7: Designing and Implementing Brand Architecture Strategies

Question 1

What are the steps to developing brand architecture strategy?

Answer 1

• Step 1: Defining brand potential
• Step 2: Identifying brand extension opportunities
• Step 3: Branding new products and services

Question 2

What are the 3 important characteristics of defining brand potential?

Answer 2

– Brand vision
– Brand boundaries
– Brand positioning

Question 3

What are the 2 brand extensions?

Answer 3

– Line extension: New product introductions within
existing categories
– Category extension: New product introductions outside existing categories

Question 4

Each extension should understand under?

Answer 4

– Points-of-parity

– Points-of-difference

Question 5

What are the 2 branded strategies?

Answer 5

– Branded house strategy
▪ Umbrella corporate or family brand for all its products
– House of brands strategy
▪ Collection of individual brands all with different names

Question 6

What is a sub-brand?

Answer 6

– Brand extension in which the new product carries both the parent brand name and a new name

Question 7

What is brand-product matrix?

Answer 7

A brand-product matrix is a tool used to characterise the brand architecture strategy of a firm. It is a graphical representation of all the brands and products sold by the firm.

Question 8

What does brand portfolio includes?

Answer 8

• Includes all brands sold by a company in a product

category

Question 9

How is brand portfolio judged?

Answer 9

– Brand portfolio judged by its ability to maximize brand equity
▪ Any one brand in a portfolio should not harm or
decrease the equity of the others
▪ Ideally, each brand maximized equity in
combination with all others

Question 10

What are the reasons for introducing multiple brands in a category?

Answer 10

• Increase shelf presence and retailer dependence in
the store
• Attract consumers seeking variety who may
otherwise switch to another brand
• Increase internal competition within the firm
• Yield economies of scale in advertising, sales,
merchandising, and physical distribution

Question 11

What are the possible special roles of brands in brand portfolio?

Answer 11

1. To attract a particular market segment not currently being covered by other brands of the firm
2. To serve as a flanker and protect flagship brands
3. To serve as a cash cow and be milked for profits
4. To serve as a low-end entry-level product to attract new customers to the brand franchise
5. To serve as a high-end prestige product to add prestige and credibility to the entire brand portfolio
6. To increase shelf presence and retailer dependence in the store
7. To attract consumers seeking variety who may otherwise have switched to another brand
8. To increase internal competition within the firm
9. To yield economies of scale in advertising, sales, merchandising, and physical distribution

Question 12

What are flankers?

Answer 12

• 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 higher-priced comparison
brands
– If connected to other brands in the portfolio, must not
be designed so cheaply that they reflect poorly on
other brands

Question 13

How does cash cow works?

Answer 13

Despite dwindling sales, some brands are retained
– Due to their sustainability with virtually no marketing
support
• Milked by capitalizing on their reservoir of existing brand equity

Question 14

What is the role of a relatively low-priced brand?

Answer 14

– To attract customers to the brand franchise

Question 15

What is the role of a relatively high-priced brand?

Answer 15

– To add prestige and credibility to the entire portfolio

Question 16

What is the role of brand architecture?

Answer 16

-To clarify brand awareness: Improve consumer
understanding and communicate similarity and
differences between individual products and services.
-To improve brand image: Maximize transfer of equity
between the brand and individual products and
services to improve trial and repeat purchase.

Question 17

What are the level of brand hierarchy?

Answer 17

1. Corporate or Company Brand Level
2. Family Brand Level
3. Individual Brand Level
4. Modifier Level
5. Product Descriptor

Question 18

What are the things to decide when setting up a brand hierarchy?

Answer 18

– Specific products to be introduced for any one brand
– Number of levels of the hierarchy to use
– Desired brand awareness and image at each level
– Combinations of brand elements from different levels of the hierarchy
– Best way to link any one brand element to multiple
products