Easy introduction of new products. FMCG Personal care & beauty. For example, Apple is the parent company but relies on an name. Endorsed Brands fall somewhere in the middle. In simple terms – It shows how the brands, sub-brands and other offerings of the company are organized and how they relate to each other. Hybrid brand strategy advantages The hybrid architecture approach can present the best of all worlds. 1. Monolithic brand (also known as Branded house): there is a single master brand, one trademark followed by descriptive names for each product/service, one system (promise, personality, visual and verbal identity) used for all the products/services that corporate develops. Is the assurance provided by the endorser brand valued by the customer? You have to analyze your portfolio and choose the type that fits you best. Advantages of Brand Architecture. L'Oreal + Studio Line There are three key levels of branding: Our prior five posts cover brand architecture basics (What Is Brand Architecture? The more recognition you receive and the more you build your brand, the more you will find that your brand elevates and is competitive with other well-known brands. The Best Brand Architecture Strategy Optimizes Marketing ROI and Simplifies Growth. With every new endorsed brand comes creative, legal, and time-to-market costs. They are called “endorsed brands” because the parent brand endorses the products with its reputation. It keeps a constant vigil on the market and its current trends. Agriculture. Don’t fret, this can work both ways. The presumption is that building a strong brand yields a number of marketing advantages. It is common for the consumers to not be aware of the parent brand. FMCG Food. Any endorser brand assurance needs to be framed in a way that is meaningful to customers. FMCG Alcoholic beverages. A product endorsement gives you a chance to differentiate your company and brand message from what your competitors are doing. Blog; Contact; Brand-Rep provides big company world class branding and delivery with a personal white glove approach. Your strategy also impacts your business internally. FMCG Non-alcoholic beverages. What Is Brand Architecture? They are called “endorsed brands” because the parent brand endorses the products with its reputation. The Advantages and Disadvantages of Using Each Brand Architecture. An endorser brand architecture succeeds where it links a family of product brands by a shared high-level promise, which is valued by target customers. An endorsed strategy is one where you’ll find messaging like “brought to you by…”. With a branded house strategy, the firm is the brand. There are numerous examples of this strategy: Think Courtyard By Marriott, Polo by Ralph Lauren, Microsoft Windows, and the like. Blog Post By: Kali Kraft, Baer Performance Marketing Intern. and How to Choose Your Brand Architecture) and the primary brand architecture types (sub-brand, masterbrand and freestanding brand architecture). It is as true for professional services brands as it is for consumer products. Celebrity Endorsements: Advantages & Disadvantages Advantages. The purpose of following a branding strategy of using brand names for specific products is to create a brand identity [Cra13]. The Pros and Cons of Celebrity Endorsements admin | January 2, 2018. Brand architecture strategy consisting of the creation of sub-brands with their own identity for certain business units under a parent brand, which are grouped together adding prestige and credibility. 3 Bessom St. #211 Partnerships can help position your brand by association. Endorsed brands: Individual product brands, linked together by an endorsing parent-brand. Sub-brand: There is a corporate trademark and sub-brand trademarks: an overlying corporate brand and separate sub-brands beneath the corporate brand. The goal of any brand strategy is to build a strong brand. The time and resources involved in planning and implementing the brand activities will be greater, Success will not be directly attributed to the parent brand. Marketing dollars will be spread over distinct product brands and the endorsing brand, as opposed to focusing all of marketing spending on a masterbrand. For example, if your smaller brand manages to partner with a larger, well-recognized brand, this can build your brand’s recognition, value, and caché. The brand architecture ensures the smooth running of an organization. An endorser brand architecture allows a key innovation or promise to be highlighted and reinforced in brand marketing for the family of products. In this case, the endorsed brand plays a major role, has a separate identity and uses the masterbrand’s endorsement as a quality stamp – it helps the endorsed brand build awareness and trust. You specify the master brand (the grandparent) and move downwards by drawing its relations with other brands and their interpersonal relations as well. a. It has endorsed brands like XBox and Bing, which target more fractional audiences, but remain linked to the parent brand. Read this blog post to choose the right strategy for your portfolio of brands. FMCG Household products. Power – The cult of celebrity is a cultural phenomenon dating back millennia. Microsoft uses multiple brand architectures, but very deliberately. List of Product Endorsement Advantages 1. Consider whether there is value in the endorsement of the endorser parent brand to your target customer. Financial services. In Building a Brand by DistilityNovember 6, 2011Leave a Comment. How you choose to brand your business greatly affects the public’s perception. All brands in the brand family will suffer if any of the brands go into crisis. Honda Motor Company uses an endorsed brand strategy, as shown here: You can target many different customers because the sub-brands have different names, logos, different promises, positions and personality traits – you can address conflicting audiences. As you can see, every type of brand architecture has its advantages and disadvantages. However, it is the individual product