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Brand Architecture Toolkit Rev May 2012
 

Brand Architecture Toolkit Rev May 2012

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Learn more about how to optimize Brand Architecture to provide a clear and leverage able ‘face’ for your business strategy.

Learn more about how to optimize Brand Architecture to provide a clear and leverage able ‘face’ for your business strategy.

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    Brand Architecture Toolkit Rev May 2012 Brand Architecture Toolkit Rev May 2012 Presentation Transcript

    • Brand Architecture Toolkit:Structuring Your Brand Portfolio for Growth May, 2012
    • Who Are We? INTRODUCTIONS  Brand Amplitude is an insights-based brand strategy consulting firm.  Clients include CPG, Retail, B2B, Higher Education, Healthcare.  Relationships are led by experienced marketing practitioners and industry thought leaders, Carol Phillips and Judy Hopelain.  Supported by a virtual team of research, analytic and consulting associates. Client-Side Consulting Agency Business Faculty Illuminations Accenture JWT Patagonia BCG Leo Burnett Whirlpool Prophet Mullen Swander Pace & Co. Y&R A strong brand is one of a company’s most important assets. By growing brand equity, marketers help achieve the organization’s business objectives.2012 Brand Amplitude, LLC All Rights Reserved 1 May not be reproduced without permission
    • What Services Do We Offer? INTRODUCTIONS  We help clients solve strategic business and brand issues by leveraging a range of proven tools and frameworks. – Brand audit – Market segmentation – Target insights (motivations, culture and decision-making) – Brand identity and rallying cry – Brand positioning – Brand architecture – Brand activation – Brand measurement2012 Brand Amplitude, LLC All Rights Reserved 2 May not be reproduced without permission
    • What is Brand Architecture? BRAND ARCHITECTURE DEFINED  Brand architecture provides the external ‘face’ of a business and supports its overall strategy.  Brand architecture helps companies answer important questions: – What to call new products? – What are their relative weights and relationships? – How much visibility to give to the corporate name? – Should there be a different name for the company and the commercial brand? – Should the same architecture apply around the world? “Where much of an organization’s brand building efforts once focused on acquiring, launching or aggressively extending brands… today’s focus is on trying to get the most from exiting brands through better organizing and managing brands and brand inter- relationships within the existing portfolio.” - Rob Osler, “The Type-Role-Purpose Brand Taxonomy,” Brand Management, July 2007 2012 Brand Amplitude, LLC All Rights Reserved 3 May not be reproduced without permission
    • Brand Architecture Specifies Portfolio Relationships BRAND ARCHITECTURE DEFINED  Brand architecture establishes the optimal Brand architecture may or may not interrelationships of brands within a single line up with internal organization company. structures.  Architecture also describes the role of each brand in the corporate portfolio and the linkages between brands. Sub- Brand Driver Drives purchase decision and defines user (Master) experience. Most represents the Sub- Brand differentiation inherent to the offer. Co-driver Contributes equally to brand equity in a Driver Brand (Partners) multi-brand offer. Endorser Provides approval, credibility or guarantee to a range of products, but is usually not the Corporate driver. Sub-Brand Equity is driven by another brand, usually Business Unit Business Unit the driver. Products Products Ingredient Materials, components or parts that are contained within other branded products. 2012 Brand Amplitude, LLC All Rights Reserved 4 May not be reproduced without permission
    • Where Architecture Fits BRAND ARCHITECTURE DEFINED  Brand Architecture is part of corporate strategy. It should be established prior to creating a brand strategy Strategic Marketing Framework Benefits of Optimizing Brand Architecture  Support business strategy by providing I. Corporate Objectives & Brand Architecture a “face” to the business  Allows for fewer stronger brands with II. Brand Strategy – less overlap Identity & Positioning  Minimizes waste and marketing inefficiency III. Go-to-Market Strategy  Builds credibility for leveraging the brand into new opportunities for Value Proposition growth Messaging & Offer Design  Enables equity to “flow” through the portfolio Customer Experience IV. Marketing Execution & Metrics 2012 Brand Amplitude, LLC All Rights Reserved 5 May not be reproduced without permission
    • Reasons for Revisiting Architecture BRAND ARCHITECTURE DEFINED  Brand architecture is built to last. It should be revisited when companies change strategic direction or the business has outgrown its existing brand structure. Triggers for revisiting include:  Sizable business unit is acquired or sold  Lack of clarity about role of master brands relative to subbrands – unclear where to build equity  Corporate brand and product brands have the same name  Brands are losing relevance with consumers Too few brands in the portfolio - brands have been stretched beyond their credibility and effectiveness Too many brands in the portfolio - programs, sponsorships and products competing for attention and investment dollars2012 Brand Amplitude, LLC All Rights Reserved 6 May not be reproduced without permission
