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BRAND ARCHITECTURE

What is Brand Architecture?


Brand Architecture is the structure of brands within and organisational identity.
It is the way in which the brands in a company portfolio are related to or
differentiated from one another. The architecture should define the hierarchies
within an organisation: how the parent or corporate brand works in synergy with
the sub-brands; how they support or detract from one another; how the subbrands reflect or strengthen the strategic objectives of the corporate brand to
which they belong
Brand architecture has long been regarded as a static fixture, clearly categorised,
with fairly low priority given to proactive management despite the fact that the
brand architecture of most organisations is always a legacy of past and present,
and can often provide an opportunity for significant value creation if managed
properly. In addition to this, organisations today navigate far greater complexity
in rapidly changing markets; because of this, brand architecture should be fluid
and reactive in order to continually leverage maximum value.

Types of Brand Architecture:


Monolithic

Single master brand which everything is unified


One name one visual system
Features/benefits of product or service are less important than brand promise
Client trusts the brand
Brand extensions built by descriptors

Endorsed

Marketing synergy between product and service name and the parent

Product and service has a clear market presence; benefits from parent
association
Parent endorses the product/service

Branded

Found in FMCG companies


Separate corporate identity from brands
Brands have names, lifecycles, personalities of their own
Often compete with each other

Hybrid

Combination of all three monolithic, branded and endorsed


Occur through M&As
Preserve the goodwill associated with the acquisition

Which Architecture matches your desired attributes?


Factors to be Considered:
Reflects business strategy
Simple structure
Designed around client needs
Flexible
Consistent with values
Reflects brand value synergies

The process to develop your brand strategy and


architecture
Developing the brand:

What are we? What are our competitive strengths? What are our deep
capabilities that are sustainable? What founding characteristics need to
endure? What are we proud of and proud to be?
What do we do? What are our key services? What future services will we
offer?
How do we do it? What skills, approach do we have? How do we work these to
our competitive advantage?
Who are we? Whats our personality, our values? What has made us who we
are today? What do we do or need to do to deliver?
Why do we do it? Whats our cause, purpose, mission? What do you like about
coming to this place?

FOCUS

CREATE

ENGAGE

SUSTAIN

Brand Strategy
and Service Brand
Strategies

Group Brand
Design and
Service Brand
Design

Enthusiastic and
Committed
Leadership

Create a Project,
elevate as Mission
critical.

Brand Essence.

Brand architecture
and Market
offerings

Implementation of
new identity
internal and
external

Brand audit of key


collateral.

Stakeholder
consensus on
brand architecture,
values, brand
essence.

Development of
visual expression,
across core
applications
and
communications

Systems and
processes
for maintaining
standards

Review and assess


values, brand
essence, and
competitive
strengths.

Brand brief.

Test/feedback

Brand Audit and


Discovery

Guidelines and
standards

Making this happen focus

Determine project name Communicate. Establish communication channel for


awareness, involvement and accountability
Undertake brand audit gather and assess collateral
Develop brand essence workshop and get consensus
Consider architecture direction leadership to determine in light of strategy
Engage a designer experienced, capacity and quick understanding
Determine collateral business critical; a unique & defining application

The Brand Architect

Bridge between Strategy and Expression


New opportunities for brand expression have created a demand for a new breed
of creative consultant who is not limited by role definitions. These creative
consultants, called brand architects, cross the boundaries of traditional disciplines
to provide innovative and cohesive brand solutions in a variety of mediums.
Business leaders are accustomed to relying on specialists to further their
business plans. MBAs, CPAs, marketers and advertising agencies have been
regular fixtures in the development of products and services. But our world has
changed. Competition is fierce. There are too many brands and brand messages
out there. Market dynamics are often too volatile for even the most visionary
business plan. Even having a great product is no longer a guarantee of consumer
awareness and increased market share. The new wild card is brand recognition.

Brand Architecture succeeding in the marketplace even


with complex portfolios
Typically, problems such as those described above are rendered more complex by
the fact that they usually occur at one and the same time. The relationship
between the group and the product brands often needs to be redefined while
simultaneously restoring order to a system of parallel or competing brands.
Whatever the case, decisions will need to consider the following aspects: what
product range needs to be joined with which corporate activity so that they can
mutually reinforce one another in the marketplace? Which activities need to be
clearly separated in order to achieve maximum impact?

