5.4 brand architecture

Question 1

Brand architecture

Answer 1

Relation and coherence between the brands and/or activities in a brand portfolio.

Question 2

• Branded house

Answer 2

master brand key
o Product as descriptor
o Think about FedEx corporation, FedEx express

Question 3

• Subbrands:

Answer 3

master brand and activity equal weight.
o Modifies meaning ofmaster brand
o Apple: iwatch ipad iphone

Question 4

• Endorsed brands

Answer 4

new activity brand with master brand endorsement
o Ibis budget, ibis luxe etc

Question 5

• House of brands

Answer 5

: independent brands
o Unilever

Question 6

• BH-HOB hybrid

Answer 6

Hybrid structures combine at least two of the four strategies, most commonly the BH and HOB

Question 7

Biggest risk:
Lowest risk:
Highest revenue:

Answer 7

Biggest risk: Branded house
Lowest risk: House of brands
Highest revenue: Sub-brands

Question 8

Points of parity (POP)

Answer 8

points of parity are industry-specific similarities that are shared among many businesses.

Question 9

Points of difference

Answer 9

. These are the things that are truly unique to your business and that give you a competitive edge. When you are creating marketing pieces, campaigns and landing pages the points of difference are what you want to highlight in your messaging

Question 10

What are the consideration to put new activity on the brand. You start always 2 steps

Answer 10

1. Starting point brand architecture2. Role of each activity

Question 11

1. Starting point brand architecture

Answer 11

a. Brand concept of the master brand

Question 12

2. Role of each activity 2 questions

Answer 12

a. How does the activity fit with the master brand? b. How does the master brand fit with the activity?

Question 13

Other considerations between architectures 2

Answer 13

returns and idiosyncratic risks

Question 14

returns

Answer 14

• Cost reduction
  o Economies of scale in marketing
  o Admin&operation costs efficiencies
  o Low cost for new introductions
• Revenu enhancement
  o Added sales through new segments
  o Improved innovation success
  o Prospects for new extentions andcustomised offerings

Question 15

Idiosyncratic risks

Answer 15

• Brand reputation risk (left side)
  o Overall esteem
• Brand dilution risk (left side)
  o Loss of differentiation/meaning
• Brand cannibalisation risk
• Brand stretch risk
  o Less leverage options

Question 16

Strong brands are managed from a strategic level 3

Answer 16

• Brand values should be based on true organisational strengths & actions
• The importance of brand differs in different categories, but is increasing
• High returns from strong brands: differentiation, brand platform, loyalty and internal branding

Question 17

Strong brands can be extended into new categories 3

Answer 17

• Depending on relevance & differentiation of brand associations
• Difference between brand fit and product fit
• Extensions can be brand building or brand diluting

Question 18

Brand architecture should be based on relation between company, brand and activity 2

Answer 18

• Choice based on returns and risk
• Rule of thumb model: compare emotional (brand) and functional (product) similarity