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BRAND

ARCHITECTURE
Corporate Product and Brand
Relationship
Brand Stretching
No Go Limit

Leveraged Extensions
Diversifications

Spontaneous Extensions

Brand
Extension
Core Extensions

Brand
Essence
BRAND RELATIONSHIP
SPECTRUM

Structuring your Brand – Product Matrix to


create healthy brand portfolio.
Linking Brands
 House of Brands

A Branded House

 Sub Brands (under a Master Brand)

 Endorsed Brands
Branded House vs. A House of Brands

Vicks
Tata salt Head & shoulders
Tata Mobile Old spice
Tata Steel Camay
Tata Indiacom Ariel

Tata – The Branded House P&G – A House of Brands


House of Brands
 Branded House vs. House of Brands - the two
extreme ends of alternative Brand Architecture.
 House of Brands strategy – each independent
stand-alone brand creates more market impact.
 P&G, HUL, Marico, Reckitt & Benkiser, Jyothi
Labs, United Spirits etc.
 Allows firms to clearly position brands on their
functional benefits.
Product Branding
 Product Branding is one extreme of branding
continuum.
 It is fiercely driven by customer logic.
 The brand is promoted exclusively so that it
acquires its own identity and image (and adds up
various associations. No multiple products hanging from the
same origin).
 Allows brand to acquire differentiation and
exclusivity.
 Co. name is relegated to backseat (legal /
statutory requirements
Product Branding

Proctor & Gamble


Brand
Head & Old
Ariel Tide Pantene Camy Whisper Vicks
Shoulders Spice

Market Detergent Shampoo Soap Sanitary Balm After


Detergent Napkin shave
Shampoo

Position
Healthy Macho
Hi Tech Hair Cream Hygiene Cold
dandruff
Whiteness protection remedy
Product - Brand Strategy

Reckitt & Benckiser

Brand Cherry
Robin Harpic Lizol Colin Disprin Mansion Brasso
Blossom

Market Shoe Toilet Floor Glass Anal- Floor Metal


Blue
polish Cleaner Cleaner cleaner gesic Polish Polish

Position
A BRANDED HOUSE
 Ina branded house strategy, the brand
moves from being a primary driver to more
dominant one.
 The descriptive sub-brand goes from having
a minority role to little or none at all.
 Eg: Virgin, Sony, Adidas, Honda

 Leverages an established brand name and


requires minimum investments.
 Limitations of Branded House Strategy
 When Brand’s like Levis, Nike and Mitsubishi
are stretched over a wide product line.
 The firms ability to target specific group is
constrained. Compromises happen.
 A significant amount of profits and sales can
get affected, if the mother brand falters.

 Three goals of branded house – clarity,


synergy and leverage.
Line Branding
 Basic Idea in line branding is how the firm
organizes its product portfolio.
 Here brand is the core idea that connect with it’s
consumers.
 Customers do not tend to be contended with one
product. Line brand starts with one product, but
later extends to a set of products which enhance
the brand by reinforcing each other.
 Lakme user wants complementary products which
enhances beauty – body lotion, deep pore cleansing lotion,
lipsticks, nail enamels, eye make up etc.
Line Branding

HLL
Axe

Axe Axe
Axe Axe Axe
Shaving After
Deo Soap Talc
Cream Shave

Share same brand concept and they


do complement each other.
Range Branding
 Line branding restricts the brand’s expansion into
nearby territories of complimentary products.
 Range branding – brands can move beyond
product complimentarity.
 Encompass many products under a single banner.

 All the product’s share a common promise which


stem from the ranges’ area of competence.
 Maggi – noodles, sauce, macaroni's, dosa mix
 Britannia Milkman ---- Ghee, Butter, Milk Shake, Milk,
Cheese.
Range Branding
Himalaya Drug Co.

Ayurvedic Concepts

Health Care Body Care Hair Care Skin Care

Face wash
Ayur slim Antiseptic Hair
Capsules Cream Cleanser Moisturizing
lotion
Digestive Pain Hair
Capsules conditioner Hand & body
Balm lotion
Daily Health Anti-dandruff Deep
Capsules Muscle & cleanser cleansing
Joint Rub lotion
Cough
Syrup Anti-dandruff Pimple
Hair vitalizer Cream
Umbrella Branding
 Particularlyfavored by companies of east –
LG, Mitsubishi, Cannon, Bajaj , Tatas, etc.
 Scores well on economics – less costly;
leveraging common brand name distributes its
investment.
 Makes sense in the current environment
where there is information overload.
 Amul – Bread spreads, Cheese, Mithaee range, UTH
milk, Fresh Milk, Pure Ghee, Infant Milk, Milk Powders,
Chocolates etc
Umbrella Branding

Philips

TV’s Medical

Lighting Hi - Fi

Monitors Mixers

Shaver Irons

Phones
Umbrella Branding

 Umbrella brands represent many things about


many products, but in this age of specialization
what is needed is everything of something.
 From customers point of view, a specialist
brand makes more sense than a generalist
brand.
 Mid size car – Santro, Accent or Indica
 First two are specialists while Tata Indica is a generalist
(brings in images of LCV’s, HCV’s and host of other things).
Source Branding
 Hybrid of umbrella strategy and product-brand
strategy. (also called as Double branding)
 Product is given a brand name and it is combined
with the name of the firm.
 Johnnie Walker – Red label, Green label, Black label &
Blue label
 Both the names enjoy equal importance in brand’s
communication.
 Kellog’s – Corn Flakes, Rice flakes, Wheat flakes are part
of Umbrella branding
 Kellog’s – Frosties, Chocos are Source Branding
Source Branding

Maruti
Suzuki

800 Zen Wagon-R ALTO Esteem Gypsy Baleno


ENDORSER BRANDS
& SUB BRANDS
Endorsed Brands

 Endorsed brands (like House of brands) are


independent, but they are also endorsed by
an organizational brand.
 Courtyard, Fairfield Inn and Marriot.

