Chapter:11 Designing and Implementing Brand Architecture Strategies

CHAPTER:11 DESIGNING AND IMPLEMENTING BRAND ARCHITECTURE STRATEGIES Copyright © 2013 Pearson Education Learning Objectives Define the key components of brand architecture Outline the guidelines for developing a good brand portfolio Assemble a basic brand hierarchy for a brand Describe how a corporate brand is different from a product brand Explain the rationale behind cause marketing and green marketing Developing a Brand Architecture Strategy To clarify brand awareness To improve brand image Step 1: Defining Brand Potential Step 2: Identifying Brand Extension Opportuni- ties Step 3: Branding New Products and Services Step 1: Defining Brand Potential Three important characteristics: The brand vision • Brand vision needs to be aspirational, so the brand can improve in the future, yet it cannot be unobtainable. • It transcends the brand’s physical product category descriptions and boundaries. The brand boundaries • To improve market coverage, companies target different segments with multiple brands in a portfolio (e.g. Google). • Top marketing companies in recent years has been to focus on fewer, stronger brands (Nissan x Infiniti – Toyota x Lexus. The brand positioning • Competitive frame of reference; Points-of-difference; Points- of-parity; Brand mantra Step 2: Identifying Brand Extension Opportunities Brand extension is a new product introduced under an existing brand name Line extensions: New product introductions within existing categories Category extensions: New product introductions outside existing categories Equity implications of each extension needs to be understood in terms of: Points-of-parity Points-of-difference Step 3: Branding New Products and Services New products and services must be branded in a way to maximize the brand’s overall clarity Branded house (“umbrella”) Siemens and house of brands strategy P&G and Unilever Sub-brands: Brand extension in which the new product carries both the parent brand name and a new name (Hershey’s Kisses, Apple iPhone, Honda Civic) To Sum Up… Marketers should use brand portfolio analysis for Step 1, and brand hierarchy analysis for Steps 2 and 3 Brand Portfolios Flankers Protective or fighter brands To create stronger points-of-parity with competitors’ brands Fighter brands must not be so attractive that they take sales away from their higher-priced comparison brands If they are connected to other brands in the portfolio, they must not be designed so cheaply that they reflect poorly on other brands Cash Cows Despite dwindling sales, some brands are retained Due to their sustainability without any kind of marketing Milked by capitalizing on their reservoir of existing brand equity (Gillette Fusion versus Trac II, Sensor and Mach3) Low-End, Entry-Level or High-End, Prestige Brands Sub-brands leverage associations from other brands while distinguishing themselves on price and quality Role of a relatively low-priced brand - To attract customers to the brand franchise Role of a relatively high-priced brand - To add prestige and credibility to the entire portfolio Low-End, Entry-Level or High-End, Prestige Brands To Sum Up… To minimize overlap and get the most from the portfolio, each brand-name product must have: Well-defined roles to fulfill for the firm Well-defined positioning, indicating the benefits it offers to consumers Brand Hierarchies Graphically portraying a firm’s branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products, revealing their explicit ordering. Levels of a Brand Hierarchy Designing a Brand Hierarchy Levels of a Brand Hierarchy Company Brand Level Family Brand Level Individual Brand Level Modifier Level Product Descriptor Corporate or Company Brand Level Highest level of hierarchy Corporate image: The consumer associations to the company or corporation making the product or providing the service Relevant when the corporate or company brand plays a prominent role in the branding strategy Corporate or Company Brand Level Family Brand Level Used in more than one product category but is not necessarily the name of the company or corporation Also called a range brand or umbrella brand If the corporate brand is applied to a range of products, then it functions as a family brand too If the products linked to the family brand are not carefully considered, the associations to the family brand may become weaker Family Brand Level Individual Brand Level Restricted to essentially one product category, although multiple product types may differ Customization of the brand and all its supporting marketing activity If the brand runs into difficulty or fails, the risk to other brands and the company itself is minimal Disadvantages of difficulty, complexity, and expense of developing separate marketing programs Unilever, P&G and Frito-Lay Doritos, Lays and Ruffles Individual Brand Level Modifier Level Brands should distinguish according to the different types of items or models Modifier: Designate a specific item or model type or a particular version or configuration of the product Function of modifiers is to show how one brand variation relates to others in the same brand family Help make products more understandable and relevant to consumers Valio Milk (regular, light, lactose free etc.) Johnny Walker Red Label, Black Label, Gold Label, Green, Blue Label Label etc. Product Descriptor Helps consumers understand what the product is and does Helps define the relevant competition in consumers’ minds In the case of a truly new product, introducing it with a familiar product name may facilitate basic familiarity and comprehension. Software: Quicken. Designing a Brand Hierarchy Specific Products to Introduce Number of Levels of the Brand Hierarchy Specific products to introduce • Principle of growth: Firms must make cost-benefit calculations for investing resources in selling more of a brand’s existing products to new customers versus launching new products for the brand. • Principle of survival: Brand extensions must achieve brand equity in their categories. • Principle of synergy: Brand extensions should also enhance the equity of the parent brand. Number of levels of brand hierarchy • Most firms choose to use more than one level. • Each successive branding level allows the firm to communicate additional information about its products. • Developing brands at higher levels is an economical means of communicating common information. • Developing sub-brands also allows for the creation of brand-specific beliefs. • Sub-brands help organize selling efforts. • Principle of simplicity: Need to provide the right amount of branding information to consumers. • Low-involvement products require fewer levels of hierarchy and complex products require more levels of hierarchy. Designing a Brand Hierarchy Desired Awareness and Image at Each Hierarchy Level Combining Brand Elements from Different Levels Linking Brand Elements to Multiple Products Desired awareness and image at each hierarchy level • Principle of relevance: Based on the advantages of efficiency and economy. • The more abstract the association, the more likely it is to be relevant in different product settings. • Nike: Just Do It! • Principle of differentiation: Based on the disadvantages of redundancy. • Flagship product: Embodies the brand to consumers. • Important in brand portfolio in that marketing. Combining brand elements from different levels • Principle of prominence • It is its relative visibility compared with other brand elements (e.g. PepsiCo VitaCola). • Branding strategy screen • To “dial up” or “dial down” different brand elements. Linking brand elements to multiple products • How to link any one brand element to multiple products – the horizontal aspects. • Principle of commonality: States that the more common brand elements products share, the stronger the linkages between them. • Examples: McDonald’s Chicken McNuggets and Calvin Klein CKOne, CKBe or CKFree Corporate Branding Corporate Image Dimensions Managing the Corporate Brand Corporate Image Dimensions Common Product Attributes, Benefits, or Attitudes People and Relationships Values and Programs Corporate Credibility Common product attributes, benefits or attitudes • High-quality corporate image association: Creates consumer perceptions that a company makes products of the highest quality. • Innovative corporate image association: Creates consumer perceptions of a company as developing new and unique marketing programs, especially with respect to product introductions or improvements (e.g. Apple and 3M). People and relationships • Corporate image associations reflect characteristics of the employees of the company. • Consumers may themselves form more abstract impressions of a firm’s employees, especially in a services setting. • Customer-focused corporate image association: Creates consumer perceptions of a company as responsive to and caring about its customers (e.g. Stew Leonard’s). Values and programs • Corporate image associations may reflect company values and programs that do not always directly relate to the products. • Socially responsible corporate image association: Portrays the company as contributing to community and attempting to improve the welfare of society as a whole. • Environmentally concerned corporate image association: Projects a company whose products protect or improve the environment and make more effective use of scarce natural resources. Corporate credibility • Depends on three factors: • Corporate

