BRAND ARCHITECTURE

AND BRAND PORTFOLIO

MULTIPLE BRANDS

WHY DOES A COMPANY HAVE

MULTIPLE BRANDS?

MULTIPLE BRANDS

ALL YOUR EGGS ARE NOT IN ONE

BASKET.
BECAUSE IT WISHES TO SATISFY
MANY DISTINCT NEED/WANT
CATEGORIES.
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THE RESULT

THE COMPANY HAS A PORTFOLIO

OF BRANDS. TO MAXIMISE THE
EFFECT, ONE NEEDS TO MANAGE
THE PORTFOLIO.
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THE RESULT

AS THESE ARE A CLUTCH OF

ASSETS, MANAGING THE
PORTFOLIO MEANS MANAGING
THESE ASSETS.
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THE FALLOUT?

WHAT IS THE NATURAL FALLOUT

OF HAVING MANY BRANDS?

THE FALLOUT?

THEY COMPETE FOR RESOURCES

WHICH ARE FINITE.
IF MANAGED BADLY, THEY COULD
END UP CANNIBALISING.
IF MANAGED WELL, THE COMPANY
ENJOYS SCALE ECONOMIES.
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ARCHITECTURE?

WHAT IS THE DIFFERENCE

BETWEEN BRAND ARCHITECTURE
AND BRAND PORTFOLIO?
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BRAND ARCHITECTURE

BRAND ARCHITECTURE IS THE

PROCESS BY WHICH A COMPANY
STRUCTURES AND
COMMUNICATES ITS BRANDS.
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BRAND PORTFOLIO

BRAND PORTFOLIO MANAGEMENT

IS THE PROCESS OF MANAGING
THE BRANDS TO GET TOP LINE
AND BOTTOM LINE GROWTH.
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BRAND PORTFOLIO

CLASSIC EXAMPLES ARE THE BCG

MATRIX, GE MATRIX AND VARIANTS
OF THE SAME. THESE GIVE YOU
INVESTMENT STRATEGIES FOR EACH
ASSET CLASS.
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BRAND ARCHITECTURE

AN EXERCISE.

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BRAND ARCHITECTURE

THERE ARE 6 WAYS IN WHICH A

COMPANY CAN STRUCTURE THE
BRAND ARCHITECTURE. COMPANIES
MAY USE A COMBINATION.
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METHOD 1

THE BRAND IS STRUCTURED

AROUND THE CORPORATE
IDENTITY. (JET AIRWAYS, BMW,
INFOSYS, McDONALDS).
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METHOD 2

CORPORATE IDENTITY IS USED

WITH VARIANTS. (LG, TATAS,
LARSEN & TOUBRO, VIRGIN).
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METHOD 3

SUB BRANDING USING CORPORATE

IDENTITY. (IBM THINKPAD, GILLETTE
SENSOR, HP DESKJET, SONY BRAVIA,
NESTLE KITKAT, CADBURYS DAIRY
MILK, COLGATE DENTAL CREAM).
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METHOD 4

UMBRELLA BRANDING USING A

MOTHER BRAND WHICH IS
DISTINCT FROM THE COMPANY
(MAGGI, REXONA, KINGFISHER)
AND IS USED ACROSS DIVERSE
NEED/WANT SATISFIERS.
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METHOD 5

SUB-BRANDING USING A MOTHER

BRAND WHICH IS DISTINCT FROM
THE COMPANY (CLINIC, SURF)
AND IS USED ACROSS THE SAME
NEED / WANT SATISFIERS.
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METHOD 6

STAND ALONE BRANDS WITH

EACH HAVING A DISTINCT
IDENTITY (HEAD AND SHOULDERS,
CLOSE UP, BIG BAZAAR,
BOURNVITA, SPENCERS, GINGER).
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METHOD 1

METHOD 1: COMPANY =
PRODUCT. MORE APPLICABLE FOR
SINGLE PRODUCT AND
TECHNOLOGY COMPANIES.
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METHOD 2

METHOD 2: CONSUMER FRANCHISE

IS FOR THE COMPANY AND THIS IS
TO BE LEVERAGED IN OTHER NEED
SATISFIER CATEGORIES.
WATSONIAN PHILOSOPHY?
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METHOD 3

METHOD 3: MULTIPLE PRODUCTS

MAY HAVE MINOR VARIATIONS
IN NEED/WANT NOMENCLATURE.
FRANCHISE IS FOR COMPANY.
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METHOD 4

METHOD 4: COMPANY NAME MAY

NOT BE A DIFFERENTIATOR AND
HENCE WE WILL NEED ANOTHER
BRAND. THE BRAND PERSONALITY
IS ELASTIC.
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METHOD 5

METHOD 5: SIMILAR TO METHOD 4.

ELASTICITY OF BRAND IS TESTED
LESS HERE. ATTEMPTING TO
STRADDLE DIFFERENT SEGMENTS.
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METHOD 6

METHOD 6: THE HARD WAY!

COSTLIER BUT LOOKING AT
LONG RUN.
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PORTFOLIO
STRATEGIES

LET US EXAMINE A PORTFOLIO

STRATEGY EXERCISE WHICH HAS
GATHERED SOME MOMENTUM IN
INDIA.
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CASE STUDY

POWER BRANDING BY HUL AND

OTHER FMCG MAJORS.

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CASE STUDY

IN 2000 AND 2001, HUL SHOWED

STAGNANT SALES AND PROFITS.

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POWER BRANDS

110 BRANDS CONTRIBUTED TO

THE REVENUE OF HUL.

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POWER BRANDS

THE LOGIC: SCARCE RESOURCES

WERE BEING DIFFUSED ACROSS
THESE 110 BRANDS. WHY WAS
THIS A CASE OF RATIONALISATION?
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WHY POWER BRANDS?

