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BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
CONSUMER INSIGHTS FOR
SUSTAINING BRAND RELEVANCE
Copyright © 2015 Brand Amplitude LLC
All Rights Reserved – May Not Be Reproduced Without Permission
BRAND ARCHITECTURE:
DESIGNING YOUR BRAND
PORTFOLIO FOR SUCCESS
Carol Phillips & Judy Hopelain
August 2015
NEED A NEW
IMAGE-
ANOTHER APPLE?
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
QUESTIONS	
  WE	
  ANSWER	
  HERE	
  
§  What	
  is	
  brand	
  architecture	
  and	
  why	
  is	
  it	
  important?	
  
§  What	
  are	
  the	
  various	
  roles	
  brands	
  play,	
  how	
  are	
  they	
  determined	
  and	
  why	
  are	
  they	
  
useful?	
  
§  What	
  is	
  the	
  range	
  of	
  brand	
  architecture	
  soluMons,	
  what	
  are	
  their	
  implicaMons	
  and	
  
what	
  determines	
  which	
  is	
  the	
  best	
  opMon?	
  
§  How	
  do	
  marketers	
  go	
  about	
  developing	
  architecture	
  soluMons	
  for	
  their	
  brands?	
  
§  How	
  does	
  this	
  work	
  in	
  the	
  real	
  world?	
  	
  
1
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
BRAND	
  ARCHITECTURE	
  OVERVIEW	
  
Brand	
  architecture	
  is	
  part	
  organizaMon…	
  
2	
  
…and	
  part	
  military	
  strategy	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
BRAND	
  ARCHITECTURE	
  DEFINED	
  
Architecture	
  is	
  about	
  opMmizing	
  the	
  hierarchy,	
  linkages,	
  and	
  roles	
  of	
  brands	
  within	
  the	
  
porRolio	
  in	
  support	
  of	
  the	
  business	
  strategy.	
  
3	
  
Products,	
  business	
  units,	
  specific	
  services,	
  
markeMng	
  programs,	
  features,	
  line	
  
extensions,	
  apps,	
  web	
  sites,	
  etc.	
  all	
  need	
  
monikers.	
  
	
  
How	
  these	
  names	
  relate	
  is	
  the	
  difference	
  
between	
  brand	
  coherence	
  and	
  brand	
  
confusion.	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
BENEFITS	
  OF	
  A	
  CLEAR	
  ARCHITECTURE	
  
Brand	
  architecture	
  helps	
  organizaMons	
  structure	
  their	
  brands	
  and	
  products	
  to	
  drive	
  value	
  
and	
  growth	
  by	
  enhancing:	
  
4	
  
§  Clarity:	
  Clarifies	
  what	
  the	
  organizaMon	
  can	
  do	
  for	
  customers	
  by	
  providing	
  a	
  
coherent	
  face	
  to	
  the	
  offering	
  and	
  the	
  business	
  strategy.	
  
§  Efficiency:	
  Increases	
  markeMng	
  efficiency	
  by	
  ensuring	
  brand	
  leverage	
  without	
  
overstretching.	
  
§  Focus:	
  Provides	
  direcMon	
  for	
  where	
  to	
  focus	
  innovaMon	
  and	
  markeMng	
  
investments	
  by	
  disMnguishing	
  strategic	
  brands	
  from	
  others	
  in	
  the	
  porRolio.	
  
§  Growth:	
  Opens	
  up	
  new	
  opportuniMes	
  for	
  growth	
  by	
  lending	
  credibility	
  from	
  
exisMng,	
  successful	
  brands.	
  
§  Equity:	
  Enables	
  equity	
  to	
  flow	
  through	
  the	
  porRolio	
  by	
  	
  
defining	
  the	
  relaMonships	
  between	
  porRolio	
  brands.	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
BRAND	
  ARCHITECTURE	
  TAKES	
  AN	
  OUTSIDE-­‐IN	
  VIEW	
  
The	
  opMmal	
  architecture	
  usually	
  does	
  not	
  line	
  up	
  neatly	
  with	
  internal	
  organizaMonal	
  
structures	
  –	
  and	
  that’s	
  okay!	
  	
  	
  
Corporate
Business
Unit
Business
Unit
Products Products
Brand	
  Architecture	
  Is	
  Externally	
  
Facing	
  
Masterbrand	
  
A	
  
Brand	
  B	
  
Endorsed	
  by	
  A	
  
Sub-­‐
Brand	
  D	
  
Sub-­‐	
  
Brand	
  C	
  
Ingredient	
  or	
  Feature	
  
OrganizaIonal	
  Structure	
  is	
  
Internally	
  Facing	
  
Business	
  units	
  are	
  not	
  brands.	
  
5	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
ARCHITECTURE	
  DEFINES	
  BRAND	
  ROLES	
  
Each	
  brand	
  asset	
  needs	
  a	
  clear	
  role	
  in	
  the	
  porRolio.	
  
Corporate	
  
Brand	
  
Company	
  name	
  and	
  legal	
  enMty.	
  Oaen	
  used	
  as	
  
endorser	
  but	
  may	
  not	
  be	
  customer	
  facing	
  at	
  all.	
  
Master	
  
Brand	
  
(Driver)	
  
Drives	
  purchase	
  decision	
  and	
  defines	
  user	
  
experience.	
  Most	
  strongly	
  represents	
  the	
  
differenMaMon	
  inherent	
  in	
  the	
  offer.	
  	
  
Endorser	
  
Brand	
  
Provides	
  approval,	
  credibility	
  or	
  guarantee	
  to	
  a	
  
range	
  of	
  products,	
  but	
  is	
  usually	
  not	
  the	
  driver.	
  
Sub-­‐Brand	
   Derives	
  equity	
  from	
  another	
  brand,	
  usually	
  the	
  
Master.	
  
Ingredient	
  
Brand	
  
Features,	
  materials,	
  components	
  or	
  parts	
  that	
  
are	
  contained	
  within	
  other	
  branded	
  products.	
  
Not	
  an	
  equity	
  driver,	
  oaen	
  an	
  equity	
  energizer.	
  
Brand	
  Roles	
  
Endorser	
  	
  
Brand	
  
Sub-­‐Brand	
  
Master	
  Brand	
  
Clear	
  roles	
  simplify	
  decisions	
  
about	
  brand	
  expression	
  	
  
6	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
Sony	
  plays	
  mulMple	
  roles	
  in	
  its	
  porRolio	
  due	
  to	
  the	
  needs	
  of	
  the	
  business.	
  Some	
  offerings	
  
have	
  stand-­‐alone	
  brands	
  that	
  do	
  not	
  feature	
  the	
  Sony	
  name	
  at	
  all.	
  
ARCHITECTURE	
  ALLOWS	
  BRANDS	
  TO	
  PLAY	
  MULTIPLE	
  ROLES	
  
Corporate	
  Brand	
  
	
  
Sub-­‐Brand	
  Master	
  Brands	
  
	
  
	
  
Stand-­‐Alone	
  Brands	
  
Master	
  Brand:	
  Allows	
  equity	
  
to	
  be	
  shared	
  among	
  brand	
  
assets	
  when	
  used	
  in	
  either	
  
driver	
  or	
  endorser	
  role.	
  	
  	
  
Sub-­‐Brand:	
  Leverages	
  
the	
  strength	
  of	
  the	
  
master	
  brand	
  while	
  
helping	
  to	
  separate	
  and	
  
organize	
  the	
  offerings.	
  	
  
Stand-­‐Alone	
  Brand:	
  
Separates	
  offerings,	
  creates	
  
new	
  sources	
  of	
  equity	
  or	
  
targets	
  new	
  audiences.	
  	
  	
  
7	
  
Ingredient	
  Brand:	
  Brings	
  
energy	
  and	
  news	
  to	
  an	
  
offering.	
  Always	
  used	
  in	
  
conjuncMon	
  with	
  another	
  
porRolio	
  brand.	
  
	
  
Ingredient	
  Brand	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
WHAT’S	
  INCLUDED	
  IN	
  ARCHITECTURE?	
  
