Copyright 2013 Pearson Education Inc Publishing As Prentice

Copyright 2013 Pearson Education Inc Publishing As Prentice Hall

Developing a brand architecture strategy involves determining which products and services to introduce, and which brand names, logos, and symbols to apply to new and existing products. The goal is to clarify brand awareness and improve brand image by defining brand potential through its vision, boundaries, and positioning. Brand vision reflects management’s long-term aspirations and influences brand boundaries, which identify the products, benefits, and needs the brand should address. Broad brands with abstract positioning support higher-order promises across multiple settings, while specific brands are more targeted.

Brand positioning is crafted around the competitive frame of reference, points-of-difference, points-of-parity, and a brand mantra. Identifying extension opportunities involves leveraging existing brand names through line extensions within current categories or category extensions outside existing categories, while understanding the equity implications such as points-of-parity and points-of-difference. When branding new products, firms choose between strategies like a branded house—common in B2B contexts like Siemens or Oracle—and a house of brands, typical for consumer goods companies like Procter & Gamble and Unilever. Sub-brands can signal product similarities and differences, provided they offer distinctive, complementary benefits.

The purpose of a brand portfolio is to include all brands sold by a company in a product category. Reasons for multiple brands include increasing shelf presence, attracting variety-seeking consumers, fostering internal competition, and achieving economies of scale. Proper brand roles prevent overlap and maximize market coverage. Special roles of brands—such as flankers, protective or fighter brands, cash cows, and premium or entry-level brands—are essential to a balanced portfolio. Flankers defend market share; fighter brands compete aggressively; cash cows generate steady revenue; and high- or low-end brands attract specific consumer segments.

Brand Hierarchies

Brand hierarchies graphically depict a firm’s branding strategy across various levels—corporate, family, individual, and modifiers—each with specific functions and levels of association. The corporate level embodies the overall company image, reflecting attributes like quality, innovation, values, and social responsibility. Family brands serve multiple products within a category, creating associations that can be linked efficiently and cost-effectively, but risk weakening if a product fails. Individual brands are used for specific categories to allow customization and minimize risk, especially when products differ significantly.

Modifiers distinguish between product variations, such as models or configurations, helping consumers understand differences and relevance. Designing an effective brand hierarchy requires balancing the number of levels, the amount of information provided, and the strategic goals. Principles such as growth, survival, synergy, simplicity, relevance, and differentiation guide this process. The goal is to communicate brand identity efficiently while safeguarding against brand dilution and redundancy.

Managing Corporate and Brand Image

Corporate branding extends beyond products to express the firm’s overall identity, values, and social responsibility. Corporate reputation influences consumer perceptions, including attributes like quality, innovation, and social engagement. Corporate credibility depends on expertise, trustworthiness, and likability. Managing this image involves campaigns that build awareness, credibility, and favorable attitudes, often focusing on the entire company rather than individual products or brands.

Brand campaigns and strategic name changes, driven by mergers, acquisitions, or repositioning, require careful planning and consistency. Guidelines for brand management emphasize uniformity in appearance, usage, and messaging to sustain brand equity. Rebranding is resource-intensive and aims to preserve existing brand value while adapting to new market realities—sometimes by reevaluating and updating brand architecture to better align with strategic objectives.

Aligning Brand Strategy with Corporate Goals

A firm’s brand architecture strategy should identify which brand elements to utilize across offerings, guided by principles of cost-benefit analysis, brand equity, and synergy. The product–brand matrix visually summarizes the portfolio, enabling managers to optimize market segmentation and competition. A clear brand hierarchy facilitates the organization of product lines, supports branding at multiple levels, and helps communicate the intended positioning to consumers.

Effective brand management involves balancing abstraction and differentiation, ensuring that brand variations are relevant in the context of their market segments. Consistent brand elements, shared across products—referred to as commonality—strengthen linkages and reinforce the brand’s overall positioning. Flagship products embody the core brand and serve as anchors in the portfolio, reinforcing company identity and strategic coherence.

Ultimately, adopting a cohesive brand architecture that integrates corporate values, strategic objectives, and market needs is essential for building sustainable brand equity. Leading firms incorporate cause marketing and social responsibility initiatives, aligning their brand with causes that resonate with their target audiences. This integration enhances brand relevance, differentiation, and reputation, fostering long-term loyalty and competitive advantage.

References

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• Keller, K. L. (2013). Strategic Brand Management: Building, Measuring, and Managing Brand Equity (4th ed.). Pearson.
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• De Chernatony, L., & McDonald, M. (2003). Creating Powerful Brands. Elsevier Butterworth-Heinemann.
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• Heding, T., Knudtzen, C. F., & Bjerre, M. (2016). Strategic Brand Management: Building, Measuring, and Managing Brand Equity (3rd ed.). Routledge.
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• Balmer, J. M. T. (2017). Corporate Brand Management. Journal of Brand Management, 24(4), 390-406.