PBL trigger 3: Brand architecture and brand strategy

1 Compare the brand strategies and architectures of different companies. How and why are they different? 

There are seven types of brand recognition strategies.

1. Name brand recognition 
- Big companies can extend their own brand name to their products. They can be easily recognised with their names, logos or colors. They can feature subsidiary products under the company's name
e.g.: Apple, Coca-cola, Starbucks. 

2. Individual branding 
- A big company produces a product that is independent of the parent company.

3. Attitude branding
- Brands that create a personality and unique customer experience to the product or service. Brands that reflect to customer's self identity and self expression.
e.g. Apple, Ed Hardy, Nike

4. "No brand" branding
- The products have often simple and generic design and no logos. Depend on reputation, style and quality instead of the brand status.
e.g. popular Japanese brand, Muji. Means "no-label"

5. Brand extension
- The brand extends to a new market, e.g. shoe brand starts making clothing

6. Private labels
- Store brands, popular in supermarkets.

7. Crowdsourcing
- Outsourcing a brand to the public, allowing them to be part of the brand development process 

(http://cmgpartners.com/content/types-of-brand-strategies/)


Brand architecture models

(http://www.versebrandstrategy.com/alphabets-moving-in-googles-rearranged-brand-house/)

Branded house:
The firm is the brand. This results to a strong brand that is easily recognized. All resources devoted to one brand.
e.g. Apple is known for this model. There are many subset brands under the main Apple brand: Mac, iTunes, iPhone
Think: A family who all look similar to each other

House of brands
The opposite of branded house. Sub-brands are promoted and featured instead of the corporate brand. Works well for consumer brands.
e.g. Unilever; hygiene products to foods
Think: Parents with adopted children

Hybrid
Combination of branded house and house of brands. There is one major brand where the name of the company is the same as one of the product's. The products are associated with the company but are also recognized brands on their own.
e.g. Coca-cola that has a great variety of beverages. Pepsi, whose products are known as their own sub-brands but linked to the main one.
Think: Cousins as opposed to siblings

(http://www.ideasbig.com/blog/branded-house-house-brands/)





2 What brand architecture models do companies you know use? 

Google: Google used to be a branded house, changed its brand architecture model from branded house in 2015, when they launched a new holding company, Alphabetto. 

"Now, Alphabet Inc. has become a house of brands. Within that house of brands exists Google. Within Google, there exists a combination of sub brands and housed brands."
(http://www.versebrandstrategy.com/alphabets-moving-in-googles-rearranged-brand-house/)

Why? 
- Development of the company
- Higher freedom to sub-brands, can operate independently and have independence and opportunity to develop their own brands
- Flexibility (Alphabet's brands can take risks without compromising Google's brand name)
- Sub-brands will be less affected by Google's resources and brand image (cant succeed by the success of sister subsidiary)
- Centralized system > more flexible one
- Improves transparency (each subsidiary now provide individual performance reports)
- Investors can support the brands individually

Coca-cola: Traditionally a hybrid model, however in 2015 changed their strategy to "one brand" model, turning three sub-brands into variants of the main bran.

(Chief Marketing Officer of The Coca-Cola Company)

Why? 
-Unification of marketing the master brand to its sub-brands (diet coke, coca-cola life, zero etc.)
-Greater clarity and leverage (so customers understand the options available for them and their benefits)
-Enables marketing the products together




3 Which brand architectures are good for different products and services? 

Branded house:
Apple:  "Successful sub-brands can help advertise and increase exposure for the parent brand. They help establish brand loyalty and trust. Consumers who trust a main brand are more likely to try a new product under the main brand. Take for example, Apple, Inc. Anytime Apple debuts a product, say an iPhone, iPad, iPod, etc. it capitalizes on the halo effect. People trust Apple as a brand and in turn trust the products they produce."
(http://brogan.com/blog/pros-and-cons-sub-branding-and-brand-extension)

House of brands:
Works well for consumer brands.
Offers clear connection to new extensions
Value of the master brand is easily transferred

4 Analyze the brand strategy and architecture of a chosen company.

Google. See above.


Sources:
http://cmgpartners.com/content/types-of-brand-strategies/
https://s-media-cache-ak0.pinimg.com/originals/6c/d6/fc/6cd6fcf5431496115885a7409a34e2f2.png
http://www.ideasbig.com/blog/branded-house-house-brands/
http://www.siegelgale.com/google-going-alpha-a-simple-and-smart-new-brand-architecture/
http://www.coca-cola.co.uk/stories/health/choice-and-information/coca-cola-one-brand-marketing-strategy
https://www.brandfolder.com/blog/4-branding-lessons-from-googles-alphabet-architecture/
http://brogan.com/blog/pros-and-cons-sub-branding-and-brand-extension
http://www.versebrandstrategy.com/alphabets-moving-in-googles-rearranged-brand-house/