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PROPRIETARY
Framing alternative brand architecture scenarios
by Michael Million
PROPRIETARY
SUBSECTION TITLE
2
Diversified industrial businesses employ a wide variety of brand architectures to consider
Branded House House of Brands
Industrial Automation
Climate Technologies
2
Petro-chemicals
Power Generation
Primary Metals
Network Power
• Corporate equity is primary• Strict visual guidelines
• Division equity is primary
• Flexible visual guidelines
PROPRIETARY
SUBSECTION TITLE
3
GE employs a strong branded house or master brand strategy throughout the enterprise
Business Level
Corporate Level
Product Level
3
Business & GeneralCF700M601
Passport
CommercialCF6CT7
Gas Engines:
Jenbacher
Wind Turbines:4.1-113
Advanced Technology:Discovery
Productivity:Optima
Ease of Use:Brivo
General PurposeEdison
Crystal Clear
Fluorescent:Ecolux
covRGuard
Power Plant:FlexEfficiency 50
Solar Panels:78W80W
MONOGRAMPROFILE
CAFÉSPACEMAKER
How GE introduces itself:GE is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation, and infrastructure,
Take-aways:
• A strong master brand at the corporate level can simplify the portfolio, optimize resources, provide immediate credibility to NPIs, and provide a huge advantage in competitive situations
• Building a strong master brand could take significant resources, time, and commitment
PROPRIETARY
SUBSECTION TITLE
4
Emerson employs a branded house strategy at the business level, but maintains several brands at the product level
Business Level
Corporate Level
How Emerson introduces itself:Emerson is a diversified global manufacturing and technology company. We offer a wide range of products and services in the areas of network power, process management, industrial automation, climate technologies, and tools and storage businesses
Product Level
EmersonMotor
Technologies
EmersonStorage
Solutions
EmersonProfessional
Tools
Emerson Appliance SolutionsNetwork
PowerIndustrial
AutomationClimate
TechnologiesProcess
Management
Take-aways:
• The Emerson approach builds a strong parent brand, telegraphs which markets they are committed to, and provides flexibility for acquisitions and product brands
• While having several benefits, especially for cross-business customers, this approach does very little to structure or simplify a complex product brand portfolio
• Success of this approach depends on significant resources toward building the parent brand and defining the right market categories that are broad but specific enough
4
PROPRIETARY
SUBSECTION TITLE
5
UTC employs a house of few, strong brands at the business level, visually tied to the parent
Business Level
Corporate Level
A United Technologies Company
A United Technologies Company A United Technologies Company
A United Technologies Company
A United Technologies Company
How United Technologies introduces itself:United Technologies Corporation (UTC) is a diversified company whose products include Carrier heating and air conditioning, Hamilton Sundstrand aerospace systems and industrial products, Otis elevators and escalators, Pratt & Whitney aircraft engines, Sikorsky helicopters, UTC Fire & Security Systems and UTC Power fuel cells.
Product Level
5
Commercial Engines:PW2000PW4000
MilitaryEngines:F135
InfinityPerformance
ComfortZone
Military Aircraft:
BLACK HAWKSEAHAWK
Comm. Aircraft:S-76S-92
Power Fuel Cells
Take-aways:
• Establishes an effective balance between a moderately strong parent brand and stronger business level brands – all tied together through a design language
• Minimizes the need for product branding, by establishing (and sticking to) few brands at the business level
• Success of this approach depends on commitment to few, strong business level brands
PROPRIETARY
SUBSECTION TITLE
6
Power Generation
Primary Metals
Rubber Paper Petro-Chemical
Mining Marine
Altra also employs a branded house strategy at the business level, but maintains several product brand names
Business Level
Corporate Level
Product Level
6
How Altra introduces itself:Altra is a leading multinational designer, producer and marketer of a wide range of mechanical power transmission products. Our products are frequently used in critical applications, such as fail-safe brakes for elevators, wheelchairs and forklifts.
Take-aways:
• In an effort to unify and standardize the appearance of the portfolio, Altra might hove gone too far – any equity or individuality in product brands is neutralized in order to gain communication efficiencies
• This approach assumes the “A” symbol is a strong enough visual to carry the entire portfolio. It also diminishes the value and integrity of the logo by attaching to so many products (ubiquity destroys brand equity)
• Simple product line descriptions with brands cutting across those lines aren’t enough to strategically organize the portfolio (this is a visual design / product-driven solution only, and lacks the sophistication required for solution selling)
PROPRIETARY
SUBSECTION TITLE
7
Textron employs a house of brands strategy with each business level brand having a loose link to the parent
Business Level
Product Level
Corporate Level
How Textron introduces itself:Textron is not only one of the world's best known multi-industry companies, it is a pioneer of the diversified business model.
Light TransportationAir Transit Cable Installation Turf Care Automotive Finance Systems
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Citation CJ2+Citation TEN
206L-4407Huey II
TitalTugHaluster
NETcat Cushman SprayTekEclipse 322 HybridTri-King
CamshaftsFuelSystems Aviation
FinancingLending Solutions
Smart Weapons•AirSensor Fuzed Weapon•BLU-108 Universal
Take-aways:
• This is a brand architecture solution for businesses which have no synergies and are targeted at very different customers and markets
• This approach is typically adopted by entities like Textron who act primarily as holding companies with very little shared services, central functions, or common customers
• Equity flow back to the parent is very limited, as each business / brand operates somewhat independently
Business Division Level
PROPRIETARY
SUBSECTION TITLE
8
Three levels of operational depth to considerO
pera
tional D
epth
Operational Level Definitions
1 Marketing Categories Only • A communicative banner that expresses a broader category which brands fall under
• Brands do not rigidly fit under banners; they “float” across them like Emerson or Altra
• P&Ls are tied to brands which float across marketing categories
2 Sales / Solution Categories • A dedicated team charged with selling the entire portfolio (to select large customers) in integrated solutions (value added services plus products)
• A “go-to-market layer” in-between the corporate and brand / P&L levels
• P&Ls are tied to brands which float across solution categories
3 Operational Categories • Complete alignment with organizational structure and P&Ls
• P&Ls are tied to categories AND brands
• Exceptions can come in the form of international distribution arms which carry the entire portfolio, and special brands like Unico which may cut across categories
Marketing Banner
Brand A Brand B
Marketing Banner
Brand C
P&L 1 P&L 2 P&L 3
Corporate Level
Sales/ Solutions
Brand A Brand B
Sales/ Solutions
Brand C
P&L 1 P&L 2 P&L 3
Corporate Level
Category 1
P&L 1
Category 2
Brand A, B
Corporate Level
P&L 2
Brand C, D
P&L 3
Brand E
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