Memo 5

1.    What are different brand architecture strategies?

All of the brand architecture strategies falls into two approaches: a branded house or a house of brands. When it comes to house of brands, the company name hasn’t been identified at all, instead product names drive purchases. Opposite to this in a branded house strategy there is one unique brand name that motivates purchases and offers value. Organizations usually tend to use a hybrid or a variation of one of the two approaches.

In here I am going to now present four common brand architecture strategy examples:

·         Corporate brand hidden

·         One name assigned to one product along with single positioning

·         Each new product is a new brand

·         Company name well-known and guarantees quality

·         One name assigned to one product along with a single positioning

·         Each product is a new brand

·         One unified name known to consumers

·         Brand name covers more than one category

·         Products align with the brand position of corporate name and normally don’t have their own brand names

·         Company name well-known and guarantees quality

·         Company name takes a backseat position

·         Products are the heroes

Source: http://ervinandsmith.com/blog/branding/four-brand-architecture-examples/

2.    When and why to use different brand architecture models? Theory

Leaders usually think about brand architecture only during the times of mergers, acquisitions, rebrands and product launch. At these times understanding the relationship between the brand names that are in your company’s portfolio is essential. But nevertheless you should still document and guide your brand architecture strategy outside of times of change. This can help you to maintain long-term brand consistency, unite stakeholders and also expand your market share successfully by helping you to:

·         Determine how to successfully add new products and services

·         Identify relevant brand positioning, messaging and voice opportunities

·         Reinvigorate or transition lower-impact brands in your portfolio

·         Maintain customer loyalty

·         Uncover new target audience groups

Source: http://ervinandsmith.com/blog/branding/four-brand-architecture-examples/

Reasons a company might want to maintain different brands or sub-brands:

·         If there are channel conflict issues, especially if key customers who resell to the end consumer want to offer something different from competitors.

·         If the same (or very similar) products are sold at different price points – separate brands or sub-brands create more distance between the offerings.

·         If one set of products are upscale or premium, while the other are standard or value products.

·         If one brand appeals to a very different market segment with different needs from the other brand (making the messaging different).

The advantage of using fewer brands or a singular brand is marketing efficiency in brand building and customer communication.

3.    Practical examples, no Pepsi or Red Cross