    • Example: Kellogg’s Architecture Changes Drivers BRAND ARCHITECTURE DEFINED  Recognized Kellogg’s master “Kellogg’s is a truly iconic brand …We felt that having a stronger brand was underleveraged brand, driving a stronger point of view, a more powerful identity and have at the center an umbrella to talk about our portfolio more holistically, to talk about the power of breakfast, to talk about the value of cereal—it sort of became a much bigger platform to capture our thoughts about how we wanted to build a bigger relationship with them.”  Acquired multiple new master brands – Keebler, Kashi, “If you look at our portfolio we have a number of masterbrands: Morningstar, potentially and we had to start separating out the Kellogg’s brand from the Kellogg company … just as we did effectively a brand refresh of Pringles, needed to elevate the Kellogg company, and what it stood for provided a north Kellogg’s corporate brand star for the aggregate of the master brands in the company, we above its cereal master brand then needed to be very clear about what Kellogg’s the brand stood for and provide the north star for all the sub-brands that kind of sat underneath it.”  Wanted to leverage investment in 2012 Olympics to benefit all “There are occasions such as the Olympics, when you want to encompass a certain number of those sub-brands and where brands the master brand approach provides an effective way of doing that. You would need it to ladder up to a common identity system.” http://www.forbes.com/sites/jenniferrooney/2012/05/10/kelloggs- 2012 Brand Amplitude, LLC All Rights Reserved embarks-on-major-brand-overhaul/ 7 May not be reproduced without permission
    • Brand Elements Are Not Part of the Architecture BRAND ARCHITECTURE DEFINED  Branded elements can be effective for distinguishing and energizing a brand and may even be trademarked, but live outside the architecture. Keeping them in their rightful place requires clarity around their strategic intent. – Enhance uniqueness and memorability. – Are potentially own-able and can be monetized via licensing and co-branding arrangements. – Take care they do not overshadow the brand Celebrities lend Characters create Sponsorships Ingredients build meaning likeability build affinity credibility 2012 Brand Amplitude, LLC All Rights Reserved 8 May not be reproduced without permission
    • Brand Architecture Solutions Spectrum BRAND ARCHITECTURE SOLUTIONS  House of Brands advantages  Branded House advantages – Builds individual strong brands for – Maximizes marketing spending efficiency category dominance – Maximizes awareness among all – Limits risk by containing brand stakeholders (i.e., investors, employees) reputations (good for high risk industries) Solutions Spectrum Hybrid Solution Independent brands, House of Branded Single parent brand each maximizing its House spans a set of Brandsimpact on the market. offerings. 2012 Brand Amplitude, LLC All Rights Reserved 9 May not be reproduced without permission
    • Hybrid Architecture Solutions Dominate BRAND ARCHITECTURE SOLUTIONS  Most companies build their businesses through a mix of architecture solutions. Hybrid Solution Independent brands, House of Branded Single parent brand each maximizing its House spans a set of Brandsimpact on the market. offerings. 2012 Brand Amplitude, LLC All Rights Reserved 10 May not be reproduced without permission
    • Principles for Designing Brand Architecture BRAND ARCHITECTURE SOLUTIONS Brand architecture is guided by three principles. Right Number Sufficiently cover the market and target customer segments, with the fewest brands possible. Clear Separation Make it easy for customers to find solution they seek by ensuring “daylight” between brand offerings. Highest Profit Fulfill customer needs while minimizing brand development and management cost. 2012 Brand Amplitude, LLC All Rights Reserved 11 May not be reproduced without permission
    • Six Main Architecture Types BRAND ARCHITECTURE SOLUTIONS Within the spectrum, the number of branding levels determines the architecture type. (Note: Fewer branding levels is best, aim for no more than three.) 2012 Brand Amplitude, LLC All Rights Reserved 12 May not be reproduced without permission
    • Determining the Optimal Architecture BRAND ARCHITECTURE SOLUTIONS Questions to consider: – Do the brands address the same or different customer segments? – How important is it to represent the brand the same way in different geographies? – Are there synergies that can be leveraged between different brand or business units? Hybrid Solution Independent brands, House of Branded Single parent brand each maximizing its Brands House spans a set of impact on the market. offerings. Target multiple Target single or few segments segments Address individual Reinforce a global geographies organization mindset Few synergies to be Many synergies to be leveraged leveraged 2012 Brand Amplitude, LLC All Rights Reserved 13 May not be reproduced without permission
