Chapter 11- Designing and Implementing Brand Architecture Strategies

Brand Architecture Strategy *STEP 3: Branding New Products and Services*

The final step in developing the brand architecture is t decide on the specific brand elements to use for any particular new product or service associated with the brand. *New products and services must be branded in a way to maximize the brand's overall clarity* One way we can distinguish brand architecture strategies is by looking at whether a firm is employing an umbrella corporate or family brand for all its products, known as a *"branded House"* (B2B) or a collection of individual brands all with different names, know as a *"house of brands"* (B2C) The realty is that most firms adopt a strategy somewhere between these two end points, often employing various types of *sub brands*: an extremely popular form of brand extension in which the new product carries both the parent brand name and a new name ----I.E- Apple Ipad, Ford Fusion, American Express Blue card

Brand Architecture Guidelines

*(1) Adopt a strong customer focus* ---Recognize what customers know and wan, and how they will behave *(2) Create broad, robust brand platforms* ---Strong umbrella brands are highly desired. Maximize synergies and flow *(3) Avoid overbranding and having too many brands* ---High-tech products, for example, are often criticized for branding every ingredient so the overall effect is like a NASCAR race car with logos and decals everywhere *(4) Selectively Employ Sub-Brands* ---Sub-brands can communicate relatedness and distinctiveness and are a means of complementing and strengthening brands *(5) Selectively Extend Brands* ---Brand extensions should establish new brand equity and enhance existing brand equity

BRAND HIERARCHY

*Brand Hierarchy*: is a useful means of graphically portraying a firm's branding strategy by displaying the number and nature of common and distinctive brand elements across the firm's products, revealing their explicit ordering *Level of Brand Hierarchy* (from top to bottom): 1. Corporate or company brand (General motors) 2. Family Brand (Buick) 3. Individual brand (Regal) 4. Modifiers (designating item or model) (GS) 5. Product description (Midsize luxury sport sedan automobile)

BRAND PORTFOLIO

*Brand Portfolio*: Includes all brands sold by a company in a product category -The basic principle in designing a brand portfolio is to *maximize market coverage* so that no potential customers are being ignored, but *minimize brand overlap* so that brands aren't competing among themselves to gain the same customer's approval ---Each brand should have a distinct target market and positioning BRANDS CAN PLAY A NUMBER OF SPECIFIC ROLES AS PART OF A BRAND PORTFOLIO.... -Flankers -cash cows -low-end, entry-level, or High-end, prestige brands TO SUM UP.... -To minimize overlap and get the most from the portfolio, each brand-name product must have: ---Well-defined roles to fulfill for the firm ---Well-defined positioning, indicating the benefits it offers to consumers

Corporate Branding

*Corporate Brand Equity*: is the differential response by consumers, customers, employees, other firms, or any relevant constituency to the words, actions, communications, products, or services provided by an identified corporate brand equity *Corporate Image Dimensions* - *common product attributes, benefits, and attitudes* ---A High-quality corporate image association: creates consumers perceptions that a company makes products of the highest quality ---An Innovative corporate image association: creates consumer perception of a company as developing new and unique marketing programs, especially with respect to product introductions and improvements -*People and Relationships* --- Customer-Focused corporate image associations: creates consumer perception of a company as responsive to and caring about its customers -*Values and Programs* ---Socially responsible corporate image association: portrays the company as contributing to community programs, supporting artistic and social activities, and generally attempting to improve the welfare of society as a whole ---Environmentally concerned corporate image association: projects a company whose products protect or improve the environment and make more effective use of scarce natural resources TO SUM UP.... -Many intangible brand associations can transcend to the physical characteristics of products ---Provides valuable sources of brand equity and serves as critical POP and POD

BRAND HIERARCHY *Designing a Brand Hierarchy*

*Specific Products to introduce* *Number of levels of the brand hierarchy* *Desired awareness and image at each hierarchy level* *combining brand elements from different levels* *Linking brand elements to multiple products* lots of definitions....

