PBL 5: How to create a brand strategy?

What kind of brand strategies exist 

From the website cpfq.com I could find the following different brand strategies:

New model strategy

a system to promote both products and services by way of a new brand. Used a lot for example by mobile phone manufacturers, such as Apple and Samsung (iPhone & Galaxy)

Line extension method

A method where a new variant of an existing product is added, for example shampoo manufacturer may have different shampoos for dandruff, greasy hair, etc.

Brand extension system

A method where a brand with a well developed image uses the same brand in a different product line. A good example of this is the Virgin group, that started as a record label and now manages also transportation, food and drink and telecommunications. It has more than 100 companies under it.

Multi brand name strategy

A company launches multiple different brands with apparent competition with its own existing products to get more of the market share. The best example of this is Procter & Gamble (P&G) 

When to outsource/not to outsource 

In an article written by Ilya Pozin in forbes.com, mr. Pozin discussed outsourcing marketing with marketing expert Erik Huberman. In the article it was said that when you do not have the talent or the possibility to hire needed talent for marketing and branding, then is a good time to start thinking outsourcing. When building a company, and this goes especially for young brands, it is important to stick to your core competencies, the things you are good at.

On the contrary if you have in house talent and a marketing/branding team that is dedicated, skilled and you trust, then there is no point outsourcing, and it can even be harmful. The people in the company know the products the best, so if they have what it takes, they should be the ones responsible of branding.

Pros and cons of brand outsourcing were listed in designshack.net:

PROS:

Saves time

Gives a fresh perspective

Saves from errors if you are not good in branding.

CONS:

Credibility issues

It isn't "you"

Costs a lot of money

What is the interrelation between brand strategy and brand portfolio

Brand strategy and brand portfolio usually go hand in hand. The company decides the way they want to go and create a strategy to support their portfolio according to that.

Flemming Hansen and Lars Bech Christensen mentioned in their book Branding and Advertising (2003) that the bigger the brand portfolio gets, usually the importance of the corporate brands lessens. A good example here is P&G. Most of the consumers using P&G products may not even know that they belong to the P&G portfolio.

On the other hand there are some companies, such as Virgin, that uses the brand extension method, and keeps its own name on the brands it creates, so that everyone recognizes the brand.

Sources:

http://www.businessdictionary.com/definition/brand-strategy.html

http://www.cqfp.org/2013/04/types-of-branding-strategies/

http://www.forbes.com/sites/ilyapozin/2014/04/23/leave-it-to-the-experts-should-you-outsource-your-marketing/

http://designshack.net/articles/business-articles/outsourcing-your-own-brand-pros-and-cons/

Hansen, F. and Christensen, L. (2003). Branding and advertising. [Copenhagen]: Copenhagen Business School Press.