Brand Architecture – Aaker’s Model

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BRAND ARCHITECTURE – Aaker’s Model

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Brand Architecture

Brand Portfolio

Brand-Market Context Roles

•Subbrands•Benefit brands•Co-brands

Portfolio Roles

•Strategic brands•Linchpin brands•Silver bullets•Cash cow brands

Brand Portfolio Structure•Brand Groupings•Brand hierarchy trees•Brand range

Portfolio Graphics•Logo•Visual presentation

Powerful brands

Optimal allocation of brand building

resources

Synergy in creating: visibility, efficiency

Clarity of offering

Platforms for future

growth options

Includes all the brands & subbrands attached to product-market offerings, including co-brands with other firms.

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The Boston Consulting Group’s Growth-Share Matrix

20%-20%-18%-18%-16%-16%-14%-14%-12%-12%-10%-10%- 8%-8%- 6%-6%- 4%-4%- 2%-2%- 00M

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th R

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Cash cow

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Dogs

10x 4x 2x 1.5x 1x 10x 4x 2x 1.5x 1x

Relative Market Share.5x .4x .3x .2x .1x .5x .4x .3x .2x .1x

Stars

(Strategic Brand) (Linchpin Brand)

(Silver Bullet)

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Product-Market Context Roles

• Sub brand Roles – A master brand is the primary indicator of the offering, the point of reference. They may become the reason for cannabilization

• Benefit Brands – The benefit brand is a branded feature.– Example: Oral-B toothbrushes – PowerTip Bristles

• Co-Brands – Occurs when brands from different organizations combine to create an offering in which each plays a driver role.– Examples: Sony Erricsson

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Brand Portfolio Structure

• Brand Grouping: Grouping of brands that have a meaningful characteristics in common – Segment: Men or women– Product: Clothing,healthcare etc– Quality: Designer to premium– Design: classic or contemporary

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Brand Portfolio Structure • Brand Hierarchy Tree: Brand family

Colgate Toothpaste

Colgate Mouth rinse

Colgate

Classic

Colgate Toothbrush

Colgate Dental Floss

Plus Precision

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Brand Portfolio Structure

• Brand Range:

Kraft Products include : – Master brand products :Cheese, Mayonnaise,

Salad dressing and Barbeque Sauce– Sub brands: Shake and Bake, Oscar Mayer,

Post

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Portfolio Graphics

• Visual representations across brands and contexts:– Logo – Packages – Symbols– Product design

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Brand Architecture Obj.

• Create effective powerful brands

• Allocate brand-building resources

• Create Synergy

• Achieve clarity of product offering

• Provide a platform for future growth

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Horizontal Extension

FITADDEDVALUE

ENHANCEDBRANDEQUITY

•Customers must be comfortable with the brand in the new setting.

•Bases: product associates, ingredient, attribute, application, user, expertise, designer image.

•The brand name alone should help customers articulate why the offering is superior to other brands.

•The brand equity should be enhanced by the brand’s presence in another context -- not only from increased visibility but also from the associations generated.

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Vertical Extension

To participate in a large & growing value market

Product vitality A vertical stretch is particularly tricky because perceived quality is involved.

Risk to brand’s reputation & customer base

Cannibalization

Lack of credibility

Competitor price wars

ADVANTAGES DISADVANTAGES

Aaker, David A. Brand Leadership. 2000

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Brand Architecture Audit

• Systematic way to identify problems or issues that merit further analysis.

• List of questions to answer• First Stage: Business Analysis

– What are the strategic initiatives?

– What businesses and segments are important financially and strategically?

• Second Stage: 5 dimensions of brand architecture

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Five Dimensions

Dimension Action Item

Brand Portfolio Inventory existing brands and subbrands.

Portfolio RolesIdentify brands playing strategic roles (cash-cow, etc.)

Product-Market Context RolesLook at use of subbrands, branded benefits, co-brands.

Brand Portfolio Structure Create brand grouping or hierarchy tree.

Portfolio GraphicsLay out a sample of the way that the brands are presented visually.