Using brand architecture to extend the brand by ri

Using brand

architecture to

extend the brand

2

Brand

Leadership

Organisational

structure • brand nurturing

• common set of inputs,

outputs, vocabulary

• share learnings

Brand architecture • brand portfolio

• sub-brands

• endorsed brands

Brand identity & position • aspirational image

• positioning

Brand building

programs • accessing multiple media

• achieving brilliance

• integrating the

communication

• measuring the results

Source: David Aaker and Erich Joachimsthaler

Routes to brand leadership

Realise brand identity

Inspires brand building

3

Brand architecture

the

organisational structure

of

brand portfolio

4

• create synergy

• clarify product offerings

• leverage brand equity

• create effective and powerful brands

• allocate brand building resource

• establish platform for future growth

Brand architecture objectives

5

Good brand architecture

• brands managed together-

the role of each determined

• clarity in consumer offering

• synergy in brands &

communication

• ability to leverage brand

assets

• support brand stretch

Bad brand architecture

• no defined ‘role’ for

brands

• confused set of offerings

• communication

inefficiency

Brand architecture outcomes

7

Brand strategy - relationship spectrum

Endorsed

brands

Token

endorser

Linked

name

Strong

endorser

Sub

brands

Co-

drivers

Master

brand

driver

House of

brands

Not

connected Shadow

endorser

Extreme

Independent

stand alone

brands

Branded

house

Different

Identity

Same

identity

Extreme

Uses single

master brand.

Descriptor sub

brands

High Negligible Low High Complete Brand

separation

High Dominant

driver Major

driver

Minor

driver Negligible

Master

brand

8

Branded

house

Brand strategy - relationship spectrum 1

• Advantages

– leverage master brand

– requires less investment on new offering

–maintains clarity and synergy across portfolio

• Disadvantages

– stretch over wide products reduces ability to

target specific groups.

– problems with master brand affect total

portfolio

9

• Advantages

– sub brand adds relevant association

– stretch the master brand

– signal new offering is novel

– alter image of master brand in terms of

association, energy, personality or consumer

connection

Sub

brands


10

• Advantages

– endorser adds credibility and reassurance to

sub brand

–minimise risk to endorser

– can add value to Endorser brand in long run

Endorsed

brands


11

• Advantages – target niche market with functional benefit – avoid brand incompatible association – signal breakthrough – new powerful name - reflect product benefit – avoid channel conflict

House of

brands


•Disadvantages –sacrifice:

–economies of scale –brand synergy –brand leverage

12

Branding strategy-6 management models • Product brand

– assignment of a particular name to one product with exclusive positioning

•Umbrella brand – same brand supports

several products in different markets

• Line brand – one coherent product

under a single name with many complementary products

•Range brand – single brand name which

promotes a single promise.

• Source brand – similar to umbrella brand

but products are directly named.

•Endorsing brand –master brand - smaller

role provides credibility, & acts as a guarantee.

13

Corporate umbrella brand

Corporate endorsing brand

Corporate source brand

Umbrella brand

Endorsing brand

Source brand

Range brand Line brand

Product brand

Lean Cuisine Studio line

Calvin Cline Obsession

Nestle Kit Kat

Canon cameras

Bra

nd

fu

nc

tio

n -

in

dic

ato

r o

f o

rig

in

Brand function - product differentiation

Branding strategy-6 management models

14

Bra

nd

str

etc

h

Super premium

Premium

Middle / standard

Value

Enjoys higher margins and

brand vitality

Often struggle to differentiate

and credibly communicate

upscale message

Cost parity crucial and

small margins.

Use brand architecture to extend vertically

15

Vertical brand extension • Create a new brand

– requires large initial investment

• Stretch a brand upwards

– master brand must be credible and distinctive

• Introduce a sub brand

– master brand must be credible and prestigious

– premium and super-premium must differ on functional

benefits

• Endorse a brand

– leverages master brand but reduces risk

– often suitable when moving downwards

• Purchase a ‘relevant position’ brand

– if new association adversely affects master brand

Super

premium

Premium

Middle/

standard

Value

16

Horizontal brand extension

• Criteria for establishing if a brand can extend horizontally:

– Fit

– Master brand will add value

– Presence in the market will enhance the master brand’s

equity

• The more tied the master brand is to a product class, the more

limited the potential for extension

• Leverage of master brand is enhanced by moving from a

functional relationship to deeper, emotional one.

