Brand strategy

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A brand strategy can be defined as a conditional, long-term and global behavioral plan to achieve brand goals. The primary brand objective is to build and increase brand value. The brand strategy is conditional insofar as it is made assuming certain, expected market and company developments. The global nature of the strategy makes it necessary to break down the specific operational tasks and goals. In practice, suitable brand strategies are used in horizontal , vertical and international competition.

Planning horizon

The planning horizon of a brand strategy is usually designed for three to five years. Due to various developments, especially on the Internet, this planning horizon has to be checked and adapted on a case-by-case basis.

Horizontal competition

The brand strategy in the horizontal competition includes the single brand strategy , brand strategy , family brand strategy , brand strategy transfer and co-branding strategy .

Single brand strategy

Separate brands are created for individual products and / or services as part of the single brand strategy (also monobrand strategy ). Each brand or product has its own brand identity and brand image. This strategy is primarily used when it comes to heterogeneous products for different customer groups and customer segments, whereby the provider of the brand remains in the background and is deliberately not communicated. Examples can be found primarily in the consumer goods market. A company that consistently pursues the single brand strategy is, in addition to Ferrero and its Nutella , Hanuta , Mon Chérie products , the Procter & Gamble company with its Ariel , Pampers and Meister Proper products .

Multi-brand strategy

With the multi-brand strategy, at least two brands are introduced in the same product area (at least two brands aimed at the overall market are introduced in parallel in one product area). This strategy must be distinguished from the brand portfolio strategy, which is not restricted to the same product area. No specific segments are addressed, but the overall market. The individual brands differ in terms of product properties, price or communicative appearance. The multi-brand strategy is widespread in the automotive sector; In addition to two truck brands, Volkswagen AG has also combined six car brands under the corporate umbrella, Toyota three and General Motors eight. The brands should specifically address different buyer groups and their preferences (e.g. sporty, robust, high-quality, inexpensive). The brands are deliberately differentiated from one another through a corresponding product design , certain product features and a suitable image , although technically they can have a lot in common. This should also avoid cannibalization effects within a group. In the technical area, however, attempts are being made to develop the vehicles of the different brands on a uniform structural basis (see platform (automobile) ) and to use as many identical components as possible. This is also expressed in group-wide product descriptions in which certain brand-typical technical or optical features are only assigned to the corresponding brand.

disadvantage

As a result of a large number of brands, when new brands are launched, there is often only a small increase in sales despite large investments, and complexity costs can rise, so that profitability with a multi-brand strategy often deteriorates despite the increase in sales. A company's brands take market share away from each other and there is a risk of oversegmentation.

If the multi-brand strategy is to be successful, management know-how and sufficient financial resources must be available. In addition, there must be credible brand differentiation.

advantages

The market is better exploited. Brand changers can be kept better through product differentiation, the competitive position is secured by “competition in-house” and by introducing a combat brand one has the chance to keep the other brands of a company out of a price war. Competitive brands have increased barriers to market entry through shelf cover.

Examples

The Altria Group (formerly Philip Morris ) offers the Marlboro and Merit cigarette brands . Schwarzkopf is represented with Taft and News in the field of hair styling and thus offers the same product variants. Ax and Dove ( Unilever ) are actually in competition with each other, but are from the same group.

Brand family strategy

As part of the brand family strategy , uniform brands are selected and offered for certain product and service groups. Existing and new products benefit from an established brand image.

advantages

In addition to a simplified product line expansion, the application of this brand strategy significantly increases the entry barriers for competitors.

disadvantage

One limitation of the family brand strategy is the limitation to related fields of use. An image transfer is very difficult to achieve on products of a different nature. There is also the risk that a negative image of a product or the brand will rub off on the other products.

example

The Beiersdorf AG uses the brand Nivea family brand strategy by offering all-purpose cream, baby care, hair care and sun care. All products benefit from a central image of the Nivea brand .

Brand transfer strategy

The brand transfer strategy is a strategy in which a company includes and sells additional products under the name of an existing and successful brand. The aim is to transfer existing and already saved (positive) images of a brand and preferences to the new product. A new product can be given an image relatively quickly and inexpensively, as it is supported by the image of the existing products ( goodwill transfer ). This image transfer can have both positive and negative effects.

Vertical competition

The brand strategy in the vertical competition includes brands and trademarks such as generic brand , private label , premium brands of trade.

International competition

When carrying out international business activities, brand management has to decide whether all elements of brand management should be adapted to the respective market conditions or whether standardized market development should be carried out. In this dualism between standardization and differentiation, three different types of strategy can be identified, namely the global, local and glocal brand strategy.

