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Session Four :
Understanding Brand Architecture



Idris Mootee CEO Idea Couture Inc.


                                                              1
                                                   Sept 21, 2007
All brand names mentioned and logos included in this presentation are registered trademarks of their
respective owners and are legally protected. Their inclusion in this presentation is only for the purpose of
illustration, criticism and analysis.
Disclosure: Starbucks, Nike, Kitchen Aid, Jordan, Virgin, BMW, Nintendo, Crate & Barrel are clients of
Blast Radius Inc. which I was formerly employed as Senior VP and Chief Strategist. The mentioning of
these names are solely for academic purposes and should not be considered as case studies. The
material here was prepared solely with public information supported by the author’s analysis during the
writing of the book 60-Minute Brand Strategist which was published in four languages. Other brand names
including Levis, Apple, Mercedes Benz, Sony, Coca Cola, Macys, Target, Daimler Chrysler, Citibank
mentioned here were at some point a client of mine in association with previous firms under which I was
employed or co-founded. No confidential or proprietary information were used or mentioned here.
This series of presentation is designed to provide relevant and up-to-date information for brand and
marketing practitioners and it is not to be used in marketing or rendering of professional services. Some
rights reserved. Idris Mootee 2001-2007. Presentation can be freely embedded in any website or blog
under creative commons license with prohibition of any commercial use.




                                                                                                           2
What is Brand Architecture?
It is the logical, strategic and relational
structure for all of the brands in the
organization’s brand portfolio. The
objective is to maximize clarity,
synergy and leverage to maximize
customer value and internal
efficiencies.
                     Master brand


                        Subbrands


                     Product brands

                  Stand-alone brands


                                              3
Why: A clear brand architecture is to
help structure a brand's position both
now and for the future helps
management in the task of building that
brand and ensuring that everyone within
the organization as well as their ad
agencies are working to a common and
clearly understood goal.




                                          4
Why do we need one? Consider GM has
32 brand names, P&G has hundreds,
BMW has 3, Nintendo has 2 and
Starbucks has 1. It gets more and more
complicated as most companies have
multi-brands from merger and
acquisitions, aggressive brand
extensions due to pressure for quick
profits and increasing complex structures
involving sub-brands, endorsed brands
and co-brands.


                                            5
Developing brand architecture: Often
the task includes periodic regrouping
multiple product groups, brand families,
reposition them to reflect their role in
the market and to create a structure for
immediate successful marketing. The
establishment of a clearly understood
and coherent brand architecture creates
the structure within which the vital day-
to-day tactical decisions can be made.


                                            6
Brand architecture is strategic: Because
many marketing (channel, pricing,
advertising and promotions) decisions
are mostly tactical in nature, without a
well organized brand architecture in
place, these day-to-day tactical
decisions become strategic and long-
winded in nature.




                                           7
What are main advantages of
developing a brand architecture?
1. It helps everyone in the
organization see and understand all
the connections between corporate
brands, sub-brands and master
brands.




                                      8
What are main advantages of
developing a brand architecture?
2. It makes decision making easier
when it comes to allocating and
sharing marketing resources such as
advertising and promotions.




                                      9
What are main advantages of
developing a brand architecture?
3.Protect brands by being over-
leveraged and being diluted by over-
stretching communications
messaging and graphic design
options.




                                       10
P&G’s brand architecture effectively
manage the relationships between
product, brands and market segments.
Head and Shoulders dominates the
dandruff control shampoo category and
Pert Plus targets the market for combined
shampoo and conditioner. Pantene is
positioned as a brand with a technological
heritage and the benefit of hair vitality.
These brands basically optimizes their
brand coverage instead all products under
a P&G brands.

                                         11
House of
Branded   Brand Separation Spectrum
                                       Brands
 House




                                                 12
The biggest mistake for any brand
portfolio is not having a brand
architecture. One can allow each brand
to be managed in isolation simply
because what is right for an individual
brand may be wrong for the portfolio.




                                          13
It is very difficult to generalize what and
how to put a vast number of brands in
categories and wed sets of them and their
relationships into a composite brand
architecture. Each industry and category
context is very different. The tendency is
towards having a “master brand” and only
when there is a compelling need for a
separate brand is one considered since
there is a lot of money involved in the
building of a new brand.


                                              14
Four steps to optimize your brand
architecture?
1. Start by looking at different ways to
look at segmentation and map your
brand portfolio to those
segmentations.




                                           15
Four steps to optimize your brand
architecture?
2. Examine segments with the most
profitability and/or growth potential,
then identify where your leadership
brands can provide the best leverage.




                                         16
Four steps to optimize your brand
architecture?
3. Synthesize those information and
perform analysis to see if there are
sufficient growth opportunities in
those leadership brands to make up
for the revenue-losing brands.




                                       17
Four steps to optimize your brand
architecture?
4. Explore opportunities to reduce
those underperforming brands by
extending those leadership brands or
opportunities for new brands for any
underserved segments.




