BRAND ARCHITECTURE

12.07.2018
definition

 Brand Architecture is an important part of any company

and can be referred to as a building plan. The main factor
that helps in making a strong and durable brand is its
brand architecture.
 brand architecture an integrated system of names,
symbols, colors, and visual vocabulary that caters directly
to your customer’s thought process
 Apple, Apple Iphone and Apple Ipad.
Key terminologies

 Master brand: A top-level corporate brand that

encapsulates other branded products and services.

 Brand extension: a product or service launched by a

known brand name, where the extension is in a different
category than the brand’s other products or services
 What functions do brands have?
 To distinguish the products of one company from that of
rivals

 To distinguish different products from the same company and

their offerings

 To certify a producer’s origin

 It is a design problem about deciding the value flows created

between different products
 Brand Architecture
 When there are multiple products from one company, a
system of naming them as well as use of different
symbols for each is called Brand Architecture

 Clarify the overall product offer and structure the

brands such that it is easily understood by prospective
buyers

 Help SP and Product promotions strategies for ST goals

and establishment of brand capital in the long run.

 Anticipate future evolution of products and ranges to

accommodate all products in the brand structure
Three forms of brand architecture
Types of Brand Strategy

House of Brands Branded House

Product-Brand Source Brand

Line Brand

Range Brand

Maker’s Brand

Endorsing Brand

Flexible Umbrella Brand Master Brand

 Branded House

This offers a very logical path to brand extensions and new brands. In a
branded house, the master brand is always present and is easily linked to and
leveraged by extensions
House of brands

 This insulates and protects the master brand from brand extensions and in
turn protects brands from each other. A house of brands also allows for a
Master Brand to have competing brands in the same segments.
Hybrid or Endorsing Brand

 This is a more flexible way to package brands under a master brand. Brand
extensions are given separate identities and are associated with the master
brand, or not, depending on the context.
 Six types of branding strategies
 Product Brand

 Line brand

 Range brand

 Umbrella brand

 Source brand

 Endorsing brand
 Product brands
 Assign name to one product or product line
 One exclusive positioning for each of the products –

Toothpaste 50 gm, 150 gm 300 gm – Colgate Herbal toothpaste – natural

ingradients

 Product evolves with different ingredients but name remains the same
 COLGATE Total, Colgate Sensitive, Colgate Charcoal

 Corporate name hidden –

 Tide from P & G, Surf from Unilever

 Perceived differences between the brands

Product Brand Strategy

Company X

Brand A Brand B Brand N

Product A Product B Product N

Positioning A Positioning B Positioning N

Product Brand Strategy

Company X - Unilever

Rin Bar Wheel Surf Excel

Auotmatic

Liquid soap
Soap Powder detergent
Soap Bar

White clothes-
VFM, stain Cheap washing Detergent for
remover-collar powder washing machines
 Advantages of Product brands
 Offensive strategy to own the whole market with different product brands
 No negative feed back transfer from one product to another
 Diet Coke, Coca Cola Coke, Tab

 Multiple brands occupy many different segments with different needs-

Sprite, Fanta, Lemonade

 Category leader – larger share of a consolidated market- Coke

 Multiple products – channel control and shelf space augmentation- synergy

 Name differentiates the product – first mover advantage – introduce

products sequentially – curtail imitation of products and brands
 Drawback of Product brands
 High resource commitment for each of the product
brands
 HighR & D and product development costs,
promotional expenditures
 Retailer resistance to stock all products on the shelf
space
 Multiple products sub optimal shares in each segment-
cannibalization
 No synergy and carryover effects of one brand on
another
 Does not talk of product origin and company identity
 Line brands Strategy
 Extend a single name to multiple but related different products categories
 Palmolive hand-wash, shaving cream, face wash, aroma therapeutic bath,
deodorants, soaps
 https://www.youtube.com/watch?v=nWtlbiv58to
 https://www.youtube.com/watch?v=UleAplrdp4M
 Offer a coherent response for a set of complimentary products
 Different products for the firm but no differences to the consumer
 Exploitation of the success of the positioning of the concept- smoothness of Palmolive
 No separate advertising for new products, marginal cost of launch of new products
 Advantages of line brands
 Reinforces selling power of the brand and creates a strong brand
image

 It facilitates distribution of each extension and reduces launch

cost

 Disadvantages:

 Tendency to forget that the line has limitations- Harley Davidson

ties, socks

 Product innovations closely aligned to existing products

Range Brand Strategy

Brand X

Brand Concept

products A B C N
D
 Range brands
 Bestow a single brand name and promote a single promise for a range of products
 Ready to use home made like products – MTR products, Ashirwad ready to eat made
food products