2008:005 MASTER'S THESIS Branding Strategies of MNCs in International Markets Hanna Häggqvist Camilla Lundkvist Luleå University of Technology D Master thesis Business Administration Department of Business Administration and Social Sciences Division of Industrial marketing and e-commerce 2008:005 - ISSN: 1402-1552 - ISRN: LTU-DUPP--08/005--SE Acknowledgement Acknowledgement This thesis was written for the program of International Business and Economics at the Division of Industrial Marketing and e-Commerce at Luleå University of Technology and was completed in January, 2008. This thesis has been constructed during a limited period of time, and these weeks have been instructive and fun, but also very intensive, and have demanded hard work and commitment in order to make this thesis something to be proud of. We have had the chance to develop our skills within the field of business and marketing and we hope that this thesis will contribute to already existing research as well as ideas for further research. There are several persons that have made this thesis possible. We would first like to thank our supervisor, Manucher Farhang, Associate Professor at the Division of Industrial Marketing and e-Commerce, Luleå University of Technology, who has guided us throughout the whole time and given us constructive feedback in order to improve the thesis. Secondly, we would like to thank Andreas Wagner, Assistant Brand Manager, at Procter & Gamble and Andrew Warner, Director of Brand Management at Sony Ericsson, who have provided us with valuable information during the interviews. We would also like to thank Ulrika Köbin, Assistant at Content Planning & Management, Sony Ericsson Mobile Communications AB, and Katarina Willig at Procter & Gamble, for handling valuable contacts.

Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase a product's perceived value to the customer and thereby increase brand franchise and brand equity. Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with future purchases of the same product. This may increase sales by making a comparison with competing products more favorable. It may also enable the manufacturer to charge more for the product. The value of the brand is determined by the amount of profit it generates for the manufacturer. This can result from a combination of increased sales and increased price, and/or reduced COGS (cost of goods sold), and/or reduced or more efficient marketing investment. All of these enhancements may improve the profitability of a brand, and thus, "Brand Managers" often carry line-management accountability for a brand's P&L (Profit and Loss) profitability, in contrast to marketing staff manager roles, which are allocated budgets from above, to manage and execute. In this regard, Brand Management is often viewed in organizations as a broader and more strategic role than Marketing alone. The annual list of the world’s most valuable brands, published by Interbrand and Business Week, indicates that the market value of companies often consists largely of brand equity. Research by McKinsey & Company, a global consulting firm, in 2000 suggested that strong, well-leveraged brands produce higher returns to shareholders than weaker, narrower brands.[citation needed] Taken together, this means that brands seriously impact shareholder value, which ultimately makes branding a CEO responsibility.

Brand Architecture Strategy and Firm Value: How Leveraging, Separating, and Distancing the Corporate Brand Affects Risk and Returns

Describing the Customers’ Perception of Unilever’s Dualithic Approach has had on its Sub-Brands’ Brand Equity Student Name: Jayd Twiddy Student Number: 13022033 Vega School of Brand Leadership Supervisor: Sharon Ballack Alec Bozas Course: BA Honours in Strategic Brand Communication Module Name: Research Methodology Module Code: RESM8419 Due Date: 16 October 2017 DECLARATION I, Jayd Lynne Twiddy declare that this dissertation is of my own original work. Any secondary research material that has been used throughout this dissertation is peer reviewed, either a print source or from the Internet. I understand plagiarism is the use of another person’s work, ideas, and words without appropriate acknowledgement and I am aware of the department’s policy in this regard. All sources are acknowledged and referenced using the required Harvard reference style. Student Number: 13 02 20 33 Date: 16 October 2017 ______________________ Signed: J.L Twiddy II ACKNOWLEDGEMENTS I would like to say a special thanks to the following people who made this research paper possible: Sharon Ballack (Supervisor), your knowledge and passion for the subject truly guided me through every stage of this research paper. I would not have been able to do this dissertation without you. Alec Bozas (Supervisor), your dedication and support as a lecturer, ensured I was always on track and prepared for any situation. III GLOSSARY OF TERMS Brand Equity: Brand equity is viewed as the inherent or perceived value of a brand, which depends on the customer's’ interaction over time with the brand and the perception consumers build based on their positive or negative experiences.

!""#$%$&!'()*+#(,-& & & &&&&&&&&&&&&&&&&& ./01234/53&67&89:;5/::'<;/:& & &&&&&&&&&&&&&&&&& =1:3/2&,>/:;:&?@>0& #02;5A&B@C?& ! "#$%&'%(!$)!)*+!,-+!.#+$/!0$-)1#2! D&$&E1:/'/&8215HL/2A& & & & & & & & & & & & & & & & & & & #90/2M;:62N&.1M;14412& .13/&67 L4;::;65N&B@C?D@PD?C& !"#$%&#'' & We would like to thank the interviewees from SIA Glass participating in this study: Rolf Frid, Lena Gustafsson, Anna Helgesson, Ulf Henningsson, Eva Lindström, Tomas Nilsson, Per- Arne Thonäng and Alexandra Thorn. We would also like to take the opportunity to thank our supervisor, David Sörhammar, as well as our opponents for valuable feedback during the process of writing this paper. Uppsala, May 31st 2013 Frida Ejnar Maria Sahlberg & *Q'$+&K&#$R%8*+G& ()*+"%&+&& & Authors Frida Ejnar, Maria Sahlberg Title Branding at the Ice Cream Factory- A Case Study of the Branding Strategy at SIA Glass Level Master Thesis in Strategic Marketing and Management Department Uppsala University, Uppsala, Sweden Supervisor David Sörhammar, Department of Business Studies Language English Branding is essential for a business success although it may be difficult to decide what branding strategy to use. The purpose of this paper is to investigate the concept of branding, and more explicitly the strategies of umbrella branding and brand extensions and how it relates to value, in practice. A case study of an ice cream company, SIA Glass, was conducted to answer the research question of how SIA Glass’ branding strategy affect its’ brands. The method used was based on a deductive approach with semi-structured interviews.

