Brand architecture
Encyclopedia
Brand architecture is the structure of brand
s within an organizational entity. It is the way in which the brands within a company’s portfolio are related to, and differentiated from, one another. The architecture should define the different leagues of branding within the organization; how the corporate brand and sub-brands relate to and support each other; and how the sub-brands reflect or reinforce the core purpose of the corporate brand to which they belong. According to Rajagopal
and Sanchez Brand architecture may be defined as an integrated process of brand building through establishing brand relationships among branding options in the competitive environment. The brand architecture of an organization at any time is, in large measure, a legacy of past management decisions as well as the competitive realities it faces in the marketplace.
A recent example of brand architecture in action is the reorganization of the General Motors brand portfolio to reflect its new strategy. Prior to bankruptcy, the company pursued a corporate-endorsed hybrid brand architecture structure, where GM underpinned every brand. The practice of putting the "GM Mark of Excellence" on every car, no matter what the brand, was discontinued in August, 2009. In the run-up to the IPO, the company adopted a multiple brand corporate invisible brand architecture structure. The company's familiar square blue "badge" has been removed from the Web site and advertising, in favor of a new, subtle all-text logo treatment.
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
s within an organizational entity. It is the way in which the brands within a company’s portfolio are related to, and differentiated from, one another. The architecture should define the different leagues of branding within the organization; how the corporate brand and sub-brands relate to and support each other; and how the sub-brands reflect or reinforce the core purpose of the corporate brand to which they belong. According to Rajagopal
Rajagopal (professor)
Rajagopal is a Professor of Marketing at the EGADE Business School. He teaches various topics of marketing in undergraduate, graduate, doctoral and executive development programs at the institute....
and Sanchez Brand architecture may be defined as an integrated process of brand building through establishing brand relationships among branding options in the competitive environment. The brand architecture of an organization at any time is, in large measure, a legacy of past management decisions as well as the competitive realities it faces in the marketplace.
Types of brand architecture
There are three key levels of branding:- Corporate brandCorporate brandingCorporate branding is the practice of using a company's name as a product brand name. It is an attempt to use corporate brand equity to create product brand recognition. It is a type of family branding or umbrella brand. Disney, for example, includes the word "Disney" in the name of many of its...
, umbrella brandUmbrella brandAn umbrella brand is an overarching brand used across multiple related products. Umbrella branding is also known as family branding. It contrasts with individual product branding, in which each product in a portfolio is given a unique brand name and identity....
, and family brandFamily brandingFamily branding is a marketing strategy that involves selling several related products under one brand name. Family branding is also known as umbrella branding...
- Examples include Virgin GroupVirgin GroupVirgin Group Limited is a British branded venture capital conglomerate organisation founded by business tycoon Richard Branson. The core business areas are travel, entertainment and lifestyle. Virgin Group's date of incorporation is listed as 1989 by Companies House, who class it as a holding...
and HeinzHeinzHeinz may refer to:People with the surname Heinz:*Drue Heinz, American arts patron*H. John Heinz III , U.S. senator from Pennsylvania*H. John Heinz IV , eldest son of Senator John Heinz...
. These are consumer-facing brands used across all the firm's activities, and this name is how they are known to all their stakeholders – consumers, employees, shareholders, partners, suppliers and other parties. These brands may also be used in conjunction with product descriptions or sub-brands: for example Heinz Cream of Tomato Soup, or Virgin TrainsVirgin TrainsVirgin Trains is a train operating company in the United Kingdom. It operates long-distance passenger services on the West Coast Main Line between London, the West Midlands, North West England, North Wales and Scotland...
. - Endorsed brands, and sub-brands - For example, NestleNestléNestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
KitKat, Cadbury Dairy Milk, SonySony, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
PlayStationPlayStationThe is a 32-bit fifth-generation video game console first released by Sony Computer Entertainment in Japan on December 3, .The PlayStation was the first of the PlayStation series of consoles and handheld game devices. The PlayStation 2 was the console's successor in 2000...
or Polo by Ralph LaurenRalph LaurenRalph Lauren is an American fashion designer and business executive; best known for his Polo Ralph Lauren clothing brand.-Early life:...