brands which are featured in brand marketing and have distinctive personalities, positions, promises, and packaging. Search by category. Find a brand strategy case study. This post is the sixth in our series on brand architecture. An endorser brand is a valuable brand architecture if the endorsement will increase buyer confidence in product brands. An endorser brand architecture is made up of individual and distinct product brands, which are linked together by an endorsing parent brand. CHANNELS OF DISTRIBUTION:Components of channel performance, Value thru … Apparel. This link is what provides the assurance to the customer that if they like one product in the family of the endorsing brand, then a sibling brand is also worthy of consideration. Again considering Nabisco, Nabisco built its brand on packaging innovation which allowed it to deliver on the promise of freshness and has used the Nabisco endorsing parent brand as an assurance of freshness of its cookie and cracker brands to its customers. In the previous article, we discussed various brand architecture types. With the help of a celebrity or public figure you can: • Enhance brand awareness within a short period of time • Shift consumer attitudes about your goods or services • Add a fresh perspective to your brand • Improve brand management • Give your brand a major competitive edge We often use the terminology of human relationships by which to understand how the relationships between brands are defined, so we might say it is a ‘family tree’ of brands, or the master brand is the ‘parent’ brand. In our seventh and final blog post in this series, we will cover the mixed architecture type where a business has over time, acquisition or hazard entered up with a number of architecture types and may well need to consider curative work to make their structure stronger and more effective. 3. And in so… “But rather than looking at the brand essence and reinforcing, a lot of brands get lost in lots of different messages. If a product/service goes through a crisis, the whole brand may suffer – any negativity associated with a service/product is attributed to the brand and all its other products/services – everything that occurs is attributed to the brand. They are designed to stand apart and be independent from the master brand or the other house brands. Below, we differentiate between the two methods and explore the brand strategies of some of the biggest brands. The Advantages and Disadvantages of Using Each Brand Architecture; What Is Brand Strategy? Electronics & technology. Unilever, an Anglo-Dutch multinational, uses umbrella branding for some of its product ranges. The product brands will have each have their own brand marketing and will need to rely on their own value propositions to succeed. It has masterbranded offers, like Microsoft Health, Microsoft Project and Microsoft Internet Explorer, all of which use descriptive product names so that ‘Microsoft’ stands out. The awareness and rapid market penetration that a known brand can lend to either a new offshoot or a smaller acquisition can be very beneficial. Despite the distinctness of each product brand, the essential ingredient for a successful endorsing brand architecture is that there is a link between (i) the higher-level brand promise of the endorsing parent brand and (ii) the product brand. Nabisco as the endorsing parent brand is distinctively featured on all packaging in the family of product brands. Brand architecture is the structure given to the brands which are owned by one organization or business. 2. Any sub-brands do not detract from the main brand. Although the product brands have their own identities, there is a clear connection between them and the parent brand. Advantages of Product Endorsement. Culture road block can be manipulated by using celebrity with worldwide reputation (Kaikati, 1987). FERNANDEZ, CLARISA N. MARKETING MANAGEMENT 3-1 Individual Branding Large companies with a variety of well-known products may opt for an individual branding strategy by giving each product its own brand name. An endorser brand can work as assurance of quality for the product brand, it can increase consumer’s perception and confidence, Marketing activities advertise both the product brand and the endorser, The connection between product brands can facilitate cross-selling, If a brand goes through a crisis it is hard to control the damage because the crisis can extend to the parent brand and also to the other brands, There will be creative, legal, and time-to-market costs for every endorsed brand, If a free-standing brand goes through a crisis, it is not “contagious” to the other brands, Full liberty in creating the identity: freedom to create different brand strategy, name, logo, design, and creative campaigns, Presence in different market niches, targeting different audiences. For Nabisco, the assurance is about freshness and not packaging material innovation. The advantage of using fewer brands or a singular brand is marketing efficiency in brand building and customer communication. It has sub-brands like Microsoft Windows and Microsoft Surface. Brand architecture is an organized structure of the company’s portfolio of brands, sub-brands, and other offerings. Nabisco is a well-known example of an endorser brand architecture. What is an endorsed brand? Here, brands are combined in such a way that one is designed to work in concert with the other. An endorser brand architecture allows a high degree of brand marketing freedom for each product brand. The fact that every brand needs its own strategy, identity and marketing activities is a financial disadvantage. Legal and creative / marketing costs of creating new sub-brands. Product or service brands (for simplicity, all referred to as “product brands” in this post) linked together by an endorsing brand. Individual branding contrasts with umbrella branding. Below, we’ll look at some of the advantages and disadvantages of influencer marketing vs. celebrity endorsements to help determine appropriate use