brand architecture process

Propr ietary & Confiden0al

brandgrowthstrategy

BrandArchitectureProcess&Frameworks

MichaelMillion

[email protected]

PROPRIETARYANDCONFIDENTIAL

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Agenda

§  Whatisbrandarchitecture?

§  Whatbusinessissuesdoesbrandarchitecturehelpaddress?

§  Amethodologytodevelopbrandarchitecture?

§  Examplesofdeliverables


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Whatisbrandarchitecture?Thewayinwhichinternalentities(businessunits,divisions,capabilities)andofferings(products,services,programs)inanorganization’sportfolioarerelatedtoeachotherperspective(parent/child,leader/follower,etc.)fromanexternalperspective.Whilesomedegreeofrelatednessisbeneficial,theexternalviewoftheportfoliodoesnotnecessarilyhavetoalignpreciselywithhowtheorganizationisactuallystructuredinternally(brandarchitectureandorganizationalP&Lstructurearenotthesamething,butbrand-dedicatedteamsaredesirable).Effectivebrandarchitecturesarestructuredtodrivesynergiesacrosstheportfolio(sharingandleveragingequity),clarityanddistinctionamongbrands,andprovidedirectionforfutureacquisitionsofnewbrandsbydetermininghowtheportfolioshouldbeorganizedtodrivegrowth.Brandarchitectureiscreatedwithalong-termviewandtypicallyisaccompaniedbysometypesodecisiontoolwithstrongbusinessrationalefordeterminingIFentities/offeringsshouldbebranded,andifso,HOWtheyshouldbebranded.


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Threeessentialelementsofbrandarchitecture1.   End-stateFrameworkcomposedof:

A.  Brandhierarchy-atieredstructurethatclarifieswhichentities/offeringsaremostimportanttothoselessimportantinachievebusinessobjectives,andthetypesofbrandsassociatedwiththem.

B.  Organizingprinciple–anoverarchingapproachtowardstrategicallystructuringaportfolioinwaysthatenabletheorganizationtogrowandachieveitsobjectives.Therearetwotypesoforganizingprinciples:

•  Relationshipofentities/offeringstotheirparent(typicallyreferredtoasaspectrumfrom“brandedhouse”to“houseofbrands”

•  Strategicorientation(theunderpinningforhowbrandsareorganized–the“organizedby”portionofanarchitecture–e.g.bycustomersegments,byproductlines,bygeographies)

2.   Decisiontree–acriteria-basedtoolthatguidesdecisionsaroundwhatentities/offeringsshouldandshouldnotbebrandedandwhattypeofbrandtheyshouldbecome(e.g.masterbrand,productbrand,sub-brand,ingredientbrand,etc.)

3.   Migrationplan–anapproachtomovethecurrentportfoliofromthecurrentstatetothedesiredend-state,includingtiming/sequencing,operationalimperatives,customercommunications,etc.


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Businessissuesbrandarchitecturehelpsaddress

Thebusinesshashistoricallygrownthroughacquisitionsorsiloedorganicgrowth(orboth)andhasneglectedtointegratebrandsorstrategicallymanagethemasaportfolioofstrategicassets,thusresultinginanoverlycomplexsetofbrands(typicallytoomany),alackofdistinctionacrossbrands,confusedcustomerandemployees,andsub-optimizedbrand-buildingresourcesAbusinesshas“seenthelight”relativetobecomingmorecustomercentricandrealizesthattheirportfolioofbrandsare,atbest,haveconfusingrelationshipstoeachotherandthussub-optimizingcross-sellingopportunities;and,atworst,structuredinwaysthatsatisfyalegacyinternalorganizingstructurebutatoddswithhowthemarketactuallythinksaboutthecompany’scategoryormakesimportantdecisionsaboutitsoffersAbusinesshasnorhymeorreasonforkeepingoreliminatingbrandsandrealizesthateachacquisitionisforcing“one-off”,reactivedecisionsvs.followinganylonger-termstrategicintentorframeworkforgrowth.


