Brand Architecture

In Search of Organization and Clarity

Why is brand architecture important?

• Brand architecture is an integral piece of a

company’s brand strategy that specifies the
type, number, relationship and purpose of
brands within an overall business portfolio

• A coherent brand architecture can provide

clarity to the multiple stakeholders who
influence a company’s success and build
value by utilizing synergy and leverage
across a business
Client issues that drive the need
for brand architecture
Corporate Mergers
– Acquisitions require adjustments or rebranding
Brand Rationalizations
– Clutter or competitive pressure creates the need to clarify corporate
reputation or market focus
Brand Extensions
– Entry into a new business, product category, channel and or new
geography
Changing Competitive Landscape
– Convergence (telco vs. cable)
– Technology
– Economic factors (outsourcing, global competition)
– Distribution
New Marketing Approach
– Amex decides to issue through banks
Examples of brand architecture
deliverables
• A system to organize multiple brand names and
hierarchies
• A determination as to how best to associate the
corporate brand with individual lines of business or
across a product portfolio
• A brand portfolio optimization strategy based on
brand valuation scenarios
• A disciplined approach to brand guidelines and to
ensure buy-in and consistent management
Factors that affect architecture
1. Ownership • Does the organization have legal control over the brand?

2. Sources of growth • Which business/brands are expected to grow into the

future?
3. Brandscape • What are company and competitor branding practices?

4. Audience diversity • What are target characteristics across the portfolio?

• What are key purchase criteria and desired provider
5. Purchase criteria attributes?
6. Brand performance • How do brands perform against desired attributes?

7. Brand permissions • How elastic are company brands? What permissions exist?
• What is role of brand in fulfilling the business model, e.g.,
8. Brand role revenue or loyalty producing asset, etc.?

9. Channels • What channels are available and how are they used?
• How consistent are needs/preferences across local
10. Geographic markets cultures?
11. Organization structure • Who is accountable for setting branding practices and
standards?
Organizing Principles

• Several potential factors are considered when

defining the
organizing principle:
– Competency
– Price
– Quality
– Usage
– Audience
– Feature
– Channel
– Geography
Brand Architecture Guiding
principles
• Align business strategy and brand positioning for the
future
• Dictated by company strategy and relevant
customer/stakeholder perspectives (vs. internal brand
organization)
• Based on definable judgment criteria
• Able to create financial brand value over time
• Able to foster increased demand generation
• Applicable across all countries and regions
• Able to address changes in the industry/category and
support company strategy over time
Brand Architecture Spectrum
X X X

A B C X A B X X X

Brand Architecture Options

Diversified Hybrid Unitary

 Organized By Competency
Brand

Business
Infrastructure On-demand
Competency consulting
services services
services
• Application • Continuity and • Application
management recovery management
• Business • E-business • Business
intelligence hosting processes
Offerings
• CRM • Networking • Organization
• Dynamic • Wireless and culture
workplaces
 Organized By Quality Level
Brand

Quality
C-class E-class S-class
Level

• C230 • E320 • S430

Offerings • C320 • E500 • S55 AMG
• C32 AMG • E55 AMG • S600
 Brand Decision Tree (Example)
Corporate Industry Offering Audience
Factors Practices Characteristic Needs
s
Will the offering
add value to Yes
Do target audiences
the master Yes A brand or proprietary
perceive strong
or market brands? name is justified, detached
Yes equity in the offerings? Yes
Do competitors from the market brand e.g.,
Yes Yes
or treat the offering “brand or proprietary name”
as a brand? Is there an audience (stand alone)
Is this offering that could negatively
Will the offering Is there
unique? react to or affect
represent a enough budget No
A brand or proprietary
No the brand?
significant to build/sustain name is justified linked to
revenue stream? the brand? No
market brand e.g.,
Can this offering Masterbrand +
develop strong “brand or proprietary name”
or equity in target Yes or
audiences? “Brand/proprietary name”
Will the offering
by Masterbrand
represent
significant growth
in the future?

No proprietary name or
No No No No
brand required
e.g., Masterbrand +
“descriptor”