COST OF MEDIA AND CLUTTER

COST OF BRAND BUILDING WAS UP.
THERE IS A LIMIT TO SEGMENTING.
NECESSITY FOR A CRITICAL MASS.
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HOW POWER BRANDS?

30 BRANDS SELECTED 75% OF

THE TOPLINE CAME FROM THEM.
18 OF THESE WERE
INTERNATIONAL BRANDS.
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HOW POWER BRANDS?

THESE INCLUDE SEMI CASH COWS

LIKE LUX AND LIFEBUOY WHICH
CONTRIBUTE SIGNIFICANTLY TO
SALES AS WELL AS PROFITS (25%).
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HOW POWER BRANDS?

THESE ALSO INCLUDE EMERGING

BRANDS SUCH AS PEARS, REXONA
AND AXE. THESE ARE ALSO BRANDS
SEEN AS LEVERAGABLE AND HENCE
ABLE TO BUCK PLC TRENDS.
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HOW POWER BRANDS?

PRICE SEGMENTATION RIN, SURF

AND WHEEL AS MOTHER BRANDS
STRADDLING THREE PRICE
SEGMENTS WITH BRAND
EXTENSIONS.
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WHAT POWER
BRANDS?

THESE 30 BRANDS GET MAXIMUM

SUPPORT IN THE FORM OF
RESOURCES.
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NON POWER BRANDS?

THE REMAINING 80 BRANDS

WHICH CONTRIBUTE 25% OF
TOPLINE ARE DIVIDED INTO
THREE CATEGORIES.
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CATEGORY 1

REGIONAL JEWELS. EXAMPLE IS

HAMAM WHICH GETS 60% OF
ITS SALES FROM TAMIL NADU.
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CATEGORY 2

POTENTIAL CANNIBALISERS.
BRANDS WITH OVERLAPPING
POSITIONS ARE MERGED. JAI
BECAME A VARIANT OF BREEZE.
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CATEGORY 3

SMALL AND UNPROFITABLE

BRANDS SOLD OR KILLED. AIM
TOOTHPASTE, REVEL WASHING
POWDER AND TWO VARIANTS OF
CLOSE UP.
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OTHERS

GCPL FOLLOWED SUIT, PUTTING

THEIR EFFORTS BEHIND 5
BRANDS WHICH CONTRIBUTED
90% OF SALES.
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OTHERS

MARICO EXITED SLOW GROWTH

AND LOW MARGIN BUSINESSES
SUCH AS SIL JAMS.
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HAS IT WORKED?

IF ONE TAKES THE PERIOD

BETWEEN 2002 AND 2005, THE
JURY IS OUT ON WHETHER THIS
HAS WORKED.
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HAS IT WORKED?

MARICO SHOWED A CAGR OF

9.2% ON TOPLINE AND 10.6% ON
BOTTOM LINE.
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HAS IT WORKED?

GCPL SHOWED A CAGR OF 3.7% ON

TOPLINE AND 19.7% ON BOTTOM LINE.
WHICH IS WHY ONE SCHOOL OF
THOUGHT IS THAT THIS WORKS WELL
FOR BOTTOM LINE NOT SALES.
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HAS IT WORKED?

IRONICALLY, THE WORST RESULTS

WERE FOR THE ORIGINATOR OF
THE CONCEPT - HUL. SALES AND
PROFITS DECLINED OVER THE TIME
PERIOD!
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BRAND ARCHITECTURE

LET US EXAMINE A CASE STUDY

FOR BRAND ARCHITECTURE THE
HOTELS GROUP OF TATAS.
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BRAND ARCHITECTURE

TATAS ARE KNOWN FOR USING A

MIX OF BRAND ARCHITECTURE
STRATEGIES.
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BRAND ARCHITECTURE

THE CORPORATE UMBRELLA IS USED

FOR TATA STEEL, TCS ETC.
THE MOTHER BRAND UMBRELLA/SUB
BRANDING IS USED FOR VOLTAS,
TITAN ETC.
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BRAND ARCHITECTURE

THE HOTELS GROUP WAS UNDER

THE BRAND NAME OF TAJ. TATAS
HAVE CLASSIFIED THEIR HOTEL
BUSINESS INTO 2 SECTIONS
BUSINESS AND LEISURE.
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BRAND ARCHITECTURE

THESE TWO IN TURN GET

FURTHER SUB-DIVIDED INTO
PRICE SEGMENTS LUXURY,
DELUXE AND BUDGET.
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BRAND ARCHITECTURE

HENCE, A SINGLE BRAND WHICH CAN

STRADDLE ALL THESE SEGMENTS IS
DIFFICULT AND THE TAJ BRAND WAS
GETTING DIFFUSED. BAV SHOWED
LOW DIFFERENTIATION AND HIGH
ESTEEM.
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BRAND ARCHITECTURE

ALSO KEEP IN MIND TWO OTHER

SEGMENTS WHICH COULD
EMERGE IN THIS VERTICAL HOMESTAY AND B&B.
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BRAND ARCHITECTURE

HENCE, TATAS FOLLOWED A

MULTI-BRANDING STRATEGY. TAJ,
GATEWAY AND GINGER.
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BRAND ARCHITECTURE

TAJ AND GATEWAY WILL AGAIN BE

SUB-DIVIDED INTO LEISURE AND
BUSINESS AND THE POSITIONING
WILL BE ON THE BOUQUET OF
SERVICES AND LOCATION.
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BRAND ARCHITECTURE

GINGER ATTEMPTS TO STRADDLE

BOTH SEGMENTS.
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