Brand Architecture Depth Examples
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This document discusses different brand architecture strategies that industrial manufacturing companies can employ, including branded house, house of brands, and hybrid approaches. It provides examples of how large companies like GE, Emerson, UTC, Altra, and Textron structure their brands at the corporate, business, and product levels. It also outlines three levels of operational depth that organizations can align to - marketing categories, sales/solution categories, and operational categories. The document is intended to help companies consider alternatives and go-to-market implications for structuring their brand portfolio.
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Brand Architecture Depth Examples
- 2. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 2 Diversified industrial businesses employ a wide variety of brand architectures to consider Branded House House of Brands Industrial AutomaAon Climate Technologies Petro- chemicals Power GeneraAon Primary Metals Network Power • Corporate equity is primary • Strict visual guidelines • Division equity is primary • Flexible visual guidelines
- 4. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 4 Emerson employs a branded house strategy at the business level, but maintains several brands at the product level Business Level Corporate Level How Emerson introduces itself: Emerson is a diversified global manufacturing and technology company. We offer a wide range of products and services in the areas of network power, process management, industrial automaAon, climate technologies, and tools and storage businesses Product Level Emerson Motor Technologies Emerson Storage SoluAons Emerson Professional Tools Emerson Appliance SoluAons Network Power Industrial AutomaAon Climate Technologies Process Management Take-aways: • The Emerson approach builds a strong parent brand, telegraphs which markets they are commieed to, and provides flexibility for acquisiAons and product brands • While having several benefits, especially for cross-business customers, this approach does very liele to structure or simplify a complex product brand porbolio • Success of this approach depends on significant resources toward building the parent brand and defining the right market categories that are broad but specific enough
- 5. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 5 UTC employs a house of few, strong brands at the business level, visually tied to the parent Business Level Corporate Level A United Technologies Company A United Technologies Company A United Technologies Company A United Technologies Company A United Technologies Company How United Technologies introduces itself: United Technologies CorporaAon (UTC) is a diversified company whose products include Carrier heaAng and air condiAoning, Hamilton Sundstrand aerospace systems and industrial products, OCs elevators and escalators, PraE & Whitney aircrai engines, Sikorsky helicopters, UTC Fire & Security Systems and UTC Power fuel cells. Product Level Commercial Engines: PW2000 PW4000 Military Engines: F135 Infinity Performance ComfortZone Military Aircrai: BLACK HAWK SEAHAWK Comm. Aircrai: S-76 S-92 Power Fuel Cells Take-aways: • Establishes an effecAve balance between a moderately strong parent brand and stronger business level brands – all Aed together through a design language • Minimizes the need for product branding, by establishing (and sAcking to) few brands at the business level • Success of this approach depends on commitment to few, strong business level brands
- 6. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 6 Altra also employs a branded house strategy at the business level, but maintains several product brand names Power GeneraCon Primary Metals Rubber Paper Petro- Chemical Mining Marine Business Level Corporate Level Product Level Take-aways: • In an effort to unify and standardize the appearance of the porbolio, Altra might hove gone too far – any equity or individuality in product brands is neutralized in order to gain communicaAon efficiencies • This approach assumes the “A” symbol is a strong enough visual to carry the enAre porbolio. It also diminishes the value and integrity of the logo by aeaching to so many products (ubiquity destroys brand equity) • Simple product line descripAons with brands cuong across those lines aren’t enough to strategically organize the porbolio (this is a visual design / product-driven soluAon only, and lacks the sophisAcaAon required for soluAon selling)
- 7. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 7 Textron employs a house of brands strategy with each business level brand having a loose link to the parent Business Level Product Level Corporate Level How Textron introduces itself: Textron is not only one of the world's best known mulA-industry companies, it is a pioneer of the diversified business model. Light TransportaAon Air Transit Cable InstallaAon Turf Care AutomoAve Finance Systems CitaAon CJ2+ CitaAon TEN 206L-4 407 Huey II Tital Tug Haluster NETcat Cushman SprayTek Eclipse 322 Hybrid Tri-King Camshais FuelSystems AviaAon Financing Lending SoluAons Smart Weapons • AirSensor Fuzed Weapon • BLU-108 Universal Take-aways: • This is a brand architecture soluAon for businesses which have no synergies and are targeted at very different customers and markets • This approach is typically adopted by enAAes like Textron who act primarily as holding companies with very liele shared services, central funcAons, or common customers • Equity flow back to the parent is very limited, as each business / brand operates somewhat independently Business Division Level
- 8. PROPRIETARY AND CONFIDENTIAL SUBSECTION TITLE 8 Three levels of operational depth to consider OperaAonal Depth OperaConal Level DefiniCons 1 MarkeCng Categories Only • A communicaAve banner that expresses a broader category which brands fall under • Brands do not rigidly fit under banners; they “float” across them like Emerson or Altra • P&Ls are Aed to brands which float across markeAng categories 2 Sales / SoluCon Categories • A dedicated team charged with selling the enAre porbolio (to select large customers) in integrated soluAons (value added services plus products) • A “go-to-market layer” in-between the corporate and brand / P&L levels • P&Ls are Aed to brands which float across soluAon categories 3 OperaConal Categories • Complete alignment with organizaAonal structure and P&Ls • P&Ls are Aed to categories AND brands • ExcepAons can come in the form of internaAonal distribuAon arms which carry the enAre porbolio, and special brands like XYZ which may cut across categories MarkeCng Banner Brand A Brand B MarkeCng Banner Brand C P&L 1 P&L 2 P&L 3 Corporate Level Sales/ SoluCons Brand A Brand B Sales/ SoluCons Brand C P&L 1 P&L 2 P&L 3 Corporate Level Category 1 P&L 1 Category 2 Brand A, B Corporate Level P&L 2 Brand C, D P&L 3 Brand E