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Proprietary & Confiden0al
brand	growth	strategy	
Brand	Architecture	
		
	
Process	&	Frameworks	
	
	
Michael	Million	
mmilli...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
2	
Agenda	
§  What	is	brand	architecture?	
§  What	business	issues	does	br...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
3	
What	is	brand	architecture?	
	The	way	in	which	internal	entities	(busin...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
4	
Three	essential	elements	of	brand	architecture	
	
	
1.  End-state	Frame...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
5	
Business	issues	brand	architecture	helps	address	
The	business	has	hist...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
6	
1	
Assessment	
2	
Hypotheses	
3	
ValidaEon	&		
Refinement*		
4	
Strategy...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
7	
Case:		Situation	&	Scope	of	Brands	
	M&A	activity	has	complicated	the	c...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
8	
Project	Objectives	
	
Key	Questions	to	be	answered	in	this	project	
Str...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
9	
1	
Assessment	
2	
Hypotheses	
3	
ValidaEon	&		
Refinement		
4	
Strategy	...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
10	
1	
Assessment	
2	
Hypotheses	
3	
ValidaEon	&		
Refinement		
4	
Strategy...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
11	
Illustrative	Deliverables				Step	1.	Assessment		
	
Synthesis	of	Exist...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
12	
Illustrative	Deliverables				Step	2.	Hypotheses		
	
Initial	Hypotheses...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
13	
Illustrative	Deliverables				Step	3.	Validation		
	
Sample	Plan	 Inter...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
14	
Illustrative	Deliverables				Step	4.	Strategy	&	Migration		
	 Final	Br...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
15	
Brand	Assessment	Scorecard	
	
	
Brand:		X	 Key	Finding	 Score	 Sources...
PROPRIETARY	AND	CONFIDENTIAL	
SUBSECTION	TITLE	
16	
Click	to	edit	Master	title	style	
1603	Orrington	
Evanston	IL	60201	
M...
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Brand Architecture Process

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Brand architecture definition, process, and frameworks.

Published in: Marketing
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Brand Architecture Process

