Brand Architecture

BRAND ARCHITECTURE Corporate Product and Brand Relationship

No Go Limit

Brand Stretching

Leveraged Extensions Diversifications Spontaneous Extensions

Core Extensions Brand Essence

Brand Extension

BRAND RELATIONSHIP SPECTRUM Structuring your Brand – Product Matrix to create healthy brand portfolio.

Linking Brands  House

A

of Brands

Branded House

 Sub

Brands (under a Master Brand)

 Endorsed

Brands

Branded House vs. A House of Brands

Tata salt Tata Mobile Tata Steel Tata Indiacom Tata – The Branded House

Vicks Head & shoulders Old spice Camay Ariel P&G – A House of Brands

House of Brands  Branded

House vs. House of Brands - the two extreme ends of alternative Brand Architecture.  House of Brands strategy – each independent stand-alone brand creates more market impact.  P&G, HUL, Marico, Reckitt & Benkiser, Jyothi Labs, United Spirits etc.  Allows firms to clearly position brands on their functional benefits.

Product Branding  Product

Branding is one extreme of branding continuum.  It is fiercely driven by customer logic.  The brand is promoted exclusively so that it acquires its own identity and image (and adds up

various associations. No multiple products hanging from the same origin).

 Allows

brand to acquire differentiation and exclusivity.  Co. name is relegated to backseat (legal / statutory requirements

Product Branding Proctor & Gamble Brand Ariel

Market

Tide

Pantene

Head & Shoulders

Detergent Shampoo

Detergent

Camy

Soap Shampoo

Whisper

Sanitary Napkin

Vicks

Old Spice

After shave

Balm

Position Healthy Hair

Hi Tech Whiteness

dandruff

Cream

Macho

Cold Hygiene protection remedy

Product - Brand Strategy Reckitt & Benckiser Brand

Market

Position

Robin

Blue

Cherry Blossom

Shoe polish

Harpic

Toilet Cleaner

Lizol

Floor Cleaner

Colin

Disprin

Glass cleaner

Analgesic

Mansion

Floor Polish

Brasso

Metal Polish

A BRANDED HOUSE

 In

a branded house strategy, the brand moves from being a primary driver to more dominant one.  The descriptive sub-brand goes from having a minority role to little or none at all.  Eg: Virgin, Sony, Adidas, Honda  Leverages an established brand name and requires minimum investments.

 Limitations

of Branded House Strategy  When Brand’s like Levis, Nike and Mitsubishi are stretched over a wide product line.  The firms ability to target specific group is constrained. Compromises happen.  A significant amount of profits and sales can get affected, if the mother brand falters.  Three

goals of branded house – clarity, synergy and leverage.

Line Branding Basic Idea in line branding is how the firm organizes its product portfolio.  Here brand is the core idea that connect with it’s consumers.  Customers do not tend to be contended with one product. Line brand starts with one product, but later extends to a set of products which enhance the brand by reinforcing each other. 



Lakme user wants complementary products which enhances beauty – body lotion, deep pore cleansing lotion, lipsticks, nail enamels, eye make up etc.

Line Branding HLL Axe

Axe Deo

Axe Shaving Cream

Axe After Shave

Axe Soap

Axe Talc

Share same brand concept and they do complement each other.

Range Branding Line branding restricts the brand’s expansion into nearby territories of complimentary products.  Range branding – brands can move beyond product complimentarity.  Encompass many products under a single banner.  All the product’s share a common promise which stem from the ranges’ area of competence. 

 

Maggi – noodles, sauce, macaroni's, dosa mix Britannia Milkman ---- Ghee, Butter, Milk Shake, Milk, Cheese.

Range Branding Himalaya Drug Co. Ayurvedic Concepts Health Care Ayur slim Capsules Digestive Capsules Daily Health Capsules Cough Syrup

Body Care Antiseptic Cream Pain Balm Muscle & Joint Rub

Hair Care Hair Cleanser Hair conditioner

Skin Care Face wash Moisturizing lotion Hand & body lotion

Anti-dandruff cleanser

Deep cleansing lotion

Anti-dandruff Hair vitalizer

Pimple Cream

Umbrella Branding  Particularly

favored by companies of east – LG, Mitsubishi, Cannon, Bajaj , Tatas, etc.  Scores well on economics – less costly; leveraging common brand name distributes its investment.  Makes sense in the current environment where there is information overload. 

Amul – Bread spreads, Cheese, Mithaee range, UTH milk, Fresh Milk, Pure Ghee, Infant Milk, Milk Powders, Chocolates etc

Umbrella Branding Philips Medical

TV’s

Hi - Fi

Lighting Monitors

Mixers

Shaver Phones

Irons

Umbrella Branding  Umbrella

brands represent many things about many products, but in this age of specialization what is needed is everything of something.  From customers point of view, a specialist brand makes more sense than a generalist brand.  

Mid size car – Santro, Accent or Indica First two are specialists while Tata Indica is a generalist (brings in images of LCV’s, HCV’s and host of other things).