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1Assessment

2Hypotheses

3ValidaEon&Refinement*

4Strategy&MigraEon

Methodologyfordevelopingbrandarchitecture

§  Gatherandsynthesizeexistinginformation

§  Conductexecutiveinterviews

§  Conductcommunicationsaudit(clientandcompetitors

§  Mapcurrent-statebrandarchitecture(ascomprehensivelyaspossible)

§  Gaininsightsfromcurrent-state,competition&bestpractices

§  Assessbrandstrengths&weaknesses*(basedoncriteriathatincorporatesasmuchfinancial)

§  Establishguidingprinciplesforfuturearchitecture–mappedtoclient’sbigstrategicobjectivesandagreeduponbyexecutiveteam

§  Develophypothesesforfuturearchitectureledbyguidingprinciples

§  Developseveralalternativearchitecturalscenarios–challengingexpectedsolutions

§  Illustratescenariosinrepresentativecommunications

§  Facilitateexecutiveworksessionstonarrowoptions

§  Developresearchplan(sample,methodology,discussionguide)

§  Analyzefindings

§  ClarifyImplications

§  Finalizebrandarchitecture

§  Clarifynewbrandroles,scopesandrelationships

§  Developmigrationplan

*Couldrequireprimaryresearchifnobrand-specificdataexists


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Case:Situation&ScopeofBrandsM&AactivityhascomplicatedthecurrentRegalBeloitbrandportfolio

§  Theacceleratedpaceofacquisitionshasfilledcapabilitygapsandcapitalizedonopportunities,butalsocreatedanoverlycomplexportfoliowithtoomanybrandstoeffectivelymanageonaglobalscale

§  Whilethesheerquantityofbrandsandoverlapintheiroffersarecontributingtoconfusion,simplyeliminatingbrandswillnotbeeasy,asinternalandexternalloyaltiestomanybrandsremainstrong

§  FutureM&AactivitywillcontinueasRegalBeloitcontinuestogrow,soestablishingalong-termbrandportfoliostrategyisparamountnotonlyforthecurrentbrands,butalsoforfutureintegrationefforts

Com.&Ind’lHVACRAirMovingControlsMechanicalInternational


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ProjectObjectives

KeyQuestionstobeansweredinthisproject

StrategicallyorganizeRegalBeloit’sbrandstoachievegreaterclarity,realizeefficiencies/synergies,andbuildstrongerbrandequitiesacrosstheportfolio§  Thestrategicroleofeachbrandinthefutureportfolio(e.g.leader,challenger,revenuegenerator,equitybuilder)

§  Theappropriatescopeofeachbrandinthefutureportfolio(offers,geographies,customertypes)

§  Theoptimalrelationshipsamongtheportfoliobrands(e.g.masterbranded,endorsed,sub-brand,endorsed)

ParentBrand

§  Whatisthe“directional”awarenesslevelofRegalBeloitasthecorporatebrand?

§  Whatistheoptimalpositioningforthecorporatebrand(RegalBeloitorother)?

§  Can/shouldanewbrandnamebedevelopedforthecorporateentity?

BUBrands

§  WhichBUbrandshavethemostequityinthemarkettoday?Whatarethoseequities?

§  ShouldanyBUbrandsbeeliminated.If,sowhichones?ShouldBUbrandchangeprofiles?

§  Forsurvivingbrands,whatisthestrategicroleitserveswithintheportfolio?

BrandArchitecture

§  WhatisoptimalrelationshipbetweensurvivingBUbrandsandthecorporatebrand?

§  Whatistherelativehierarchy/emphasisforbrandsthatarelinkedtogether?

§  Doesthisparent/BUrelationshipvarybyBUbrand,orisitstandard/consistent?

VisualRepresentation

§  Howisthebrandarchitecture“broughttolife”visually(i.e.,highlevelrepresentation)?


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1Assessment

2Hypotheses

3ValidaEon&Refinement

4Strategy&MigraEon

Approach

§  Reviewexistingresearch;synthesizefindingsanddetermineimplications

§ Understandmarketlandscapeandcurrentbrandportfolio“configuration”

§  Identifyhypothesesforbrandportfoliodevelopment

§ ConductiterativeworkingsessionswithRegalBeloitexecutiveteamtoagreeonhypothesestotestthroughresearch

§ Conductresearchwithcustomersandprospectstounderstandprosandconsofdifferentportfolioscenarios

§ Analyzeresearchwithinthecontextofhypotheses

§ Determineoptimalbrandportfoliostrategybasedoncustomerresearchandpre-defineddecisioncriteria

§ Developplantoguidethemigrationoftheportfoliofromitscurrenttofuturestate(sequencingandtiming)


