Brand Architecture

Brand Promise

• Brands thrive on their ability to deliver

on a compelling brand promise.
• To provide superior delivery of desired
benefits in ways that can’t be matched
by another other brand or firm.
• By aligning their brand architecture
strategy with their brand promise and
product development strategies, brands
need to bring in clarity to the consumer
marketplace and to financial markets.
Brand Promise - Virgin

• Virgin’s businesses organized into 7 categories:

Entertainment, Health & Wellness, Leisure, Money,
People & Planet, Telecom & Tech and Travel.
• In all that they do, Virgin’s brand promises is to be
the “champion of the consumer” – to go into
categories where consumer needs are not well met
and to do things differently and do different things
to better satisfy them.
Brand Portfolio Strategies
• Brand portfolio strategy involves the design, deployment, and
management of multiple brands as a coordinated portfolio of meaning-
based assets that address the needs of diverse customers in a
marketplace and maximize return while minimizing risk.
• It directs allocation of investment across brands, identifies
underperforming brands as candidates for pruning or revitalization, and
pinpoints gaps in the portfolio that indicate growth opportunities for
new brands.
 Brand Portfolio guides Brand Architecture
• Brand architecture is the blueprint for the brand’s interdependent relationships, reflecting and facilitating the
company’s strategy.
• It has an external and internal audience.
Brand Portfolio Strategies
• Mono –Brand Portfolio
• Multi- Brand Portfolio
• Sub-Branding
• Endorsed Branding
 Brand Architecture Spectrum
Mono Brand Portfolio Multi Brand Portfolio
Endorsed Brands

Cobrand/Ingredient Explicit Implicit Shadow

Branded House of
Sub brands Endorsement Endorsement Endorsement
House Brand Brands

Sony Starwood Hotels &

Dell Inc. Kellogg Company Google Inc
Apple Inc Corporation Resorts Worldwide, The Procter &
Inc. Gamble
Company

PlayStation Intel Core 2 Kellogg’s Pop-Tarts YouTube Westin

Closely Not
Linked Linked
 Branded House

• Branded house consists of one brand name

that is used to identify all products and
services offered by the company.
• Mostly the company name is used to unify,
consumer facing brand experiences.
Branded House
Branded House

• Branded house benefits from supply side

economics and demand side benefits.
• Risks are high wrt -
✓ Brand Reputation Risk
✓ Brand Dilution Risk
 Brand Architecture Spectrum
Mono Brand Portfolio Multi Brand Portfolio
Endorsed Brands

Cobrand/Ingredient Explicit Implicit Shadow

Branded House of
Sub brands Endorsement Endorsement Endorsement
House Brand Brands

Sony Starwood Hotels &

Dell Inc. Kellogg Company Google Inc
Apple Inc Corporation Resorts Worldwide, The Procter &
Inc. Gamble
Company

PlayStation Intel Core 2 Kellogg’s Pop-Tarts YouTube Westin

Closely Not
Linked Linked
House of Brands

• Does not use corporate brand as a

consumer facing brand, instead individual
brand names are created to mark different
products, lines .
• Every brand lives in its own house.
House of Brands
House of Brands

• Using more than one brand allows orgn. To

distinctly address multiple target markets
• Multi brands command a greater presence
inretail shelf.
• Risks –
• Brand Cannibalization
• Loss/Risk of Brand Stretch Capability
 Brand Architecture Spectrum

Closely Endorsed Brands Not

Linked Linked
Cobrand/Ingredient Explicit Implicit Shadow
Branded House of
Sub brands Endorsement Endorsement Endorsement
House Brand Brands

Sony Starwood Hotels &

Dell Inc. Kellogg Company Google Inc
Apple Inc Corporation Resorts Worldwide, The Procter &
Inc. Gamble
Company

PlayStation Intel Core 2 Kellogg’s Pop-Tarts YouTube Westin

Sub Branding

Parent brand name added to the new brand (sub

brand)
GE – Case in Point in context of
acquisitions
• GE + Generic name of business – GE+ Thomson CGR
= GE Medical Systems – Strongest Association with
GE
• Acquired name brand equity > GE in the doman –
GE Fanuc (Industrial automation)
• Marquette with strong recall in the cardiology
market
• Transportation International Pool, a GE Capital
Company - Only verbal association, company’s logo
and name were kept
• GE brand would be invisible if there was no benefit
in association.
 Does GE control the company?

Does GE have a long term commitment to this

company?

Decisions on brand Is the industry perceived to be dynamic and

innovative?
nomenclature
depended on How well is GE expected to perform in this industry?

Is the existing brand strong?

What is the impact of new brand on parent company?

Brand Promise - Google

• “to organize the world’s

information and make it
universally accessible
and useful.”
• Google started as
Branded House
 Google’s Brand
Portfolio

•Reflective of
House of Brands
now.
•Hybrid Strategy!