Designing Brand Identity Cover design: Jon Bjornson This book is printed on acid-free paper. Copyright © 2013 by Alina Wheeler. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with the respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor the author shall be liable for damages arising herefrom.

new_strategic_brand_aw:Layout 1 6/12/07 16:25 Page 1 “New exciting ideas and perspectives on brand building are offered that have been absent from our literature.” 4TH “New exciting ideas and perspectives on brand building!” Philip Kotler, S C Johnson & Sons Distinguished Professor of International Marketing, Northwestern University, EDITION Kellogg School of Management, USA Philip Kotler “Kapferer continues to be on the leading edge.” Earl N Powell, President, Design Management Institute, Boston, USA BRAND MANAGEMENT THE NEW STRATEGIC “Managing a brand without reading this book is like driving a car without your license.” 4TH EDITION Haesun Lee, Senior Vice President of Marketing, AMOREPACIFIC Co, Korea “The best book on brands!” Design Magazine “One of the definitive resources on branding for marketing professionals worldwide.” The Economic Times, India “One of the best books on brand management. Kapferer is thought-provoking and always able to create new insights on various brand-related topics.” THE NEW Rik Riezebos, CEO Brand Capital and director of the European Institute for Brand Management Adopted by leading international business schools, MBA programmes and marketing practitioners alike, The New Strategic Brand Management is simply the reference source for senior strategists, positioning professionals and postgraduate students. Over the years it has not only established a reputation as one of the leading works on brand strategy but has also become synonymous with the topic itself. This new edition builds on its impressive reputation and keeps the book at the forefront of strategic brand thinking. STRATEGIC Revealing and explaining the latest models used by companies worldwide, author Jean-Noël Kapferer covers all the leading issues faced by brand strategists today, supported by an array of international case studies.

Global 500 2017 The annual report on the world’s most valuable brands February 2017 Brand Finance Global 500 February 2017 1. Foreword Contents steady downward spiral of poor communication, Definitions 4 wasted resources and a negative impact on the bottom line. Methodology 6 Executive Summary 8 Brand Finance bridges the gap between the marketing and financial worlds. Our teams have Full Table 18 experience across a wide range of disciplines from market research and visual identity to tax Understand Your Brand’s Value 28 and accounting. We understand the importance of design, advertising and marketing, but we How We Can Help 30 also believe that the ultimate and overriding Contact Details 31 purpose of brands is to make money. That is why we connect brands to the bottom line. By valuing brands, we provide a mutually intelligible language for marketers and finance teams. David Haigh, CEO Marketers then have the ability to communicate Brand Finance the significance of what they do and boards can use the information to chart a course that maximises profits. Without knowing the precise, What is the purpose of a strong brand; to attract financial value of an asset, how can you know if customers, to build loyalty, to motivate staff? All you are maximising your returns? If you are true, but for a commercial brand at least, the first intending to license a brand, how can you know answer must always be ‘to make money’. Huge you are getting a fair price? If you are intending investments are made in the design, launch and to sell, how do you know what the right time is? ongoing promotion of brands.

BRAND ARCHITECTURE Crafting a Comprehensive Brand Portfolio Strategy The following report is an abridged version from Chapter 5 of The Indispensable Brand by Mitch Duckler. The book provides a roadmap for crafting a brand strategy that rises above the noise and monotony in the marketplace… and for catapulting brands from indistinguishable to indispensable. Breaking Down Portfolio Strategy Brand portfolio strategy and architecture are critical components of a successful brand strategy. Their complexity and nuances make them essential concepts for achieving meaningful brand differentiation. Unlike other components of brand strategy, most of the key tenets are just as relevant today as they were when they were initially developed, so there isn’t a significant call to action for improvement or change. Even so, the importance of brand portfolio strategy and architecture cannot be overstated. Brand portfolio strategy has become very popular in recent years due to the elevated stature of brands. Brands represent a company’s most intangible assets, so establishing an optimal mix of them has become prioritized. Managing the brands also guarantees maximum marketplace relevance and internal efficiencies. The increasing prominence of merger and acquisition (M&A) activity has also played a role in its growing popularity. When large, multinational companies acquire more companies, they often do so without taking the necessary steps to optimize their new brand portfolios, resulting in bloated brand portfolios that limit internal efficiency, confuse external stakeholders, and increase costs. Brand portfolio strategy, at its core, determines the number of brands that a company’s portfolio should contain. It explains how to deploy those brands within the business and in the market.

