(4.4) Final brand architecture

Question 1

Define brand architecture =

Answer 1

Structure of the company’s entire brand portfolio – roles of the brands within the portfolio and their interrelationships

Question 2

What is the importance of a coherent brand?

Answer 2

• Helps to communicate similarities and differences between brands/products
• Manage the transfer of brand equity within the portfolio to enhance trial and repeat purchases

Question 3

What are the 3 generic strategic branding options?

Answer 3

• Simple branding strategies = house of brands
• Corporate branding strategies = branded house, umberella branding
• Family branding strategy = product line branding

Question 4

Explain single branding strategy with advantages and disadvantages

Answer 4

Each product is sold using a seperate brand, focus on single product, but not the company
(+) Precise profiling, specific customer segments, more freedom for positioning, reduces the risk of delution
(-) Building brands is expensive and takes long

Question 5

Explain corporate branding strategy with advantages and disadvantages

Answer 5

All products of the company are offered under the same brand - focus on company and not on a single product.
(+) All products benefit from investments in the brand, known brand speeds up the intro of new products, opportunity of positive feedback effects
(-) Difference between the products can dilute a clear brand positioning, repositioning of individual products is problematic, risk of negative feedback effects

Ex. Siemens: energy + industry + healthcare
Ex. Boeing: if one type feels unsafe, all types bring doubt

Question 6

Explain family branding strategy with advantages and disadvantages

Answer 6

Combi of 2 umbrella brands or at least 1 umbrella brand in combi with at least one single brand.
» For specific product groups, an integrative brand name is used.
» Represents compromise between individual and corporate branding.
» Very common in food, drinks, cosmetics, ..

Question 7

How to structure the brand architecture?

Answer 7

Use strategic tools that help to characterize a company’s brand arcthitecture by defining various relations among brands and products.
Most famous way is HIERARCHY OF BRANDS
= number and nature of common and distinctive brand elements among the products – which elements are used and how are they combined? Goes about the ordering of the brand elements.

Question 8

What is the reason for using different hierarchy levels to develop brands?

Answer 8

• Develop at higher levels: communicatie common and shared info and provides synergy across the company’s operation.
• Develop at lower levels: communicate the product’s uniqueness

Question 9

What are the principles of designing the hierarchy of brands?

Answer 9

• Numbers of levels: principle of simplicity
  = every successive level enables the company to communicate additional and specific info –> need to provide right amount of common and distinct branding
  »> Optimal number of levels depends on the complexity of the product and thus on the combi of shared/unique brand associations that should be linked to any one product
• Simple products = 1 or 2 levels
• Complex products = more levels
• Combining levels: principle of prominence
  = how much emphasis each level should receive at the expense of the corporate brand
  » the more prominent a brand element, the more it will influence customers’ perceptions

Question 10

Draw and explain the brand relationship spectrum

Answer 10

A way to illustrate the prominence of different brand levels.
Branded house > sub brands > endorsed brands > house of brands
Decreasing risk of negative feedback
Increasing relevance of corporate brand equity

Question 11

What is corporate brand dominance?

Answer 11

The level of visibility of the corporate brand in product communications

Question 12

What do we know about levels of CBD?

Answer 12

• High levels > build and manage some of the more abstract types of associations that can encompass a wider range of products
• Level determines the degree to which associations with an overal image, credibility and CSR influence product attitudes
• Not only directed to the customer
• More emphasis on the corporate brand in recent years

Question 13

How do strong corporate brands take advantage:

Answer 13

• attracting and keeping customers
• attracting and keeping high potential employees
• profit from better conditions when financing new projects

Question 14

Wat zegt het onderzoek van Rao et al (2004) over CBD en corporate brands?

Answer 14

Higher market valuation for corporate brands