8	
  
Only	
  offerings	
  are	
  included	
  in	
  the	
  architecture.	
  Trademarked	
  or	
  licensed	
  branded	
  
elements	
  live	
  outside	
  the	
  architecture	
  and	
  enhance	
  equity	
  by	
  providing	
  uniqueness	
  and	
  
memorability.	
  	
  
CelebriIes	
  lend	
  
meaning	
  
Characters	
  create	
  
likeability	
  
Sponsorships	
  	
  
build	
  affinity	
  
Branded Elements Are Not Included in Architecture
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
BRAND	
  ARCHITECTURE	
  SOLUTIONS	
  
There	
  is	
  a	
  broad	
  spectrum	
  of	
  brand	
  architecture	
  soluMons.	
  	
  
9	
  
	
  House	
  of	
  
Brands	
  
Branded	
  
House	
   Single	
  parent	
  brand	
  
spans	
  a	
  set	
  of	
  offerings.	
  
Independent	
  brands,	
  each	
  
maximizing	
  its	
  impact	
  on	
  
the	
  market.	
  
•  Maximizes	
  markeMng	
  spending	
  
efficiency	
  
•  Maximizes	
  awareness	
  among	
  all	
  
stakeholders	
  (i.e.,	
  investors,	
  
employees)	
  
Hybrid	
  
Spectrum of Brand Architecture Solutions
•  Builds	
  individual	
  strong	
  brands	
  
for	
  category	
  dominance	
  
•  Limits	
  risk	
  by	
  containing	
  brand	
  
reputaMons	
  (good	
  for	
  high	
  risk	
  
industries)	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
MOST	
  SOLUTIONS	
  ARE	
  A	
  HYBRID	
  
10	
  
Brand	
  architecture	
  soluMons	
  fall	
  on	
  a	
  spectrum.	
  Most	
  soluMons	
  fall	
  somewhere	
  
between	
  branded	
  house	
  and	
  house	
  of	
  brands.	
  	
  
House	
  of	
  Brands	
   Hybrid	
   Branded	
  House	
  
Con
s
Builds	
  equity	
  in	
  strong	
  stand-­‐
alone	
  brands	
  across	
  a	
  wide	
  
range	
  of	
  categories	
  	
  
Requires	
  significant	
  
markeMng	
  investment	
  
Results	
  in	
  strong	
  master	
  
brand.	
  	
  
Can	
  be	
  difficult	
  to	
  extend	
  
beyond	
  the	
  experMse	
  of	
  the	
  
master	
  brand.	
  
Leverages	
  strong	
  master	
  brand	
  
while	
  allowing	
  flexibility.	
  
Requires	
  careful	
  planning	
  to	
  avoid	
  
confusing	
  customers	
  or	
  diluMng	
  
the	
  master	
  brand.	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
BRAND	
  ARCHITECTURE	
  SOLUTION	
  IMPLICATIONS	
  
11	
  
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	
  
brands	
  or	
  business	
  units?	
  	
  
Target	
  mulIple	
  
segments	
  
Few	
  synergies	
  to	
  be	
  
leveraged	
  	
  
Address	
  individual	
  
geographies	
  
Reinforce	
  a	
  global	
  
organizaIon	
  mindset	
  
Many	
  synergies	
  to	
  be	
  
leveraged	
  
Target	
  single	
  or	
  few	
  
segments	
  
Architecture	
  decisions	
  have	
  investment	
  implicaMons,	
  and	
  the	
  opMmal	
  soluMon	
  is	
  
determined	
  in	
  large	
  part	
  by	
  the	
  business	
  strategy.	
  
	
  House	
  of	
  
Brands	
  
Branded	
  
House	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
   12	
  
Single	
  parent	
  brand	
  
spans	
  a	
  set	
  of	
  offerings.	
  
Independent	
  brands,	
  each	
  
maximizing	
  its	
  impact	
  on	
  
the	
  market.	
  
	
  House	
  of	
  
Brands	
  
Branded	
  
House	
  
Disney	
  uses	
  a	
  mix	
  of	
  brand	
  architecture	
  soluMons	
  to	
  build	
  and	
  protect	
  its	
  diverse	
  businesses.	
  	
  
EXAMPLE:	
  DISNEY	
  BRAND	
  ARCHITECTURE	
  SOLUTION	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
Brand	
  Type	
   DescripIon	
   Example	
  
Corporate	
  Brand	
   A	
  single	
  brand	
  targeted	
  at	
  mulMple	
  stakeholders	
  that	
  unites	
  the	
  
porRolio	
  of	
  brands	
  under	
  a	
  common	
  strategy	
  
Master	
  Brand	
   A	
  broad	
  brand	
  that	
  is	
  the	
  primary	
  frame	
  of	
  reference	
  for	
  the	
  
customer.	
  	
  It	
  is	
  used	
  as	
  an	
  umbrella	
  across	
  a	
  wide	
  range	
  of	
  
product	
  categories,	
  services	
  and	
  geographies	
  that	
  can	
  exist	
  
without	
  the	
  support	
  of	
  another	
  brand.	
  	
  
Category	
  Brand	
   Broad	
  groupings	
  of	
  product	
  and	
  service	
  offerings	
  that	
  reflect	
  
mulMple	
  customer	
  segments	
  that	
  use	
  similar	
  technologies.	
  
Sub-­‐Category	
  
Brand	
  
Groups	
  of	
  products	
  and	
  services	
  within	
  a	
  Category	
  that	
  help	
  
customer	
  find	
  relevant	
  offerings.	
  	
  They	
  can	
  be	
  organized	
  around	
  
products,	
  applicaMons	
  or	
  customer	
  segments.	
  
Disney	
  Princess	
  CollecMon	
  	
  
	
  
Product	
  /	
  Service	
  
Line	
  Brand	
  
A	
  collecMon	
  of	
  like	
  offerings	
  that	
  helps	
  simplify	
  the	
  buying	
  
process	
  for	
  the	
  customer	
  	
  by	
  signaling	
  a	
  unique	
  value	
  proposiMon	
  
relaMve	
  to	
  compeMMve	
  offerings.	
  
BRAND	
  HIERARCHY	
  EXAMPLE:	
  DISNEY	
  
Architecture	
  defines	
  clear	
  hierarchies….	
  
13	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
RelaIonship	
   Best	
  used	
  when…	
   Example	
  
Primary	
   Brands	
  are	
  enMrely	
  consistent	
  with	
  core	
  values	
  and	
  posiMoning	
  of	
  
master	
  brand	
  	
  
Shared	
   Core	
  values	
  of	
  the	
  brand	
  are	
  quite	
  consistent	
  with	
  the	
  master	
  
brand,	
  but	
  augmentaMon	
  is	
  needed	
  
Endorsed	
   Master	
  brand	
  equity	
  limits	
  the	
  brand’s	
  image	
  and	
  thus	
  
necessitates	
  some	
  independence;	
  endorsement	
  adds	
  credibility	
  
or	
  meaning	
  
Invisible	
   Brand	
  is	
  inconsistent	
  with	
  core	
  values	
  of	
  master	
  brand;	
  risks	
  
diluMng/eroding	
  parent	
  brand	
  
…and	
  relaMonships	
  among	
  brands	
  in	
  a	
  porRolio.	
  
14	
  
BRAND	
  RELATIONSHIPS	
  EXAMPLE:	
  DISNEY	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
HOW	
  TO	
  DECIDE	
  WHICH	
  SOLUTION	
  IS	
  RIGHT?	
  
15	
  
Three	
  guiding	
  principles	
  help	
  to	
  ensure	
  the	
  brand	
  architecture	
  has	
  the	
  opMmal	
  
business	
  impact:	
  
Fulfill	
  customer	
  needs	
  (and	
  generate	
  
revenue)	
  while	
  minimizing	
  brand	
  
development	
  and	
  management	
  costs.	
  
Sufficiently	
  cover	
  the	
  market	
  and	
  target	
  
customer	
  segments	
  with	
  the	
  fewest	
  
brands	
  possible.	
  