 Products guard their common name but for different products

 MTR ready to eat – different masala powders, pickles, sauces, food items, ready to
eat frozen foods,
 Haldiram snacks

 McCain – smiles, frozen peas, French fries, potato wedges, pizzas, sauces

 These brands combine all products through a unique brand concept

https://www.youtube.com/watch?v=4SiRZNx4jlE
 Advantages of range brands

 Single brand name allows creation of brand capital which can be shared by other
products
 Communication in a generic manner by developing its unique brand concept

 Concentrate advertising on a select set of product leaders – MTR Sambar powder

 Ease of distribution for new products with the same goal / consistency in the category

 Cost of new product launches is low, segmentation of markets with suitable products
 Disadvantages of line brands
 Limitations on extensions due to brand capacity and brand
opacity

 Products are heterogeneous but serve the same function

Range Brand Strategy

Brand X – L'Oreal

Brand Concept –specialist

in beauty care

products
shampoos
creams solutions gels soaps
 Soothing line
 Slimming and firmness line
 Umbrella Brand Strategy

Umbrella brand -
CANON

A- N-
products cameras B- photocopying C- fax printers
mc

Specific
communication A
B C
s by products N
 Advantages of Umbrella brands
 Capitalization on a single brand name – differentiation

 Economies of scale at regional and global levels

 Instantaneous awareness, goodwill with customers and dealers

 Saves resources while entering new markets

 Allows core brands to be nurtured by association with new products

 Few constraints umbrella brand managed as a branded house with clean

set of values
 Umbrella brands
 Each product is a SBU, has its own communication programs

 Each product competes with specialists in each category – demonstrates relevance of its
products in each of the segments

 Disadvantages:
 Individual identities must be homogeneous

 Positive and negative equity transfers among portfolios- Bic – razors, pens, lighters, perfumes
 Over stretched brands can weaken the product categories as a whole – Virgin Brand

 Multiple products with individual communications can lead to confusion

 Freedom of product brands leads to patch work brands
 Source Brand Source brand - Nestle

Personal brand Brand A Brand B Brand C

names

Specific Promise A Promise B- Promise C-

communication Crunchy fast modern
snacks preparation products

Line C
products Product line Line B
A

Maggie noodles Curds

Chocolate crunch Maggie soups Milk powder
Kit Kat
Nesquik Corporate brand endorsing quality of
merchandize
 Advantages of Source brands
 This strategy provides 2-tired sense of differentiation and depth in positioning

 Parent brand offers significance and identity- these are modified and enhanced by the
brand offerings

 Parent brand stands for unique values shared by all products

 Disadvantages:
 Do not infringe boundaries that is necessary to respect the core, spirit and identity of
the parent brand

 Only brand names that are related to the parent brand’s field of activity should be
associated with it.
 Endorsed Brand Strategy
 Endorsing brand gives approval to a wide diversity of products grouped
under product brands, line brands or range brands

 Famous example: General Motors in 1980’s was endorsing brand parent

and Chevrolet, Opel, Pontiac, and Buick were separate brand names
with different promises.

 Each brand stands for a specific promise relevant to that group

Endorsed Brand Strategy Believe in the best

BPL Umbrella

Nobody entertains you like BPL Best Products for the best Best Convenience products
family
Video & Audio
Products Large Small
appliances appliances

Emper Tieo
Ajit
or Fridge Washing
m/c

BPL CiFi and DiFi audios VC MW Purifi Mixer/

Space where you er grinder
Tough on
need the most
dirt, soft
 Endorsed Brand Strategy - Advantages
 Endorsing brand gives greater freedom of movement that allows its
positioning

 Endorsing brand profits less from its products – there is little image
transfer to the endorsing brand

 Endorsing strategy least expensive way of giving substance to a

company name

 In this product brands devote more time to expressing other facets of

their brand like personality or values
Mixed Brand Strategy

Overhead
Medical Projectors Post it Video Extra
adhesives cameras cassette magic

3M medical scotch
division

Scotch
3M Brite

 Mix several source, product, line or range brand names

 Address different sub-segments or sub markets or different trade Racoon-
channels 1, 2, 3
 Cultural Roles in Brand Architecture
 Product brands – Unilever, P & G, Heinz, Kellogg – Western Companies
 P&G pioneered the Brand Management structure in FMCG goods

 Umbrella Brands – Yamaha, Sony, NP, LG, Samsung – Eastern Asian

Companies

 Brand policy is a reflection of the strategy chosen by a particular

company in a specific context

 Corporate strategy at the top most levels

 Brand Strategy at the product or line brand levels
 New Trends in Branding Strategies
 Branded House versus House of Brands