 Accent, Santro and Hyundai

 Unlike Linked Names as earlier, There can


be also Token Endorsement as in the case of
Trident – Oberoi or Ginger - Taj
 Lexus-Toyota (Shadow Endorsement)
Marriott Brand Architecture

 Marriot Hotels. Resorts. Suites.


 Marriot Residence Inn

 Courtyard by Marriot

 Fairfield Inn by Marriot


Subbrands
 Another powerful brand architectural tool.
 Can make the offering look more differentiated
and appealing to customers, while holding on to
some of the key associations of the parent
brand.
 Can also help the master brand to stretch,
allowing it to enter areas which otherwise it
would not have fit.
 Sub-brand can serve as a descriptor, a driver or a
combination of
 If the brand is purely descriptive, then the
strategy is similar to branded house. Master
brand is the main driver. (Tata Motors, Tata Tea,
Visa Gold).
 If sub-brand also has driver role but of lower
level, then Master brand will take primary role
(Compaq Presario, Maruti Alto, Honda City)
 If the sub-brand is as important as the master
brand – a co-driver situation arises ( Gillette
Sensor, Sony Trinitron, Intel Pentium)
The GE - Appliances
Vertical Brand Architecture
 GE Monogram (Designer/Architects)

 GE Profile (Upscale, High Income)

 GE Appliances (Mainstream Quality seekers)

 Hotpoint (Mainstream – Value seekers)


Brand Architecture
 It shows the organizing structure of the
brand portfolio.
 It specifies the brand roles and the relationship
among brands (say Maruti-Suzuki and Esteem)
and different product-market brand
relationships.
 It is defined by 5 dimensions –

 The brand portfolio, portfolio roles, product


market context roles, the portfolio structure and
portfolio graphics.
Brand Architecture

Brand
Product- Market Portfolio
Context Roles Portfolio Roles
• Strategic brands
•Sub brands
• Linchpin brands
•Benefit Brands
• Silver bullet
•Co Brands Brand • Cash cow brands
Architecture
Brand Portfolio
Structure Portfolio Graphics
• Brand groupings • Logo
• Brand hierarchy trees
• Visual representations
• Brand range

Synergy in
Optimal Leveraged Platform
creating Clarity of
Powerful allocation of brand for future
efficiency offering
brand building assets growth
Brands visibility
resources options
associations
Brand Portfolio
 Brand portfolio includes all the brands and sub brands
attached to product-market offerings.
 This will include co-brands with other brands.

 A basic brand architecture parameter is the


composition of the brand portfolio.
 Each brand requires brand building resources.

 Treating brands as Silos owned by individuals or


organizational units can lead to misallocation of
resources.
Portfolio Roles
A tool to take a more systems view of the brand
portfolio.
 Strategic Brand

 Linchpin Brand

 Silver Bullet

 Cash –cow Brand.

 These roles are not mutually exclusive. A brand


could be simultaneously a linchpin and a silver
bullet brand or it could evolve from a strategic
brand to a cash cow brand.
Portfolio Roles
 Strategic Brand – is one that represents a
meaningful future level of sales and profits.
 It may be currently a dominant brand (mega-
brand) that is projected to maintain or grow its
position or can be small brand with immense
growth potential.
 Airtel for Bharati Tele-Ventures

 i-pods for Apple

 Big Bazaar for Pantaloon retail.


Portfolio Roles
 Linchpin Brand: is the leverage point of a major
business area or of a future vision of the firm.
 It will indirectly influence a business area by
providing basis for customer loyalty
 Taj Businesss Hotels is a linchpin brand for EIH
as it represent future ability to control a critical
segment (Business traveler) in the Hotel
Industry.
 Competitor activities such as rewards programme
by Welcom group, Trident etc can put Taj on
strategic disadvantage.
Portfolio Roles
 Silver Bullet – is a brand or a sub brand that
positively influence the image of another brand.
 It can be a powerful force in creating, changing
or maintaining a brand image.
 IBM Think Pad – the innovative product
generated significant boost to IBM’s public
image. Think Pad’s sales represent only a
minute percentage of IBM’s total sales.
 Hero Honda - Karizma
Portfolio Roles
 Cash Cow Brands: Strategic, Linch pin and
silver bullet brands involve investment and
active management.
 Cash cow brands has significant customer base
that does not require the investment that other
portfolio brands require.
 Even though sales are stagnating or declining
there exists a loyal core of customers who are
unlikely to leave the brand.
 Generates resources for investing in other
brands.