Brand Architecture Strategies

1. Problem: How company create brand strategy?
2. Learning objectives:

-What are different brand architecture strategies?
-When and why to use different brand architecture models?
-Examples

   3.Answers:

What are different brand architecture strategies?

Aaker, D and Joachimsthaler, E. ( 2000) states that there are 4 types of brand architecture strategy:

• House of brands: contains independent, unconnected brands. An enterprise launches different brands in different segments.
• Endorsed brands: contains independent brands which are endorsed by an organizational brand.
• Subbrands: brands are controlled by a master brand
• Branded House: the master brand takes under control of the whole operation. All brands bear the parent brand's name.

When and Why to use different brand architecture models?

House of brands: 

• Each independent brands maximizes it's impact on a market.
• Targeting niche markets with functional benefit positions.
• Avoiding a brand association that would be incompatible with an offering. ( Volkswagen group includes variety of brands such as Bentley (luxury), Bugatti (racing), Lamborghini (luxury, sport), Audi (luxury), Porsche (sport) for car product and Ducati for motorbike.
• Signaling breakthrough advantages of new offering (Lexus: Toyota)
• Owning a new product class association by using a powerful name that reflects a key benefit (Unilever: Home care: OMO, Food: Knorr, Drink: Lipton, Personal care: Dove, AXE)
• Avoiding or minimizing channel conflicts.

Endorsed brands:

 Token endorser: the endorsed brand has more influence than the endorser.

• helpful for new or not yet established brands. The endorser provide credibility and assurance.
• give the endorsed brands more freedom
• Ex: Maggi ( Nestle)

Linked name: brands's name have common elements related to the endorser but still have their own personality.

• allow more ownership.
• Ex: Nestle: Nestea, Nescafe, Neslac. McDonalds: Mc Muffin, Mc Pizza, BigMac

Strong endorser: bold, prominent presentation of endorsers: Polo Jeans by Ralph Lauren, Geisha by Fazer.

Sub brands: 

• Add associations that are relevant to the customer.
• Stretch the master brand to new market
• Signal new offerings (Apple: IPhone, IPod, IPad, IMac, ITunes)
• Implement additional values to master brands (Microsoft : Microsoft office )

Branded House:

• Minimizing investment
• Maximize clarity
• Synergy communication across products.

Examples:

Coca Cola case: The Shift to Branded House

In May, 2015, Coca Cola launched the "One Brand" strategy across 11 markets. The strategy calls for a unification of marketing under the Coca-Cola master brand for all its product sub-brands, including Diet Coke, Coca-Cola Life, Coca-Cola Zero and regular Coke. (Forbes, 2015)

The purpose of this strategy is to have greater clarify, synergy and leverage in the marketing communication strategy. Coca-Cola brand  wants to communicate the breadth of offerings from full-calorie to low-calorie or zero-sugar versions and helps clarify consumer choices.

It also creates brand-building synergies by bundling all marketing spend on a single brand, while driving greater penetration and trial of the product sub-brands. Finally, it creates leverage, with major initiatives such as the new multimedia platform Coca-Cola Journey benefiting the overall portfolio.

Bibliography

Aaker, D. , Joachimsthaler, E. (2002), Brand leadership, Simon & Schuster UK Ltd, London.

Ostendorf, J. Types of brand architecture. Source: https://static1.squarespace.com/static/54cbf6eee4b010d9a097c673/t/54d26f89e4b0526a6667a737/1423077257866/FORGE-BrandArchitecture.pdf

http://www.forbes.com/sites/onmarketing/2015/06/01/coca-cola-and-the-shift-to-the-branded-house-should-other-marketers-consider-a-similar-move/#7140f9b42b6a