  1. 1. Proprietary & Confiden0al brand growth strategy Brand Architecture Process & Frameworks Michael Million mmillion@fullsurge.com
  2. 2. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 2 Agenda §  What is brand architecture? §  What business issues does brand architecture help address? §  A methodology to develop brand architecture? §  Examples of deliverables
  3. 3. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 3 What is brand architecture? The way in which internal entities (business units, divisions, capabilities) and offerings (products, services, programs) in an organization’s portfolio are related to each other perspective (parent / child, leader / follower, etc.) from an external perspective. While some degree of relatedness is beneficial, the external view of the portfolio does not necessarily have to align precisely with how the organization is actually structured internally (brand architecture and organizational P&L structure are not the same thing, but brand-dedicated teams are desirable). Effective brand architectures are structured to drive synergies across the portfolio (sharing and leveraging equity), clarity and distinction among brands, and provide direction for future acquisitions of new brands by determining how the portfolio should be organized to drive growth. Brand architecture is created with a long-term view and typically is accompanied by some type so decision tool with strong business rationale for determining IF entities / offerings should be branded, and if so, HOW they should be branded.
  4. 4. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 4 Three essential elements of brand architecture 1.  End-state Framework composed of: A.  Brand hierarchy - a tiered structure that clarifies which entities / offerings are most important to those less important in achieve business objectives, and the types of brands associated with them. B.  Organizing principle – an overarching approach toward strategically structuring a portfolio in ways that enable the organization to grow and achieve its objectives. There are two types of organizing principles: •  Relationship of entities / offerings to their parent (typically referred to as a spectrum from “branded house” to “house of brands” •  Strategic orientation (the underpinning for how brands are organized – the “organized by” portion of an architecture – e.g. by customer segments, by product lines, by geographies) 2.  Decision tree – a criteria-based tool that guides decisions around what entities / offerings should and should not be branded and what type of brand they should become (e.g. master brand, product brand, sub-brand, ingredient brand, etc.) 3.  Migration plan – an approach to move the current portfolio from the current state to the desired end-state, including timing / sequencing, operational imperatives, customer communications, etc.
  5. 5. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 5 Business issues brand architecture helps address The business has historically grown through acquisitions or siloed organic growth (or both) and has neglected to integrate brands or strategically manage them as a portfolio of strategic assets, thus resulting in an overly complex set of brands (typically too many), a lack of distinction across brands, confused customer and employees, and sub-optimized brand-building resources A business has “seen the light” relative to becoming more customer centric and realizes that their portfolio of brands are, at best, have confusing relationships to each other and thus sub-optimizing cross-selling opportunities; and, at worst, structured in ways that satisfy a legacy internal organizing structure but at odds with how the market actually thinks about the company’s category or makes important decisions about its offers A business has no rhyme or reason for keeping or eliminating brands and realizes that each acquisition is forcing “one-off”, reactive decisions vs. following any longer- term strategic intent or framework for growth.
  6. 6. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 6 1 Assessment 2 Hypotheses 3 ValidaEon & Refinement* 4 Strategy & MigraEon Methodology for developing brand architecture §  Gather and synthesize existing information §  Conduct executive interviews §  Conduct communications audit (client and competitors §  Map current-state brand architecture (as comprehensively as possible) §  Gain insights from current- state, competition & best practices §  Assess brand strengths & weaknesses* (based on criteria that incorporates as much financial) §  Establish guiding principles for future architecture – mapped to client’s big strategic objectives and agreed upon by executive team §  Develop hypotheses for future architecture led by guiding principles §  Develop several alternative architectural scenarios – challenging expected solutions §  Illustrate scenarios in representative communications §  Facilitate executive work sessions to narrow options §  Develop research plan (sample, methodology, discussion guide) §  Analyze findings §  Clarify Implications §  Finalize brand architecture §  Clarify new brand roles, scopes and relationships §  Develop migration plan *Could require primary research if no brand-specific data exists
  7. 7. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 7 Case: Situation & Scope of Brands M&A activity has complicated the current Regal Beloit brand portfolio §  The accelerated pace of acquisitions has filled capability gaps and capitalized on opportunities, but also created an overly complex portfolio with too many brands to effectively manage on a global scale §  While the sheer quantity of brands and overlap in their offers are contributing to confusion, simply eliminating brands will not be easy, as internal and external loyalties to many brands remain strong §  Future M&A activity will continue as Regal Beloit continues to grow, so establishing a long-term brand portfolio strategy is paramount not only for the current brands, but also for future integration efforts Com. & Ind l HVACR Air Moving Controls Mechanical International