                                       18
How often people want to create
another new brand? So the big
question is can the business support a
new brand? The needs usually consist
of one or more of the following:
- Create and own a different set of associations
- Develop a totally new product offering or a category
- Avoid conflict in brand association and identities
- Avoid channel conflict
- Create a price-driven label for competitive reason
- Fulfill needs for new geographies or unique customer
segments



                                                         19
Brand Separation Spectrum

                                           House of                                                    House of
                                                                      Endorsed House
       Branded
                                          Sub-brands                                                    Brands
                                                                         of Brands
        House
 Same        Different                                        Strong        Linked        Token        Shadow
                             Umbrella         Co-Drivers                                                                 Not
Identity      Identity                                      Endorsement     Name       Endorsement     Endorser
                             as Driver                                                                                Connected

                                                Gilette
                              Buick                                                                                    Thomson
                                                                                                          Tide
              GE Capital                                     Courtyard                  Grape Nuts
 BMW                                                                        DKNY
                                                Sensor
                             LeSabre                                                                                     (GE)
                                                                                                         (P&G)
             GE Appliance                                    By Marriott                 from Post
               Club Med                                                                     Sony
                                                 Sony                                                   Lexus
                                HP                          Obsession by                                                Saturn
                                                                            McMuffin
  Sony         Singles v.                                                                Playstation
                                                Trinitron                                              (Toyota)
                              DeskJet                       Calvin Klein                                                 (GM)
                Couples
                                                DuPont                                                 Touchtone       Nutrasweet
                                                              Friends &                   Docker's
             Levi – Europe
 Virgin                                                                     Nestea
                              VW Beetle       Stainmaster                                               (Disney)      (G.D.Searle)
                                                            Family by MCI                 LS&Co.
             Levi – U.S.A.




   Branded                                                                                                         House of
    House                                                                                                           Brands




                                                                                                                                     20
A Brand Architecture Provides Structure and Clarity



                         Brand Separation Spectrum




                                                                      House of
    Branded                 Sub-                 Endorsed             House of
    Branded                 Sub-                 Endorsed
                                                                       Brands
     House                 Brands                 Brands               Brands
     House                 Brands                 Brands



                          The “LaserJet” is a    ‘Marriott’ plays a
    All products carry                                                 P&G is not
                          name of a product       lesser role than
    GE name (except                                                   represented
                          that is ‘equal’ with       CourtYard
           NBC)
                                   HP




                                                                                    21
Valentino Brand Architecture Support Market Positioning




                                                          22
Sony Brand Architecture Provides Category Focus

Sony chooses a single-minded, powerful and yet
flexible architecture and leverages their corporate
brand in many different ways.


                                     Corporate

                             Umbrella as Driver

                                Endorser Brand


                               Ingredient Brand

                              Shadow Endorser


                                      Co-Brand


                                                      23
Intel Brand Architecture Informs Platform and Pricing Decision




                                                                 24
FedEx Brand Architecture Provides Structure and Clarity




                                                          25
Marriott Brand Architecture Provides Structure and Clarity




                                                             26
Session four of eight.




For notes and discussion visit

www.mootee.typepad.com




Idris Mootee CEO Idea Couture Inc.


