BRAND ARCHITECTURE The relationship among brands in portfolio The roles of brands in portfolio Brand extension/growth opportunities

The relationship among brands in portfolio

The roles of brands in portfolio

Brand extension/growth opportunities

ARCHITECTURE IMPERATIVES aspirations & growth strategies existing equities market clarity

KEY BARRIERS TO CHANGE Understanding the cost/benefit ratio Employee loyalty to acquired entities Different cultures across business units Inertia

Understanding the cost/benefit ratio

Employee loyalty to acquired entities

Different cultures across business units

Inertia

BRAND PORTFOLIO MONOLITHIC e.g., FedEx COMPANY-CENTRIC e.g., Xerox SYMMETRICAL e.g., Buick Aurora ASYMMETRICAL e.g., Bosch, Blaupunkt BRAND-CENTRIC e.g., Procter & Gamble PORTFOLIO TYPES

BRAND ARCHITECTURE Brand roles in the portfolio: Strategic (e.g., Slate for Levi’s) Flanker (e.g., Basic for Marlboro) Silver Bullet (e.g., Viper for Dodge) Enticers (e.g., C-Class for Mercedes-Benz) Endorsers (FourPoints by Sheraton) Cash Cows (Lux for Unilever)

Brand roles in the portfolio:

Strategic (e.g., Slate for Levi’s)

Flanker (e.g., Basic for Marlboro)

Silver Bullet (e.g., Viper for Dodge)

Enticers (e.g., C-Class for Mercedes-Benz)

Endorsers (FourPoints by Sheraton)

Cash Cows (Lux for Unilever)

EXTENSION STRATEGIES Up to 4 of 5 new product launches fail To reduce risk, 80% of new product launches are brand extensions For both products and services, extensions into similar categories are most successful The stronger the brand’s reputation, the more favorable the extension is received (for both products and services) The riskier the category is viewed by customers, the more favorable the extension

Up to 4 of 5 new product launches fail

To reduce risk, 80% of new product launches are brand extensions

For both products and services, extensions into similar categories are most successful

The stronger the brand’s reputation, the more favorable the extension is received (for both products and services)

The riskier the category is viewed by customers, the more favorable the extension