[MUSIC] Hi, welcome back. In the last lecture, we discussed brand architecture components and model. Including the concept of a corporate brand. The focus of this lecture is to deep dive into the Branded House Model and when to use it. By definition, a Branded House means that all of your products are commercialized under one single powerful brand that spans a broader breadth of offerings that you have. It is a key point of reference. Its role is to drive the customer relationships. The objective of using this strategy is really to provide clarity to the customer, because it is an easily understood offering set with the script that articulates what it sells. It also provides synergy between products, because you share and spread the positive associations. It also allows to leverage the brand strength of the master brand across more context. Let's look at an example. I know it is from some years back, but it illustrates very well the points involved so you can grasp them. In the early days of the century, Dell, the PC manufacturer, had various brands for their offering, an online shopping site called Gigabuys. A search engine called Ask Dudley. Support.ap.dell for support, a single source for integrated and custom factory solutions called DellPlus etc, etc. Dell decided to shift it's focus from its service channel of brands to a single master brand, by positioning master brand as a unified platform of product and services. Dell strengthened the equity of the master brand and clarified its offering for customers. Simplifying that the architecture enabled Dell to drive equity to its master brand more efficiently. Gigabuys became Dell Accessories. And Ask Dudley became Dell Online Instant Answers. And support.ap.dell became Dell Support. And DellPlus became Dell Customer Factory Integration, etc, etc. Dell's change in brand architecture, where all of their products and services became aligned under a corporate brand, caused that the master brand Dell, is the one playing the driver role for customers purchase decisions. So let's do an analysis to see if Dell's architecture actually maximized customer clarity and optimized the spending efficiency. On the advantages side, reducing the number of sub-brands and using descriptives definitely provided clarity for customers. The marketing investment and personal resources focused on building a single brand. It enables scale investment and child resource allocation. The fact that one brand provided Exoft solution in this field built credibility, and thus equity into one master brand. Lastly, Dell was able to leverage the strength of the Dell original offering, building customized PCs, into their service businesses. On the disadvantages front, for Dell, there could had been negative synergies. Like bad experiences with one business or offering could negatively affect customer's perception of other business under the same master brand. Also, something which doesn't apply to all brands, but targeting unique customer segments can be challenging if a brand's extendibility is limited. So how do you decide where to use a Branded House Model when growing your offering? You should at least think of the following. Are the target customers of your product the same, or similar enough, that you can target them with one encompassing brand? For example, from a pricing perspective, are some of them cost oriented and others willing to pay for a premium? If this is the case, you might want to use a different brand architecture model. Remember, in a Branded House, you should maintain a consistent brand meaning and messaging across your categories. Because at the end, all your brand-building efforts, your focus on growing enhances the strength of that one master brand. In our next lecture, we will discuss more in detail the House of Brands Model, and when to use it. See you there. [MUSIC]