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luca
sbra
nd
May 2010
Brand Architecture
What is brand architecture?
A virtual framework that locates, connects and holds a family of brands in the optimal relationship for successIt is a decision-making tool to help facilitate efficient and appropriate branding decisionsIt is clarifies, leverages, builds and protects the strength of the company’s corporate and product/service brands
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Brand architecture?
Isn’t a single brand the best option?
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A single ‘monolithic’ brand structure can offer compelling benefits:
‣ Big picture view
Provides a clear reference and accelerates a consistent brand culture
‣ Economies of scale
A focused effort often has more impact and thus economies of scale
‣ Clear parentage
Simpler to recognise, universal credibility, common values
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Brand
Investors
Employees
Customer A
Customer B
Partners
Media
Influencers
Suppliers
Customer C
But how well is the single brand able to successfully connect with all audiences?
Brand architecture conventions
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Product Brand corporate brand
Corporate Brand Product Brand
Product Brand
Corporate Brandproduct descriptor
Branded house
Shared house
House of endorsed brands
House of brands
monolithic
autonomous
Brand architecture conventions
1 Series 3 Series 5 Series 6 Series Z Series7 Series X Series
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Branded house
1 Series 3 Series 5 Series 6 Series Z Series7 Series X Series
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Branded house (with extensions)
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Shared house
House of endorsed brands
overt endorsement covert endorsement
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House of brands
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House of brands
Considerations...
Considerations?
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‣ What are the relative strengths of the house versus the product brands?
‣ How much would be compromised by creating a more coherent group brand presence versus the associated benefits?
‣ How different are the audiences for the various products that currently take a different approach to naming/positioning and to what extent does this merit a different approach to branding?
‣ How different are the future business development strategies for the various offerings. To what extent will this affect the level of autonomy required?
‣ How much variation is there by geographical region? Does this necessitate a different approach to the brand?
‣ How relevant and valuable is the ‘halo’ effect that will be generated by clear endorsement across the branded products and services?
Considerations?
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‣ Are there any incompatibility dissonances that exist between the house brand and the product/service brands? (e.g. Danone and Kronenburg)
‣ Is the product/service offering inhibited in some way by the house brand? (e.g. Bentley and VW)
‣ Do we want to extend the product/service brand into a territory/market that is potentially incompatible with the house brand or in which the house brand might become a negative? (e.g. Head & Shoulders with P&G in Iran)
‣ Will the house brand association inhibit the focused ‘ownership’ of a particular category? (e.g. Go airlines within the BA house)
‣ Is there a distribution conflict whereby the same brand might look incongruous coming from different directions - software from one supplier, consultancy from another? (e.g. Morgan Stanley credit card)
Considerations?
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‣ While monolithic brands (branded house) tend to be stronger, better focused and more cost-effective to develop than autonomous brands (house of brands), they demand a high level of consistency to retain their integrity.
‣ For this reason, a monolithic brand architecture tends to be be less flexible in embracing different product/service propositions and this needs to be taken into account where such flexibility is likely to be a factor in the future.
Example: BMW (monolithic across all BMW-branded products/services) with brand extensions Mini and Rolls-Royce
BMW global homepage (http://www.bmw.com)
BMW group brands (http://www.bmweducation.co.uk/coFacts/view.asp?docID=84&topicID=1)
Brand Types
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Brand types
Mind
Function Benefit Performance Personality Lifestyle
Heart
‣ Brands that tend towards lifestyle rather than function are generally more flexible in embracing different product/service propositions:
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Mind
Function Benefit Performance Personality Lifestyle
Heart
Brand types
