Page 153 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes
Example: Hyundai, Samsung, LG, Hitachi, Mitsubishi, Toyota, etc.
These two general approaches reflect customer or market-oriented logic, or cost-oriented logic.

Companies enlarge their product mix by either stretching existing product lines or adding new
product lines, or both. In these situations they either use existing brand names or use new brand
names, or some combination of company name and product brand name. The six branding
strategies discussed here can be termed as generic branding strategies, each having its own set
of pros and cons.
Product Branding Strategy

This approach is driven by customer-orientation. The thinking focuses on customer perception
and information processing and the company believes the most effective method to differentiate
its offer in a customer’s mind is to give the product an exclusive position and identity. What the
brand represents is clearly comprehended and internalised by its target market. Placing several
products under one brand name may cause confusion among consumers. Al Ries and Laura Ries
say:
“A successful branding programme is based on the concept of singularity. It creates in the mind
of the prospect the perception that there is no product on the market quite like your product.”
—Al Ries and Laura Ries, The 22 Immutable Laws of Branding, 1998
This strategy focuses on promoting the brand exclusively so that it reflects its own personality,
identity, associations, and image. The brand does not take on company associations and any
benefits from its name.

Example: Procter & Gamble is an ardent follower of product branding strategy in its
purest form as shown in. Hindustan Unilever Ltd. also largely follows product brand strategy,
but shows some shifts by leveraging established brand names into areas outside its product
category. Actually, very few companies follow only product branding strategy. HUL has brands
such as Dove, Lux, Rexona, Lifebuoy, Liril, Pears, etc. Dove moisturises skin, Lux is the toilet
soap of film stars, Rexona is a gentle soap with natural oils, Lifebuoy fights germs, Liril is ‘the’
freshness soap, and Pears is the ‘original’ translucent glycerine soap. It is worth noting that both
P&G and HUL use separate brand names for products that are in the same product category
(Ariel and Tide are detergents; Lux and Liril are soaps).
Product branding approach is also followed by ITC for its tobacco-based products. At the product
level, most cigarettes generally tend to be the same and what counts really is the perceived
differentiation among consumer groups who show strong brand preference. This is more distinct
in the upmarket segments. The basic product by itself does not offer much opportunity for
differentiation. This differentiation has to be created in consumers’ perceptions of a brand. This
is the major reason why ITC adopts the product differentiation approach for cigarettes.

Example: ITC’s brand portfolio of cigarettes includes India Kings, Classic, State Express,
Benson & Hedges, Gold Flake Kings, Wills, Navy Cut, etc. Each brand is highly differentiated
and occupies a distinct position. However, ITC seems to have diluted its product branding
approach in case of its powerful Wills brand and has extended the brand into ready-to-wear
clothes.
Product branding delivers certain advantages. It helps create an identifiable brand enjoying a
unique position and directed at a well defined target segment, and the company can cover an
entire market composed of several segments by creating multiple brands each addressing a

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