Source Branding Hybrid of umbrella strategy and product-brand strategy. (also called as Double branding)  Product is given a brand name and it is combined with the name of the firm. 



Johnnie Walker – Red label, Green label, Black label & Blue label



Both the names enjoy equal importance in brand’s communication.



Kellog’s – Corn Flakes, Rice flakes, Wheat flakes are part of Umbrella branding Kellog’s – Frosties, Chocos are Source Branding



Source Branding Maruti Suzuki

800

Zen Wagon-R ALTO Esteem Gypsy Baleno

ENDORSER BRANDS & SUB BRANDS

Endorsed Brands  Endorsed

brands (like House of brands) are independent, but they are also endorsed by an organizational brand.  Courtyard, Fairfield Inn and Marriot.  Accent, Santro and Hyundai  Unlike Linked Names as earlier, There can be also Token Endorsement as in the case of Trident – Oberoi or Ginger - Taj  Lexus-Toyota (Shadow Endorsement)

Marriott Brand Architecture  Marriot

Hotels. Resorts. Suites.  Marriot Residence Inn  Courtyard

 Fairfield

by Marriot

Inn by Marriot

Subbrands  Another

powerful brand architectural tool.  Can make the offering look more differentiated and appealing to customers, while holding on to some of the key associations of the parent brand.  Can also help the master brand to stretch, allowing it to enter areas which otherwise it would not have fit.

Sub-brand can serve as a descriptor, a driver or a combination of  If the brand is purely descriptive, then the strategy is similar to branded house. Master brand is the main driver. (Tata Motors, Tata Tea, Visa Gold).  If sub-brand also has driver role but of lower level, then Master brand will take primary role (Compaq Presario, Maruti Alto, Honda City)  If the sub-brand is as important as the master brand – a co-driver situation arises ( Gillette Sensor, Sony Trinitron, Intel Pentium) 

The GE - Appliances Vertical Brand Architecture  GE

Monogram

(Designer/Architects)

 GE

Profile

(Upscale, High Income)

 GE

Appliances

(Mainstream Quality seekers)

 Hotpoint

(Mainstream – Value seekers)

Brand Architecture  It

shows the organizing structure of the brand portfolio.  It specifies the brand roles and the relationship among brands (say Maruti-Suzuki and Esteem) and different product-market brand relationships.  It is defined by 5 dimensions –  The brand portfolio, portfolio roles, product market context roles, the portfolio structure and portfolio graphics.

Brand Architecture Product- Market Context Roles •Sub brands •Benefit Brands •Co Brands

Brand Portfolio Structure • Brand groupings • Brand hierarchy trees • Brand range

Powerful Brands

Optimal allocation of brand building resources

Brand Portfolio

Portfolio Roles • Strategic brands • Linchpin brands • Silver bullet • Cash cow brands

Brand Architecture

Portfolio Graphics • Logo • Visual representations Synergy in creating efficiency visibility associations

Clarity of offering

Leveraged brand assets

Platform for future growth options

Brand Portfolio  Brand

portfolio includes all the brands and sub brands attached to product-market offerings.  This will include co-brands with other brands.  A basic brand architecture parameter is the composition of the brand portfolio.  Each brand requires brand building resources.  Treating brands as Silos owned by individuals or organizational units can lead to misallocation of resources.

Portfolio Roles A

tool to take a more systems view of the brand portfolio.  Strategic Brand  Linchpin Brand  Silver Bullet  Cash –cow Brand.  These roles are not mutually exclusive. A brand could be simultaneously a linchpin and a silver bullet brand or it could evolve from a strategic brand to a cash cow brand.

Portfolio Roles  Strategic

Brand – is one that represents a meaningful future level of sales and profits.  It may be currently a dominant brand (megabrand) that is projected to maintain or grow its position or can be small brand with immense growth potential.  Airtel for Bharati Tele-Ventures  i-pods for Apple  Big Bazaar for Pantaloon retail.

Portfolio Roles  Linchpin

Brand: is the leverage point of a major business area or of a future vision of the firm.  It will indirectly influence a business area by providing basis for customer loyalty  Taj Businesss Hotels is a linchpin brand for EIH as it represent future ability to control a critical segment (Business traveler) in the Hotel Industry. 

Competitor activities such as rewards programme by Welcom group, Trident etc can put Taj on strategic disadvantage.

Portfolio Roles  Silver

Bullet – is a brand or a sub brand that positively influence the image of another brand.  It can be a powerful force in creating, changing or maintaining a brand image.  IBM Think Pad – the innovative product generated significant boost to IBM’s public image. Think Pad’s sales represent only a minute percentage of IBM’s total sales.  Hero Honda - Karizma

Portfolio Roles  Cash

Cow Brands: Strategic, Linch pin and silver bullet brands involve investment and active management.  Cash cow brands has significant customer base that does not require the investment that other portfolio brands require.  Even though sales are stagnating or declining there exists a loyal core of customers who are unlikely to leave the brand.  Generates resources for investing in other brands.