Naming architectureA blueprint for portfolio simplicity

June 23, 2015

The Simplicity Company

Siegel+Gale is a global strategic branding firm committed to building world-class brands through elegantly simple, unexpectedly fresh brand strategies, stories and experiences.

+ Research

+ Strategy  

+ Naming

+ Brand Architecture

+ Brand Communication

+ Design

+ Simplification*

+ Digital

+ Employee Engagement

+ Brand Activation

New York • London • Shanghai • Los Angeles • Riyadh • San Francisco

*Simplification is the strategic process of transforming communications and interactions into clear, useful, customer-focused experiences.

+ improves margin

+ increases loyalty

+ drives stock performance

Simplicity pays

simplicityindex.com

The GBSI is our yearly ranking of the world’s most simple brands as delivered through customer experiences.

Simple can be harder than complex. You have to work hard to get your thinking clean to make it simple. But once you get there, you can move mountains.

Steve Jobs

What is naming architecture, and how does it lead to portfolio simplicity?

It’s how an entity organizes and guides the naming of its capabilities and offerings, so that customers and others can readily understand and navigate what’s being offered.

It may involve creating some new names But in fact, it generally involves reducing the number of proprietary names in a portfolio. It’s about creating consistent naming hierarchies and constructs rather than creating specific new names.

< = >

It’s often referred to, but isn’t exactly the same as, brand architecture—which primarily deals with the role of a parent brand or masterbrand and secondary brands in a portfolio.

The new CVS Health brand architecture is establishing the relationship of its four key businesses and their products to the parent

Business Units

Corporate brand

Pharmacy Advisor®

Acquired sub-brands

Specialty Connect™

Philanthropy

Partnerships & joint ventures

Sponsorships

Internal

FastStart®

CustomCare® ProgramsUR/URPlus Pharmacy Mgmt.

Health Savings Pass®

Please note: the above is a representative sample of portfolio offerings, not a comprehensive current state map.

Services, products, programs

Business unit campaigns

Cross-business unit offerings

Personalized Weight Loss ProgramStop smoking with Start to Stop™

CareTeamCarePlus™

myWeeklyAdmyCVS On the GoPharmacy Home™myCVSPharmacy®

CVS/pharmacy HealthSavings PassExtracare beautyclubReadyFill®

“Win with Health plans”

But the naming architecture focuses on which types of names work best in the portfolio

This distinction is particularly important in defining and scoping a branding assignment

Also, naming architecture may be related to, but isn’t primarily about, corporate or visual identity

And lastly, it’s not about business organization…but it could impact how a business is structured going forward

Naming architecture typically is needed when:

A new or combined entity—needs to communicate its capabilities and offerings.

An existing entity—lacks naming conventions and procedures, or they have become inconsistent over time.

A product/service portfolio—has become burdened with proprietary brand names, making it difficult to understand, complex to navigate and expensive to maintain.

The four elements of naming architecture

1. Portfolio modeling

2. Name selection

criteria

3. Naming

frameworks

4. Internal guidance

1. Portfolio modeling

Map and analyze the current portfolio names as a starting point.

Develop alternative models for structuring the portfolio and decide where different types of product names fit.

2. Name selection criteria

Determine the criteria for selecting the right types of names for the range of offerings within the portfolio.

™®

SM

There basically are 4 types of names

Product names fall somewhere on a spectrum between generic and arbitrary.

Generic Descriptive Suggestive Arbitrary

Industry-standard terminology, usually the common or class name for the goods or services

Real, recognizable words that describe a product’s function or form; explains what a product is or does

Recognizable words that suggest a product’s attributes or benefits;evokes an attitude

Something new; unusual or invented words that acquire meaning over time

Mobile Phone

Digital Video Recorder

AT&T Wireless

IBM Cloud Marketplace

D&B Data Exchange

Loan & Deposit Confirmations

Sprint

IBM Spectrum Storage

SmartBook

Intuit

Navigator

Verizon

Segway

Kodak

Bluetooth

The right type of name should balance strategic, communications and trademark considerationsCan’t trademarkOften longer namesRequires less marketing supportLess distinctive

Strong trademarkOften shorter names

Requires greater marketing supportMore distinctive

Generic Descriptive Suggestive Arbitrary

Industry-standard terminology, usually the common or class name for the goods or services

