Brand Architecture
- Structuring the Brand-Product Relationship

Types of BrandOrganization BrandIndividual Brands*Type 1: Single Brand Across OrganizationIBMGoldman SachsGreenpeaceHarvard UniversityNoneType 2: Endorsed BrandsMicrosoftSonyMcDonaldsRalph LaurenWindowsPlaystation 2Big MacPoloType 3: House of BrandsProcter & GambleLVMH GroupPampersDom Perignon

What is Brand Architecture?

Structure and organization of product/brand portfolio in terms of naming, positioning and marketing.Serves as a guiding framework for long term brand portfolio management.

Contd..

A Guiding Framework for Brand Portfolio Management

What is Brand Architecture?

Brand architecture is an organizing structure of the brand portfolio that specifies brand roles and the nature of relationships between brands.

David Aaker & Erich Joachimsthaler
Brand Leadership, The Free Press, 2000

Contd..

A Structure that Specifies Brand Roles & Relationships

What is Brand Architecture?

A Logical System for Promoting Sales & Building Long-Term Brand Capital

Clarifies the overall offer and structure to prospective buyersHelps sales promotion in the short term and establishment of brand-capital in the medium termAnticipates possible evolutions in product lines and ranges in order to be applicable to them

Brand Architecture
Origins of the Concept & Terminology

1989: Olins Wally, Corporate Identity, - Three branding structures - monolithic, endorsed and branded.1994: Laforet Sylvie & Saunders John, Managing Brand Portfolios: How the Leaders Do It, Journal of Advertising Research, Sep 1994 Three types of brand structures and hierarchies - corporate dominant, product dominant and mixed/hybrid. 1995: Uncles, Cocks & Macrae, Brand Architecture: Reconfiguring Organisations for Effective Brand Management, Journal of Brand Management - First journal paper on BA

Contd..

Brand Architecture
Origins of the Concept & Terminology

1996: Macrae C, The Brand Chartering Handbook, Chapter on BA; banner brands & sub-brands1997: Kapferer Jean-Nol, Strategic Brand Management Chapter on BA; - six brand architecture models based on two main functions
of a brand2000: Aaker, D. & Joachimsthaler, E., Brand Leadership well-focused definition of brand architecture and - Brand Relationship Spectrum which identifies roles played by different types of brands

Endorsing brand

Source brand

Umbrella brand

Range brand

Line brand

Product brand

Brand Function: PRODUCT DIFFERENTIATION

Generic brand

Brand Function: INDICATOR OF ORIGIN

Kapferers Brand Architecture Models

1997

Product Brand: Individual brand names become the indication of product identityLine Brand: Exploits a successful concept by extending it to related/complementary productsRange Brand: A single promise or brand concept is used to promote a range of products belonging to the same area of competence

Contd..

Kapferers Brand Architecture Models

1997

Umbrella Brand: One brand supports diverse ranges of products in different markets; though brand name is same marketing & communication could be differentSource Brand: Two-tier branding comprising source brand and individual product brand; provides authenticity and differentiationEndorsing Brand: Two-tier branding, but with daughter brand in the drivers seat; parent brand stands in the background as a guarantor

LUX

INTERNATIONAL LUX

Toilet
Soap

Body/
Face
Wash

Shampoo
(sachet &
small pack)

Body/
Face
Wash

Toilet
Soap

Sunsilk

Sunsilk Naturals

Sunsilk
Pro-Colour

Sunsilk
Colour Shine

Sunsilk
Hair Expert

Shampoo Conditioner Shampoo Combing Lotion Hair dye for Indian
hair shades Shampoo Nourishing Conditioner Leave On Nourishing Conditioner Leave On Intensive Conditioner

PERSONAL WASH

SKIN CARE

HAIR CARE

DEODORANTS

5. Breeze

2. Lifebuoy

4. Hamam

8. Rexona

3. Liril

1. Lux

7. Pears

6. Dove

Lux

Lux

Toilet Soap

Body Wash

Face Wash

Hand Wash

Talc

Shampoo/
Conditioner

Spray/
Roll On

Lux

Lifebuoy

Lifebuoy

Liril

Dove

Dove

Pears

Rexona

Brand Relationship Spectrum
by Aaker & Joachimsthaler

Brand Relationship Spectrum tool to help brand strategists to build appropriate brand architecturesTwo extreme models of brand architecture Branded House and House of Brands & several intermediate levels

house of brands (not connected, shadow endorser)

endorsed brands (token endorsement, linked name, strong endorsement)

sub-brands (co-drivers, master brand as driver)

branded house (different identity, same identity).

2000

Brand Relationship Spectrum

Branded

House

Sub-brands

Endorsed brands

House of Brands

Same Identity

Different Identity

Master Brand as Driver

Co-Drivers

Strong Endors-ement

Linked Name

Token Endorsement

Shadow Endorser

Not Connec-
ted

Virgin

BMW

GE Capital

GE Appliance

Levis Europe

Levis US

Toyota Corolla

HP Deskjet

Sony Walk-
man

Ford Taurus

Post-It by 3M

Micro-
soft Office

Nestea

Citi Finan-
cial

Universal A Sony Co.

Clean & Clear
by J&J

Touchstone (Disney)

Lexus (Toyota)

MTV

(Viacom)

KFC (Yum! Brands)

L'Orals Multi-Brand Matrix Architecture
Showing the Major Master Brands

Consumer Products DivisionL'Oral ParisGarnierMaybelline New YorkSoftSheen CarsonLe Club des Crateurs de BeauteLuxury Products DivisionLancmeBiothermHelena RubinsteinKiehlsShu UemuraGiorgio ArmaniRalph LaurenCacharelVictor & RolfDieselProfessional Products DivisionL'Oral ProfessionnelKrastaseRedKen 5th Avenue NYCMatrixMizaniActive Cosmetics DepartmentVichyLa Roche-PosayInnovSkinCeuticals

Conclusion

Brand architecture is of strategic importance and has long term implications for brand managementThere are several alternative models of brand architecture, each with its advantages & disadvantagesCompanies choose one or the other or a mixed model for decision-making regarding their brand structure.