Using brand architecture to extend the brand by ri


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Using brand architecture to extend the brand by ri

  1. 1. Using brandarchitecture toextend the brand
  2. 2. Routes to brand leadershipOrganisational Brand architecture structure • brand portfolio• brand nurturing • sub-brands• common set of inputs, • endorsed brands outputs, vocabulary• share learnings Brand LeadershipBrand building Brand identity & position programs • aspirational image• accessing multiple media • positioning• achieving brilliance Inspires brand building• integrating the communication Realise brand identity• measuring the resultsSource: David Aaker and Erich Joachimsthaler 2
  3. 3. Brand architecture the organisational structure of brand portfolio 3
  4. 4. Brand architecture objectives• create synergy• clarify product offerings• leverage brand equity• create effective and powerful brands• allocate brand building resource• establish platform for future growth 4
  5. 5. Brand architecture outcomesGood brand architecture Bad brand architecture• brands managed together- • no defined ‘role’ for the role of each determined brands• clarity in consumer offering • confused set of offerings• synergy in brands & • communication communication inefficiency• ability to leverage brand assets• support brand stretch 5
  6. 6. Brand strategy - relationship spectrum Branded Sub Endorsed House of house brands brands brands Same Different Master Co- Strong Linked Token Shadow Not identity Identity brand drivers endorser name endorser endorser connected driver Extreme Extreme Uses single Independent master brand. stand alone Descriptor sub brands brandsBrand Negligible Low High High CompleteseparationMaster Dominant Major Minor High Negligible driver driver driverbrand 7
  7. 7. Brand strategy - relationship spectrum 1 Branded house • Advantages – leverage master brand – requires less investment on new offering – maintains clarity and synergy across portfolio • Disadvantages – stretch over wide products reduces ability to target specific groups. – problems with master brand affect total portfolio 8
  8. 8. Brand strategy - relationship spectrum 2 Sub brands • Advantages – sub brand adds relevant association – stretch the master brand – signal new offering is novel – alter image of master brand in terms of association, energy, personality or consumer connection 9
  9. 9. Brand strategy - relationship spectrum 3 Endorsed brands • Advantages – endorser adds credibility and reassurance to sub brand – minimise risk to endorser – can add value to Endorser brand in long run 10
  10. 10. Brand strategy - relationship spectrum 4 House of brands • Advantages – target niche market with functional benefit – avoid brand incompatible association – signal breakthrough – new powerful name - reflect product benefit – avoid channel conflict •Disadvantages –sacrifice: –economies of scale –brand synergy –brand leverage 11
  11. 11. Branding strategy-6 management models• Product brand • Umbrella brand – assignment of a – same brand supports particular name to one several products in product with exclusive different markets positioning• Line brand • Source brand – similar to umbrella brand – one coherent product but products are directly under a single name with named. many complementary products •Endorsing brand• Range brand – master brand - smaller – single brand name which role provides credibility, & acts as a guarantee. promotes a single promise. 12
  12. 12. Branding strategy-6 management models Corporate umbrella brand  Corporate endorsing brand Brand function - indicator of origin   Corporate source brand Umbrella brand Canon cameras  Endorsing brand Nestle Kit Kat  Source brand Calvin Cline Obsession Range brand Lean Cuisine Line brand Studio line Product brand  Brand function - product differentiation 13
  13. 13. Use brand architecture to extend verticallySuper premium Enjoys higher margins and brand vitality Brand stretchPremium Often struggle to differentiate and credibly communicate upscale messageMiddle / standard Cost parity crucial andValue small margins. 14
