Brand Architecture / Brand Extensions

Ω Brand Relationship SpectrumΩ Brand Extensions

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Family Versus Multiple Brands

• Multiple (Individual) Brands – To Avoid Conflicts in Channels– To Avoid Confusion Between Segments– Different brand names if different target

segments accessed via different channels and or products

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Why Create A New Brand?

• Creating/Opening a New Category…• Entering an Established Category with no Co-

optable 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?

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Basics of Brand Architecture: The Brand Relationship Spectrum

• An organizing architecture• Creating Brands is expensive/takes time.• Not every offering is a brand• Often better to add to a single brand,

rather than proliferate brands• “Ingredient Branding”:

The power of multiple brands…

Brand Relationship Spectrum

Branded House

Sub-BrandsEndorsed Brands

House of Brands

Independent Brands, Each working in their own right, belonging to a “Remote” parent firm

House of Brands

Shadow Endorser

Not Connected

Tide (P&G)

Accura (Honda)

Touchstone (Disney)

Independent Brands held by a remote parent company

Nutrasweet (Searle)

RCA (GE)

Saturn (GM)

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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”

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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 Ariel Ivory Cascade

Brand Relationship Spectrum

Branded House

Sub-BrandsEndorsed Brands

House of Brands

Strong Brands on their own, strengthened in a customer-relevant way by an association with the parent brand

Endorsed Brands

Strong Brands on their own-in their segment, strengthened by the master brand

Strong Endorsement

Linked NameToken/Remote Endorsement

Courtyard by Marriott

Obsession by Calvin Klein

Walkman by Sony

Nestea

McMuffin

MaxPacks

Grape Nuts from Post

Dockers, by Levi’s

Universal Pictures, a Sony Company

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Endorsed Brands

• Independent• Can provide Relevant Support – Degree of

relevant support determines level: Token, Linked Names, Strong

• Can Build Strength for both brands

Brand Relationship Spectrum

Branded House

Sub-BrandsEndorsed Brands

House of Brands

Separate, Strong Brands – tied to and synergistic with – the parent brand

Sub-Brands

Separate Brands tied to Master Brand, Sub-ordinate and Synergistic

Master Brand as Driver

Co-Drivers

Gillette Mach 3 – (Powerful Product Brand)

Sony Trinitron

DuPont Stainmaster (Powerful Ingredient Brand)

Buick LeSabre

HP Deskjet

Penn State Smeal (?)

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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 Relationship Spectrum

Branded House

Sub-BrandsEndorsed Brands

House of Brands

Parent Brand Drives, products under it are named following their benefits or specifications

Branded House

Same IdentityDifferent Identity

BMW

Healthy Choice

Virgin

Penn State MBA (?)

GE Capital, GE Appliance

Nestle Coffee, Morsels

Levis – Europe/US

Parent Brand the driving Branding element

Smeal (?)

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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

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Brand Separation Criteria…

Branded House:• Synergy in product

line• Combined visibility

and relevance• Single brand

visibility, concentration of resources

House of Brands:• Eclectic product mix • Risky product

categories• Channel conflict

potential• Business model

supports creation of a brand

Introduction

• Persons identity serves to provide direction, purpose & meaning for that person

• Similarly Brand identity provides direction, purpose & meaning to the brand

• Central to brand’s strategic vision..

Meaning

• It is the unique set of brand associations that a brand strategist aspires to create or maintain

• Associations represents:• What brand stands for• Implies a promise to customers from the

organization members

• Ex: Dominos Pizza

Why Brand Identity??

• To establish relationship between brand & customer

• How??• By generating value proposition involving:• Functional• Emotional• Self Expressive benefits

The Identity Structure

• B. Identity has – Core & Extended Identities

Core Identity

• Represents timeless essence of brand

• Analogy: center that remains after you peel away onion layers

• Ex: Tata – trust, quality

• Central both to meaning & success of brands..

Core Identity

• Associations remain more constant as brand travels to new markets & pdts

• Core – lasts long• Ex: Bajaj – Hamara Bajaj

• B. Position , Communication strategies & also extended identity might change but core remains unchanged..

Core Identity

• Core identity follows from questions:

• Soul of the brand?

• Values that drive the brand

• Core competencies

• Organization behind the brand stand for..

Core Identity

• Should include elements that makes brand unique & valuable

• Should contribute to value proposition…

Extended Identity

• Includes elements that provide completeness to the brand

• Important elements of brands marketing program be included

• To add useful detail to complete the picture….