Brand

Architecture
JASPER CAGUETE & PAOLO NAVARRO
In the field of brand management, brand
architecture is the structure of brands within
an organizational entity. It is the way brands
within a company's portfolio are related to, and
differentiated from, one another.
Types of THE BRANDED HOUSE
Brand THE HOUSE OF BRANDS
Architecure ENDORSED BRANDS
 THE BRANDED HOUSE

In the branded house, a parent brand runs all the sub-brands. All
of the sub-brands are subordinate to the parent brand, and they
usually will share a name with a qualifier to explain exactly what
that sub-brand does.
 THE HOUSE OF BRANDS

The house of brands is basically the opposite of the branded

house. There’s a parent brand, but it’s not reflected in the sub-
brands in an obvious or blatant way. In fact, often the parent brand
is in the background, overshadowed by one or more of its sub-
brands.
 ENDORSED BRANDS

This type of brand architecture simply contains independent

brands which are endorsed by an organizational brand. Apple is an
example of an endorsed brand architecture. The endorsement
adds credibility to the sub-brand. The new brand is linked to the
positive equity from the existing brand.
Steps on developing
Brand Architecture
Strategies
Objectives:
To clarify brand awareness:
Improve consumer
understanding communicate
similarity and differences
between Individual products
andservices.
The firm's brand architecture strategy
helps marketers determine which
products and services to introduce, and
which brand names, logos, symbols, and
so forth to apply to new and existing
products.
To Improve brand Image: Maximize
transfer of equity between the
brand and Individual products and
services to improve trial and
repeat purchase.
STEP 1: DEFINING BRAND POTENTIAL THE FIRST
STEP IN DEVELOPING AN ARCHITECTURE STRATEGY
IS TO DEFINE THE BRAND POTENTIAL BY
CONSIDERING THREE IMPORTANT
CHARACTERISTICS:

01 the brand vision,

02 the brand boundaries,
03 the brand positioning
Articulating the brand
Vision.

Brand vision is management's view of the brand's long-term

potential. It is influenced by how well the firm is able to
recognize the current and possible future brand equity. Waste
Management envision as "Think Green,"
Defining the Brand
Boundaries.

Defining brand boundaries thus means-based on the brand vision and

positioning. Identifying the products or services the brand should
offer, the benefits It should supply, and the needs i should satisfy.
Defining the Brand
Position.

A strong brand positioning directs marketing strategy by explaining the

brand details, the uniqueness of brand and it's similarity with the
competitive brands, as well as the reasons for buying and using that
specific brand.
Step 2:

Brand extension is the introduction of a
new product that relies on the name and
Identifying reputation of an established product.
Brand extensions allow companies to
Brand diversify their offerings and increase
market share. They can give the company
Extension a competitive advantage over its rivals
that don't offer similar products. The
Opportunities existing brand serves as an effective and
inexpensive marketing tool for the new
product.
Step 3: The final step in developing the brand
architecture is to decide on the specific
Branding New brand elements to use for any particular new
product or service associated with the
Products and brand. New products and services must be

Services branded In a way to maximize the brand's

overall clarity and understanding to
consumers and customers.
Brand Portfolio

refers to an umbrella under which all the brands or brand lines of a

particular firm functions to serve the needs of different market
segments. In simple words, brand portfolio encompasses all the brands
offered by a single firm for sale to cater the needs of different groups of
people.
 Levels of a
Corporate or Company Brand Level
Highest level of hierarchy Corporate image:
Brand Hierarchy The consumer associations to the company
or corporation making the product or
providing the service. Relevant when the
corporate or company brand plays a

Family Brand Level prominent role in the branding strategy.

Used in more than one product category but
is not necessarily the name of the company
or corporation Also called a range brand or
umbrella brand.

Individual Brand Level
Restricted to essentially one product
category, although multiple product types
may differ.
 Levels of a

Modifier Level Brands or Company Brand Level

Brand Hierarchy Designate a specific item or model type or a

particular version or configuration of the product
Function of modifiers is to show how one brand
variation relates to others in the same brand family
Help make products more understandable and
relevant to consumers.

Product Descriptor
Helps consumers understand what the product is and does Helps
define the relevant competition in consumers’ minds In the case of a
truly new product, introducing it with a familiar product name may
facilitate basic familiarity and comprehension
 Brand Extension

A brand extension is when a company uses one of its established

brand names on a new product or new product category. It's
sometimes known as brand stretching.
Evaluating Brand
Extension Opportunities

It is critical to fully understand the depth and breadth of awareness

of the parent brand and the strength, favorability, and uniqueness of
its associations. Moreover, before any extension decision are
contemplated, it is important that the desired knowledge structures
have been fully articulated.
Identify Possible
Extension Candidates

Consumer factors when identifying potential brand extensions,

marketers should consider parent brand association, especially as they
related to the brand positioning and core benefits and product
categories that might seem to fit with that brand image in the minds of
consumers.
 Evaluate the Potential of
the Extension Candidate
In forecasting the success of the proposed brand extension, it is
necessary to assess – through judgment and research. The likely hood
that the extension would realize the advantages and avoid the
disadvantages of brand extension.
Evaluate Extension
Success and Effects of
Parent Brand Equity
The final step in evaluating brand extension opportunities
involves assessing the extent to which an extension is able to
achieve its own equity as well as contribute to the equity of the
parent brand. A number of decisions have to be made
concerning the introduction of a brand extension, and a number
of factors will affect the brand’s success.