	
  
Make	
  it	
  easy	
  for	
  customers	
  to	
  find	
  the	
  
soluMon	
  they	
  seek	
  by	
  ensuring	
  “daylight”	
  
between	
  brand	
  offerings.	
  
Right	
  Number	
  
MarkeIng	
  Efficiency	
  
Clear	
  SeparaIon	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
ARCHITCTURE	
  DIRECTS	
  STRATEGIC	
  PRIORITIES	
  
16	
  
Not	
  all	
  brands	
  are	
  equally	
  important.	
  Architecture	
  guides	
  decisions	
  about	
  innovaMon	
  
and	
  investment	
  as	
  porRolio	
  brands	
  compete	
  for	
  resources.	
  
	
  
	
  
Strategic	
  Brand	
   Significant	
  contributor	
  to	
  company’s	
  future	
  sales,	
  
percepMons	
  or	
  market	
  posiMon.	
  	
  
DisInguisher	
  
Brand	
  
Enhances	
  the	
  differenMaMon	
  of	
  another	
  brand.	
  Also	
  
referred	
  to	
  as	
  ‘branded	
  energizer’	
  or	
  silver	
  bullet.	
  	
  
Cash	
  Cow	
   Money	
  making	
  brand	
  that	
  does	
  not	
  represent	
  future	
  
significant	
  growth.	
  
Corporate	
  	
  Brand	
   May	
  have	
  low	
  visibility	
  to	
  customers,	
  but	
  important	
  to	
  
regulatory	
  bodies,	
  investors,	
  employees,	
  trade	
  groups,	
  
partners.	
  	
  
Fighter/Flanker	
  
Brand	
  	
  
Addresses	
  compeMMve	
  threat.	
  Protects	
  share	
  of	
  other	
  
brands	
  in	
  the	
  porRolio.	
  
Example	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
EXAMPLE:	
  AMAZON	
  
17	
  
Amazon	
  keeps	
  its	
  strategic	
  businesses	
  separate	
  through	
  stand-­‐alone	
  brands,	
  and	
  	
  
uses	
  an	
  endorsed	
  approach	
  for	
  its	
  other	
  brands.	
  	
  
	
  
Strategic BrandsCash Cow Stand-Alone
Brands
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
EXAMPLE:	
  STARBUCKS	
  	
  
18	
  
Starbucks	
  is	
  thoughRully	
  expanding	
  its	
  porRolio	
  to	
  separate	
  its	
  high	
  growth	
  and	
  
premium	
  businesses	
  from	
  its	
  mainline	
  coffeehouses	
  and	
  Starbucks	
  Express	
  stores.	
  	
  
Strategic BrandsCash Cows Flanker/fighter
Brand
http://news.starbucks.com/news/starbucks-accelerates-growth-of-store-formats
Starbucks Reserve
Roastery and Tasting
Room (Seattle)
Starbucks Reserve
stores (2015)
Starbucks
coffeehouses
Express format
stores (2015)
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
WHEN	
  TO	
  REVISIT	
  ARCHITECTURE?	
  
19	
  
It’s	
  Mme	
  to	
  revisit	
  brand	
  architecture	
  when	
  an	
  organizaMon	
  changes	
  strategic	
  direcMon	
  or	
  
adds	
  important	
  new	
  capabiliMes.	
  	
  
§  Significant	
  merger	
  or	
  acquisiMon	
  
§  Too	
  many	
  brands	
  and	
  offerings	
  are	
  compeMng	
  for	
  
apenMon	
  and	
  investment	
  dollars	
  
§  Corporate	
  brand	
  and	
  product	
  brands	
  have	
  the	
  
same	
  name	
  and	
  are	
  hard	
  to	
  disMnguish	
  	
  
§  Brands	
  are	
  losing	
  relevance	
  with	
  customers	
  
§  Brand	
  meaning	
  has	
  been	
  diluted	
  or	
  stretched	
  
beyond	
  credibility	
  and	
  effecMveness	
  	
  
§  Programs,	
  elements,	
  features	
  or	
  sponsorships	
  are	
  
asking	
  to	
  be	
  treated	
  as	
  brands	
  
Triggers	
  for	
  RevisiIng	
  Architecture	
  	
  
I have a problem
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
EXAMPLE:	
  KELLOGG’S	
  BRAND	
  PORTFOLIO	
  RE-­‐EVALUATION	
  
20	
  
In	
  2012,	
  Kellogg’s	
  restructured	
  its	
  brand	
  porRolio	
  to	
  beper	
  leverage	
  its	
  master	
  brand,	
  
acquired	
  stand-­‐alone	
  brands	
  and	
  Olympics	
  sponsorship.	
  
	
  
http://www.forbes.com/sites/jenniferrooney/2012/05/10/kelloggs-embarks-on-major-brand-overhaul/
“We	
  had	
  to	
  start	
  separa7ng	
  out	
  the	
  Kellogg’s	
  brand	
  from	
  
the	
  Kellogg	
  company	
  …Kellogg’s	
  is	
  a	
  truly	
  iconic	
  brand	
  …
We	
  felt	
  that	
  having	
  a	
  stronger	
  brand,	
  driving	
  a	
  stronger	
  
point	
  of	
  view,	
  a	
  more	
  powerful	
  iden7ty	
  and	
  have	
  at	
  the	
  
center	
  an	
  umbrella	
  to	
  talk	
  about	
  our	
  por@olio	
  more	
  
holis7cally,	
  to	
  talk	
  about	
  the	
  power	
  of	
  breakfast,	
  to	
  talk	
  
about	
  the	
  value	
  of	
  cereal.”	
  	
  
§  Acquired	
  new	
  brands	
  
§  Needed	
  to	
  elevate	
  Kellogg’s	
  
corporate	
  brand	
  above	
  its	
  cereal	
  
master	
  brand	
  
§  Needed	
  to	
  strengthen	
  the	
  meaning	
  
of	
  the	
  Kellogg’s	
  brand	
  beyond	
  
cereal	
  to	
  breakfast	
  	
  
§  Wanted	
  to	
  leverage	
  investment	
  in	
  
2012	
  Olympics	
  to	
  benefit	
  all	
  
Kellogg’s	
  sub-­‐brands	
  
Stated	
  Reasons For
Revisiting Architecture
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
EVALUATING	
  ARCHITECTURE	
  OPTIONS	
  
In	
  general,	
  we	
  evaluate	
  brand	
  architecture	
  from	
  a	
  handful	
  of	
  perspecMves.	
  For	
  example,	
  
having	
  more	
  answers	
  to	
  the	
  lea	
  in	
  the	
  assessment	
  tool	
  suggests	
  leaning	
  toward	
  a	
  House	
  
of	
  Brands	
  approach	
  is	
  best.	
  
21	
  
OrganizaIon	
  
Product/service	
  brand	
  equity	
  
MarkeMng	
  spend	
  
Corporate	
  brand	
  equity	
  
	
  
CompeIIon	
  
CompeMMve	
  set	
  
	
  
Stakeholders	
  
Number	
  
Customer	
  needs	
  
Cross-­‐selling	
  opportuniMes	
  
	
  
Strong	
  equity	
  
Supports	
  mulMple	
  brands	
  
Low/negaMve	
  equity	
  
	
  
	
  
Fragmented	
  
	
  
	
  
Many	
  
Diverse	
  
Low	
  
	
  
Low/no	
  equity	
  
Supports	
  few	
  brands	
  
Strong	
  equity	
  
	
  
	
  
Consolidated	
  
	
  
	
  
Fewer	
  
Singular	
  
High	
  
Branded	
  House	
  House	
  of	
  Brands	
  
Architecture	
  Assessment	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
BRAND	
  ARCHITECTURE	
  DEVELOPMENT	
  
22	
  
We	
  use	
  a	
  four-­‐step	
  process	
  to	
  idenMfy	
  the	
  opMmal	
  architecture	
  soluMon.	
  