Joining and separating usually both are needed to create a sustainable structure
for complex company portfolios. The Brand Architecture method allows these
highly sensitive issues to be moved from the superficial branding level (name,
logo, colors) to a much deeper level. All the strategic and operational implications
of brand-related decisions are analyzed and presented in a way that makes it
clear to management the consequences or undesirable effects their decisions will
produce.
In complex multi-brand systems, the market power of the individual brands and
synergy effects are structurally opposing forces. With the instruments provided
by the Brand Architecture, these two parameters can be optimized even in
difficult cases (e.g. mergers and acquisitions). To achieve this, the process of
joining and separating brands must be carried out consistently throughout the
entire value-added chain from R & D to production, from marketing to sales, and
even to distribution channels.
In those areas where individual brands are to operate independently, they are
allowed to lead their separate existences. The group brand, on the other hand,
will be used in those cases where it is felt that it can create a stronger impact.
The Brand Architecture method can also be used to determine whether, in a
multibrand system, a joint sales force will create a greater benefit or whether
the impact will be stronger if the brands are handled by separate sales forces.
Here it is important to carry out a detailed analysis of the relationship between
the company and the brands on the one hand, and its distribution partners on the
other. Armed with these results, the sales force will be able to make the most of
this relationship to create the maximum impact.
What should be done with the secondary brand which has a lower price
positioning?
Clearly, it is a matter of the utmost importance that the main brand is not
cannibalized. However, there is no easy solution. Each case needs to be treated
individually and all the relevant parameters must be taken into account.
Secondary brands that can only survive through cross-subsidization must be
evaluated in terms of their economic viability.
If a company has already established a well-organized brand structure, another
problem affecting the brand architecture may arise, namely how to present the
product ranges under each of the brands. Each brand portfolio must fulfill two
conditions. First, there has to be a connection between the product offerings and
the established brand. The reason is that customers store all their positive
experiences under the name and symbols of the brand. Secondly, the individual
products need to be sufficiently differentiated from one another. This way
customers can perceive how broad a range the brand is capable of covering. If
these conditions are met, the brand will achieve maximum competitive strength
over its entire product range.

When the brand portfolio is headed by a group brand, the Brand Architecture
method has to address another issue. In communications with sales markets, the
group may need to remain entirely invisible or to display its connection with the
brand. In the latter case, it is important to determine how prominent that link
must be.
Certainly, one of the main tasks of any group brand is to impress the financial
markets. Unlike sales markets, where the existence of individual, unconnected
brands will not necessarily have a negative effect on the relationship with
customers and retailers, financial markets need to see evidence that a group has
successfully integrated its brands into a strong portfolio.

The Instruments of the Brand Architecture


The Brand Architecture method provides a set of instruments which puts the
company name, as well as its brands and symbols, on to a secure and
economically viable basis.
Management gets all the information it needs to make decision-making both
reliable and transparent:
The Brand Architecture establishes the correlation between the competitive
strength of the brands that has been built up over time, and the companys
current policies and plans.
The very first task is to decide which names and symbols are connected with
the energy that the brand has developed over its history. These represent
significant corporate assets and, within a complex portfolio, provide the
framework for the Brand Architecture.
All the relevant options for the future brand structure will be worked out in
detail and analyzed from a strategic and operational perspective.
The Institut fr Markentechnik systematically evaluates all the advantages and
disadvantages of the different options and compares them objectively.

Should it prove necessary to give up established names, a migration process


will be developed for transferring the brand energy.
Implementation strategies are designed to ensure that the new brand
structure can be realized in day-to-day business.
Each new activity (at the company, brand or product level) will have its logical
place in the brand structure and can therefore be integrated according to
objective criteria at any future point in time this enables management to
manage and control the brand portfolio in a sustainable manner.

How to develop Brand Architecture


Branding is a bit of a mystery for many small to mid-market (SMB) companies.
There are many opinions and methods as to how best approach it.
Top creative agencies have their own proprietary methods for crafting brand
strategies. They have to, in order to position themselves against competing
agencies. They use cool-looking graphics: circles, triangles, and flow charts to
illustrate attributes, values, personality traits, and promises.
Many SMB companies never bother to craft a brand strategy, instead allowing the
market to brand them, for better or worse. Deep down, SMB marketers know they
should be putting more effort into branding, but many dont know where to start.
The good news is, if you were to break down most agencies proprietary branding
methods, youd find many similarities.
If youre one of the 90% of companies that dont have the budget to hire top
agency talent for your branding, dont worry; with a little elbow grease and a
good plan you can create your own brand strategy. Solving the branding black
box just takes a little learning and a strong commitment.
Brand Architecture is Your Brand Strategy Foundation
The key to your entire brand strategy is your brand architecture. Your brand
architecture sets the foundation for all the other components of your brand, and
aligns your brand personality traits, your means, your promise, your story, and
your visual and operational requirements into a single unified structure.
Brands play on our emotions, so your brand architecture should uncover the
specific emotions around which you might build your brand.
To create your brand architecture, follow this five step process:
1.

