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Maruti Suzuki’S Attempt to Go to the Upper Segment with Its ‘Baleno’ Range Did Not Yield Good Results

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Maruti Suzuki’S Attempt to Go to the Upper Segment with Its ‘Baleno’ Range Did Not Yield Good Results + Batch Subject: (BMM class of 2015) BRAND BUILDING Year (TY) Faculty Name: Vishal Desai India’s premier M-school Lesson # 8 BRAND STRATEGIES Deviprasad Goenka Management College of Media Studies (dgmcms.org.in) + TYPES OF BRANDING STRATEGY: Product Branding/Multi-Brand strategy: In multi-branding strategy the brand is: • Promoted exclusively so that it acquires its own identity and image and stand on its own • Allowed to acquire differentiation and exclusivity • Targeted accurately to a distinct target market or customers because its positioning can be precise and unambiguous India’s premier M- school P&G D N Head & Whisper A Ariel Tide Pantene Camay Vicks Old Spice Shoulder R B T E K R Detergent DetergentShampooShampoo Soap Sanitary Balm After Shave A Napkin M N O I Whiteness Dandruff Clear Sign of T Cream Hygienic I High-Tech Healthy& no other shampoo blocked manliness S Detergent shiny hair soap protection O can deliver with micro nose P ZPTO India’s premier M- school + As is evident from the figure P&G has been follower of the multi-brand strategy A mega company like HUL also has been an adherent of multi branding For example: • HUL’s Soap category • In terms of positioning • Lux – beauty soap of filmstars • Lifebuoy – soap that fight against germ and promotes health • Rexona – a gentle soap with natural oils to have a good effect on skin • Liril – freshness soap India’s premier M- • Same applies to HUL’s detergent and shampoo school categories + Benefits of Product branding: 1)It creates multiple brand entities which is uniquely positioned and directed at a particular segment For example • HUL’s detergent brand – Surf Excel, Rin and Wheel offer all possible price points, benefits and utilities linked to different sub-markets 2)A new product is not likely to send negative feedback and associate the brand with the burden of failure India’s premier M- school + 3)A company following multi-branding is better positioned to venture into unrelated product categories 4)Obtaining, greater shelf-space and leaving little for competitor’s products 5)Saturating a market by filling all price and quality gaps 6)Catering to brand switchers users who like to experiment with different brands 7)Keeping the firm’s managers on their toes by generating internal competition 8) Organization who use a multi-brand strategy acquire greater market share than they could with fewer brands India’s premier M- school + Drawbacks of Product branding: 1)Creating individual brands is a costly exercise 2)The new brands do not exploit strength of a company or its existing brands India’s premier M- school +Line Branding: Line in the context of product mix refers to various product lines that a firm may have in its total portfolio For example: • Philips – line extension has T.V, video and audio, personal care, communication and household appliances The brand appeals to distinct market segments who appreciate and like the brand Now the customers do not tend to be contended with one product which the brand offers Line extension is generally followed for complimentary products. India’s premier M- school + Consumers want complimentary products which go hand in hand with the brand concept or application. For example: • L’Oreal user wants the brand to offer all contemporary products which enhance beauty – body lotion, deep pore cleansing lotion, lipstick, nail enamels, eye liner,etc The products in the line draw their identity from the main brand Marketing products as a line under a common brand improves the brand’s marketing power rather than selling them as individual brands India’s premier M- school L’ Oreal Group L’ Oreal Nail Powder Lipstick Eyeliner Foundation Enamel Compact Products share common concept, complement each other India’s premier M- school + Range Branding / Mixed Branding: Line branding restricts the brand’s expansion into nearby territories of complementary products, which complement or support the main product’s usage All the products share a common promise which stems from the firm’s or range brand’s area of competence The product are tied together by a single brand concept For example: • Nestle uses its Maggi brand for its range of fast food – Maggi noodles, sauces, soups, pastas,etc India’s premier M- school Himalaya Drug Co. Area of Ayurvedic Concepts Competence Or expertise Skin Care Health Care Body Care Hair Care Lotions, Face Wash, Ayur Slim Capsules Antiseptic Cream Cleanser Creams Daily health Pain Balm Anti- Dandruff Capsules Muscle and Joint Cleanser Digestive Capsules Rub Hair Conditioner Cough Syrup Hair Vitaliser India’s premier M- school + Benefits of Range Brand Strategy / Mixed Branding: 1)It helps in the formation of brand equity 2)The brand can easily embrace other new products which are consistent with the brand, reducing the cost of introducing new brand in the market India’s premier M- school + Limitations of Range Brand Strategy / Mixed Branding: 1)The brand can become weak due to overstretching if the brand tends to hang large number of products on it India’s premier M- school + Umbrella Branding Strategy: Umbrella branding has been particularly favored by the companies of the East For example: • Korean giant LG uses its name on the product like microwaves, refrigerators, computers, television, air conditioners • Philips, GE and Canon also follow umbrella branding • Indian business houses – TATA and Bajaj India’s premier M- school PHILIPS Television Irons Lighting Mixers Hi-fi Music Monitors system Medical Shaver equipment Phones India’s premier M- school +Benefits of Umbrella Branding / Multi – Product Branding Strategy: 1)Umbrella branding is an economical strategy as investing in a single brand is less costly than trying to build a number of brands 2)Using an umbrella brand to enter into new markets allows considerable saving For example: • TATA making a foray into the automobile car market 3)Umbrella branding may even make sense in the current marketing environment characterized by information overload and brand proliferation India’s premier M- school + Drawbacks of Umbrella Branding / Multi – Product Branding Strategy: 1) It is not a consumer consistent strategy 2)With time, market fragments and gets divided into smaller sub-segments 3) Each segment presents its own unique structure of needs and buyer preferences 4) A specialist brand may be needed for precise targeting of a particular segment India’s premier M- school + 3)A failure in one product category may influence other products/brands because of shared identity For example: • If Samsung refrigerators are discovered to be faulty, the message about its defect would travel to other quarters, impacting the brand’s performances in categories like air conditioners, TV and monitors. 4)Umbrella branding is difficult to stretch vertically For example: • Maruti Suzuki’s attempt to go to the upper segment with its ‘Baleno’ range did not yield good results India’s premier M- school +Source / Double branding: Source brand strategy combines the firm’s name with the product brand name It is hybrid of umbrella brand and product brand strategy The product is given a brand name and it is combined with the name of the firm For example: • Pulsar – name of the bike Bajaj – the company name behind it Both the name enjoys equal importance and are given equal status in the brand’s communication India’s premier M- school Maruti Suzuki Maruti Maruti Maruti Maruti Alto Wagon-R Ertiga Stingray Maruti Maruti Maruti Zen Celerio Ritz India’s premier M- school + Benefits of Source Branding: 1)The firm’s name brings its equity to the product For example: • When Bajaj name is added to a new brand, immediately Bajaj’s repertoire of associations are transferred onto the product 2)The second name provides an opportunity to add something unique to the brands by customization or personalization India’s premier M- school + Drawbacks of Source Branding: 1)The company image becomes the limiting factor in this branding approach 2) When the product categories are different, double branding may not be the correct strategy India’s premier M- school + Endorsement Branding: Endorsement brand strategy is modified version of double branding It makes the product brand name more significant and the corporate brand name is relegated to a lesser status The umbrella brand is made to play an indirect role of passing on certain common generic associations It is only mentioned as an endorsement to the product brand By a large, the brand seeks to stand on its own Unlike the product brand, endorsement brand discloses the identity of the maker, making it a small part of the brand India’s premier M- school + The brand gets the an endorsement that it belongs to specified company For example: • Kit Kat gives a signal that it is a Nestlé’s product • Cinthol’s communication stresses that it is a Godrej product • Dairy Milk is Cadbury’s brand India’s premier M- school Cadbury’s Cadbury’s Cadbury’s Cadbury’s Cadbury’s Eclairs Bournvita Five star Crackle Cadbury’s Cadbury’s Cadbury’s Perk Dairy Shots India’s premier M- school + Endorsement branding strategy allows the brand the freedom to take an independent direction Unlike the source brand strategy, in endorsement strategy the firm’s name sits back as an assurance of quality Thus, endorsement branding strikes a delicate balance between umbrella and product branding The marketers can subtly transfer the corporate brand’s equity and at the same time enjoy the freedom to the venture beyond immediate product boundaries Therefore, while endorsing
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