Overview	
  of	
  Recommended	
  Four-­‐Step	
  Approach	
  
	
  
Brand	
  Architecture	
  
Mapping	
  
AlternaIves	
  
Development	
  	
  
EvaluaIon	
  of	
  
AlternaIves	
  
	
  Strategic	
  Business	
  
Analysis	
  
How	
  aligned	
  are	
  external	
  
and	
  internal	
  percep7ons	
  
of	
  brands	
  and	
  their	
  
roles?	
  
	
  
	
  
	
  
	
  
	
  
What	
  are	
  the	
  various	
  
ways	
  the	
  por@olio	
  
could	
  be	
  configured	
  
going	
  forward?	
  	
  	
  
Which	
  alterna7ve	
  best	
  
fits	
  the	
  short	
  and	
  long-­‐
term	
  business	
  
objec7ves?	
  
How	
  closely	
  aligned	
  
are	
  the	
  brand	
  and	
  
business	
  strategies?	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
REAL	
  WORLD	
  EXAMPLE:	
  McDONALD’S	
  CASE	
  STUDY	
  
The	
  Branded	
  House	
  McDonald’s	
  Built	
  
23	
  
Using	
  the	
  arches,	
  color	
  palepe	
  and	
  “Mc”	
  to	
  idenMfy	
  and	
  link	
  most	
  of	
  its	
  offerings	
  to	
  the	
  
master	
  brand,	
  it	
  is	
  a	
  prime	
  example	
  of	
  a	
  Branded	
  House	
  architecture.	
  
http://mrktspnkr.wordpress.com/2012/06/29/brands-as-
identifiers-functional-and-symbolic-images/
Tightly	
  associated	
  with	
  burgers,	
  fries	
  
and	
  soI	
  drinks,	
  the	
  brand	
  thrived	
  in	
  
the	
  ’80s	
  and	
  early	
  ’90s.	
  Through	
  
consistency	
  and	
  careful	
  brand-­‐
building,	
  McDonald’s	
  became	
  an	
  
American	
  icon.	
  	
  
“[McDonald’s] gave millions of Americans
their first jobs while changing the way a
nation ate.” Bloomberg Businessweek,
3/2/03
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
There	
  were	
  signs	
  of	
  trouble	
  starMng	
  in	
  the	
  late	
  1990’s,	
  as	
  business	
  lagged	
  and	
  new	
  
products	
  failed.	
  	
  
24	
  
1995	
   2000	
   2010	
   2015	
  
The	
  low-­‐fat	
  McLean	
  
Deluxe	
  and	
  Arch	
  
Deluxe	
  burgers,	
  
meant	
  to	
  appeal	
  to	
  
adults,	
  bombed	
  
Sales	
  stagnated	
  
while	
  costs	
  
increased	
  as	
  the	
  
product	
  offering	
  
expanded/
became	
  more	
  
complex	
  
In	
  an	
  effort	
  to	
  
regain	
  relevance,	
  
McDonald’s	
  
acquired	
  Chipotle	
  
Mexican	
  Grill	
  and	
  
Boston	
  Market	
  in	
  
1999	
  
Spun	
  off	
  Chipotle	
  in	
  
2006	
  to	
  refocus	
  on	
  
core	
  hamburger	
  
business	
  
2005	
  
Salads	
  represent	
  only	
  2-­‐3%	
  
of	
  McDonald’s	
  sales	
  in	
  the	
  
United	
  States.	
  CEO	
  Don	
  
Thompson	
  admiped	
  “I	
  don’t	
  
see	
  salads	
  as	
  being	
  a	
  major	
  
growth	
  driver	
  in	
  the	
  near	
  
future.”	
  (5/13)	
  
Record	
  number	
  of	
  	
  
franchisees	
  lea	
  
the	
  system	
  in	
  
2002	
  
In	
  2004,	
  “Supersize	
  
Me”	
  brought	
  
apenMon	
  to	
  what	
  
too	
  much	
  
McDonald's	
  does	
  to	
  
your	
  body	
  and	
  how	
  it	
  
makes	
  you	
  feel.	
  	
  
U.S.	
  comp	
  store	
  
sales	
  slipped	
  1.7%	
  
in	
  Q1	
  and	
  1.5%	
  in	
  
Q2	
  of	
  2014	
  
McDONALD’S	
  CASE	
  STUDY:	
  TIMELINE	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
McDONALD’S	
  CASE	
  STUDY:	
  STEP	
  1	
  
25	
  
Brand	
  Architecture	
  
Mapping	
  
AlternaIves	
  
Development	
  	
  
EvaluaIon	
  of	
  
AlternaIves	
  
How	
  aligned	
  are	
  external	
  
and	
  internal	
  percep7ons	
  
of	
  brands	
  and	
  their	
  
roles?	
  
	
  
	
  
	
  
	
  
	
  
What	
  are	
  the	
  various	
  
ways	
  the	
  por@olio	
  
could	
  be	
  configured	
  
going	
  forward?	
  	
  	
  
Which	
  architecture	
  
alterna7ve	
  best	
  fits	
  
the	
  short	
  and	
  long-­‐
term	
  business	
  
objec7ves?	
  
	
  Strategic	
  Business	
  
Analysis	
  
How	
  closely	
  aligned	
  
are	
  the	
  brand	
  and	
  
business	
  strategies?	
  
Brand	
  Architecture	
  Development	
  Process	
  
Focused	
  on	
  health-­‐centric	
  global	
  ini7a7ves,	
  puQng	
  food	
  quality	
  first.	
  
Marke7ng	
  now	
  organized	
  by	
  consumer	
  groups	
  such	
  as	
  millennials,	
  families	
  
and	
  adults	
  rather	
  than	
  by	
  product.	
  
Stepping	
  up	
  digital,	
  including	
  e-­‐commerce,	
  fast-­‐tracking	
  tes7ng	
  of	
  mobile	
  
payments	
  and	
  ordering.	
  	
  In	
  June	
  it	
  set	
  up	
  a	
  "learning	
  lab"	
  at	
  a	
  restaurant	
  in	
  
Laguna	
  Niguel,	
  Calif.,	
  to	
  beZer	
  understand	
  what	
  people	
  want	
  and	
  to	
  
experiment	
  with	
  customizable	
  burgers	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
McDONALD’S	
  CASE	
  STUDY:	
  STEP	
  2	
  
26	
  
Execu7ves	
  worry	
  the	
  master	
  brand	
  has	
  lost	
  
relevance.	
  Millennials	
  have	
  defected	
  to	
  fast	
  casual	
  
chains	
  like	
  Chipotle	
  and	
  Five	
  Guys	
  and	
  Moms	
  no	
  
longer	
  see	
  McDonald’s	
  as	
  a	
  good	
  place	
  for	
  kids.	
  	
  
Consumer	
  Reports	
  more	
  than	
  32,000	
  subscribers	
  
rated	
  McDonald's	
  burgers	
  the	
  worst-­‐tas7ng	
  of	
  20	
  
rival	
  burger	
  chains.	
  
Brand	
  Architecture	
  
Mapping	
  
AlternaIves	
  
Development	
  	
  
EvaluaIon	
  of	
  
AlternaIves	
  
How	
  aligned	
  are	
  external	
  
and	
  internal	
  percep7ons	
  
of	
  brands	
  and	
  their	
  
roles?	
  
	
  
	
  
	
  
	
  
What	
  are	
  the	
  various	
  
ways	
  the	
  por@olio	
  
could	
  be	
  configured	
  
going	
  forward?	
  	
  	
  
Which	
  architecture	
  
alterna7ve	
  best	
  fits	
  
the	
  short	
  and	
  long-­‐
term	
  business	
  and	
  
brand	
  objec7ves?	
  
	
  Strategic	
  Business	
  
Analysis	
  
How	
  closely	
  aligned	
  
are	
  the	
  brand	
  and	
  
business	
  strategies?	
  