. These brands include a parent brand - which may be a corporate brandCorporate brandingCorporate branding is the practice of using a company's name as a product brand name. It is an attempt to use corporate brand equity to create product brand recognition. It is a type of family branding or umbrella brand. Disney, for example, includes the word "Disney" in the name of many of its...
, an umbrella brandUmbrella brandAn umbrella brand is an overarching brand used across multiple related products. Umbrella branding is also known as family branding. It contrasts with individual product branding, in which each product in a portfolio is given a unique brand name and identity....
, or a family brandFamily brandingFamily branding is a marketing strategy that involves selling several related products under one brand name. Family branding is also known as umbrella branding...
- as an endorsement to a sub-brand or an individual, product brand. The endorsement should add credibility to the endorsed sub-brand in the eyes of consumers. - Individual product brandIndividual brandingIndividual branding, also called individual product branding or multibranding, is the marketing strategy of giving each product in a portfolio its own unique brand name. This contrasts with family branding, corporate branding, and umbrella branding in which the products in a product line are given...
- For example, Procter & GambleProcter & GambleProcter & Gamble is a Fortune 500 American multinational corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods....
’s PampersPampersPampers is a brand of baby products marketed by Procter & Gamble. Pampers was at one time only used as a name for a disposable diaper.-Products:...
or UnileverUnileverUnilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products....
's DoveDove (brand)Dove is a personal care brand owned by Unilever.Dove products are manufactured in Argentina, Australia, Brazil, Canada, Germany, India, Ireland, Netherlands, Thailand, Turkey and United States. The products are sold in more than 35 countries and are offered for both women and men.. The Dove...
. The individual brands are presented to consumers, and the parent company name is given little or no prominence. Other stakeholders, like shareholders or partners, will know the producer by its company name.
A recent example of brand architecture in action is the reorganization of the General Motors brand portfolio to reflect its new strategy. Prior to bankruptcy, the company pursued a corporate-endorsed hybrid brand architecture structure, where GM underpinned every brand. The practice of putting the "GM Mark of Excellence" on every car, no matter what the brand, was discontinued in August, 2009. In the run-up to the IPO, the company adopted a multiple brand corporate invisible brand architecture structure. The company's familiar square blue "badge" has been removed from the Web site and advertising, in favor of a new, subtle all-text logo treatment.
Strategic Considerations
Deciding what strategy to pursue in structuring the company brand portfolio depends on the answer of a number of strategic issues. According to the article Brand Architecture: Strategic Considerations, the issues to consider include:- Audience Diversity What are the target segments for your brand? Is the brand focused on just one audience or must it appeal to many?
- Brand Elasticity How far can each of the brands stretch to cover different products and markets? Harley Davidson made a classic blunder applying their brand to wine coolers.
- Product/Service Offerings How are other brands in the portfolio positioned and targeted? Are some of your brands complementary, competitive or incongruent?
- Competitive Context What are competitive branding practices? How do customers view the marketplace? Do your brands help you stand out and grab market share?
- Brand Equities Do you have brands with a particular following or a unique heritage or equity must be carried forward?
- Geographic Needs How consistent are needs/preferences across cultures and markets? Strong local brands might not work in other countries. Not every brand can “travel”.
- Organizational Structures Who is accountable for branding practices and standards? What are the political realities behind brands in your portfolio?
- Ownership Does the organization have legal control over its brand? You’ll have less leeway with licensed brands.
- Sources of Growth What businesses and brands are expected to drive future growth for your company? Are they helping you pursue your strategy?
- Purchase Criteria How do people buy your products? Do they ask for products by brand name or do they ask for a generic name or your company brand name? Do your brands make buying easier? How much do people want or need your brands?
- Brand Performance How do brands perform against desired attributes? Is their positioning clear and effective?
- Brand Role What is role of brand in fulfilling the business model? How important is the brand in driving awareness or creating loyalty?
- Channels What channels and distribution methods are available and how are they used across the brand portfolio?
- Company Specific Issues What considerations are specific to your company or industry? What might be technically correct might not be feasible in the reality of your company. Sometimes theory has to bow to practicality.