BRAND PORTFOLIO *Low-End, Entry-Level or High-End, Prestige Brands*

*Sub-brands leverage associations* from other brands while distinguishing themselves on price and quality *Role of a relatively low-priced brand*: to attract customers to the brand franchise *Role of a relatively high-priced brand:* To add prestige and credibility to the entire portfolio

Brand Architecture Strategy *STEP 1: Defining Brand Potential*

*Three important characteristics*: 1. *Articulating The Brand Image* - *Brand vision*: management's view of the brand's *long-term* potential ---It is influenced by how well the firm is able to recognize the current and possible future brand equity -Brand vision needs to be *aspirational*, so the brand can improve in the future, yet it cannot be unobtainable -It *transcends the brand's physical product category* descriptions and boundaries 2. *The brand boundaries* -Based on the brand vision and positioning, identifying the product or service the brand should offer, the benefits it should supply, and the needs it should satisfy -To improve market coverage, companies target different segments with multiple brands in a portfolio ---Top marketing companies in recent years have focused on few, stronger brands 3. *Brand positioning*: -Puts some specificity into a brand vision -Four key elements are... a. competitive frame of reference b. POD c. POP d. Brand mantra

Corporate Branding *Managing the Corporate Brand*

-*Corporate social responsibility* -*Corporate image campaigns* ---*Corporate image campaigns:* are designed to create associations to the corporate brans as a whole; consequently, they tend to ignore or downplay individual products or sub-brands ---*Brand line campaigns:* promote a range of products associated with a brand line -*Corporate Name Changes*: ---Rationale: A merger or acquisition is often the impetus to reevaluate naming strategies and weigh the existing and potential equity of each brand in its new context

BRAND HIERARCHY *Step 4. Modifier Level*

-Brands should distinguish according to the different types of items or models --*Modifiers*: Designate a specific item or model type or a particular vision or configuration of the product -----Function of modifiers is to show how one brand variation relates to the others in the same brand family -----Helps make products more understandable and relevant to consumers

BRAND HIERARCHY *Step 5: Product Descriptor*

-Helps consumers understand what the product is and does ---Helps define the relevant competition in consumer's minds -In the case of a truly new product, introducing it with a familiar product name may facilitate basic familiarity and comprehension

TO SUM UP.....

-Key aspects of managing brand equity is adopting the proper branding strategy -Brand architecture strategy for a firm identifies which brand elements a firm chooses to apply across the various products -Brand-product matrix is a graphical representation of all the firm's brands and products - A firm may offer multiple brands in a category to attract different market segments - A brand hierarchy reveals an explicit ordering of all brand names by displaying the number and nature of common and distinctive brand name elements across the firm's products - Corporate or family brands can establish a number of valuable associations to differentiate the brand - Firms now employ cause-marketing programs designed to align their brans with a cause of importance

BRAND HIERARCHY *3. Individual Brand Level*

-Restricted to essentially one product category, although multiple product types may differ -Customization of the brand and all its supporting marketing activity -If the brand runs into difficulty or fails, *the risk to other brands and the company itself is minimal* -Disadvantages of difficulty, complexity, and expense of developing separate marketing programs

BRAND HIERARCHY *2. Family Brand Level*

-Used in more than one product category but is not necessarily the name of the company or corporation ---Also called a range brand or umbrella brand -If the corporate brand is applied to a range of products, then it functions as a family brand too -If the products linked to the family brand are not carefully considered, the associations to the family brand may become weaker

BRAND PORTFOLIO *Flankers*

Certain brands act as protective flanker or "fighter" brands -To create stronger POP with competitor's brands -Fighter brands must not be so attractive that they take sales away from their higher-priced comparison brands ---If they are connected to other brands in the portfolio, they must not be designed too cheaply that they reflect poorly on other brands

BRAND PORTFOLIO *Cash Cows*

Despite dwindling sales, some brands are retained --Due to their sustainability without any kind of marketing Milked by capitalizing on their reservoir of existing brand equity

Brand Architecture Strategy *STEP 2: Identifying Brand Extension Opportunities*

Determining the brand vision, boundaries, and positioning in step 1 helps to define the brand potential and provide a clear sense of direction for the brand. Step 2 is to *identify new products and services t achieve that potential through a well-designed and implemented brand extension strategy* *Brand extension*: a new product introduced under an existing brand band ---*Line Extension*: New product introduced within existing categories ---* Category Extensions*: New product introductions outside existing categories *Equity implications of each extension needs to be understood in terms of*... - POPs -PODs

BRAND HIERARCHY *1. Corporate or Company Brand Level*

Highest level of hierarchy -Corporate image: The consumer associations to the company or corporation making the product or providing the service ---Relevant when the corporate or company brand plays a prominent role in the branding strategy

Brand Architecture Strategy: *Role*

a. To clarify brand awareness: improve consumer understanding and communicate similarity and differences between individual products and services b. To improve brand image: Maximize transfer of equity between the brand and individual products and services to improve trial and repeat purchases

*Brand Architecture Strategy*:

helps marketers determine which products and services to introduce, and which brand names, logos, symbols, and so forth to apply to new and existing products TO SUM UP.... -Marketers should use *brand portfolio* analysis for step 1 and *brand hierarchy* analysis for step 2 and 3