Brand	
  Architecture	
  Development	
  Process	
  
hpp://online.wsj.com/arMcles/mcdonalds-­‐faces-­‐millennial-­‐
challenge-­‐1408928743hpp://online.wsj.com/arMcles/mcdonalds-­‐
faces-­‐millennial-­‐challenge-­‐1408928743	
  
	
  
hpp://www.businessweek.com/arMcles/2014-­‐09-­‐09/
mcdonalds-­‐happy-­‐meal-­‐problem-­‐kids-­‐turn-­‐away-­‐from-­‐fast-­‐food	
  
	
  hpp://www.chicagobusiness.com/arMcle/20140906/
ISSUE01/309069980/mcdonalds-­‐has-­‐a-­‐new-­‐generaMonal-­‐problem-­‐
kids#	
  
	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
McDONALD’S	
  CASE	
  STUDY:	
  STEP	
  3	
  
27	
  
Brand	
  Architecture	
  
Mapping	
  
AlternaIves	
  
Development	
  	
  
EvaluaIon	
  of	
  
AlternaIves	
  
How	
  aligned	
  are	
  external	
  
and	
  internal	
  percep7ons	
  
of	
  brands	
  and	
  their	
  
roles?	
  
	
  
	
  
	
  
	
  
	
  
What	
  are	
  the	
  various	
  
ways	
  the	
  por@olio	
  
could	
  be	
  configured	
  
going	
  forward?	
  	
  	
  
Which	
  architecture	
  
alterna7ve	
  best	
  fits	
  
the	
  short	
  and	
  long-­‐
term	
  business	
  and	
  
brand	
  objec7ves?	
  
	
  Strategic	
  Business	
  
Analysis	
  
How	
  closely	
  aligned	
  
are	
  the	
  brand	
  and	
  
business	
  strategies?	
  
Brand	
  Architecture	
  Development	
  Process	
  
Branded	
  House	
  approach	
  makes	
  it	
  difficult	
  to	
  change	
  percep7ons.	
  Consider	
  
reserving	
  McDonalds	
  as	
  corporate	
  brand	
  and	
  build	
  equity	
  in	
  new	
  stand-­‐alone	
  
brands	
  and	
  sub-­‐brands.	
  	
  
•  Sub-­‐brands	
  or	
  stand-­‐alone	
  brands	
  for	
  Kids	
  or	
  Millennials	
  or	
  other	
  priority	
  
targets	
  may	
  help	
  separate	
  new	
  ini7a7ves	
  from	
  current	
  offerings.	
  	
  
•  New	
  digital	
  ini7a7ves	
  provide	
  a	
  pla@orm	
  for	
  a	
  new,	
  more	
  relevant	
  brand.	
  	
   hpp://adage.com/arMcle/news/
mcdonald-­‐s-­‐files-­‐trademark-­‐mcbrunch/
294911/?	
  
McDonald’s	
  applied	
  for	
  a	
  new	
  
trademark	
  for	
  a	
  McBrunch	
  brand	
  
in	
  September	
  2014	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
   28	
  
Key	
  evalua7on	
  criteria	
  relate	
  to	
  ability	
  to	
  support	
  the	
  
business,	
  build	
  new	
  sources	
  of	
  equity	
  and	
  beZer	
  address	
  
the	
  needs	
  of	
  Millennials	
  and	
  kids/Moms.	
  
The	
  assessment	
  illustrates	
  the	
  case	
  for	
  more	
  brand	
  
separa7on	
  to	
  enhance	
  appeal	
  among	
  Millennials	
  and	
  kids/
Moms.	
  
Brand	
  Architecture	
  
Mapping	
  
AlternaIves	
  
Development	
  	
  
EvaluaIon	
  of	
  
AlternaIves	
  
How	
  aligned	
  are	
  external	
  
and	
  internal	
  percep7ons	
  
of	
  brands	
  and	
  their	
  
roles?	
  
	
  
	
  
	
  
	
  
	
  
What	
  are	
  the	
  various	
  
ways	
  the	
  por@olio	
  
could	
  be	
  configured	
  
going	
  forward?	
  	
  	
  
Which	
  architecture	
  
alterna7ve	
  best	
  fits	
  
the	
  short	
  and	
  long-­‐
term	
  business	
  and	
  
brand	
  objec7ves?	
  
	
  Strategic	
  Business	
  
Analysis	
  
How	
  closely	
  aligned	
  
are	
  the	
  brand	
  and	
  
business	
  strategies?	
  
Brand	
  Architecture	
  Development	
  Process	
  
McDONALD’S	
  CASE	
  STUDY:	
  STEP	
  4	
  
Architecture	
  Assessment	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
KEY	
  TAKEAWAYS	
  
§  Architecture	
  aligns	
  business	
  and	
  brand	
  goals	
  by	
  defining	
  clear	
  roles,	
  relaMonships	
  
and	
  investment	
  prioriMes	
  among	
  porRolio	
  brands.	
  
§  A	
  coherent	
  brand	
  architecture	
  makes	
  markeMng	
  more	
  efficient	
  and	
  effecMve	
  by	
  
ensuring	
  customers	
  and	
  other	
  stakeholders	
  understand	
  what	
  the	
  business	
  can	
  do	
  
for	
  them.	
  
§  House	
  of	
  Brands	
  and	
  Branded	
  House	
  are	
  just	
  two	
  of	
  many	
  possible	
  architecture	
  
soluMons.	
  Most	
  companies	
  used	
  a	
  hybrid	
  approach.	
  	
  
§  Brand	
  architecture	
  should	
  be	
  revisited	
  periodically	
  to	
  ensure	
  	
  
business	
  requirements	
  are	
  being	
  addressed	
  and	
  the	
  structure	
  is	
  	
  
opMmal	
  for	
  supporMng	
  the	
  business	
  strategy.	
  
§  IdenMfying	
  the	
  opMmal	
  architecture	
  is	
  a	
  4-­‐step	
  process.	
  
1.29	
  29	
  
BRAND	
  AMPLITUDE,	
  LLC	
   	
   	
   	
   	
   	
   	
   	
  	
  	
  	
  	
  	
  	
   	
  	
  AUGUST	
  2015	
  
HOW	
  WE	
  CAN	
  HELP	
  
ü Audit	
  your	
  brand	
  to	
  idenMfy	
  gaps	
  and	
  opportuniMes	
  	
  
ü Generate	
  ideas	
  for	
  closing	
  the	
  gaps	
  
ü Evaluate	
  your	
  brand	
  architecture	
  and	
  recommend	
  ways	
  to	
  increase	
  clarity,	
  efficiency	
  
and	
  equity.	
  
ü Develop	
  a	
  compelling,	
  energizing	
  brand	
  idenMty	
  and	
  audience-­‐specific	
  posiMonings	
  
that	
  align	
  with	
  the	
  idenMty	
  
ü Measure	
  and	
  track	
  your	
  brand’s	
  health	
  over	
  Mme	
  
Judy	
  Hopelain	
  
@judyhopelain	
  
judy@brandamplitude.com	
  
Carol	
  Phillips	
  
@carol_phillips	
  
carol@brandamplitude.com	
  
30	
  

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Assessing Your Brand Architecture August 2015

