Branding and Control Activities for Differentiating Generic Products A study of 30 brands’ most common activities Master’s Thesis in the Master’s Programme Entrepreneurship and Business Design ERICA DAHLGREN NURMAN Department of Technology Management and Economics Division of Entrepreneurship and Strategy CHALMERS UNIVERSITY OF TECHNOLOGY Gothenburg, Sweden 2016 Report No. E 2016:100 MASTER’S THESIS E 2016:100 Branding and Control Activities for Differentiating Generic Products A study of 30 brands’ most common activities ERICA DAHLGREN NURMAN Tutor, Chalmers: Bowman Heiden Tutor, B&L: Joel Borg Department of Technology Management and Economics Division of Entrepreneurship and Strategy CHALMERS UNIVERSITY OF TECHNOLOGY Gothenburg, Sweden 2016 Branding and Control Activities for Differentiating Generic Products A study of 30 brands’ most common activities ERICA DAHLGREN NURMAN © ERICA DAHLGREN NURMAN, 2016. Master’s Thesis E 2016:100 Department of Technology Management and Economics Division of Entrepreneurship and Strategy Chalmers University of Technology SE-412 96 Gothenburg, Sweden Telephone: + 46 (0)31-772 1000 Chalmers Reproservice Gothenburg, Sweden 2016 ABSTRACT This thesis explores which branding-related activities are most commonly performed in order to differentiate generic products (or services). It also explores how control over such products (and services) is claimed. To formulate an answer, a literature review has been made, investigating how to differentiate products and intellectual property rights’ role within branding. The importance for companies to differentiate their brands increases and ways to do so are for example to build the generic product into a concept or to add attributes such as additional features, a design that’s iconic for the brand or irrelevant attributes. Brands should also incorporate intellectual property management into the creative process as all aspects in marketing can be covered by intellectual property rights, but their strength will vary. A qualitative study has been made, exploring the most common branding activities among 30 companies who all have managed to differentiate generic products (or services). Most common is to use influencers for marketing and to deviate from the product segment’s norm. The study has also investigated the companies’ intellectual property strategies and their control-related issues such as infringement. It shows that the need for control varies with product segment and that most companies solely rely on trademarks. Companies tend to protect aspects of their business that aren’t relevant when considering their main differentiating aspects. Trade dress protection has proved to be useful in case of infringement. The result from the study has been analysed in respect to theory, clarifying which aspects of a brand that are in focus when performing the most common brand activities. Companies mainly focus on establishing their brand image. This is done by evoking associations, which also affects the company’s credibility. They also focus on increasing brand awareness. There are indications on that a company’s brand in itself has stronger impact than its value proposition for attracting customers. Key words: Brand management, generic products, differentiating, commodities, controlling generic products, protecting generic products, intellectual property management and branding, brand activities, differentiation V ACKNOWLEDGEMENTS The author would like to thank Anna Holmberg and Bowman Heiden for their help with identifying the very core of the thesis. Also a thank you to Joel Borg for providing a project that got the author to explore the interesting subject of this thesis. Lastly, the author would like to thank everyone who has contributed to the thesis by suggesting appropriate brands for the study. Erica Dahlgren Nurman VI Table of contents 1. Introduction ..................................................................................................................................... 3 1.1 Background ............................................................................................................................... 3 1.2 Problem statement ................................................................................................................ 4 1.3 Purpose ....................................................................................................................................... 4 1.3.1 Research Questions ....................................................................................................... 4 1.3.2 Delimitations and Assumptions ............................................................................... 4 2. Methodology ..................................................................................................................................... 5 2.1 Research Process .................................................................................................................... 5 2.2 Research Strategy ................................................................................................................... 5 2.3 Research Design ...................................................................................................................... 6 2.3.1 Comparative Design ...................................................................................................... 6 2.3.2 Research Quality ............................................................................................................ 6 2.4 Data Collection ......................................................................................................................... 7 2.4.1 Theoretical Sampling ................................................................................................... 7 2.4.2 Sample Selection ............................................................................................................ 7 2.4.3 Gathering data of branding activities differentiating generic products . 8 2.4.4 Gathering data of control activities for (differentiated) generic products ........................................................................................................................................ 9 2.5 Data Analysis ......................................................................................................................... 10 2.5.1 Study ................................................................................................................................. 10 2.5.2 Comparison of gathered data and theory ......................................................... 10 3. Theory .............................................................................................................................................. 11 3.1 Brand Equity .......................................................................................................................... 11 3.1.1 Aaker’s Brand EQuity Model ................................................................................... 12 3.2 Customer-Based Brand Equity ...................................................................................... 13 3.2.1 The Customer-Based Brand EQuity Pyramid .................................................. 13 3.3 Competitive Advantage in a Knowledge-Based Economy ................................. 15 3.3.1 Value acquired through knowledge .................................................................... 16 3.4 Differentiating Commodities .......................................................................................... 17 3.4.1 Increased importance to differentiate ............................................................... 18 3.5 Adding attributes to differentiate products ............................................................. 19 3.5.1 Irrelevant attributes .................................................................................................. 20 3.5.2 Design attributes to establish brand identity ................................................. 21 3.6 Controlling knowledge ...................................................................................................... 22 3.6.1 Intellectual Property’s role in branding ............................................................ 22 4. Results .............................................................................................................................................. 23 4.1. Common branding activities for differentiating generic products ............... 23 4.1.1 Activities ......................................................................................................................... 25 4.1.2 Differentiating Attributes ........................................................................................ 29 4.2 Common control activities for generic products ................................................... 30 4.2.1 Control-related issues ............................................................................................... 32 4.2.2 Protection ....................................................................................................................... 32 4.2.2.1 Intellectual Property Rights ............................................................................... 32 4.2.2.2 Other Protection Strategies ................................................................................ 33 5. Analysis ..........................................................................................................................................