  8. 8. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 8 Project Objectives Key Questions to be answered in this project Strategically organize Regal Beloit’s brands to achieve greater clarity, realize efficiencies / synergies, and build stronger brand equities across the portfolio §  The strategic role of each brand in the future portfolio (e.g. leader, challenger, revenue generator, equity builder) §  The appropriate scope of each brand in the future portfolio (offers, geographies, customer types) §  The optimal relationships among the portfolio brands (e.g. master branded, endorsed, sub-brand, endorsed) Parent Brand §  What is the “directional” awareness level of Regal Beloit as the corporate brand? §  What is the optimal positioning for the corporate brand (Regal Beloit or other)? §  Can/should a new brand name be developed for the corporate entity? BU Brands §  Which BU brands have the most equity in the market today? What are those equities? §  Should any BU brands be eliminated. If, so which ones? Should BU brand change profiles? §  For surviving brands, what is the strategic role it serves within the portfolio? Brand Architecture §  What is optimal relationship between surviving BU brands and the corporate brand? §  What is the relative hierarchy/emphasis for brands that are linked together? §  Does this parent/BU relationship vary by BU brand, or is it standard/consistent? Visual Representation §  How is the brand architecture “brought to life” visually (i.e., high level representation)?
  9. 9. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 9 1 Assessment 2 Hypotheses 3 ValidaEon & Refinement 4 Strategy & MigraEon Approach §  Review existing research; synthesize findings and determine implications §  Understand market landscape and current brand portfolio “configuration” § Identify hypotheses for brand portfolio development § Conduct iterative working sessions with Regal Beloit executive team to agree on hypotheses to test through research § Conduct research with customers and prospects to understand pros and cons of different portfolio scenarios § Analyze research within the context of hypotheses § Determine optimal brand portfolio strategy based on customer research and pre-defined decision criteria § Develop plan to guide the migration of the portfolio from its current to future state (sequencing and timing)
  10. 10. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 10 1 Assessment 2 Hypotheses 3 ValidaEon & Refinement 4 Strategy & MigraEon Deliverables §  Synthesis of existing research, planning documents, & mgt. interviews §  Insights from current-state brand architecture, competition & best practices §  Brand scorecards / assessment summary of strengths, weaknesses & future considerations §  Guiding principles for the future brand portfolio §  Initial hypotheses for future brand roles, based on assessments §  Brand portfolio framework alternatives §  Brand usage scenarios / applying different sets of brands to portfolio frameworks §  Illustrative communication examples of representative brand relationships §  Research plan (sample, methodology, discussion guide/ stimuli) §  Analysis of findings §  Implications on strategy and migration plan §  Final brand architecture §  Brand portfolio profiles §  Strategic roles §  Scopes (offers, geos, customers) §  Identity relationships with Regal Beloit §  Expression approaches §  Decision tool(s) §  Migration plan §  Clarified implications of recommended changes
  11. 11. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 11 Illustrative Deliverables Step 1. Assessment Synthesis of Existing Information & Exec. Interviews Insights from Current-state Brand Architecture, Competition & Best Practices Brand Assessment Scorecards Brand X Sources Score Comments Economic Criteria • A • B • C …….. … …… ……. … ……. Customer Criteria • A • B • C …….. … …… … Strategic Criteria • A • B …….. … …… …… Guiding Principles for the Future Brand Portfolio Summaries & Implications Existing Information •  Strategic plans •  Brand research •  Customer Sat reports Executive Interviews •  Chairman •  CEO •  COO •  Build equity into the Regal-Beloit brand •  Make the portfolio easy to understand and navigate for customers and sales force •  Move toward fewer, stronger brands •  Do: build brands / Don’t: add names •  Express “systemness” Level 1 Level 2 Level 3 Level 4
  12. 12. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 12 Illustrative Deliverables Step 2. Hypotheses Initial Hypotheses for Future Brand Roles Brand Portfolio Framework Alternatives Brand Usage Scenarios (based on narrowed alternatives) Brand X Score Possible Role Economic Criteria Customer Criteria Strategic Criteria Illustrative communication examples RBC Brand X Brand Y Regal-Beloit Sub-brand X Structure By BU By Pdct Line By Cust. Type Simplification Slight Significant RBC Brand X Brand Y Brand Y Platform Brand Y Regal-Beloit
  13. 13. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 13 Illustrative Deliverables Step 3. Validation Sample Plan Interview Guide / Survey Analysis of Findings Implications on Strategy & Migration C&I HVAC Air Moving Mechani cal Controls Intl. Title A 5 5 5 5 5 5 Title B 5 5 5 5 5 5 Title C 10 I. Context Setting II. Frame of reference questions II. Reaction to brand changes IV. Rating different architectural scenarios V.  Perspectives on a potential name change VI.  Others … I.  Conclusions II.  Brand-specific findings and equities III.  Strengths & weaknesses IV.  Hypotheses validated / invalidated V.  Others … I.  Narrowed architectural scenarios II.  Future brand roles and scopes III.  Ease and optimal timing of brand changes IV.  Risks / rewards of changes V.  Key success factors going forward VI.  Others …
  14. 14. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 14 Illustrative Deliverables Step 4. Strategy & Migration Final Brand Architecture Brand Portfolio Profiles Decision Tool(s) Migration Plan Strategic Role Scope Relationship to RCB Expression Approach Brand 1 Brand 2 Brand 3 Level 1 Level 2 Level 3 Level 4
  15. 15. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 15 Brand Assessment Scorecard Brand: X Key Finding Score Sources Economic Criteria (size & growth) Revenues Share (in respective market) Profitability CAGR Customer Criteria (presence & equity) Breadth of presence (geo, customer types, offers) Equity / perceptions / customer satisfaction NPS / Loyalty Strategic Criteria (future potential / other considerations Future potential (extendibility) Other strategic importance (e.g. helps resolve channel conflict) Future Potential Role in Portfolio
  16. 16. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 16 Click to edit Master title style 1603 Orrington Evanston IL 60201 MMillion@fullsurge.com fullsurge.com Thank you

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