Brand Portfolio & Architecture

Transcript

1. Brand PORTFOLIO and ARCHITECTURE
2. Brand/ Company Competition Stakeholders Customers Marketplace BRAND STRATEGY Brand Portfolio and Architecture Brand Identity/Essence Brand Positioning INTEGRATED BRAND EXPERIENCE Brand Design Brand Communication BRAND IMAGE Customer Behaviour BUSINESS RESULTS (Profit and Share) Managing Brands Over Time BRAND EQUITY BRAND VALUATION
3. Brand Portfolio Strategy: The effective creation, deployment and management of brand assets in support of simultaneous top and bottom-line growth Brand Architecture is an organizing structure of the brand portfolio that specifies the brand roles and the relationships among brands
4. When to Revisit? 4 when companies change strategic direction, or reach key turning points in the business Time Growth Inflection Points 4A sizable business unit is acquired or sold. 4Existing portfolio or structure hinders future growth opportunities. 4Brands are losing relevance in the marketplace. 4Brands have been stretched beyond their credibility and effectiveness. 4Too many or too few brands 4A co-branding opportunity presents itself. Acquire Entry of foreign competition
5. BRAND PORTFOLIO
6. Leveraging the Brand Product Line Extension/ Single Brand Line extension Stretching Up Stretching Down Multi brand Line Extension (different brand, same category ) Brand Extension (same brand, different categories Co- branding VBM HBM
7. PORTFOLIO OPTIONS • Add new brands • Prune by selling brands • Merge brands • Line/ Brand Extension
8. Assessing Brand Contribution MONETARY LEVERAGE BENEFIT Annual Revenue from the brand Leverage with Trade Partners Less Direct Marketing Spend Platform for line extension Less Below the line attributed spend OVERALL Apparent brand contribution Contribution to company profits HIDDEN COSTS Three years on, more important or less? Management Time Trade and Customer Relations PR Relations People Cost
9. Brand Traction How strong the brand is today? üCompetitive position üAwareness among potential and current customers üPerception in value chain and customers? üOperational and Cultural fit to company Brand Momentum Understanding the potential beyond numbers? üExternal and Internal audience on purchase intention and perception
10. Contribution Traction Momentum High High High POWER BRANDS: Hold and Defend; Avoid excessive extension High High Low FAST TRACK: Huge Potential, Tactics to include new users High Medium Low SOLID SLEEPER BRAND: Act quick to fix or sell Medium Medium Medium SOLID BRAND: 60-80% portfolio composition. Maintain with interim resource boost Low Low High POWER or BLACKHOLE: Supervise and Invest carefully Low High Low NICHE: Price profitably Low Low Low DOGS: Prune them
11. BRAND ARCHITECTURE
12. Brand And Its ability To Extend Know-how Values Benefit/ Interest A B C D E Degree of new product dissimilarity Perceived Brand Essence Ingredient/ formulae Product
14. BRAND RELATIONSHIP SPECTRUM House of Brands Branded House Build equity in multiple brands Build brand equity in master brand Maximize synergies among business units Target multiple customer segments Reinforce a global organization mindset Minimize risk of bad publicity Single parent brand spans a set of offerings. Independent brands, each maximizing its impact on the market. Linked Brands Umbrella / Endorsed brands
21. How much does this option allow for future business growth? Fit with core values What equity exists? How extendable is it? Leverage Synergy Clarity What are the relationships between the company’s brands? How much does this option leverage relationships between the brands? What benefits do the possible strategic brands offer the other company brands? How much clarity does each option provide for the end user? Which brands are most important to consumers/ customers? Which combination of brands provides the most clarity?
22. • Facilitate new product acceptance • Reduce risk perceived by customers • Increase the probability of gaining distribution • Decrease cost of developing a new brand • Enhance the parent brand • Revitalize the brand Advantages
23. §Can confuse or frustrate customers §Retailer resistance §Failure can hurt parent Brand Image §Cannibalization of parent brand §Dilute brand meaning DISADVANTAGES
24. Brand Portfolio strategy: range of offerings to impact top or bottom-line growth. Leveraging brands can follow vertical/ horizontal brand management structures Brand Architecture: relationship of various portfolio brands to parent brand to leverage or contribute to equity - Master Brand - Sub Brand/Umbrella - Endorsed Brand - House of brands Brand’s ability to extend- anchored to the core brand values and the perceived brand essence Key Learnings