1

BRAND ARCHITECTURE

The relationship among brands in portfolio

The roles of brands in portfolio

Brand extension/growth opportunities

2

ARCHITECTURE IMPERATIVES

aspirations aspirations & &

growth growth strategiesstrategies

existing existing equitiesequities

market market clarityclarity

3

KEY BARRIERS TO CHANGE

Understanding the cost/benefit ratio

Employee loyalty to acquired entities

Different cultures across business units

Inertia

4

BRAND PORTFOLIO

MONOLITHIC

e.g., FedEx

COMPANY-CENTRIC

e.g., Xerox

SYMMETRICAL

e.g., Buick Aurora

ASYMMETRICAL

e.g., Bosch, Blaupunkt

BRAND-CENTRIC

e.g., Procter & Gamble

PORTFOLIO TYPES

5

BRAND ARCHITECTUREBrand roles in the portfolio:

• Strategic (e.g., Slate for Levi’s)

• Flanker (e.g., Basic for Marlboro)

• Silver Bullet (e.g., Viper for Dodge)

• Enticers (e.g., C-Class for Mercedes-Benz)

• Endorsers (FourPoints by Sheraton)

• Cash Cows (Lux for Unilever)

6

EXTENSION STRATEGIES Up to 4 of 5 new product launches fail

To reduce risk, 80% of new product launches are brand extensions

For both products and services, extensions into similar categories are most successful

The stronger the brand’s reputation, the more favorable the extension is received (for both products and services)

The riskier the category is viewed by customers, the more favorable the extension