Module 6 Brand Architecture

Brand Management Course International University 1

Brand ManagementBrand Management

Nguyen Trung ThangCEO of Masso Group

http://www.massogroup.com


Module 1: Course introduction

Module 2: Branding concepts and brand elements

Module 3: Brand positioning & consumer insights

Module 4: Integrated brand communication

Mid-term Project

Module 5: Brand measurement & branding in practice

Module 6: Brand architecture

Module 7: Brand extension & leverage

Module 8: Global Branding

Final Exam

Course outline


Module 6Module 6

Brand Architecture


Why Create a new Brand?

• When?

• Why?

• When Not?

• Why Not?

Creating a Brand/building brand equity takes:

• Time

• $$$$

• Discipline

• Persistence


Family Versus Multiple Brands

• Multiple (Individual) Branding – To Avoid Conflicts in Channels

– To Avoid Confusion Between Segments

– Different brand names if different target segments accessed via different channels and or products


Consider a family name (with sub-branding) if targeting the same customers for similar end-use product markets using the same channels (Marriott and Fairfield Inns by Marriott)

Family Versus Multiple Brands


Why Create A New Brand?

• Creating/Opening a New Category…• Entering an Established Category without

Brand Equity from another source• Or, you want to separate this offering from that

source• Entering a category where clear differentiation

from similar/Identical offerings is clearly needed

• Others?


The ultimate answer…

• If you can make more money (short term-long term) by adding a brand, add it…

• If you won’t make more money over the short or long term by adding a brand, don’t


Brand Relationship

Spectrum

Brand Relationship

Spectrum

Branded House

Branded House

Sub-Brands

Sub-Brands

Endorsed Brands

Endorsed Brands

House of Brands

House of Brands


Brand Relationship

Spectrum

Brand Relationship

Spectrum

Branded House

Branded House

Sub-Brands

Sub-Brands

Endorsed Brands

Endorsed Brands

House of Brands

House of Brands

Independent Brands, Each working in their own right, belonging to a “Remote” parent firm


House of Brands (P&G)

• Targets Niche Markets• Highlights new offerings• Avoids incompatibility• Allows powerful names tied to benefit• Avoids channel conflict• Shadow Endorser: “A Known organization is

backing this brand”


In a “House of Brands”

• The key competency itself is often the creation, growth and Management of Brands

• More B-to-C than B-to-B: Most of the offering value is in the brand, and opposed to the product in use…

Tide Folgers Ivory Cascade


House of Brands

House of Brands

Shadow Endorser

Shadow Endorser

Not Connected

Not Connected

Tide (P&G)

Accura (Honda)

Touchstone (Disney)

Independent Brands held by a remote parent company

Nutrasweet (Searle)

RCA (GE)

Saturn (GM)


Brand Relationship

Spectrum

Brand Relationship

Spectrum

Branded House

Branded House

Sub-Brands

Sub-Brands

Endorsed Brands

Endorsed Brands

House of Brands

House of Brands

Strong Brands on their own, strengthened in a customer-relevant way by an association with the parent brand


Endorsed Brands

Endorsed Brands

Strong Brands on their own-in their segment, strengthened by the master brand

Strong Endorsement

Strong Endorsement

Linked Name

Linked Name

Token/Remote Endorsement

Token/Remote Endorsement

Courtyard by Marriott

Walkman by Sony

NesteaDockers, by Levi’s

Universal Pictures, a Sony Company


Endorsed Brands

• Independent

• Can provide Relevant Support – Degree of relevant support determines level: Token, Linked Names, Strong

• Can Build Strength for both brands


Brand Relationship

Spectrum

Brand Relationship

Spectrum

Branded House

Branded House

Sub-Brands

Sub-Brands

Endorsed Brands

Endorsed Brands

House of Brands

House of Brands

Separate, Strong Brands – tied to and synergistic with – the parent brand


Sub-BrandsSub-

Brands

Separate Brands tied to Master Brand, Sub-ordinate and Synergistic

Master Brand as Driver

Master Brand as DriverCo-DriversCo-Drivers

Gillette Mach 3 – (Powerful Product Brand)

Sony Trinitron

DuPont Stainmaster (Powerful Ingredient Brand)

HP Deskjet


Subbrands

• Connected directly to the master brand --modify the emotional takeaway or proposition.

• Substantial potential impact on the master brand

• Critical: Degree to which they “Co-Drive” the buying process/decision


Brand Relationship

Spectrum

Brand Relationship

Spectrum

Branded House

Branded House

Sub-Brands

Sub-Brands

Endorsed Brands

Endorsed Brands

House of Brands

House of Brands

Parent Brand Drives, products under it are named following their benefits or specifications


Branded House

Branded House

Same IdentitySame IdentityDifferent Identity

Different Identity

BMW

Virgin

GE Capital, GE Appliance

Parent Brand the driving Branding element


A Branded House…

• Master Brand is driver across Multiple categories

• Under that – primarily “Product Descriptors”/ Highly descriptive trademarks.

• Master brand should be in a position to add to – and be strengthened by – all the firms offerings.

530i X5 750iL More…

BMW


Brand Separation Criteria…

Branded House:• Synergy in product line• Combined visibility and

relevance• Single brand visibility, • concentration of

resources• More risky to the master

brand• Benefit on stock market

House of Brands:• Eclectic product mix • Risky product categories• Channel conflict potential• Business model supports

creation of a brand • Fragmented in resources• Less risky to independent

brands• Not benefit from stock

market


Brand “Portfolio” concept

Parent Brand – Master Brand

Co-Brands

Product Line Brand

Product Brand

Ingredient Brands

Brand Extensions

Cadillac

Givenchy

Seville

STS

Bose, OnStar, NorthStar

Cadillac Service

Lederer, Hill HBR, 6/2001


BCG model for brands portfolio management


“Ingredient Brands”

• When your ingredient creates (the/a) unique element of value for the customer down the value chain.

• When your customer will find a way to call out the ingredient if you don’t

• When the opportunity exists to create a valuable brand – and a franchise with the customer down the value chain.


Ingredient ProviderIngredient Provider

ManufacturerManufacturer

ConsumerConsumer

Provides key ingredient of value for the manufacturer

Works to create direct Brand Relationship with consumer

Consumer looks for this ingredient – or is willing to pay more


Important Consideration: Relative Brand “Power” – Depth of Equity

Relative power of “hosting” brand

Relative power of “Ingredient” brand

Generally difficult to accomplish ingredient branding strategy

Ingredient branding strategy may not be desirable…

Zone of relative balance: Ingredient branding strategy may offer opportunity to create new value/ “Market Assets”


• Originally: Many “Compatible” and “Non-Compatible” computers

• Intel Inside = will play Microsoft

• Now: the world’s largest Co-op Advertising Program

= $ $ $, off the price of your processor bill (Often = $$$ Profit)

Classic: DuPont Stainmaster

Case: Intel Inside

Module 6 Brand Architecture

Documents