  • 1. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   CONSUMER INSIGHTS FOR SUSTAINING BRAND RELEVANCE Copyright © 2015 Brand Amplitude LLC All Rights Reserved – May Not Be Reproduced Without Permission BRAND ARCHITECTURE: DESIGNING YOUR BRAND PORTFOLIO FOR SUCCESS Carol Phillips & Judy Hopelain August 2015 NEED A NEW IMAGE- ANOTHER APPLE?
  • 2. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   QUESTIONS  WE  ANSWER  HERE   §  What  is  brand  architecture  and  why  is  it  important?   §  What  are  the  various  roles  brands  play,  how  are  they  determined  and  why  are  they   useful?   §  What  is  the  range  of  brand  architecture  soluMons,  what  are  their  implicaMons  and   what  determines  which  is  the  best  opMon?   §  How  do  marketers  go  about  developing  architecture  soluMons  for  their  brands?   §  How  does  this  work  in  the  real  world?     1
  • 3. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   BRAND  ARCHITECTURE  OVERVIEW   Brand  architecture  is  part  organizaMon…   2   …and  part  military  strategy  
  • 4. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   BRAND  ARCHITECTURE  DEFINED   Architecture  is  about  opMmizing  the  hierarchy,  linkages,  and  roles  of  brands  within  the   porRolio  in  support  of  the  business  strategy.   3   Products,  business  units,  specific  services,   markeMng  programs,  features,  line   extensions,  apps,  web  sites,  etc.  all  need   monikers.     How  these  names  relate  is  the  difference   between  brand  coherence  and  brand   confusion.  
  • 5. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   BENEFITS  OF  A  CLEAR  ARCHITECTURE   Brand  architecture  helps  organizaMons  structure  their  brands  and  products  to  drive  value   and  growth  by  enhancing:   4   §  Clarity:  Clarifies  what  the  organizaMon  can  do  for  customers  by  providing  a   coherent  face  to  the  offering  and  the  business  strategy.   §  Efficiency:  Increases  markeMng  efficiency  by  ensuring  brand  leverage  without   overstretching.   §  Focus:  Provides  direcMon  for  where  to  focus  innovaMon  and  markeMng   investments  by  disMnguishing  strategic  brands  from  others  in  the  porRolio.   §  Growth:  Opens  up  new  opportuniMes  for  growth  by  lending  credibility  from   exisMng,  successful  brands.   §  Equity:  Enables  equity  to  flow  through  the  porRolio  by     defining  the  relaMonships  between  porRolio  brands.  
  • 6. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   BRAND  ARCHITECTURE  TAKES  AN  OUTSIDE-­‐IN  VIEW   The  opMmal  architecture  usually  does  not  line  up  neatly  with  internal  organizaMonal   structures  –  and  that’s  okay!       Corporate Business Unit Business Unit Products Products Brand  Architecture  Is  Externally   Facing   Masterbrand   A   Brand  B   Endorsed  by  A   Sub-­‐ Brand  D   Sub-­‐   Brand  C   Ingredient  or  Feature   OrganizaIonal  Structure  is   Internally  Facing   Business  units  are  not  brands.   5  
  • 7. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   ARCHITECTURE  DEFINES  BRAND  ROLES   Each  brand  asset  needs  a  clear  role  in  the  porRolio.   Corporate   Brand   Company  name  and  legal  enMty.  Oaen  used  as   endorser  but  may  not  be  customer  facing  at  all.   Master   Brand   (Driver)   Drives  purchase  decision  and  defines  user   experience.  Most  strongly  represents  the   differenMaMon  inherent  in  the  offer.     Endorser   Brand   Provides  approval,  credibility  or  guarantee  to  a   range  of  products,  but  is  usually  not  the  driver.   Sub-­‐Brand   Derives  equity  from  another  brand,  usually  the   Master.   Ingredient   Brand   Features,  materials,  components  or  parts  that   are  contained  within  other  branded  products.   Not  an  equity  driver,  oaen  an  equity  energizer.   Brand  Roles   Endorser     Brand   Sub-­‐Brand   Master  Brand   Clear  roles  simplify  decisions   about  brand  expression     6  
  • 8. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   Sony  plays  mulMple  roles  in  its  porRolio  due  to  the  needs  of  the  business.  Some  offerings   have  stand-­‐alone  brands  that  do  not  feature  the  Sony  name  at  all.   ARCHITECTURE  ALLOWS  BRANDS  TO  PLAY  MULTIPLE  ROLES   Corporate  Brand     Sub-­‐Brand  Master  Brands       Stand-­‐Alone  Brands   Master  Brand:  Allows  equity   to  be  shared  among  brand   assets  when  used  in  either   driver  or  endorser  role.       Sub-­‐Brand:  Leverages   the  strength  of  the   master  brand  while   helping  to  separate  and   organize  the  offerings.     Stand-­‐Alone  Brand:   Separates  offerings,  creates   new  sources  of  equity  or   targets  new  audiences.       7   Ingredient  Brand:  Brings   energy  and  news  to  an   offering.  Always  used  in   conjuncMon  with  another   porRolio  brand.     Ingredient  Brand  
  • 9. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   WHAT’S  INCLUDED  IN  ARCHITECTURE?   8   Only  offerings  are  included  in  the  architecture.  Trademarked  or  licensed  branded   elements  live  outside  the  architecture  and  enhance  equity  by  providing  uniqueness  and   memorability.     CelebriIes  lend   meaning   Characters  create   likeability   Sponsorships     build  affinity   Branded Elements Are Not Included in Architecture
  • 10. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   BRAND  ARCHITECTURE  SOLUTIONS   There  is  a  broad  spectrum  of  brand  architecture  soluMons.     9    House  of   Brands   Branded   House   Single  parent  brand   spans  a  set  of  offerings.   Independent  brands,  each   maximizing  its  impact  on   the  market.   •  Maximizes  markeMng  spending   efficiency   •  Maximizes  awareness  among  all   stakeholders  (i.e.,  investors,   employees)   Hybrid   Spectrum of Brand Architecture Solutions •  Builds  individual  strong  brands   for  category  dominance   •  Limits  risk  by  containing  brand   reputaMons  (good  for  high  risk   industries)  
  • 11. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   MOST  SOLUTIONS  ARE  A  HYBRID   10   Brand  architecture  soluMons  fall  on  a  spectrum.  Most  soluMons  fall  somewhere   between  branded  house  and  house  of  brands.     House  of  Brands   Hybrid   Branded  House   Con s Builds  equity  in  strong  stand-­‐ alone  brands  across  a  wide   range  of  categories     Requires  significant   markeMng  investment   Results  in  strong  master   brand.     Can  be  difficult  to  extend   beyond  the  experMse  of  the   master  brand.   Leverages  strong  master  brand   while  allowing  flexibility.   Requires  careful  planning  to  avoid   confusing  customers  or  diluMng   the  master  brand.  
  • 12. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   BRAND  ARCHITECTURE  SOLUTION  IMPLICATIONS   11   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   brands  or  business  units?     Target  mulIple   segments   Few  synergies  to  be   leveraged     Address  individual   geographies   Reinforce  a  global   organizaIon  mindset   Many  synergies  to  be   leveraged   Target  single  or  few   segments   Architecture  decisions  have  investment  implicaMons,  and  the  opMmal  soluMon  is   determined  in  large  part  by  the  business  strategy.    House  of   Brands   Branded   House  
  • 13. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   12   Single  parent  brand   spans  a  set  of  offerings.   Independent  brands,  each   maximizing  its  impact  on   the  market.    House  of   Brands   Branded   House   Disney  uses  a  mix  of  brand  architecture  soluMons  to  build  and  protect  its  diverse  businesses.     EXAMPLE:  DISNEY  BRAND  ARCHITECTURE  SOLUTION  