Real, recognizable words that describe a product’s function or form; explains what a product is or does

Recognizable words that suggest a product’s attributes or benefits;evokes an attitude

Something new; unusual or invented words that acquire meaning over time

Mobile Phone

Digital Video Recorder

AT&T Wireless

IBM Cloud Marketplace

D&B Data Exchange

Loan & Deposit Confirmations

Sprint

IBM Spectrum Storage

SmartBook

Intuit

Navigator

Verizon

Segway

Kodak

Bluetooth

It gets harder and harder to find trademarks that balance clarity and distinctiveness

3. Naming frameworks

Develop logical and consistent vertical hierarchies and horizontal constructs to put the parts of a name together for greater clarity and consistency.

Two parts to frameworks

1. The overall structure How do you define the different categories and levels? How are the products positioned in relation to each other?

1: Product suite

Products that work together or are linked in a significant way

Identifies a shared industry, audience, technology or platform

2: The product itself

Individual methodologies, technologies, solutions and services

Describes a function, result or benefit

3: Module to the product

Core or optional component delivered through a product; it does not stand alone

Describes a feature or functionality

Two parts to frameworks

2. Naming constructs• How do you order each product name based on the

architecture? • What are the fixed and optional elements that work together? • How do you use the name in communications?

For example:

4. Internal guidance

Develop internal governance procedures, decision trees, guidelines and other tools to aid decision-making and compliance.

Do you need a new name?

No you don’t No new name

Some case studies demonstrating typical situations and processes

1. Portfolio modeling

The challenge:It may not be clear from our current naming architecture, but we do a lot more than sell health insurance policies.

Aetna’s challenges

A changing healthcare environment (globalization, retailization, digitization and cost containment) demanded a fresh look at our business and brand.

Competitors were diversifying their businesses, expanding into new markets and placing an aggressive focus on consumers.

Against this backdrop, Aetna’s position was becoming undifferentiated, and its brand strength was lagging.

Objectives

Expand and clarify Aetna’s traditional insurance and financial capabilities with:

• A range of offerings that focus on wellness programs and tools.

• New offerings in the areas of medical intelligence and care optimization (including expanding accountable care solution capabilities)

The solution:Create a new naming architecture model for organizing and clearly representing our expanded capabilities and offerings.

Starting point: name creation without a focus

We explored alternative portfolio models

Improve Health

Protect Finances

Insure Health

Optimize Performance

Health & Wellness

Technology &Intelligence

Plans & Benefits

Consulting &Administration

Motivation

Inspiration

Protection

Optimization

Healthier Living

Financial Well-Being

Accessible Health Care

Intelligent Solutions

Criteria for selecting an Aetna model

Business objectivesWhich best supports the new brand story?

Work sessions and validation research Which best resonates with internal and external audiences?

Regulatory restrictions Can’t overpromise

Selected model based on criteria and research

Improve Health

Protect Finances

Make Healthcare Accessible

Optimize Performance

Health & Wellness

Technology &Intelligence

Plans & Benefits

Consulting &Administration

Motivation

Inspiration

Protection

Optimization

Healthier Living

Financial Well-Being

Quality Health Plans

& Benefits

Intelligent Solutions

Organizing principles defined

Healthier Living

Financial Well-Being

Quality Health Plans

& Benefits

Intelligent Solutions

Masterbrand

OrganizingPrinciple

The plans and benefits you need to help safeguard your health

The resources needed for individuals and communities to thrive

The plans and benefits to ensure your family’s financial future

The expertise you need to improve productivity and healthcare’s future

Part of a new brand story

Bringing the organizing principles to market

Benefits of portfolio modeling for Aetna

• Better understanding of Aetna’s broader capabilities and offerings

• Stronger competitive positioning in a changing healthcare environment

• Integration of subsidiaries, acquisitions and partnerships into a cohesive brand story

2. Name selection criteria

™®

SM

The challenge:Our key brands are getting obscured, our customers are getting confused and our resources are getting stretched.

The solution:Implement a company-wide product name selection strategy for connecting the right type of name to the right offering.

Mobile Devices

• C139

• MOTO RAZR U6

• MOTO Q

• Talkabout FV 550A

• Audex Cargo Jacket

• M25 Digital Audio Player

Networks and Enterprise

• MOTOwi4 WiMAX

• Canopy ODFM Point-to-Point

• MOTOBRIDGE G1 WiAP 110

• MEA for Intelligent

Transportation System

Inconsistent naming complicated both consumer and business portfolios

And Moto was going wild!!!

