module 6 brand architecture
TRANSCRIPT
Brand Management Course International University 1
Brand ManagementBrand Management
Nguyen Trung ThangCEO of Masso Group
http://www.massogroup.com
Brand Management Course International University 2
Module 1: Course introduction
Module 2: Branding concepts and brand elements
Module 3: Brand positioning & consumer insights
Module 4: Integrated brand communication
Mid-term Project
Module 5: Brand measurement & branding in practice
Module 6: Brand architecture
Module 7: Brand extension & leverage
Module 8: Global Branding
Final Exam
Course outline
Brand Management Course International University 3
Module 6Module 6
Brand Architecture
Brand Management Course International University 4
Why Create a new Brand?
• When?
• Why?
• When Not?
• Why Not?
Creating a Brand/building brand equity takes:
• Time
• $$$$
• Discipline
• Persistence
Brand Management Course International University 5
Family Versus Multiple Brands
• Multiple (Individual) Branding – To Avoid Conflicts in Channels
– To Avoid Confusion Between Segments
– Different brand names if different target segments accessed via different channels and or products
Brand Management Course International University 6
Consider a family name (with sub-branding) if targeting the same customers for similar end-use product markets using the same channels (Marriott and Fairfield Inns by Marriott)
Family Versus Multiple Brands
Brand Management Course International University 7
Why Create A New Brand?
• Creating/Opening a New Category…• Entering an Established Category without
Brand Equity from another source• Or, you want to separate this offering from that
source• Entering a category where clear differentiation
from similar/Identical offerings is clearly needed
• Others?
Brand Management Course International University 8
The ultimate answer…
• If you can make more money (short term-long term) by adding a brand, add it…
• If you won’t make more money over the short or long term by adding a brand, don’t
Brand Management Course International University 9
Brand Relationship
Spectrum
Brand Relationship
Spectrum
Branded House
Branded House
Sub-Brands
Sub-Brands
Endorsed Brands
Endorsed Brands
House of Brands
House of Brands
Brand Management Course International University 10
Brand Relationship
Spectrum
Brand Relationship
Spectrum
Branded House
Branded House
Sub-Brands
Sub-Brands
Endorsed Brands
Endorsed Brands
House of Brands
House of Brands
Independent Brands, Each working in their own right, belonging to a “Remote” parent firm
Brand Management Course International University 11
House of Brands (P&G)
• Targets Niche Markets• Highlights new offerings• Avoids incompatibility• Allows powerful names tied to benefit• Avoids channel conflict• Shadow Endorser: “A Known organization is
backing this brand”
Brand Management Course International University 12
In a “House of Brands”
• The key competency itself is often the creation, growth and Management of Brands
• More B-to-C than B-to-B: Most of the offering value is in the brand, and opposed to the product in use…
Tide Folgers Ivory Cascade
Brand Management Course International University 13
House of Brands
House of Brands
Shadow Endorser
Shadow Endorser
Not Connected
Not Connected
Tide (P&G)
Accura (Honda)
Touchstone (Disney)
Independent Brands held by a remote parent company
Nutrasweet (Searle)
RCA (GE)
Saturn (GM)
Brand Management Course International University 14
Brand Relationship
Spectrum
Brand Relationship
Spectrum
Branded House
Branded House
Sub-Brands
Sub-Brands
Endorsed Brands
Endorsed Brands
House of Brands
House of Brands
Strong Brands on their own, strengthened in a customer-relevant way by an association with the parent brand
Brand Management Course International University 15
Endorsed Brands
Endorsed Brands
Strong Brands on their own-in their segment, strengthened by the master brand
Strong Endorsement
Strong Endorsement
Linked Name
Linked Name
Token/Remote Endorsement
Token/Remote Endorsement
Courtyard by Marriott
Walkman by Sony
NesteaDockers, by Levi’s
Universal Pictures, a Sony Company
Brand Management Course International University 16
Endorsed Brands
• Independent
• Can provide Relevant Support – Degree of relevant support determines level: Token, Linked Names, Strong
• Can Build Strength for both brands
Brand Management Course International University 17
Brand Relationship
Spectrum
Brand Relationship
Spectrum
Branded House
Branded House
Sub-Brands
Sub-Brands
Endorsed Brands
Endorsed Brands
House of Brands
House of Brands
Separate, Strong Brands – tied to and synergistic with – the parent brand
Brand Management Course International University 18
Sub-BrandsSub-
Brands
Separate Brands tied to Master Brand, Sub-ordinate and Synergistic
Master Brand as Driver
Master Brand as DriverCo-DriversCo-Drivers
Gillette Mach 3 – (Powerful Product Brand)
Sony Trinitron
DuPont Stainmaster (Powerful Ingredient Brand)
HP Deskjet
Brand Management Course International University 19
Subbrands
• Connected directly to the master brand --modify the emotional takeaway or proposition.
