Procter & Gamble are closely related, therefore


choosing one name per product helps customers perceive the
differences between the various brands.

• Thus, although all detergents of P&G have same composition, the


proportion of these may vary according to the factor that is being
optimized: stain removal properties, care for synthetic materials, color
fast control or suitability for hand washing.

• The association of a specific name for a type of need underlines the


physical difference between the products.
• Product brand strategy allows firms to take
risks in new markets.

• Procter & Gamble launched a product brand: Vizir,when


the future of the concept of liquid detergent was
uncertain.

• Launching it under the name Ariel liquid would have


threatened Ariel’s brand image asset and
• launching it under the name Dash would have incurred the risk of
associating a potentially powerful concept with a weak brand.

• Thus, it went on with the launch of an altogether new product brand.


• Product brand strategy allows the firm freedom to move into new markets, since the
name of the company behind it remains unknown to the public

• Procter & Gamble moved from the creation of:


 soap, Ivory in 1882
 to the culinary aid, Crisco in 1911 & Chipso in 1926
 to machine detergent, Dreft in 1933 &Tide in 1946
 dishwashing agent, Joy in 1950 and Dash in 1955
 the toothpaste, Crest in 1955
 the peanut-butter, Jif in 1956
 Pampers in 1961
 coffee, Folgers in 1963
 the antiseptic mouthwash, Scope,
 as well as household paper rolls, Bounce in 1965
 Pringle chips in 1968

• Since each brand is independent of the others, the failure of one of them has no risk
of negative spillover on the others, or on the company name.
• The distribution parameter favours
product brand strategy.

• The shelf space accorded by a


retailer to a company depends on
the number of (strong) brands
that it has.

• But when a brand covers many products, the retailer


stocks only certain products and not others.

• In the case of product brands, there is only one product


per brand, or one product line per brand, therefore, the
products get more shelf space
• The Product Brand Strategy is an ideal one for growing markets where a
small market share could mean higher volumes.

• In this strategy, new products do not benefit from the renown of one of
the already existing brands since the firm gives the brand a completely
distinct and exclusive function and almost no hints about its origin.

• Also, since they represent an entire category of products on their own,


they have to invest twice as much in advertising and promotion.
 
 

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