Scotch-Brite brand. In response to competitor’s actions, the scouring pad
product was given the specific individual brand identity of Raccoon.
There are also some variations on these major branding themes within
3M. For instance, aerosol glue aimed at the professional market is branded
with a large 3M logo but also carries the Scotch brand name in smaller print.
Each of these branding decisions at 3M has been taken to make the
greatest competitive impact in a particular market. 3M is not alone in hav-
ing such a sophisticated brand portfolio, many large organisations have
quite complex brand structures.
The approach an organisation adopts to branding is a crucial decision
relating to the overall strategy of the company has decided to pursue. The
branding policy should be developed in the light of:
The nature of products and product development
● the pattern of consumer behaviour in the specific market,
● the company’s competitive position.
When companies develop new products the branding decision will invari-
ably be taken according to the general branding strategy of the organisa-
tion. Multi-brand-orientated companies will tend to always create a new
brand for the new product. For other companies the decision will depend
on the nature of the target market. If it is very different from the organisa-
tions current markets they may decide to introduce a new brand. Toyota
did this when they entered the up-market executive car market, introdu-
cing the Lexus brand. This is a rational approach where the target market
is large enough and has the potential profitability to justify investing in cre-
ating a new brand. Companies may however choose to use a current brand
name and opt for a brand extension or brand stretching policy.
■ Brand extension
There are occasions where an organisation will try to extend the use of a
brand name to new products in the same broad market. Brands that carry
high brand equity are candidates for brand extension as they have the
ability to increase the attractiveness of the new products. PD Enterprises,
a Hong Kong-based garment producer, acquired the Pretty Polly brand in
the summer of 2006. Recent market research has shown that the unprompted
brand awareness of the Pretty Polly brand is still very high and therefore
it is likely that the new owners will be able to exploit the brands strength
by adding a range of brand extensions.
■ Brand stretching
Brand stretching takes place when an organisation stretches a brand into
new unrelated markets. Virgin is an obvious example of this moving from
the record industry to airlines, railways, financial services and cola drinks.
Marks & Spencer and Tesco have both moved from mainstream retailing
Targeting, positioning and brand strategy 205