  • 14. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   Brand  Type   DescripIon   Example   Corporate  Brand   A  single  brand  targeted  at  mulMple  stakeholders  that  unites  the   porRolio  of  brands  under  a  common  strategy   Master  Brand   A  broad  brand  that  is  the  primary  frame  of  reference  for  the   customer.    It  is  used  as  an  umbrella  across  a  wide  range  of   product  categories,  services  and  geographies  that  can  exist   without  the  support  of  another  brand.     Category  Brand   Broad  groupings  of  product  and  service  offerings  that  reflect   mulMple  customer  segments  that  use  similar  technologies.   Sub-­‐Category   Brand   Groups  of  products  and  services  within  a  Category  that  help   customer  find  relevant  offerings.    They  can  be  organized  around   products,  applicaMons  or  customer  segments.   Disney  Princess  CollecMon       Product  /  Service   Line  Brand   A  collecMon  of  like  offerings  that  helps  simplify  the  buying   process  for  the  customer    by  signaling  a  unique  value  proposiMon   relaMve  to  compeMMve  offerings.   BRAND  HIERARCHY  EXAMPLE:  DISNEY   Architecture  defines  clear  hierarchies….   13  
  • 15. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   RelaIonship   Best  used  when…   Example   Primary   Brands  are  enMrely  consistent  with  core  values  and  posiMoning  of   master  brand     Shared   Core  values  of  the  brand  are  quite  consistent  with  the  master   brand,  but  augmentaMon  is  needed   Endorsed   Master  brand  equity  limits  the  brand’s  image  and  thus   necessitates  some  independence;  endorsement  adds  credibility   or  meaning   Invisible   Brand  is  inconsistent  with  core  values  of  master  brand;  risks   diluMng/eroding  parent  brand   …and  relaMonships  among  brands  in  a  porRolio.   14   BRAND  RELATIONSHIPS  EXAMPLE:  DISNEY  
  • 16. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   HOW  TO  DECIDE  WHICH  SOLUTION  IS  RIGHT?   15   Three  guiding  principles  help  to  ensure  the  brand  architecture  has  the  opMmal   business  impact:   Fulfill  customer  needs  (and  generate   revenue)  while  minimizing  brand   development  and  management  costs.   Sufficiently  cover  the  market  and  target   customer  segments  with  the  fewest   brands  possible.     Make  it  easy  for  customers  to  find  the   soluMon  they  seek  by  ensuring  “daylight”   between  brand  offerings.   Right  Number   MarkeIng  Efficiency   Clear  SeparaIon  
  • 17. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   ARCHITCTURE  DIRECTS  STRATEGIC  PRIORITIES   16   Not  all  brands  are  equally  important.  Architecture  guides  decisions  about  innovaMon   and  investment  as  porRolio  brands  compete  for  resources.       Strategic  Brand   Significant  contributor  to  company’s  future  sales,   percepMons  or  market  posiMon.     DisInguisher   Brand   Enhances  the  differenMaMon  of  another  brand.  Also   referred  to  as  ‘branded  energizer’  or  silver  bullet.     Cash  Cow   Money  making  brand  that  does  not  represent  future   significant  growth.   Corporate    Brand   May  have  low  visibility  to  customers,  but  important  to   regulatory  bodies,  investors,  employees,  trade  groups,   partners.     Fighter/Flanker   Brand     Addresses  compeMMve  threat.  Protects  share  of  other   brands  in  the  porRolio.   Example  
  • 18. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   EXAMPLE:  AMAZON   17   Amazon  keeps  its  strategic  businesses  separate  through  stand-­‐alone  brands,  and     uses  an  endorsed  approach  for  its  other  brands.       Strategic BrandsCash Cow Stand-Alone Brands
  • 19. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   EXAMPLE:  STARBUCKS     18   Starbucks  is  thoughRully  expanding  its  porRolio  to  separate  its  high  growth  and   premium  businesses  from  its  mainline  coffeehouses  and  Starbucks  Express  stores.     Strategic BrandsCash Cows Flanker/fighter Brand http://news.starbucks.com/news/starbucks-accelerates-growth-of-store-formats Starbucks Reserve Roastery and Tasting Room (Seattle) Starbucks Reserve stores (2015) Starbucks coffeehouses Express format stores (2015)
  • 20. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   WHEN  TO  REVISIT  ARCHITECTURE?   19   It’s  Mme  to  revisit  brand  architecture  when  an  organizaMon  changes  strategic  direcMon  or   adds  important  new  capabiliMes.     §  Significant  merger  or  acquisiMon   §  Too  many  brands  and  offerings  are  compeMng  for   apenMon  and  investment  dollars   §  Corporate  brand  and  product  brands  have  the   same  name  and  are  hard  to  disMnguish     §  Brands  are  losing  relevance  with  customers   §  Brand  meaning  has  been  diluted  or  stretched   beyond  credibility  and  effecMveness     §  Programs,  elements,  features  or  sponsorships  are   asking  to  be  treated  as  brands   Triggers  for  RevisiIng  Architecture     I have a problem
  • 21. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   EXAMPLE:  KELLOGG’S  BRAND  PORTFOLIO  RE-­‐EVALUATION   20   In  2012,  Kellogg’s  restructured  its  brand  porRolio  to  beper  leverage  its  master  brand,   acquired  stand-­‐alone  brands  and  Olympics  sponsorship.     http://www.forbes.com/sites/jenniferrooney/2012/05/10/kelloggs-embarks-on-major-brand-overhaul/ “We  had  to  start  separa7ng  out  the  Kellogg’s  brand  from   the  Kellogg  company  …Kellogg’s  is  a  truly  iconic  brand  … We  felt  that  having  a  stronger  brand,  driving  a  stronger   point  of  view,  a  more  powerful  iden7ty  and  have  at  the   center  an  umbrella  to  talk  about  our  por@olio  more   holis7cally,  to  talk  about  the  power  of  breakfast,  to  talk   about  the  value  of  cereal.”     §  Acquired  new  brands   §  Needed  to  elevate  Kellogg’s   corporate  brand  above  its  cereal   master  brand   §  Needed  to  strengthen  the  meaning   of  the  Kellogg’s  brand  beyond   cereal  to  breakfast     §  Wanted  to  leverage  investment  in   2012  Olympics  to  benefit  all   Kellogg’s  sub-­‐brands   Stated  Reasons For Revisiting Architecture
  • 22. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   EVALUATING  ARCHITECTURE  OPTIONS   In  general,  we  evaluate  brand  architecture  from  a  handful  of  perspecMves.  For  example,   having  more  answers  to  the  lea  in  the  assessment  tool  suggests  leaning  toward  a  House   of  Brands  approach  is  best.   21   OrganizaIon   Product/service  brand  equity   MarkeMng  spend   Corporate  brand  equity     CompeIIon   CompeMMve  set     Stakeholders   Number   Customer  needs   Cross-­‐selling  opportuniMes     Strong  equity   Supports  mulMple  brands   Low/negaMve  equity       Fragmented       Many   Diverse   Low     Low/no  equity   Supports  few  brands   Strong  equity       Consolidated       Fewer   Singular   High   Branded  House  House  of  Brands   Architecture  Assessment  
  • 23. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   BRAND  ARCHITECTURE  DEVELOPMENT   22   We  use  a  four-­‐step  process  to  idenMfy  the  opMmal  architecture  soluMon.   Overview  of  Recommended  Four-­‐Step  Approach     Brand  Architecture   Mapping   AlternaIves   Development     EvaluaIon  of   AlternaIves    Strategic  Business   Analysis   How  aligned  are  external   and  internal  percep7ons   of  brands  and  their   roles?             What  are  the  various   ways  the  por@olio   could  be  configured   going  forward?       Which  alterna7ve  best   fits  the  short  and  long-­‐ term  business   objec7ves?   How  closely  aligned   are  the  brand  and   business  strategies?  
  • 24. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   REAL  WORLD  EXAMPLE:  McDONALD’S  CASE  STUDY   The  Branded  House  McDonald’s  Built   23   Using  the  arches,  color  palepe  and  “Mc”  to  idenMfy  and  link  most  of  its  offerings  to  the   master  brand,  it  is  a  prime  example  of  a  Branded  House  architecture.   http://mrktspnkr.wordpress.com/2012/06/29/brands-as- identifiers-functional-and-symbolic-images/ Tightly  associated  with  burgers,  fries   and  soI  drinks,  the  brand  thrived  in   the  ’80s  and  early  ’90s.  Through   consistency  and  careful  brand-­‐ building,  McDonald’s  became  an   American  icon.     “[McDonald’s] gave millions of Americans their first jobs while changing the way a nation ate.” Bloomberg Businessweek, 3/2/03
