1. No category

Brand Architecture A View of Practitioners
Marina Dabic, Günter Schweiger, Andreas Strebinger
Department of Advertising and Marketing Research
Vienna University of Economics and Business Administration
June 25th 2004
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and Marketing Research
Structure of the presentation
• Definition of brand architecture and
classification of different brand architecture strategies
• Objectives of the study and sample profile
• Hypotheses resulting from the study
• Limitations of the study
• Discussion
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Definition of brand architecture
“The organization and structure of the brand
portfolio by specifying brand roles and the
nature of brand relationships between brands and
between different product-market contexts”.
(Aaker D.A. and Joachimstaler E. 2000, p. 102)
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Classification of brand architecture strategies
Brand architecture
Corporate
dominant strategy
Dual brand
strategy
Mixed brand
strategy
Brand dominant
strategy
Endorsed brand
strategy
Brand Hierarchy: Definitions; in Keller, K. L (1998), Strategic Brand Management,
Chapter 11 Branding Strategies, pp. 428-431.
Pro and cons of the different brand architecture strategies: e.g. Aaker, David A. and Kevin
Lane Keller (1990), Aaker, David A. and Erich Joachimsthaler (2000), Kapferer, Jean-Noël (1997),
Park, C. Whan, Robert Lawson, and Sandra Milberg (1989), Park, C. Whan, Sandra Milberg, and
Robert Lawson (1991).
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Comparison of two competitors
- using a totally different brand architecture strategy despite a
comparable structure of their store brand and private labels portfolio
Store brands
Private labels
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Objectives of the study
• Evaluation of advantages and disadvantages of different types of
brand architecture strategies by practitioners regarding
- consumer market
- capital market
- labor market
- employees (corporate culture)
• Identifying brand roles in the brand portfolio
• Finding out key factors influencing the brand architecture strategy
• Collection and description of case studies regarding
brand architecture strategies
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Objectives regarding the sample
•
Different industries
– Service industries
– durable goods
– Fast-moving consumer goods
•
Variability in terms of headquarter vs. local subsidiary
of an internationally operating company
•
Variability in terms of brand architecture strategy
– Corporate dominant strategy
– Mixed strategy (endorsed brand, dual brand)
– Brand dominant strategy
•
Multiple respondents related to a company
•
Respondents from advertising agencies, brand consultants and market
research companies with regard to their client‘s brand architecture strategy.
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Sample profile
• 53 face-to-face interviews: February – August 2002
(geographical distribution: 51 Austria, 1 Germany, 1 Hungary)
Sample of companies
33 mainly internationally operating
companies
Industries: durable goods (8), fast
moving consumer goods (13), service
industry (12)
Sample of respondents
Senior marketing managers (31), executive
managers (6) responsible for brand
architecture management
9 advertising agencies
Agency employees responsible for brand
architecture management (9)
7 consulting and market research
companies
Brand consultants responsible for brand
architecture management (7)
•
Duration of the interview in minutes: 82,2
•
Related cases: 2 respondents of one company (4), company/advertising agency (9),
company/consulting or market research company (7)
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Sample of companies
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Advantages and disadvantages of different
brand architecture strategies
2. Dimension (26%) „synergy“:
Internal or external synergies (0,13; 0,34)
Brand dominant
strategy
Corporate
dominant strategy
1. Dimension (63%)
„identity“:
„flexibility“:
reaching niche markets
(0,23; 0,81);
flexible, rapid reaction to
changes (0,081; 0,73);
High communication costs
(0,097; 0,73)
Endorsed brand
strategy
Dual brand
strategy
consistence, stability (0,13; 0,85);
uniform brand communication (0,11;
0,76);
lower communication costs (0,05;
0,96);
certain target segments not
reachable (0,06; 0,96)
cross-sectoral know how (0,04;
0,92);
Low flexibility, slow reaction to
changes (0,02; 0,99);
„interaction“:
favorable transfer of image (0,18; 0,87); cannibalization (0,206; 0,59)
(contribution of point to inertia of dimension; contribution of dimension to inertia of point)
n=52 respondents; multiple responses
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Statements regarding brand architecture strategy in
respect of target markets other than consumer markets
• - Labor market: „Many people don't know which brands belong to
company X. For example, the majority don't know that brand y
belongs to our company X. So the benefit from synergies cannot be
used on the labor market.“
• + Capital market: „Our investors and the capital market favor our
brand architecture strategy because company X is a well known
company with good reputation combining everything under one
umbrella.
• - Employees: „Some employees would like the company to follow a
different brand architecture strategy because a brand architecture
strategy is very complex.
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Brand roles in the brand portfolio
• 94% (29 of 31) of the companies have at least one silver
bullet usually pointed out in advertising but often no “sales
driver”
• 90% (26 of 29) have strategic brands that are supported by
the company (may be identical with the silver bullet of the
company)
• 63% (17 of 27) of the companies have cash-cows in their
brand portfolio
• 88% (22 of 25) believe that their brand portfolio as a whole is
more valuable for the company compared to the sum of brand
equity of single brands
n=37 respondents of 33 different comanies
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Effects on the brand architecture strategy
Factors influencing the brand architecture
77% (26)
77% (26)
74% (25)
71% (24)
68% (23)
65% (22)
62%
(21)
59% (20)
59% (20)
53%
(18)
(18)
53%
(18)
53%
globalization
m arket research findings
m ergers & acquis itions
changes in consum er trends
changes in target m arkets
direct com petitors
changes in technology
new m edia (the Internet)
changes in law
busines s cycle variation
capital m arket/investors
corporate culture
indirect com petitors
global politics
labor m arket
environm ental pollution
retailer's expectations
lobby
0%
41%
(14)
35%
(12)
32%
(11)
29%
(10)
24%
(8)
24%
(8)
20%
40%
60%
n=34 respondents;February -August 2002;
80%
100%
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Some Hypotheses resulting from the study
•
Corporate dominant strategy and brand dominant strategy vs. mixed brand
architecture strategies
•
Advantages and disadvantages of different brand architecture strategies
on the consumer market vs. other important target markets
•
Influential factors on the brand architecture strategy are considered.
No modification of the company’s brand architecture strategy expected.
•
The brand portfolio of the companies is actively managed.
•
Forecast: Internationalization of the brand architecture and a rising
complexity of the brand architecture management.
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Limitations
- non-probability sample
- Single country study (mainly companies in Austria)
- qualitative research design => identification of variables,
generation of hypotheses
 Quantitative future research
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Thank you for your attention
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and Marketing Research
Sample of advertising agencies, brand consultants and
market research companies
(with regard to their client's brand architecture strategy)
9 advertising agencies
7 brand consultants / market research
companies
(2)
(2)
Department of Advertising
and Marketing Research
Marina Dabic
•
education and training:
– 2002 master in economics and business administration, Vienna University of
Economics and Business Administration
master thesis: „brand architecture and brand structure – a qualitative study with
the top-management of selected companies, advertising agencies, consulting and
market research companies“
– Since Nov. 2002 assistant professor at the Vienna University of Economics and
Business Administration, Department for Advertising and Marketing Research
– Doctoral thesis: „Individualization of customers and evaluation of product variety“
•
main interests:
– Strategic brand management, brand architecture
– Motivational research and consumer behavior
– Retail brands
[email protected]
Tel.: +43 / 1 / 313 36 / 4814
www.wu-wien.ac.at/werbung
Department of Advertising
and Marketing Research