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1Assessment

2Hypotheses

3ValidaEon&Refinement

4Strategy&MigraEon

Deliverables

§  Synthesisofexistingresearch,planningdocuments,&mgt.interviews

§  Insightsfromcurrent-statebrandarchitecture,competition&bestpractices

§  Brandscorecards/assessmentsummaryofstrengths,weaknesses&futureconsiderations

§ Guidingprinciplesforthefuturebrandportfolio

§  Initialhypothesesforfuturebrandroles,basedonassessments

§  Brandportfolioframeworkalternatives

§  Brandusagescenarios/applyingdifferentsetsofbrandstoportfolioframeworks

§  Illustrativecommunicationexamplesofrepresentativebrandrelationships

§  Researchplan(sample,methodology,discussionguide/stimuli)

§ Analysisoffindings

§  Implicationsonstrategyandmigrationplan

§  Finalbrandarchitecture

§  Brandportfolioprofiles

§  Strategicroles

§  Scopes(offers,geos,customers)

§  IdentityrelationshipswithRegalBeloit

§  Expressionapproaches

§ Decisiontool(s)

§ Migrationplan

§  Clarifiedimplicationsofrecommendedchanges


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IllustrativeDeliverablesStep1.AssessmentSynthesisofExistingInformation&Exec.Interviews InsightsfromCurrent-stateBrand

Architecture,Competition&BestPractices

BrandAssessmentScorecards

Brand X Sources Score Comments

Economic Criteria

• A • B • C

…….. … …… ……. … …….

Customer Criteria

• A • B • C

…….. … …… …

Strategic Criteria

• A • B

…….. … …… ……

GuidingPrinciplesfortheFutureBrandPortfolio

Summaries&

Implications

ExistingInformation• Strategicplans• Brandresearch• CustomerSatreports

ExecutiveInterviews• Chairman• CEO• COO

•  BuildequityintotheRegal-Beloitbrand

•  Maketheportfolioeasytounderstandandnavigateforcustomersandsalesforce

•  Movetowardfewer,strongerbrands

•  Do:buildbrands/Don’t:addnames

•  Express“systemness”

Level1

Level2

Level3

Level4


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IllustrativeDeliverablesStep2.Hypotheses

InitialHypothesesforFutureBrandRoles BrandPortfolioFrameworkAlternatives

BrandUsageScenarios(basedonnarrowedalternatives)

Brand X Score Possible Role

Economic Criteria

Customer Criteria

Strategic Criteria

Illustrativecommunicationexamples

RBC

BrandX BrandY

Regal-BeloitSub-brandX

Structure

ByBU

ByPdctLine

ByCust.Type

SimplificationSlight Significant

RBC

BrandX BrandY

BrandYPlatformBrandY

Regal-Beloit


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IllustrativeDeliverablesStep3.Validation

SamplePlan InterviewGuide/Survey

AnalysisofFindings ImplicationsonStrategy&Migration

C&I HVAC Air Moving

Mechanical

Controls Intl.

Title A 5 5 5 5 5 5

Title B 5 5 5 5 5 5

Title C 10

I. ContextSetting

II. Frameofreferencequestions

II. Reactiontobrandchanges

IV. Ratingdifferentarchitecturalscenarios

V.  Perspectivesonapotentialnamechange

VI.  Others…

I.  Conclusions

II.  Brand-specificfindingsandequities

III.  Strengths&weaknesses

IV.  Hypothesesvalidated/invalidated

V.  Others…

I.  Narrowedarchitecturalscenarios

II.  Futurebrandrolesandscopes

III.  Easeandoptimaltimingofbrandchanges

IV.  Risks/rewardsofchanges

V.  Keysuccessfactorsgoingforward

VI.  Others…


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IllustrativeDeliverablesStep4.Strategy&Migration

FinalBrandArchitecture BrandPortfolioProfiles

DecisionTool(s) MigrationPlan

Strategic Role

Scope Relationship to RCB

Expression Approach

Brand 1

Brand 2

Brand 3

Level1

Level2

Level3

Level4


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BrandAssessmentScorecardBrand:X KeyFinding Score Sources

EconomicCriteria(size&growth)

Revenues

Share(inrespectivemarket)

Profitability

CAGR

CustomerCriteria(presence&equity)

Breadthofpresence(geo,customertypes,offers)

Equity/perceptions/customersatisfaction

NPS/Loyalty

StrategicCriteria(futurepotential/otherconsiderations

Futurepotential(extendibility)

Otherstrategicimportance(e.g.helpsresolvechannelconflict)

FuturePotentialRoleinPortfolio


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brand architecture process

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