European Journal of Marketing Corporate rebranding: destroying, transferring or creating brand equity? Laurent Muzellec Mary Lambkin Article information: To cite this document: Laurent Muzellec Mary Lambkin, (2006),"Corporate rebranding: destroying, transferring or creating brand equity?", European Journal of Marketing, Vol. 40 Iss 7/8 pp. 803 - 824 Permanent link to this document: http://dx.doi.org/10.1108/03090560610670007 Downloaded on: 27 October 2015, At: 05:13 (PT) References: this document contains references to 68 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 15570 times since 2006* Users who downloaded this article also downloaded: Jack G. Kaikati, Andrew M. Kaikati, (2003),"A rose by any other name: rebranding campaigns that work", Journal of Business Strategy, Vol. 24 Iss 6 pp. 17-23 http://dx.doi.org/10.1108/02756660310509451 Jack G. Kaikati, (2003),"Lessons from Accenture’s 3Rs: rebranding, restructuring and repositioning", Journal of Product & Brand Management, Vol. 12 Iss 7 pp. 477-490 http:// dx.doi.org/10.1108/10610420310506038 Fiona Harris, Leslie de Chernatony, (2001),"Corporate branding and corporate brand performance", European Journal of Marketing, Vol. 35 Iss 3/4 pp. 441-456 http://dx.doi.org/10.1108/03090560110382101 Access to this document was granted through an Emerald subscription provided by emerald-srm:478531 [] For Authors Downloaded by USP At 05:13 27 October 2015 (PT) If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all.

Contents Introduction ix 01 All About Brands 1 02 Branding in a Postmodern Culture 39 03 Strategic Perspectives of Branding 55 04 Managing Brand Value 85 05 Brand Leadership 127 06 Luxury Brand Marketing 143 07 Strategic Brand Process 175 08 Strategic Brand Assessment 213 09 Strategic Brand Audit 221 Glossary 231 About the Author 235 Index 237 vii 60_Minute_Brand_Strategist_FINAL.indd vii 4/15/2013 4:53:04 PM viii 60_Minute_Brand_Strategist_FINAL.indd viii 4/15/2013 4:53:04 PM Introduction This book is a creative compilation of thoughts, processes, frameworks, and visuals taken from my Advanced Branding Master Class, running for more than 10 years in more than 20 countries. This book is for those who haven’t yet had the opportunity to attend my seminars. Everyone is busy, with little time to read, so this book is a 60-minute read that could be fi nished on a fl ight from New York City to Chicago, or from London to Paris. Brand is unarguably the most powerful business tool ever invented, after costing and pricing. There are a lot of myths about brand and brand strategy, including the right way to grow the fi nancial and strategic value of a brand and the notion that brand strategy should always align with business strategy. People often place too much value in the power of a logo or a name, but rarely enough on their brand strategy. Many also assume that the brand strategy of larger companies is always robust, and only affordable because of their size. This is far from the truth; every suc- cessful business, large or small, global or local, must have a brand strategy and it needn’t be complicated.

Airline Brand Experience Passengers’ Perceptions of the Big Three Carriers in the United States by Sarinthree Udchachone Bachelor of Technology Management Air Traffic Management Civil Aviation Training Centre, Thailand 2003 Master of Sciences Aviation Management Griffith University, Australia 2008 Master of Research Accounting, Financing, and Management University of Essex, United Kingdom 2013 A dissertation submitted to the College of Aeronautics of Florida Institute of Technology in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Aviation Sciences Melbourne, Florida August 2020 We the undersigned committee hereby approve the attached dissertation, “Airline Brand Experience: Passengers’ Perceptions of the Big Three Carriers in the United States” by Sarinthree Udchachone _______________________________________________ John Deaton, Ph.D. Professor College of Aeronautics Major Advisor _________________________________________________ Deborah Carstens, Ph.D. Professor College of Aeronautics _________________________________________________ Brooke Wheeler, Ph.D. Assistant Professor College of Aeronautics _________________________________________________ Theodore Richardson, Ed.D. Professor Nathan M. Bisk College of Business ________________________________________________ Ulreen Jones, Ph.D. Assistant Professor and Dean College of Aeronautics Abstract TITLE: Airline Brand Experience: Passengers’ Perceptions of the Big Three Carriers in the United States AUTHOR: Sarinthree Udchachone COMMITTEE CHAIR: John