Brand Architecture, Portfolio

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Study the fundamentals of a brand's architecture.

Text of Brand Architecture, Portfolio


  • 11.*Branding strategy Branding strategy is critical because it is the means by which the firm can help consumers understand its products and services and organize them in their minds. Two important strategic tools: The brand-product matrix and the brand hierarchy help to characterize and formulate branding strategies by defining various relationships among brands and products.

  • 11.*Branding Strategy or Brand ArchitectureThe branding strategy for a firm reflects the number and nature of common or distinctive brand elements applied to the different products sold by the firm.Which brand elements can be applied to which products and the nature of new and existing brand elements to be applied to new products

  • 11.*The role of Brand ArchitectureClarify: brand awareness Improve consumer understanding and communicate similarity and differences between individual products Motivate: brand image Maximize transfer of equity to/from the brand to individual products to improve trial and repeat purchase

  • 11.*Brand-Product MatrixMust define:Brand-Product relationships (rows)Line and category extensionsProduct-Brand relationships (columns)Brand portfolio

  • 11.*Important DefinitionsProduct lineA group pf products within a product category that are closely relatedProduct mix (product assortment)The set of all product lines and items that a particular seller makes available to buyersBrand mix (brand assortment)The set of all brand lines that a particular seller makes available to buyers

  • 11.*Breadth of a Branding StrategyBreadth of product mixAggregate market factorsCategory factorsEnvironmental factorsDepth of product mixExamining the percentage of sales and profits contributed by each item in the product line Deciding to increase the length of the product line by adding new variants or items typically expands market coverage and therefore market share but also increases costs

  • 11.*Depth of a Branding StrategyThe number and nature of different brands marketed in the product class sold by a firmReferred to as brand portfolioThe reason is to pursue different market segments, different channels of distribution, or different geographic boundariesMaximize market coverage and minimize brand overlap

  • 11.*Ford Brand Portfolio

  • 11.*Designing a Brand Portfolio Basic principles:Maximize market coverage so that no potential customers are being ignoredMinimize brand overlap so that brands arent competing among themselves to gain the same customers approval

  • 11.*Brand Roles in the PortfolioFlankers [Not well served by competitors]Cash cows [Gillette still sells old products]Low-end entry-levelHigh-end prestige brands

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  • 11.*Brand HierarchyA means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firms products, revealing the explicit ordering of brand elementsA useful means of graphically portraying a firms branding strategy

  • 11.*Brand Hierarchy Tree: ToyotaToyota CorporationToyota(Trucks)Toyota(SUV/vans)LexusToyotaFinancialServicesToyota(Cars)CorollaPriusAvalonCelicaECHOMatrixMR2SpyderCamryCESLESELEXLEPlatinum EditionXLXLSSESLE

  • 11.*Brand Hierarchy LevelsFamily Brand (Buick)Corporate Brand (General Motors)Modifier: Item or Model (Ultra)Individual Brand (Park Avenue)

  • 11.*Corporate Brand EquityOccurs when relevant constituents hold strong, favorable, and unique associations about the corporate brand in memoryEncompasses a much wider range of associations than a product brand

  • 11.*Family BrandsBrands applied across a range of product categoriesAn efficient means to link common associations to multiple but distinct products

  • 11.*Individual BrandsRestricted to essentially one product categoryThere may be multiple product types offered on the basis of different models, package sizes, flavors, etc.

  • 11.*ModifiersSignals refinements or differences in the brand related to factors such as quality levels, attributes, functions, etc.Plays an important organizing role in communicating how different products within a category that share the same brand name are

  • 11.*Corporate Image DimensionsCorporate product attributes, benefits or attitudesQualityInnovativenessPeople and relationshipsCustomer orientationValues and programsConcern with the environmentSocial responsibilityCorporate credibilityExpertiseTrustworthinessLikability

  • 11.*Brand Hierarchy DecisionsThe number of levels of the hierarchy to use in generalHow brand elements from different levels of the hierarchy are combined, if at all, for any one particular productHow any one brand element is linked, if at all, to multiple productsDesired brand awareness and image at each level

  • 11.*Number of Hierarchy LevelsPrinciple of simplicityEmploy as few levels as possiblePrinciple of clarityLogic and relationship of all brand elements employed must be obvious and transparent

  • 11.*Levels of Awareness and AssociationsPrinciple of relevanceCreate global associations that are relevant across as many individual items as possiblePrinciple of differentiationDifferentiate individual items and brands

  • 11.*Linking Brands at Different LevelsPrinciple of prominenceThe relative prominence of brand elements affects perceptions of product distance and the type of image created for new products

  • 11.*Linking Brands Across ProductsPrinciple of commonalityThe more common elements shared by products, the stronger the linkages

  • 11.*Brand Architecture Guidelines Adopt a strong customer focusAvoid over-brandingEstablish rules and conventions and be disciplinedCreate broad, robust brand platformsSelectively employ sub-brands as means of complementing and strengthening brandsSelectively extend brands to establish new brand equity and enhance existing brand equity

  • 11.*Corporate Brand Campaign Different objectives are possible:Build awareness of the company and the nature of its businessCreate favorable attitudes and perceptions of company credibilityLink beliefs that can be leveraged by product-specific marketingMake a favorable impression on the financial communityMotivate present employees and attract better recruitsInfluence public opinion on issues

  • 11.*Using Cause Marketing to Build Brand EquityThe process offormulating and implementing marketingactivities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives

  • 11.*Advantages of Cause MarketingBuilding brand awarenessEnhancing brand imageEstablishing brand credibilityEvoking brand feelingsCreating a sense of brand communityEliciting brand engagement

  • 11.*Green MarketingA special case of cause marketing that is particularly concerned with the environmentExplosion of environmentally friendly products and marketing programs

  • 11.*Crisis Marketing GuidelinesThe two keys to effectively managing a crisis are that the firms response should be swift and that it should be sincere.