[MUSIC]

Hi, welcome back.

In the last lecture we discussed the brand equity concept.

The focus of this lecture is to introduce you to the components of brand

architecture and the models that exist.

Let's begin by looking at a brand portfolio so

you know what you could be facing.

Yes, at first it might seem like a monster with seven heads,

each with someone behind it pushing in one different direction.

So lets deconstruct and analyze basic concepts that would help us manage it.

Let's begin from bottom up.

On the lower part of the slide you will see what's called an ingredient brand

which is nothing more than a name which adds

additional credibility to the commercial brand or product.

Can you think of one?

If you answer any of these you are right.

If you're a Windows user you're PC

had one ingredient brand sticker looking at you everyday.

Yes Intel inside.

Now let's move up and center to talk about Sub Brands.

The variant name of a commercial brand.

In theory, a successful brand extension should be easy.

All you have to do is take a familiar name and

slap it on a new product in a new category.

Well, it doesn't work that way.

The brand should be a logical fit with a parent brand.

The parent should give the extension and edge in the new category and

the extension should have the potential to generate significant sales.

For example, think of Thai To Go, of Diet Coke, of Virgin Airways, etc.

Now, let's talk about commercial brands,

the name under which a product with customer-facing visibility is sold.

Any product or service that doesn't have a last name and

doesn't use the parent's company brand is a commercial brand.

For example in the hotel industry Sheraton,

in consumer goods dove, the iPhone etc.

Lastly we have the chord per brand, the under which the organization

operates which can be used for commercializing it's products.

The corporate brand sometimes also referred as in master brand,

defines the organization and

is used as an umbrella brand under which customers find products and services.

It uses a corporate attribute of the organization

to transfer brand equity to the products and services it commercializes.

Examples are GE, Coca-Cola, Disney, Virgin, etc.

So what is the role of the corporate brand?

On the one side it might be of leadership and visibility.

This means that the organization is visibly present supporting products and

services.

It uses the brand to target all stakeholders groups,

from shareholders to consumers.

When used this role the corporate brands transfer the positive and

the negative associations to each of the products and services.

Almost all GE business units are called GE something, but

there exists flexibility for certain exceptions.

What is another potential word for the corporate brand?

One of endorsement and shadow.

Yes, in this role the corporate brand acts as differentiator, and

provides a warranty that individual brands will actually fulfill their own promise.

It is targeted at specific stakeholders, for example it could be shareholders,

it could be media or sometimes, even consumers.

In this role, the individual commercial brands are responsible for

generating the purchase decision and defining the customer experience.

Each one of them focusing on maximizing their impact on the market place.

For example, Unilever uses the individual brands to target specific

segments with their own needs and it allows them to be differentiated

in a relevant way versus the offering of competitors.

Lipton and Dove have nothing to do with each other.

And they both belong to Unilever.

Why use a corporate brand?

Strong corporate brands can help organizations grow and

improve their performance, among other benefits.

We can also find that corporate brands help organizations boost their growth.

When entering a new market it allows access to channels or products and

services.

It also allows businesses to really find their markets.

A great example is Virgin,

whose portfolio expands from airlines to banking to gyms to radio stations, etc.

It also helps improve their reputation.

It strengthens the preference for products and services and

the perception of the organization.

Think about it, would you buy the iPad if an unknown company like Foxconn made it?

Probably not.

But they're the actual manufacturer of the iPad.

It also improve the shield or

spillover from negative events which could impact the brand.

For example, in the Volkswagen scandal with diesel emission tampering,

if this were have been done by a lesser known brand,

Probably the company would have gone broke.

Despite of damage in the reputation, the fact that Volkswagen is behind this

provides a warranty that the brand will make it right by customers.

Another benefit, it has helped with internal alignment,

it provides clarity in the reason for being of the organization.

And it's a great platform to develop a unique corporate culture.

The reason to have provided you with all of these

is to explain the brand architecture models.

The spectrum of potential brand relationships,

moved from a branded house which is as corporate master brand

to span a set of offerings operating with only descriptive sell brands.

Example of this are Virgin, Cisco, Goldman Sachs, BMW, AT&T, etc.

On the other side of the spectrum is a house of grand strategy

which involves an independent set of stand-alone brands,

each focusing on maximizing it's impact on the market.

With a differentiated target and unique brands.

Examples are Unilever, Proctor and Gamble, Volkswagen, Inditex,

the owner of Zara, Yum brands, the owner of Taco Bell,

KFC, and Pizza Hut, etc, and there's also a hybrid model.

This is a mix of both systems,

the commercial brands can be linked to a corporate brand by a visual endorser.

Companies according to their business strategy use it flexibly.

An example of these are Marriott Hotels,

which endorses some of its brands like Courtyard or Residence Inn, but

they don't endorse others such as Renaissance or Ritz-Carlton.

Let's look at the chart from the beginning of our lesson today and

see if you can identify which type of brand is each of the brands in it.

In our next lesson we will discuss more in detail the branded house model and

when to use it, See you there.

[MUSIC]

3.2 Which are the different models of brand architecture?

品牌和产品管理

与讲师见面