Brand Architecture

BRAND ARCHITECTURE

Corporate Product and Brand Relationship

Core Extensions

Spontaneous Extensions

Leveraged ExtensionsDiversifications

No Go LimitBrand Stretching

Brand Extension

Brand Essence

BRAND RELATIONSHIP SPECTRUM

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

Linking Brands

House of Brands

A Branded House

Sub Brands (under a Master Brand)

Endorsed Brands

Branded House vs. A House of Brands

Tata saltTata MobileTata SteelTata Indiacom

Tata – The Branded House

VicksHead & shouldersOld spiceCamayAriel

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

Position

Market

Ariel Tide PanteneHead &

ShouldersCamy Whisper Vicks

OldSpice

Detergent Shampoo Soap Sanitary Napkin

Balm After shaveDetergent Shampoo

Hi Tech

Whiteness

Healthy Hair dandruff

Cream Hygiene protection

Cold remedy

Macho

Product - Brand Strategy

Reckitt & Benckiser

Brand

Position

Market

RobinCherry

BlossomHarpic Lizol Colin Disprin Mansion Brasso

Blue Shoe polish

Toilet Cleaner

Floor Cleaner

Glass cleaner

Anal-gesic

Floor Polish

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

AxeDeo

AxeShavingCream

AxeAfter

Shave

AxeSoap

AxeTalc

Share same brand concept and they do complement each other.

Axe

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 slimCapsules

DigestiveCapsules

Daily HealthCapsules

Cough Syrup

Body Care

Antiseptic Cream

PainBalm

Muscle &Joint Rub

Hair Care

HairCleanser

Hairconditioner

Anti-dandruffcleanser

Anti-dandruffHair vitalizer

Skin Care

Face wash

Moisturizinglotion

Hand & bodylotion

Deep cleansing

lotion

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

TV’s

Lighting

Monitors

Shaver

Phones

Irons

Mixers

Hi - Fi

Medical

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

MarutiSuzuki

800 BalenoGypsyEsteemZen Wagon-R ALTO

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 by Marriot

Fairfield 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 - AppliancesVertical 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

Brand Portfolio

BrandArchitecture

Product- MarketContext Roles•Sub brands•Benefit Brands•Co Brands

Brand PortfolioStructure• Brand groupings• Brand hierarchy trees• Brand range

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

Portfolio Graphics• Logo• Visual representations

PowerfulBrands

Optimal allocation of brand building resources

Clarity of offering

Synergy in creating efficiency visibility associations

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 (mega-brand) 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.