cases. Umbrella branding or corporate brandingis a strategy of marketing all a company’s products together. The endorsing parent brand plays a supportive and linking role, and, in many respects, an endorser brand architecture can be seen as an inversion of a sub-brand brand architecture. But it also allows the flexibility for stand-alone brands where this would be an advantage. Each of these brands may have a distinct brand promise, position and personality. Gyms & … Strengths: An endorser brand can work as assurance of quality for the product brand, it can increase consumer’s perception and confidence; Marketing activities advertise both … Celebrity branding or celebrity endorsement is a form of advertising campaign or marketing strategy which uses a celebrity's fame or social status to promote a product, brand or service, or to raise awareness about an issue. Knowing how your brand interacts with consumers is the key to determining the right brand architecture for your company. A Brand Architecture Strategy helps build strong brands, increases marketing ROI and gets your company ready for further growth. An example of this is any social campaign that you see in the market – which if executed properly, makes a huge impact on the customers. Unilever had a range of similar products that used the same family brand ‘Axe.’ There wa… 2. Celebrities are plastered all over TV, social media, magazines, and any other place you’d find an ad. There is no ideal or general recommended choice. Brand architecture is just like the family tree you used to create for your school projects. Focusing brand marketing (and marketing spending) on a single brand strategy and brand image. Brand marketing which promotes the endorsing parent brand provides a boost to each product brand. For a small portfolio of brands, the cost of the endorsing brand structure may not be warranted. An endorser brand architecture allows a high degree of brand marketing freedom for each product brand. The product brands and the endorsing brands will each have their own brand attributes, including a name, logo, brand promise, position and personality. Corporate branding includes using the same brand name and identity for its whole product range. Inbetween one finds a power balance between the two as L'Oréal tends to do e.g. Advantages of good Brand Communication 1) Creates an Impact Good brand communication will always have an excellent impact on the customers and will make the customers feel more connected to the brand. The link between product brands can assist in cross-selling. Nabisco links together cookie and cracker product lines, including OREO, Ritz, and Arrowroot, and has built its promise of the high quality freshness for the packaged baked goods in the brand family. That is because a strong brand—and an effective brand strategy—results in a higher return on investment for your marketing dollar. House of brands (free-standing brands): Separate identities for each brand: brands have their own names, personalities, audiences, and sometimes they compete with each other. “In any strategy, you need to keep it relevant to three things – your brand attributes, the personality and the brand essence,” Moulton explained. Consider if you have a large enough portfolio for an endorser brand to be worth the complicating of your brand marketing. It will have an impact on how you create budgets, the operating structures of your teams, and especially, how you communicate, both within and outside the business. Good and efficient brand architecture is necessary to any company and the many positives to be gained by employing brand architecture are as follows-. Everyone on that tree is … The strategic advantage of brands 'shifting gears' between the 5 are clearly outlined in the paper but essentially the Brand Bonding Spectrum has the HOUSE BRAND at one end and PRODUCT BRAND at the other. Energy. It is easier for consumers to recognize the products and to understand them because of the descriptor. For brands with large portfolios built on a key innovation or set of innovations, an endorser brand architecture can be a good alternative to a. Branded House. Education & art. Choosing your brand architecture is also part of your brand strategy, but before deciding which one matches your brand portfolio, you should know that every type has its advantages and weaknesses that you should be aware of. Endorsement limits a business’s reputation risk and offers more positioning alternatives than a house of brands approach, for example. Examples of an endorsed brand architecture include: Nabisco; Kellogg; Ralph Lauren; Caterpillar; Honda; Hybrid 4. Product managers, marketers and internal leadership often favour having the freedom to create distinctive brand strategy, name, logo, design, creative campaigns and messages. The phrase “brand architecture strategy” is industry-speak for something that most of us, as consumers, experience every day: how a company’s logos and brands work together, and how consumers will understand and interact with the brands. Automotive. It will not be worth it if your target customer will likely only be exposed to one or two product brands. Discuss the advantages and limitations of following a branding strategy of using brand names for specific products. However, unlike sub-brands, endorsed brands have only limited potential to enrich the masterbrand. Product endorsements help your brand be able to stand out. BRAND ARCHITECTURE:Branding strategies, Drawbacks of the product brand strategy, The umbrella brand strategy ; BRAND ARCHITECTURE:Source brand strategy, Endorsing brand strategy, What strategy to choose? Marketers use celebrity endorsers in hopes that the positive image of the celebrity endorser will be passed on to the product's or brand's image. Endorsed brands make the parent brand relevant or at least increases its awareness to the market served by the endorsed brand. Brand marketing which promotes the endorsing parent brand provides a boost to each product brand. Partnerships help build brand identity.