We mapped to provide the blueprint for simplicity

Game-changing• Is this a game-changing offer, upon which the

success of Motorola depends?

Powerful marketing support• Will it receive sustained marketing support over time?

We established strict criteria for creating new proprietary names

Substantial revenue potential• Does it represent substantial current or future revenues?

Unique value proposition• Can any existing strategic sub-brand be

used/extended to successfully position this offer?

A decision tree provided the way forwardGeneric Descriptive Suggestive Arbitrary

Industry-standard terminology, usually the common or class name for the goods or services

Real, recognizable words that describe a product’s function or form; explains what a product is or does

Recognizable words that suggest a product’s attributes or benefits;evokes an attitude

Something new; unusual or invented words that acquire meaning over time

NameQuest, an interactive tool, automated the decision tree

Benefits of name selection criteria for Motorola

• Focused marketing resources behind the company’s key brands

• Restricted the use of unnecessary new brand names

• Simplified use to encourage consistent implementation

• Provided a consistent mind-set across the enterprise

3. Naming frameworks

The challenge:We can own the leadership position in cancer care, research and education. But our naming practices don’t support “one MSK.”

The solution:Create a structure for naming our capabilities and services in a more consistent way that reinforces the Memorial Sloan Kettering brand.

Building blocks for consistent naming constructsFormal Name Memorial Sloan Kettering Cancer Center

Shorthand Memorial Sloan Kettering or MSK

Donor Name Evelyn H. Lauder, Elmer and Mamdouha Bobst, John and Maxine Bendheim, Sidney Kimmel, Clair Tow, Mortimer B. Zuckerman

Specialty/Sub-specialty

―or―

Type of Program/Service

Pediatric Prostate and Urological, Comparative Medicine, Cell Biology, Comparative Medicine and Pathology

Outpatient, Infusion services, Disease management program, HOPP

Capability Cancer Care, Research, Education

Type of Facility Laboratory, Building, Pavilion

Location Commack, Basking Ridge, Sleepy Hollow

We applied consistent framework definitions

Hospital: Whenever possible, this term should be reserved for a main inpatient facility

Memorial Hospital

Center: Freestanding facility or facility within a building for patient care or research

Bendheim Integrative Medicine Center; Zuckerman Research Center

Pavilions, units: Areas within a building that may cover a specific disease state or area of excellence

Rockefeller Outpatient Pavilion; Laura Rosenberg Pediatric Observation Unit

Naming frameworks for facilities

Naming frameworks applied to regional centers

Naming frameworks applied to internal units

Benefits of name selection criteria for MSK

• Improved clarity and consistency in applying medical terminology

• Improved navigation and signage

4. Internal guidance

Do you need a new name?

No you don’t No new name

The challenge:We strive to talk plainly, but our investment names are not always intuitive.

The solution:Create guidelines and a governance process to support the internal organization.

Naming governance

Submit a Trademark Search and Request Form

• Identify client need

• Form product concept

As part of the product development process

• Determine unique attributes of this offer

• Determine positioning

Prepare positioning concept brief

Present positioning brief to Advisory Committee

Approved?

Yes

No

Prepare for brainstorming session to develop name

Note: If positioning research among clients is planned, it may be appropriate to include the name options in the research in order to ensure that the chosen name reinforces both the brand and offering positioning.

Hold brainstorming session

Finalize recommendation

Present positioning brief with proposed name to Advisory committee

No

Secure legal rights, if required

Consult Legal for trademark process

Proceed with product development

Yes

Present 1 to 3 names to business and other stakeholders

Get Legal sign-off

Approved?

Does naming architecture save money?

• This is difficult to quantify, however, simplified internal processes and a reduction in the number of unnecessary trademarks should result in cost-savings over time.

Final takeaways

• Intent is easy...follow through is hard

• Senior level commitment is essential

• Guidelines that are too rigid will fail

• Does it save money? Hard to assess, but logically it must

Questions?

Thank you.@siegelgale

Today’s presenters:

Jeff LapatineStrategy Directorjlapatine@siegelgale.com

Jessica Kirk, Vice Presidentjkirk@siegelgale.com

Related links:

www.siegelgale.com