Session 3 - Brand Architecture_Portolio mangm.2023.pptx

Session 3: What do we believe in when we talk about Brand architecture and Portfolio management? 1 As brand consultants, we understand as Brand Architecture… …an organizational structure that specifies the type, number , relationship and hierarchy of brands within the business portfolio. It is an...

Session 3: What do we believe in when we talk about Brand architecture and Portfolio management? 1 As brand consultants, we understand as Brand Architecture… …an organizational structure that specifies the type, number , relationship and hierarchy of brands within the business portfolio. It is an integral part of a company’s brand strategy which is at the business’ service. 2 When is considered "healthy" a project of this nature? ✔ Confused Internal / external audiences ✔ The company is facing international expansion processes ✔ There are inefficiencies in a very limited budget environment ✔ Debates / internal controversies are open because there is uncertainty regarding the role of some brands Competition is stiff and it’s hard for companies to differentiate. 3 The key of brand architecture is understanding when differentiation creates value. 4 The brand architecture approach will be faced integrally: 1. Macro architecture: Corporate Brand We will evaluate the relationship of the brands with the different business lines’ brands, as well as other countries’ brands that have more than one denomination. 5 The brand architecture approach will be faced integrally: 2. Micro architecture: Products/services… We will evaluate the relationship of the different business lines with the products services and channels. 6 There are nor good or bad brand arquitecture models. Everything depends on the business. 7 Possible models depending on the master brand’s role Pure monolithic Master brand Monolithic modified Master brand Sub-brand Master brand subrand Endorsed Corporate invisible endorsed Independent descriptor Master brand The master brand’s message is enough and suitable for all audiences. The master brand has a predominant role, being necessary but not sufficient. The type of business is specified. The sub - brands have different promises, Achieving a unique brand image but at the same time, related to the master brand. Each brand (business line ) has its own values, which are supported by the master brand. Each brand has its own values ​and audiences. The relationship between brands is nonexistent and the master brand has not visibility. 8 Brand architecture models Monolithic pure Monolithic modified Sub-brand Endorsed Corporate invisible 9 Brand architecture models Monolithic pure Monolithic modified Sub-brand Endorsed Corporate invisible 10 Brand architecture models Monolithic Monolithic modified Sub-brand pure Endorsed Corporate invisible 11 Brand architecture models Monolithic pure Monolithic modified Sub-brand Endorsed Corporate invisible 12 Brand architecture models Monolithic pure Monolithic modified Sub-brand Endorsed Corporate invisible 13 14 Unilever's top 25 brands account for more than 70% of its sales Brand architecture answers some important questions 17 What’s the organising principle for our portfolio? 18 Do we have the right number of brands? 19 What's the right level of family resemblance, for us and our customers? 20 How can our brands help each other? 21 How can our corporate brand help its sub-brands? 22 How can our sub-brands help our corporate brand? 23 Are we building towers or bridges? 24 Different business’ strategies demand different brand architecture solutions 25 THIS? “ Every day around the world we continue working to realise our vision ‘One Aviva, Twice the Value’. By working together closely, we are transforming our business, optimising our performance and maximising the value we generate for all our stakeholders. ” - Andrew Moss, Aviva Group CEO Brand Architecture Workshop | December 2, 2014 | © FutureBrand 2014 OR THIS? “ Our new tagline ‘One Company. Many Brands’ aptly describes our aim to combine the scale benefits of a large, unified financial services group with the market strength that comes from having a portfolio of leading brands. ” - Patrick Snowball, Suncorp Group CEO Brand Architecture Workshop | December 2, 2014 | © FutureBrand 2014 To create a brand architecture at the macro level we consider different portfolio criteria Price Brands are segmented according to the price consumers are willing to pay. Geography Brands are segmented by region Product / category Brands are segmented according to the product category in question . Channels Brands are segmented according to the distribution channel . Demography Brands are segmented by different types of demographic profiles. Mindset Brands are segmented by different types of lifestyle. 3 0 How to identify the strongest and most strategic brands of the portfolio (at corporate level) Is i t ab ran d tod ay? What is its level of strength? Is i t high as tra teg i Established cb ran d ? medium Emergent low *It is understood by strength the measurement of awareness or brand reputation . 3 1 There is a lot of work to do on the micro level: only some products/ solutions need to become brands (at products/services level) • We will identify when it becomes insufficient to remain in a merely denominative frame because a name and an independent graphic development is required. Brands ith sw y ice ntit erv ide / S ual cts vis du nd Pro bal a ver • Our objective: Clarify the portfolio and communicate with more precision. • Some of these cases will be strategic for the long-term, others might be tactical for the shortterm. Denominations 32 PORTFOLIO MANAGEMENT Maximizing market coverage and growth potential A good Portfolio Segmentation is key for a winning strategy; It’s needed to minimize the overlapping between the different brands in your company and maximize your reach. Different targets: Socio-demographics, Psychographics, Motivational, Behaviour. Different Occasions: E.g. Breakfast, Lunch, after-school snack, dinner,... Different needs/motivations: E.g. Belonging, self indulgence, recognition... Current position in the market and your potential growth (BCG Matrix) Based on the countries the brands are sold: Global, Local & Glocal PORTFOLIO MANAGEMENT Traditional ways to organize your portfolio (just based on size and growth potential), but they are not customer centric. PORTFOLIO MANAGEMENT But a portfolio need to follow a consumer-centric organization: PORTFOLIO MANAGEMENT WEEKDAY WEEKEND Relax at home Unplug to socialize Buddy Bonding Special celebrations Socializing meals Leisure at home Let’s party Relaxing weekends Romantic Moments PORTFOLIO MANAGEMENT And also taking into account Global and local brands… GLOBAL LOCAL 3 PORTFOLIO MANAGEMENT GLOCA L 33 PORTFOLIO MANAGEMENT How to prioritize?- Brand prioritization model 1. Identify the relevant brand set: Brands and subbrands. 2. Develop Brand Assessment Criteria: a. Brand equity: awareness, reputation, differentiation, relevance, loyalty. b. Business Strength: Sales, Market share, Profit Margin, Growth c. Strategic Fit: Extendibility, potential as platform for growth, Business fit. 3. Evaluate the brands: Introduce weighting can be useful to make it objective. 4. Prioritize brands: Tier 1, tier 2, Tier 3 Source: Spanning Silos: The new CMO imperative. David A. Aaker Session 3 Teamwork Please continue working in assignments explained in Sessions 1 and 2. Muchas gracias