Start by listing each of your product/service features. Then, list the


benefits of each.

A feature is an element of what something does or what it is. For example, a


cars features may include a ski rack and an upgraded stereo system.
A benefit is a positive result that the feature delivers.

2.

Now focus on the benefits. For each one, determine whether its
functional or emotional.
A functional benefit is directly related to the functionality of the feature.
Example: An upgraded stereo provides higher-quality sound.
An emotional benefit is one that evokes a feeling or emotion. Example: An
upgraded stereo might make the user feel like a rock star.

3.

Next, review each feature and benefit individually, and determine its
level of importance to the market. Assign each to one of three categories:

4.

Expected: These are basic and expected; a customer wont buy without
these features or benefits. Every product/service in this category must
offer these features.
Adds value: Not expected, but most customers probably wont purchase
based on this factor alone. Nevertheless, it helps differentiate your
product/service from those of your competitors.
Will buy: Customers will choose you over your competitors based on this
feature/benefit alone its just that valuable

Now, rank your features and benefits. Brands play on our emotionseven
B2B brands. The strongest brands are built around emotional benefits. Use
this ranking system:
Features that are expected = 1
Features that add value = 2
Features that will buy = 3
Functional benefits that are expected = 4
Functional benefits that add value = 5
Functional benefits that will buy = 6
Emotional benefits that are expected = 7
Emotional benefits that add value = 8
Emotional benefits that will buy = 9

5. Few brand architectures are built around features, but by including them in
the rankings, we emphasize the importance of focusing on benefits and,
more specifically, emotional benefits that cause people to desire your
offering on a visceral level. The final step is to identify the emotional benefits
that will become the core of your brand strategy.
Typically, you should focus on the highest rankings for the architecture of
your brand. Evaluate all of those with a ranking of 6 or higher. You might
decide to include a few functional benefits with the emotional benefits.
Carefully consider the functional or emotional benefits you select for your
brand architecture. Youll spend a lot of resources to convey these to the
marketplace, so test them amongst your team and your market if youre
unsure.
After youve decided on your brand architecture, you can begin thinking about
the other components of your brand strategy: your brand personality traits, your
means, your promise, your story, and your visual and operational requirements.

Market Penetration
1. Existing Markets, Existing Products
For many companies, the first place to look for more sales is amongst existing
customers.
Current customers have already made the ultimate gesture of approval and paid
money to buy your products. A bit more persuasion and they may buy more.
However, how many companies know their customer so well that they know if
they have every available piece of business? Ask yourself the following questions:
How much is each customer buying of the products (or services) I sell to them?
What share do my competitors and I have of each customer's account?
What does the customer think of me against the other suppliers it could or does
use?
What would make each customer buy more?
There is only one way to ensure that a companys customer value proposition
(CVP) appeals to the target audience and differentiates that company from the
competition and that is through fully understanding market needs. B2B

International can help you better understand the needs and perceptions of your
customers with regards to your products and services. Through detailed analysis
we can give you a clearer indication of where emphasis needs to be placed to
deliver customer value and achieve greater customer loyalty.

2. New Markets, Existing Products


Every company has a product that can travel. It can travel to new geographical
markets or to new industry segments that have not been tapped before. New
markets, wherever they are new countries or new segments carry risk.
B2B International specialises in collecting information on potential customers and
markets wherever they are in the world. With this knowledge, a company can
build growth and value more quickly and more securely than by relying on
guesswork.
In the last few years, and due to the lure of one of the biggest potential
marketplaces in the world, B2B International has carried out numerous projects
within China for public and private sector organisations. We have conducted
Chinese market entry studies for publishing companies, paper manufacturers,
textile companies, chemical companies, oil companies, IT companies and even
financial institutions. In each of these cases, our job has been to identify whether
an opportunity exists, define the nature of this opportunity and devise strategic
and tactical market entry recommendations.
Of course, we have also helped clients enter different geographies outside of
China and Asia Pacific, from the US and Canada through to Western Europe (UK,
France, Germany, Italy, Spain, Netherlands), Eastern Europe & CIS (Czech
Republic, Poland, Russia, Ukraine), Africa and South America.

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