Brand Architecture

Brand Brand Architecture BrandArchitecture Architecture

Brand Architecture Obj. • Create effective powerful brands • Allocate brand-building resources • Create Synergy • Achieve clarity of product offering • Leverage brand equity

Brand Portfolio Brand-Market Context Roles •Endorser/Subbrands •Benefit brands •Co-brands •Driver roles

Includes all the brands & subbrands attached to product-market offerings, including co-brands with other firms.

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

Brand Architecture Brand Portfolio Structure •Brand Groupings •Brand hierarchy trees •Brand range

Powerful brands

Optimal allocation of brand building resources

Portfolio Graphics •Logo •Visual presentation

Synergy in creating: visibility, efficiency

Clarity of offering

Leveraged brand assets

Platforms for future growth options

20%Stars 18%16%14%12%(Strategic Brand) 10%Cash cow 8%6%4%6 2%0 10x 4x 2x 1.5x

Question marks

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? (Lichpin Brand)

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Market Growth Rate

The Boston Consulting Group’s Growth-Share Matrix

Dogs

(Silver Bullet) 1x

.5x .4x .3x .2x .1x

Relative Market Share

Product-Market Context Roles • Endorser & Subbrand Roles

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A master brand is the primary indicator of the offering, the point of reference.

• Benefit Brands – The benefit brand is a branded feature. – Examples: Bristles

Oral-B toothbrushes – Colored Tip

• Co-Brands – Occurs when brands from different organizations combine to create an offering in which each plays a driver role. – Examples: Intel chips in branded PCs, HP printers along with HP laptops

Brand Portfolio Structure • Brand Grouping: Grouping of brands that have a meaningful characteristics in common – Segment: Men or women – Product: Clothing or products – Quality: Designer to premium – Design: classic or contemporary

Brand Portfolio Structure • Brand Hierarchy Trees: Brand family Colgate

Colgate Toothpaste

Classic

Colgate Toothbrush

Plus

Diamond Heads

Colgate Dental Floss

Precision

The wild ones

Colgate Mouthrinse

Brand Portfolio Structure • Brand Range: Kraft Products – Master Brand: First BrandsCheese, Mayonnaise, Salad dressing and Barbeque Sauce – Endorser Brands: Shake and Bake, Minute Rice, Oscar Mayer, Post,…

Portfolio Graphics • Visual representations across brands and contexts: – Logo – Packages – Symbols – Product design

Horizontal Extension FIT

•Customers must be comfortable with the brand in the new setting. •Bases: product associates, ingredient, attribute, application, user imagery, expertise, designer image.

ADDED VALUE

•The brand name alone should help customers articulate why the offering is superior to other brands.

ENHANCED BRAND EQUITY •The brand equity should be enhanced by the brand’s presence the brand’s presence in another context -- not only from increased visibility but also from the associations generated.

Aaker, David A. Brand Leadership. 2000

Vertical Extension ADVANTAGES Product vitality & margins

DISADVANTAGES A vertical stretch is particularly tricky because perceived quality is involved and also because the use of sub brands & endorsed brands needs to be considered. Risk to brand’s reputation & customer base Cannibalization

To participate in a large & growing value market

Lack of credibility Competitor price wars Aaker, David A. Brand Leadership. 2000

Brand Architecture Audit • Systematic way to identify problems or issues that merit further analysis. • List of questions to answer • First Stage: Business Analysis – What are the strategic initiatives? – What businesses and segments are important financially and strategically?

• Second Stage: 5 dimensions of brand architecture

Five Dimensions Dimension

Action Item

Brand Portfolio

Inventory existing brands and subbrands.

Portfolio Roles

Identify brands playing strategic roles (cash-cow, etc.)

Product-Market Context Roles

Look at use of endorsers and subbrands, branded benefits, co-brands, and driver brands

Brand Portfolio Structure

Create brand grouping or hierarchy tree.

Portfolio Graphics

Lay out a sample of the way that the brands are presented visually.