As part of global brand strategies, the strategic and operational design of brand management is not adapted to local characteristics of the respective markets. In contrast to this, there is the local brand strategy, in which the brand is modified country-specifically. In practice, it has been shown that companies often pursue a hybrid form. This is called the glocal brand strategy and is characterized by the highest possible degree of standardization with simultaneous adaptation to selected country specifics.

The effectiveness of these strategy types has long been discussed in science. Proponents of a global and local branding strategy can be identified. However, a current empirical study shows that a glocal branding strategy has the greatest impact on success.

literature

  • Völckner, Franziska, Willers, Christoph, Weber, Torsten: Brand Differentiation - Innovative Concepts for Successful Brand Profiling . Gabler, 2010, ISBN 978-3-8349-1978-6 , ( online )
  • Carsten Baumgarth: Brand Policy: Brand Effects - Brand Management - Brand Controlling . Gabler, 2007, ISBN 978-3-8349-0587-1 .
  • Günter Hofbauer, Jürgen Schmidt: Identity-oriented brand management: Basics and methods for better sales success , Walhalla and Praetoria, Regensburg 2007, ISBN 978-3-8029-3414-8 .
  • Richard Linxweiler: Brand Design: Developing Brands, Successfully Implementing Brand Strategies , Gabler, 2004, ISBN 978-3-409-21421-6 .
  • Heribert Meffert , Christoph Burmann , Manfred Kirchgeorg : Marketing , 10th edition, Gabler, Wiesbaden 2008, ISBN 978-3-409-69018-8 .
  • Imke Wessel: Assessment of brand strategies in the outfit area. An empirical analysis based on success factors , Gabler, 2004, ISBN 978-3-8244-0774-3 .
  • Gilbert, Dirk Ulrich, Müller, Michael (2013): International Multi-Brand Strategies, in: Wirtschaftswwissenschaftliches Studium (WiSt), Vol. 42, No. 8, pp. 416-421.
  • Herlyn: PPS in the automotive industry - production program planning and control of vehicles and assemblies . Hanser Verlag, Munich 2012, ISBN 978-3-446-41370-2 .
  • Müller, Michael: International Brand Strategies - Effect of Brand Standardization on Brand Value . Springer Gabler, 2016, ISBN 978-3-658-11967-6 .

Individual evidence

  1. ^ Sönke Albers, Andreas Herrmann: Handbook Product Management: Strategy Development - Product Planning - Organization - Control . 3. revised u. exp. Edition, Gabler, Wiesbaden 2007, pp. 171ff
  2. ^ Heribert Meffert: Marketing - Basics of market-oriented corporate management . 9. revised u. exp. Edition, Gabler, Wiesbaden 2000, pp. 856ff
  3. ^ Sönke Albers, Andreas Herrmann: Handbook Product Management: Strategy Development - Product Planning - Organization - Control . 3. revised u. exp. Edition, Gabler, Wiesbaden 2007, p. 171
  4. ↑ Günter Hofbauer, Jürgen Schmidt: Identity-oriented brand management: Basics and methods for better sales success . 1st edition, Walhalla and Praetoria, Regensburg, 2007, p. 81f
  5. ↑ Gilbert, Dirk Ulrich / Müller, Michael (2013): International multi-brand strategies, in: Wirtschaftswwissenschaftliches Studium, Vol. 42, No. 8, p. 417
  6. ↑ Herlyn: PPS in the automotive industry. Hanser Verlag, Munich 2012, p. 88 ff.
  7. ↑ Heribert Meffert: Market-oriented corporate management in transition. Retrospective and Perspectives of Marketing . 1st edition, Gabler, Wiesbaden 1999
  8. ^ Siegfried J. Schmidt, Maik Gizinski, Marcel Heidbrede, Martin Zierold: Handbuch Werbung . 1st edition, Lit-Verlag, Münster 2004, p. 54f
  9. ↑ Günter Hofbauer, Jürgen Schmidt: Identity-oriented brand management: Basics and methods for better sales success . 1st edition, Walhalla and Praetoria, Regensburg 2007, p. 103ff
  10. ↑ Müller, Michael: International Brand Strategies - Effect of Brand Standardization on Brand Value . Springer Gabler, 2016, ISBN 978-3-658-11967-6
  11. ↑ Müller, Michael: International brand strategies - the effect of brand standardization on brand value brand differentiation . Springer Gabler, 2016, ISBN 978-3-658-11967-6