  • 25. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   There  were  signs  of  trouble  starMng  in  the  late  1990’s,  as  business  lagged  and  new   products  failed.     24   1995   2000   2010   2015   The  low-­‐fat  McLean   Deluxe  and  Arch   Deluxe  burgers,   meant  to  appeal  to   adults,  bombed   Sales  stagnated   while  costs   increased  as  the   product  offering   expanded/ became  more   complex   In  an  effort  to   regain  relevance,   McDonald’s   acquired  Chipotle   Mexican  Grill  and   Boston  Market  in   1999   Spun  off  Chipotle  in   2006  to  refocus  on   core  hamburger   business   2005   Salads  represent  only  2-­‐3%   of  McDonald’s  sales  in  the   United  States.  CEO  Don   Thompson  admiped  “I  don’t   see  salads  as  being  a  major   growth  driver  in  the  near   future.”  (5/13)   Record  number  of     franchisees  lea   the  system  in   2002   In  2004,  “Supersize   Me”  brought   apenMon  to  what   too  much   McDonald's  does  to   your  body  and  how  it   makes  you  feel.     U.S.  comp  store   sales  slipped  1.7%   in  Q1  and  1.5%  in   Q2  of  2014   McDONALD’S  CASE  STUDY:  TIMELINE  
  • 26. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   McDONALD’S  CASE  STUDY:  STEP  1   25   Brand  Architecture   Mapping   AlternaIves   Development     EvaluaIon  of   AlternaIves   How  aligned  are  external   and  internal  percep7ons   of  brands  and  their   roles?             What  are  the  various   ways  the  por@olio   could  be  configured   going  forward?       Which  architecture   alterna7ve  best  fits   the  short  and  long-­‐ term  business   objec7ves?    Strategic  Business   Analysis   How  closely  aligned   are  the  brand  and   business  strategies?   Brand  Architecture  Development  Process   Focused  on  health-­‐centric  global  ini7a7ves,  puQng  food  quality  first.   Marke7ng  now  organized  by  consumer  groups  such  as  millennials,  families   and  adults  rather  than  by  product.   Stepping  up  digital,  including  e-­‐commerce,  fast-­‐tracking  tes7ng  of  mobile   payments  and  ordering.    In  June  it  set  up  a  "learning  lab"  at  a  restaurant  in   Laguna  Niguel,  Calif.,  to  beZer  understand  what  people  want  and  to   experiment  with  customizable  burgers  
  • 27. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   McDONALD’S  CASE  STUDY:  STEP  2   26   Execu7ves  worry  the  master  brand  has  lost   relevance.  Millennials  have  defected  to  fast  casual   chains  like  Chipotle  and  Five  Guys  and  Moms  no   longer  see  McDonald’s  as  a  good  place  for  kids.     Consumer  Reports  more  than  32,000  subscribers   rated  McDonald's  burgers  the  worst-­‐tas7ng  of  20   rival  burger  chains.   Brand  Architecture   Mapping   AlternaIves   Development     EvaluaIon  of   AlternaIves   How  aligned  are  external   and  internal  percep7ons   of  brands  and  their   roles?           What  are  the  various   ways  the  por@olio   could  be  configured   going  forward?       Which  architecture   alterna7ve  best  fits   the  short  and  long-­‐ term  business  and   brand  objec7ves?    Strategic  Business   Analysis   How  closely  aligned   are  the  brand  and   business  strategies?   Brand  Architecture  Development  Process   hpp://online.wsj.com/arMcles/mcdonalds-­‐faces-­‐millennial-­‐ challenge-­‐1408928743hpp://online.wsj.com/arMcles/mcdonalds-­‐ faces-­‐millennial-­‐challenge-­‐1408928743     hpp://www.businessweek.com/arMcles/2014-­‐09-­‐09/ mcdonalds-­‐happy-­‐meal-­‐problem-­‐kids-­‐turn-­‐away-­‐from-­‐fast-­‐food    hpp://www.chicagobusiness.com/arMcle/20140906/ ISSUE01/309069980/mcdonalds-­‐has-­‐a-­‐new-­‐generaMonal-­‐problem-­‐ kids#    
  • 28. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   McDONALD’S  CASE  STUDY:  STEP  3   27   Brand  Architecture   Mapping   AlternaIves   Development     EvaluaIon  of   AlternaIves   How  aligned  are  external   and  internal  percep7ons   of  brands  and  their   roles?             What  are  the  various   ways  the  por@olio   could  be  configured   going  forward?       Which  architecture   alterna7ve  best  fits   the  short  and  long-­‐ term  business  and   brand  objec7ves?    Strategic  Business   Analysis   How  closely  aligned   are  the  brand  and   business  strategies?   Brand  Architecture  Development  Process   Branded  House  approach  makes  it  difficult  to  change  percep7ons.  Consider   reserving  McDonalds  as  corporate  brand  and  build  equity  in  new  stand-­‐alone   brands  and  sub-­‐brands.     •  Sub-­‐brands  or  stand-­‐alone  brands  for  Kids  or  Millennials  or  other  priority   targets  may  help  separate  new  ini7a7ves  from  current  offerings.     •  New  digital  ini7a7ves  provide  a  pla@orm  for  a  new,  more  relevant  brand.     hpp://adage.com/arMcle/news/ mcdonald-­‐s-­‐files-­‐trademark-­‐mcbrunch/ 294911/?   McDonald’s  applied  for  a  new   trademark  for  a  McBrunch  brand   in  September  2014  
  • 29. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   28   Key  evalua7on  criteria  relate  to  ability  to  support  the   business,  build  new  sources  of  equity  and  beZer  address   the  needs  of  Millennials  and  kids/Moms.   The  assessment  illustrates  the  case  for  more  brand   separa7on  to  enhance  appeal  among  Millennials  and  kids/ Moms.   Brand  Architecture   Mapping   AlternaIves   Development     EvaluaIon  of   AlternaIves   How  aligned  are  external   and  internal  percep7ons   of  brands  and  their   roles?             What  are  the  various   ways  the  por@olio   could  be  configured   going  forward?       Which  architecture   alterna7ve  best  fits   the  short  and  long-­‐ term  business  and   brand  objec7ves?    Strategic  Business   Analysis   How  closely  aligned   are  the  brand  and   business  strategies?   Brand  Architecture  Development  Process   McDONALD’S  CASE  STUDY:  STEP  4   Architecture  Assessment  
  • 30. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   KEY  TAKEAWAYS   §  Architecture  aligns  business  and  brand  goals  by  defining  clear  roles,  relaMonships   and  investment  prioriMes  among  porRolio  brands.   §  A  coherent  brand  architecture  makes  markeMng  more  efficient  and  effecMve  by   ensuring  customers  and  other  stakeholders  understand  what  the  business  can  do   for  them.   §  House  of  Brands  and  Branded  House  are  just  two  of  many  possible  architecture   soluMons.  Most  companies  used  a  hybrid  approach.     §  Brand  architecture  should  be  revisited  periodically  to  ensure     business  requirements  are  being  addressed  and  the  structure  is     opMmal  for  supporMng  the  business  strategy.   §  IdenMfying  the  opMmal  architecture  is  a  4-­‐step  process.   1.29  29  
  • 31. BRAND  AMPLITUDE,  LLC                                AUGUST  2015   HOW  WE  CAN  HELP   ü Audit  your  brand  to  idenMfy  gaps  and  opportuniMes     ü Generate  ideas  for  closing  the  gaps   ü Evaluate  your  brand  architecture  and  recommend  ways  to  increase  clarity,  efficiency   and  equity.   ü Develop  a  compelling,  energizing  brand  idenMty  and  audience-­‐specific  posiMonings   that  align  with  the  idenMty   ü Measure  and  track  your  brand’s  health  over  Mme   Judy  Hopelain   @judyhopelain   judy@brandamplitude.com   Carol  Phillips   @carol_phillips   carol@brandamplitude.com   30  

Editor's Notes

  1. For example, take a brand like Sony. Here’s a few ways Sony presents itself to the world. Sony is primary – it is the ‘master brand’ – the story teller. The other names are sub-brands, partner brands, programs and products. They all live within the world of “Sony,” and both support and draw strength from the master brand. As with Sony, you need to think who’s telling your story make it a prominent part of the story.
  2. Three buckets, bullets above
  3. http://www.businessweek.com/stories/2003-03-02/mcdonalds-hamburger-hell http://www.nbcnews.com/id/4433307/ns/business-us_business/t/mcdonalds-phasing-out-supersize-fries-drinks/#.VA-bn1birKg