                                     27

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Brand Masterclass Week Four

  • 1. OPEN SOURCE Session Four : Understanding Brand Architecture Idris Mootee CEO Idea Couture Inc. 1 Sept 21, 2007
  • 2. All brand names mentioned and logos included in this presentation are registered trademarks of their respective owners and are legally protected. Their inclusion in this presentation is only for the purpose of illustration, criticism and analysis. Disclosure: Starbucks, Nike, Kitchen Aid, Jordan, Virgin, BMW, Nintendo, Crate & Barrel are clients of Blast Radius Inc. which I was formerly employed as Senior VP and Chief Strategist. The mentioning of these names are solely for academic purposes and should not be considered as case studies. The material here was prepared solely with public information supported by the author’s analysis during the writing of the book 60-Minute Brand Strategist which was published in four languages. Other brand names including Levis, Apple, Mercedes Benz, Sony, Coca Cola, Macys, Target, Daimler Chrysler, Citibank mentioned here were at some point a client of mine in association with previous firms under which I was employed or co-founded. No confidential or proprietary information were used or mentioned here. This series of presentation is designed to provide relevant and up-to-date information for brand and marketing practitioners and it is not to be used in marketing or rendering of professional services. Some rights reserved. Idris Mootee 2001-2007. Presentation can be freely embedded in any website or blog under creative commons license with prohibition of any commercial use. 2
  • 3. What is Brand Architecture? It is the logical, strategic and relational structure for all of the brands in the organization’s brand portfolio. The objective is to maximize clarity, synergy and leverage to maximize customer value and internal efficiencies. Master brand Subbrands Product brands Stand-alone brands 3
  • 4. Why: A clear brand architecture is to help structure a brand's position both now and for the future helps management in the task of building that brand and ensuring that everyone within the organization as well as their ad agencies are working to a common and clearly understood goal. 4
  • 5. Why do we need one? Consider GM has 32 brand names, P&G has hundreds, BMW has 3, Nintendo has 2 and Starbucks has 1. It gets more and more complicated as most companies have multi-brands from merger and acquisitions, aggressive brand extensions due to pressure for quick profits and increasing complex structures involving sub-brands, endorsed brands and co-brands. 5
  • 6. Developing brand architecture: Often the task includes periodic regrouping multiple product groups, brand families, reposition them to reflect their role in the market and to create a structure for immediate successful marketing. The establishment of a clearly understood and coherent brand architecture creates the structure within which the vital day- to-day tactical decisions can be made. 6
  • 7. Brand architecture is strategic: Because many marketing (channel, pricing, advertising and promotions) decisions are mostly tactical in nature, without a well organized brand architecture in place, these day-to-day tactical decisions become strategic and long- winded in nature. 7
  • 8. What are main advantages of developing a brand architecture? 1. It helps everyone in the organization see and understand all the connections between corporate brands, sub-brands and master brands. 8
  • 9. What are main advantages of developing a brand architecture? 2. It makes decision making easier when it comes to allocating and sharing marketing resources such as advertising and promotions. 9
  • 10. What are main advantages of developing a brand architecture? 3.Protect brands by being over- leveraged and being diluted by over- stretching communications messaging and graphic design options. 10
  • 11. P&G’s brand architecture effectively manage the relationships between product, brands and market segments. Head and Shoulders dominates the dandruff control shampoo category and Pert Plus targets the market for combined shampoo and conditioner. Pantene is positioned as a brand with a technological heritage and the benefit of hair vitality. These brands basically optimizes their brand coverage instead all products under a P&G brands. 11
  • 12. House of Branded Brand Separation Spectrum Brands House 12
  • 13. The biggest mistake for any brand portfolio is not having a brand architecture. One can allow each brand to be managed in isolation simply because what is right for an individual brand may be wrong for the portfolio. 13
  • 14. It is very difficult to generalize what and how to put a vast number of brands in categories and wed sets of them and their relationships into a composite brand architecture. Each industry and category context is very different. The tendency is towards having a “master brand” and only when there is a compelling need for a separate brand is one considered since there is a lot of money involved in the building of a new brand. 14
  • 15. Four steps to optimize your brand architecture? 1. Start by looking at different ways to look at segmentation and map your brand portfolio to those segmentations. 15
  • 16. Four steps to optimize your brand architecture? 2. Examine segments with the most profitability and/or growth potential, then identify where your leadership brands can provide the best leverage. 16
  • 17. Four steps to optimize your brand architecture? 3. Synthesize those information and perform analysis to see if there are sufficient growth opportunities in those leadership brands to make up for the revenue-losing brands. 17
  • 18. Four steps to optimize your brand architecture? 4. Explore opportunities to reduce those underperforming brands by extending those leadership brands or opportunities for new brands for any underserved segments. 18
  • 19. How often people want to create another new brand? So the big question is can the business support a new brand? The needs usually consist of one or more of the following: - Create and own a different set of associations - Develop a totally new product offering or a category - Avoid conflict in brand association and identities - Avoid channel conflict - Create a price-driven label for competitive reason - Fulfill needs for new geographies or unique customer segments 19
  • 20. Brand Separation Spectrum House of House of Endorsed House Branded Sub-brands Brands of Brands House Same Different Strong Linked Token Shadow Umbrella Co-Drivers Not Identity Identity Endorsement Name Endorsement Endorser as Driver Connected Gilette Buick Thomson Tide GE Capital Courtyard Grape Nuts BMW DKNY Sensor LeSabre (GE) (P&G) GE Appliance By Marriott from Post Club Med Sony Sony Lexus HP Obsession by Saturn McMuffin Sony Singles v. Playstation Trinitron (Toyota) DeskJet Calvin Klein (GM) Couples DuPont Touchtone Nutrasweet Friends & Docker's Levi – Europe Virgin Nestea VW Beetle Stainmaster (Disney) (G.D.Searle) Family by MCI LS&Co. Levi – U.S.A. Branded House of House Brands 20
  • 21. A Brand Architecture Provides Structure and Clarity Brand Separation Spectrum House of Branded Sub- Endorsed House of Branded Sub- Endorsed Brands House Brands Brands Brands House Brands Brands The “LaserJet” is a ‘Marriott’ plays a All products carry P&G is not name of a product lesser role than GE name (except represented that is ‘equal’ with CourtYard NBC) HP 21
  • 22. Valentino Brand Architecture Support Market Positioning 22
  • 23. Sony Brand Architecture Provides Category Focus Sony chooses a single-minded, powerful and yet flexible architecture and leverages their corporate brand in many different ways. Corporate Umbrella as Driver Endorser Brand Ingredient Brand Shadow Endorser Co-Brand 23
  • 24. Intel Brand Architecture Informs Platform and Pricing Decision 24
  • 25. FedEx Brand Architecture Provides Structure and Clarity 25
  • 26. Marriott Brand Architecture Provides Structure and Clarity 26
  • 27. Session four of eight. For notes and discussion visit www.mootee.typepad.com Idris Mootee CEO Idea Couture Inc. 27