Category x

Category x

Category y

17

CLARITY BRAND PYRAMID

Product Attributes

Functional Benefits /

Needs

Affinity /

Personality

22.4%

45.0%

Share of

brand clarity

32.6%

18

Brand extension

• Case-Study UK Detergents

23

Persil Bio. tab

Persil Non Bio tab

Persil Bio. conc lq

Comfort Vitality (Bright Yellow)

Ariel Colour conc lq

Ariel Colour conc pw

Ariel conc pw

Ariel unspec.

Ariel conc lq

Persil Bio. std pw

Ariel std LS pw

Bold Lq

Persil Colour conc pw

Persil Non Bio. std pw

Lenor (any)

Comfort original (Blue)

Brand strengths as detergent

24

Comfort Pure (White)


Comfort Silk (Pink)


Persil Bio. tab

Lenor (any)

Persil Non Bio tab

Comfort (unspec.)

Persil Bio. conc lq

Lux Flakes

Persil Bio. std pw

Ariel Colour conc lq

Bold Lq

Fairy conc pw



Brand strengths as softener

25

Persil Bio. tab

Persil Bio. conc lq


Ariel unspec.

Persil Bio. std pw

Bold Lq


Persil Colour std pw

Bold conc pw

Daz conc lq

Daz Colour conc pw

Daz conc pw

Radion std pw

Fairy conc pw

Surf std pw

Dreft Pw

Functional and emotional strengths Detergents indexed 0-100

Emotional

Functional

All brands shown

26


Persil Non Bio tab

Ariel unspec.

Persil Bio. conc lq

Ariel conc pw

Bold unspec.

Bold conc pw

Persil Bio. std pw

Persil Colour std pw


Bold std pw

Radion conc pw

Surf conc pw

Dreft Pw

Surf std pw

Fairy conc pw

Correlation 1

Emotional profile of

detergent brands

with drivers of

detergent and

softener markets

Detergent drivers

Softener drivers

All brands shown

27

Correlation 2

Emotional profile of

softener brands

with drivers of

detergent and

softener markets

All brands shown

Detergent drivers

Softener drivers

Lenor (any)

Comfort (unspec.)


Comfort Silk (Pink)

Comfort Pure (White)

Sainsbury’s own Label (any)


Tesco’s own label (any)

Other shop’s own label 1

Bounce sheets

28

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5 Removes stains first time

Keeps coloureds looking bright Is gentle on clothes

Has a smell I like

Helps prevent fibres from bobbling

Makes whites really white

Is kind to hands

Has the right amount of lather

Is completely rinsed out after the wash/leaves no residue

Leaves a long lasting fragrance

Makes clothes look good Keeps clothes hygienically clean

Suitable for my machine Saves time

Does not cause skin irritation or rashes

Is environmentally friendly

Is economical in use

Helps clothes last longer

Is a brand I can trust

Costs a little less than most other products

Not messy in use

Makes clothes smell

fresh and clean

Dissolves easily Is recommended

Ariel Bold Daz Persil

Detergents brand performance Functional attributes 0-10 scale

29

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0 Makes clothes softer

Helps keep clothes in good condition

Makes clothes comfortable to wear

Has a smell I like from the bottle

Is environmentally friendly

Reduces static on clothing

Leaves clothes less creased

Is safe on skin

Is not messy in-use

Helps prevent skin irritation and rashes Makes clothes easier to iron Helps take extra care of family's clothes

Keeps coloured clothes looking bright

Makes clothes smell fresh and clean

Is a recommended brand

Leaves a long lasting fragrance

Makes clothes look good

Helps clothes last longer

Is economical in use

Is a brand I can trust

Costs a little less than

Lenor (any)

Sainsbury’s own Label (any) Comfort Pure (White)


Softeners brand performance Functional attributes 0-10 scale

Comfort Silk (Pink)


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Using brand architecture to extend the brand by ri