See also
- Umbrella brandUmbrella brandAn umbrella brand is an overarching brand used across multiple related products. Umbrella branding is also known as family branding. It contrasts with individual product branding, in which each product in a portfolio is given a unique brand name and identity....
- Family brandingFamily brandingFamily branding is a marketing strategy that involves selling several related products under one brand name. Family branding is also known as umbrella branding...
- Corporate brandingCorporate brandingCorporate branding is the practice of using a company's name as a product brand name. It is an attempt to use corporate brand equity to create product brand recognition. It is a type of family branding or umbrella brand. Disney, for example, includes the word "Disney" in the name of many of its...
- Brand managementBrand managementBrand management is the application of marketing techniques to a specific product, product line, or brand.The discipline of brand management was started at Procter & Gamble as a result of a famous memo by Neil H...
- Integrated marketing communicationsIntegrated Marketing CommunicationsIntegrated Marketing Communications is defined as customer centric, data driven method of communicating with the customer. IMC is the coordination and integration of all marketing communication tools, avenues, functions and sources within a company into a seamless program that maximizes the impact...
- Brand languageBrand languageBrand language is the body of words and systems for their use in written and verbal communication associated with an organisation and/or its separate product offerings or business units. Brand Language consists of brand vocabulary and brand tone of voice...
- Individual brandingIndividual brandingIndividual branding, also called individual product branding or multibranding, is the marketing strategy of giving each product in a portfolio its own unique brand name. This contrasts with family branding, corporate branding, and umbrella branding in which the products in a product line are given...
- Personal brandingPersonal brandingPersonal branding is, for some people, a description of the process whereby people and their careers are marked as brands. It has been noted that while previous self-help management techniques were about self-improvement, the personal branding concept suggests instead that success comes from...
- Aspirational brandAspirational brandIn consumer marketing, an aspirational brand means a large segment of its exposure audience wishes to own it, but for economical reasons cannot...
- Brand aversionBrand aversionBrand aversion is an antonym of brand loyalty. It is when a consumer experiences distrust or a disliking of products from a particular brand based on past experiences with that brand and its products, similar to taste aversion....
- Brand communityBrand communityA brand community is a community formed on the basis of attachment to a product or marque. Recent developments in marketing and in research in consumer behavior result in stressing the connection between brand, individual identity and culture. Among the concepts developed to explain the behavior of...
- Brand engagementBrand engagementBrand engagement is a term loosely used to describe the process of forming an attachment between a person and a brand. It comprises one aspect of brand management...
- Brand loyaltyBrand loyaltyThe American Marketing Association defines brand loyalty as:# The situation in which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category .# The degree to which a consumer consistently...
- Brand implementationBrand implementationBrand implementation refers to the physical representation and consistent application of brand identity across visual and verbal identity carriers. In visual terms, this can include signage, uniforms, liveries, interior design and branded merchandise...
- Brand orientationBrand orientationBrand orientation is a deliberate approach to working with brands, both internally and externally. The most important driving force behind this increased interest in strong brands is the accelerating pace of globalization. This has resulted in an ever-tougher competitive situation on many markets....
- Branding faith
- Designer labelDesigner labelThe term designer label refers to clothing and other personal accessory items sold under an often prestigious marque which is commonly named after a designer. The term is most often only applied to luxury items...
- Employer brandingEmployer brandingThe term employer brand was first used in the early 1990s to denote an organisation’s reputation as an employer. Since then, it has become widely adopted by the global management community...
- Generic brandGeneric brandGeneric brands of consumer products are distinguished by the absence of a brand name. It is often inaccurate to describe these products as "lacking a brand name", as they usually are branded, albeit with either the brand of the store in which they are sold or a lesser-known brand name which may...
- List of oldest companies
- Name generator
- Naming firmsNaming firmsUnlike their full service marketing counterparts, naming firms specialize entirely in the linguistic art/science of creating product and company names. Currently there are about 50 naming firms globally. Naming has become big business, with some larger companies investing upwards of $500,000 to...
- TrademarkTrademarkA trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...
- Global Brand Identification Number