 House of brands refers to a company which operates through well

known brands but remains discrete and hidden – P&G, Unilever, Heinz

 Branded House – corporate name acts as one and single brand acting as
a banner federating force – GE Capital, GE Medical, GE MONEY, GE
Electricals, GENPACT, GE Wind energy
 House of
brands
Branded House

Architecture-
Architecture endorsing brand Architecture Architecture-
Product Brands- _ Colgate Umbrella Brand Source Brand -
Palmolive
Canon

BPL audio and

Autonomous Autonomous
video-
Brands- no link Brands- weak entertainment
link Product names- Branded products –
graphic link value link
Branding and segmentation
 Brand Architecture and segmentation
 Meet market needs for differentiation of products through different
brands and establishing their identities

 Match between brand portfolios to different segments operating in the

market
 Brand Architecture and segmentation types
 Socio-demographic segmentation

 Benefit segmentation

 Attitude segmentation

 Channel segmentation

 Occasion segmentation

 Price segmentation

 Prescription segmentation
 Socio-demographic segmentation
 Useful tool to understand consumer behavior, preferences used to
establish a brand’s portfolio

 Kinder Joy segmentation based on age of children

 Kinder eggs for very young people – 3 to 6 years

 Kinder snacks – for older children- 6 to 12 years

 Socio-demographic segmentation
 Economy housing project – VBHC company / Universal Dwelling

 Income < Rs 50000 per month

 Geography – Southern outskirts of Bangalore – Whitefield, Hoskote
 Age group – 30 to 50 years

 Magazines for different regions, languages, age groups, genders

 Women’s Era – for ladies
 Car magazine – for car buyers
 India Times – for political news – middle and older ager groups
 Benefit segmentation
 Segmentation based on benefits of the product and its attributes and features

 Each brand based on one benefit

 Colgate Sensitive – for sensitive teeth
 Colgate white shine – for brighter teeth - Sociables
 Colgate Herbal – for people preferring natural ingredients
 Colgate Total – fight against 10 teeth diseases – decay, cavity prevention – worry
warts
 Durables –
 Premium consumers – 15 % -20 %- state of the art technology – for viewing
pleasure- Technology buff, youth conformist
 Functional consumers – 30 % - features for good product performance
 Economy consumers – 50 % - good quality at low prices – good price- performance
 AUDIO ENTERTAINMENT – ATTITUDINAL
SEGMENTATION

segment name Size % Important positioning attributes

by segments

Status, comfort, reward 18% Latest features, comfort based

seekers features, style and status
connotation of products
Efficiency – leisure 16% Product reliability, product
seekers performance (Wattage), quality of
sound, hi-tech orientation
value for money – 52% Use the cheapest product of
economy segment affordable quality and price

Late adopters and 5% Buy popular brands based on

laggards advocacy of existing users
 Channel segmentation
 Organizing brands around trade channels and consumer channels

 Diversion of different products in the channel to avoid conflict

 Channel differentiation to price the products differently

 Exploit consumer price sensitivity across different channels

 L’Oreal products
 Professional Beauty products – through Spas and Saloons – Kerastase, Redken,
Matrix
 Custom premium products through drug stores and supermarkets – L’Oreal Paris,
Maybelline
 Mass channel products – L’Oreal Paris, Garnier, Maybelline
 Pharmacy brands – Le Roche Posay, Vichy, L'Oreal Casting Creme
 Occasion based segmentation
 Products consumed differently at different occasions

 Influence the occasion for greater product consumption

 Each occasion requires differentiated products based on consumer expectations

 Bru coffee in the morning, Lipton yellow tea in the evening

 Beer Market
 Guinness Irish beer social affiliation for occasional drinkers
 Carlsberg – release occasions at night clubs- social affiliation, let loose
 For light beer less filling – Budweiser Light – for health conscious consumers
 Price based segmentation
 Organization of brand portfolios based on price brackets

 Low end – Rapid Skoda

 Mid end – Volkswagen – Vento, Ameo
 Premium – Passat, Superb Skoda, Octavia
 Luxury brands – Audi

 Toyota / Honda needed a upper end brand – got Toyota Lexus, Honda Acura
 Linking Brand Portfolios to Prescription segmentation

 Business to business types use this segmentation

 Type of effect each member has in a collective decision in an

organization

 Markets segmented according to decision making

 Segmented across the value distribution channel

 Industrial markets are segmented by types of actors

 Influencers, end users, gate keepers, recommenders and decision
makers