Brand Architecture

In Search of Organization and Clarity

Why is brand architecture important?

• Brand architecture is an integral piece of acompany’s brand strategy that specifies thetype, number, relationship and purpose ofbrands within an overall business portfolio

• A coherent brand architecture can provideclarity to the multiple stakeholders whoinfluence a company’s success and buildvalue by utilizing synergy and leverageacross a business

Client issues that drive the needfor brand architectureCorporate Mergers

– Acquisitions require adjustments or rebrandingBrand Rationalizations

– Clutter or competitive pressure creates the need to clarify corporatereputation or market focus

Brand Extensions– Entry into a new business, product category, channel and or new

geographyChanging Competitive Landscape

– Convergence (telco vs. cable)– Technology– Economic factors (outsourcing, global competition)– Distribution

New Marketing Approach– Amex decides to issue through banks

Examples of brand architecturedeliverables• A system to organize multiple brand names and

hierarchies• A determination as to how best to associate the

corporate brand with individual lines of business oracross a product portfolio

• A brand portfolio optimization strategy based onbrand valuation scenarios

• A disciplined approach to brand guidelines and toensure buy-in and consistent management

Factors that affect architecture1. Ownership

2. Sources of growth

3. Brandscape

4. Audience diversity

5. Purchase criteria

6. Brand performance

7. Brand permissions

8. Brand role

9. Channels

10. Geographic markets

11. Organization structure

• Does the organization have legal control over the brand?

• Which business/brands are expected to grow into thefuture?

• What are company and competitor branding practices?

• What are target characteristics across the portfolio?

• What are key purchase criteria and desired providerattributes?

• How do brands perform against desired attributes?

• How elastic are company brands? What permissions exist?

• What is role of brand in fulfilling the business model, e.g.,revenue or loyalty producing asset, etc.?

• What channels are available and how are they used?

• How consistent are needs/preferences across localcultures?

• Who is accountable for setting branding practices andstandards?

Organizing Principles

• Several potential factors are considered whendefining theorganizing principle:– Competency– Price– Quality– Usage– Audience– Feature– Channel– Geography

Brand Architecture Guidingprinciples• Align business strategy and brand positioning for the

future• Dictated by company strategy and relevant

customer/stakeholder perspectives (vs. internal brandorganization)

• Based on definable judgment criteria• Able to create financial brand value over time• Able to foster increased demand generation• Applicable across all countries and regions• Able to address changes in the industry/category and

support company strategy over time

Brand Architecture Spectrum

Diversified Hybrid

Brand Architecture Options

Unitary

X

X XX

X

A BX

X

B CA

Organized By Competency

• Applicationmanagement

• Businessprocesses

• Organizationand culture

• Continuity andrecovery

• E-businesshosting

• Networking• Wireless

• Applicationmanagement

• Businessintelligence

• CRM• Dynamic

workplaces

Offerings

On-demandservices

Infrastructureservices

Businessconsultingservices

Competency

Brand

Organized By Quality Level

• S430• S55 AMG• S600

• E320• E500• E55 AMG

• C230• C320• C32 AMG

Offerings

S-classE-classC-classQualityLevel

Brand

Brand Decision Tree (Example)IndustryPractices

OfferingCharacteristic

s

AudienceNeeds

CorporateFactors

No proprietary name orbrand requirede.g., Masterbrand +“descriptor”

A brand or proprietaryname is justified, detachedfrom the market brand e.g.,“brand or proprietary name”(stand alone)

Will the offeringadd value tothe masteror market brands?

Will the offeringrepresent a significantrevenue stream?

Will the offeringrepresentsignificant growthin the future?

Is thereenough budgetto build/sustainthe brand?

or

or

Do competitorstreat the offeringas a brand?

Do target audiences perceive strong equity in the offerings?

Is this offeringunique?

Is there an audiencethat could negatively react to or affect the brand?

Yes

Yes

Yes

Yes

NoNo

NoNoNo

Can this offeringdevelop strong equity in target audiences?

A brand or proprietaryname is justified linked tomarket brand e.g.,

Yes

No

Yes

No

Yes

“Brand/proprietary name”by Masterbrand

Masterbrand + “brand or proprietary name”

or