    • Brand Architecture Evaluation Criteria BRAND ARCHITECTURE SOLUTIONS  Three types of criteria inform selection of the optimal architecture. Business Brand Customer Strategic Fit Brand Equity Maximize Clarity Help achieve and support Fit with/protect existing Minimize customer strategic priorities? equities or create new confusion? Business Management ones? Multiple Stakeholders Support different business Brand Synergies units and/or market Meet the needs of segments? Create synergies across multiple stakeholders? the portfolio? Flexibility Accommodate changing Brand Management market conditions? Enable marketing and Implementation brand-building efficiencies? Ability to execute successfully? 2012 Brand Amplitude, LLC All Rights Reserved 14 May not be reproduced without permission
    • Benefits of Clear Brand Architecture BRAND ARCHITECTURE BENEFITS  Provides direction for valuation and future treatment of acquired brands -- will name be retained or retired?  If retained, will it be a new master brand or will it be lined in a hybrid solution?  If retired, how much should the value of the brand be discounted in the purchase?  Clarifies strategy by identifying gaps and overlaps  Brand proliferations generally a bigger problem than too few brands  Important to have ‘daylight’ between brands  Facilitates development of visual identity systems  Dictates size and position of brand names in relation to each other  Provides rules for guiding creation of new brands and brand extensions to avoid diluting meaning through overstretching 2012 Brand Amplitude, LLC All Rights Reserved 15 May not be reproduced without permission
    • Brand Architecture Directs Naming Decisions BRAND ARCHITECTURE BENEFITS Decisions about naming should be based on target customer equity. 2012 Brand Amplitude, LLC All Rights Reserved 16 May not be reproduced without permission
    • Architecture Decisions Have Business Implications BRAND ARCHITECTURE IMPLICATIONS  Consistency - Architectures with a single branding level require more internal coordination than multiple branding levels. – Brand committee or council across business units, silos or geographies used to ensure consistency – Some organizations establish a centralized marketing structure or internal service unit to avoid compliance issues inherent in committees  Innovation and Investment – Portfolio brands compete for resources – A brand’s strategic purpose in the portfolio should determine which of the latest features and investments are made in each brand Strategic Description Purpose Strategic Significant contributor to company’s future sales or market position. Has potential for positive impact on overall perception of the corporation. Distinguisher Enhances the differentiation of another brand. Also referred to as ‘branded energizer’, differentiator, or silver bullet. Cash Cow Money making brand that does not represent future significant growth. Corporate Low visibility to customers, but important to corporate constituents such as regulatory bodies, investors, employees, trade groups, partners. Fighter/Flanker Response to competitive threat. Protects share of other brands in the portfolio. 2012 Brand Amplitude, LLC All Rights Reserved 17 May not be reproduced without permission
    • Strategic Purpose Should Drive Investment Decisions BRAND ARCHITECTURE IMPLICATIONS  Not all portfolio brands are equally important to the business. Clarity of strategic purpose helps companies understand where to invest resources for maximum impact. Strategic brands Distinguisher Cash Cows generate Fighters/Flankers represent future brands provide revenue for other protect other growth added interest investments category brands NA (J. Crew) (Microsoft) 2012 Brand Amplitude, LLC All Rights Reserved 18 May not be reproduced without permission
    • Getting Started BRAND ARCHITECTURE PROCESS  Effective brand architecture directly impacts the market value of a business, so it’s worth taking the time to get it right.  The first step in aligning brand architecture with business strategy involves a strategic analysis. This analysis forms the basis for developing and evaluating architecture alternatives. Brand Architecture Development Process Strategic Business Brand Architecture Alternatives Evaluation of Analysis Mapping Development Alternatives How closely aligned How aligned are external What are the various Which architecture are the brand and and internal perceptions ways the portfolio alternative best fits business strategies? of brands and their could be configured the short and long- roles? going forward? term business and brand objectives? “…[architecture] should not be seen as a formal design problem but rather a matter of deciding on the value flows to be created between the different parts and products of a company. As such it affects the value of the company.” – Jean-Noel Kapferer, The New Strategic Brand Management, 2012 2012 Brand Amplitude, LLC All Rights Reserved 19 May not be reproduced without permission
    • CONTACT US How Can We Help You Grow? To Learn More, Contact Us: Carol Phillips Judy Hopelain carol@brandamplitude.com judy@brandamplitude.com 269-429-6526 415-810-82682012 Brand Amplitude, LLC All Rights Reserved 20 May not be reproduced without permission