• Substantial potential impact on the master brand
• Critical: Degree to which they “Co-Drive” the buying process/decision
Brand Management Course International University 20
Brand Relationship
Spectrum
Brand Relationship
Spectrum
Branded House
Branded House
Sub-Brands
Sub-Brands
Endorsed Brands
Endorsed Brands
House of Brands
House of Brands
Parent Brand Drives, products under it are named following their benefits or specifications
Brand Management Course International University 21
Branded House
Branded House
Same IdentitySame IdentityDifferent Identity
Different Identity
BMW
Virgin
GE Capital, GE Appliance
Parent Brand the driving Branding element
Brand Management Course International University 22
A Branded House…
• Master Brand is driver across Multiple categories
• Under that – primarily “Product Descriptors”/ Highly descriptive trademarks.
• Master brand should be in a position to add to – and be strengthened by – all the firms offerings.
530i X5 750iL More…
BMW
Brand Management Course International University 23
Brand Separation Criteria…
Branded House:• Synergy in product line• Combined visibility and
relevance• Single brand visibility, • concentration of
resources• More risky to the master
brand• Benefit on stock market
House of Brands:• Eclectic product mix • Risky product categories• Channel conflict potential• Business model supports
creation of a brand • Fragmented in resources• Less risky to independent
brands• Not benefit from stock
market
Brand Management Course International University 24
Brand “Portfolio” concept
Parent Brand – Master Brand
Co-Brands
Product Line Brand
Product Brand
Ingredient Brands
Brand Extensions
Cadillac
Givenchy
Seville
STS
Bose, OnStar, NorthStar
Cadillac Service
Lederer, Hill HBR, 6/2001
Brand Management Course International University 25
BCG model for brands portfolio management
Brand Management Course International University 26
“Ingredient Brands”
• When your ingredient creates (the/a) unique element of value for the customer down the value chain.
• When your customer will find a way to call out the ingredient if you don’t
• When the opportunity exists to create a valuable brand – and a franchise with the customer down the value chain.
Brand Management Course International University 27
Ingredient ProviderIngredient Provider
ManufacturerManufacturer
ConsumerConsumer
Provides key ingredient of value for the manufacturer
Works to create direct Brand Relationship with consumer
Consumer looks for this ingredient – or is willing to pay more
Brand Management Course International University 28
Important Consideration: Relative Brand “Power” – Depth of Equity
Relative power of “hosting” brand
Relative power of “Ingredient” brand
Generally difficult to accomplish ingredient branding strategy
Ingredient branding strategy may not be desirable…
Zone of relative balance: Ingredient branding strategy may offer opportunity to create new value/ “Market Assets”
Brand Management Course International University 29
• Originally: Many “Compatible” and “Non-Compatible” computers
• Intel Inside = will play Microsoft
• Now: the world’s largest Co-op Advertising Program
= $ $ $, off the price of your processor bill (Often = $$$ Profit)
Classic: DuPont Stainmaster
Case: Intel Inside