  14. 14. Vertical brand extension • Create a new brandSuper – requires large initial investmentpremium • Stretch a brand upwards – master brand must be credible and distinctive • Introduce a sub brandPremium – master brand must be credible and prestigious – premium and super-premium must differ on functional benefitsMiddle/ • Endorse a brandstandard – leverages master brand but reduces riskValue – often suitable when moving downwards • Purchase a ‘relevant position’ brand – if new association adversely affects master brand 15
  15. 15. Horizontal brand extension Category x Category y Category x• Criteria for establishing if a brand can extend horizontally: – Fit – Master brand will add value – Presence in the market will enhance the master brand’s equity• The more tied the master brand is to a product class, the more limited the potential for extension• Leverage of master brand is enhanced by moving from a functional relationship to deeper, emotional one. 16
  16. 16. CLARITY BRAND PYRAMID Share of brand clarity Affinity / 45.0% PersonalityFunctional Benefits / 32.6% Needs 22.4%Product Attributes 17
  17. 17. Brand extension• Case-Study UK Detergents 18
  18. 18. Brand strengths as detergent Persil Bio. tab Persil Non Bio tab Persil Bio. conc lqComfort Vitality (Bright Yellow) Ariel Colour conc lq Ariel Colour conc pw Ariel conc pw Ariel unspec. Ariel conc lq Persil Bio. std pw Ariel std LS pw Bold Lq Persil Colour conc pw Persil Non Bio. std pw Lenor (any) Comfort original (Blue) 23
  19. 19. Brand strengths as softener Comfort Pure (White) Comfort Vitality (Bright Yellow) Comfort Silk (Pink) Comfort original (Blue) Persil Bio. tab Lenor (any) Persil Non Bio tab Comfort (unspec.) Persil Bio. conc lq Lux Flakes Persil Bio. std pw Ariel Colour conc lq Bold Lq Fairy conc pw Persil Non Bio. std pw Persil Colour conc pw 24
  20. 20. Functional and emotional strengthsDetergents indexed 0-100 Persil Bio. tab Persil Bio. conc lq Ariel Colour conc pw Ariel unspec. Persil Bio. std pw Bold Lq Persil Non Bio. std pw Persil Colour std pw Emotional Bold conc pw Daz conc lq Functional Daz Colour conc pw Daz conc pw Radion std pw Fairy conc pw All brands shown Surf std pw Dreft Pw 25
  21. 21. Correlation 1Emotional profile of Ariel Colour conc pw Persil Non Bio tabdetergent brands Ariel unspec.with drivers of Persil Bio. conc lq Ariel conc pwdetergent and Bold unspec.softener markets Bold conc pw Persil Bio. std pwDetergent drivers Persil Colour std pwSoftener drivers Persil Colour conc pw Bold std pwAll brands shown Radion conc pw Surf conc pw Dreft Pw Surf std pw Fairy conc pw 26
  22. 22. Correlation 2Emotional profile ofsoftener brands Lenor (any)with drivers of Comfort (unspec.) Comfort originaldetergent and (Blue)softener markets Comfort Silk (Pink) Comfort Pure (White)Detergent drivers Sainsbury’s ownSoftener drivers Label (any) Comfort Vitality (Bright Yellow)All brands shown Tesco’s own label (any) Other shop’s own label 1 Bounce sheets 27
  23. 23. Detergents brand performanceFunctional attributes 0-10 scale Removes stains first time Is recommended 8.5 Keeps coloureds looking bright Dissolves easily 8.0 Is gentle on clothes Makes clothes smell Has a smell I like 7.5 fresh and clean Not messy in use 7.0 Helps prevent fibres from bobbling 6.5Costs a little less than most other 6.0 products Makes whites really white 5.5 Is a brand I can trust 5.0 Is kind to hands Helps clothes last longer Has the right amount of lather Is economical in use Is completely rinsed out after the wash/leaves no residue Is environmentally friendly Leaves a long lasting fragrance Does not cause skin irritation or rashes Makes clothes look good Saves time Keeps clothes hygienically clean Suitable for my machine Ariel Bold Daz Persil 28
  24. 24. Softeners brand performanceFunctional attributes 0-10 scale Makes clothes softer Costs a little less than 9.0 Helps keep clothes in good condition Is a brand I can trust 8.5 Makes clothes comfortable to wear 8.0 Is economical in use Has a smell I like from the bottle 7.5 7.0 Helps clothes last longer Is environmentally friendly 6.5 6.0 Makes clothes look good Reduces static on clothing 5.5Leaves a long lasting fragrance Leaves clothes less creased Is a recommended brand Is safe on skin Makes clothes smell fresh and clean Is not messy in-use Keeps coloured clothes looking bright Helps prevent skin irritation and rashes Helps take extra care of familys clothes Makes clothes easier to ironComfort Pure (White) Sainsbury’s own Label (any) Comfort Silk (Pink)Comfort Vitality (Bright Yellow)Comfort original (Blue) Lenor (any) 29