Framing brand architecture scenarios

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PROPRIETARY Framing alternative brand architecture scenarios by Michael Million

Transcript of Framing brand architecture scenarios

Page 1: Framing brand architecture scenarios

PROPRIETARY

Framing alternative brand architecture scenarios

by Michael Million

Page 2: Framing brand architecture scenarios

PROPRIETARY

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Diversified industrial businesses employ a wide variety of brand architectures to consider

Branded House House of Brands

Industrial Automation

Climate Technologies

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Petro-chemicals

Power Generation

Primary Metals

Network Power

• Corporate equity is primary• Strict visual guidelines

• Division equity is primary

• Flexible visual guidelines

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GE employs a strong branded house or master brand strategy throughout the enterprise

Business Level

Corporate Level

Product Level

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Business & GeneralCF700M601

Passport

CommercialCF6CT7

Gas Engines:

Jenbacher

Wind Turbines:4.1-113

Advanced Technology:Discovery

Productivity:Optima

Ease of Use:Brivo

General PurposeEdison

Crystal Clear

Fluorescent:Ecolux

covRGuard

Power Plant:FlexEfficiency 50

Solar Panels:78W80W

MONOGRAMPROFILE

CAFÉSPACEMAKER

How GE introduces itself:GE is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation, and infrastructure,

Take-aways:

• A strong master brand at the corporate level can simplify the portfolio, optimize resources, provide immediate credibility to NPIs, and provide a huge advantage in competitive situations

• Building a strong master brand could take significant resources, time, and commitment

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Emerson employs a branded house strategy at the business level, but maintains several brands at the product level

Business Level

Corporate Level

How Emerson introduces itself:Emerson is a diversified global manufacturing and technology company. We offer a wide range of products and services in the areas of network power, process management, industrial automation, climate technologies, and tools and storage businesses

Product Level

EmersonMotor

Technologies

EmersonStorage

Solutions

EmersonProfessional

Tools

Emerson Appliance SolutionsNetwork

PowerIndustrial

AutomationClimate

TechnologiesProcess

Management

Take-aways:

• The Emerson approach builds a strong parent brand, telegraphs which markets they are committed to, and provides flexibility for acquisitions and product brands

• While having several benefits, especially for cross-business customers, this approach does very little to structure or simplify a complex product brand portfolio

• Success of this approach depends on significant resources toward building the parent brand and defining the right market categories that are broad but specific enough

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UTC employs a house of few, strong brands at the business level, visually tied to the parent

Business Level

Corporate Level

A United Technologies Company

A United Technologies Company A United Technologies Company

A United Technologies Company

A United Technologies Company

How United Technologies introduces itself:United Technologies Corporation (UTC) is a diversified company whose products include Carrier heating and air conditioning, Hamilton Sundstrand aerospace systems and industrial products, Otis elevators and escalators, Pratt & Whitney aircraft engines, Sikorsky helicopters, UTC Fire & Security Systems and UTC Power fuel cells.

Product Level

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Commercial Engines:PW2000PW4000

MilitaryEngines:F135

InfinityPerformance

ComfortZone

Military Aircraft:

BLACK HAWKSEAHAWK

Comm. Aircraft:S-76S-92

Power Fuel Cells

Take-aways:

• Establishes an effective balance between a moderately strong parent brand and stronger business level brands – all tied together through a design language

• Minimizes the need for product branding, by establishing (and sticking to) few brands at the business level

• Success of this approach depends on commitment to few, strong business level brands

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Power Generation

Primary Metals

Rubber Paper Petro-Chemical

Mining Marine

Altra also employs a branded house strategy at the business level, but maintains several product brand names

Business Level

Corporate Level

Product Level

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How Altra introduces itself:Altra is a leading multinational designer, producer and marketer of a wide range of mechanical power transmission products. Our products are frequently used in critical applications, such as fail-safe brakes for elevators, wheelchairs and forklifts.

Take-aways:

• In an effort to unify and standardize the appearance of the portfolio, Altra might hove gone too far – any equity or individuality in product brands is neutralized in order to gain communication efficiencies

• This approach assumes the “A” symbol is a strong enough visual to carry the entire portfolio. It also diminishes the value and integrity of the logo by attaching to so many products (ubiquity destroys brand equity)

• Simple product line descriptions with brands cutting across those lines aren’t enough to strategically organize the portfolio (this is a visual design / product-driven solution only, and lacks the sophistication required for solution selling)

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Textron employs a house of brands strategy with each business level brand having a loose link to the parent

Business Level

Product Level

Corporate Level

How Textron introduces itself:Textron is not only one of the world's best known multi-industry companies, it is a pioneer of the diversified business model.

Light TransportationAir Transit Cable Installation Turf Care Automotive Finance Systems

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Citation CJ2+Citation TEN

206L-4407Huey II

TitalTugHaluster

NETcat Cushman SprayTekEclipse 322 HybridTri-King

CamshaftsFuelSystems Aviation

FinancingLending Solutions

Smart Weapons•AirSensor Fuzed Weapon•BLU-108 Universal

Take-aways:

• This is a brand architecture solution for businesses which have no synergies and are targeted at very different customers and markets

• This approach is typically adopted by entities like Textron who act primarily as holding companies with very little shared services, central functions, or common customers

• Equity flow back to the parent is very limited, as each business / brand operates somewhat independently

Business Division Level

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Three levels of operational depth to considerO

pera

tional D

epth

Operational Level Definitions

1 Marketing Categories Only • A communicative banner that expresses a broader category which brands fall under

• Brands do not rigidly fit under banners; they “float” across them like Emerson or Altra

• P&Ls are tied to brands which float across marketing categories

2 Sales / Solution Categories • A dedicated team charged with selling the entire portfolio (to select large customers) in integrated solutions (value added services plus products)

• A “go-to-market layer” in-between the corporate and brand / P&L levels

• P&Ls are tied to brands which float across solution categories

3 Operational Categories • Complete alignment with organizational structure and P&Ls

• P&Ls are tied to categories AND brands

• Exceptions can come in the form of international distribution arms which carry the entire portfolio, and special brands like Unico which may cut across categories

Marketing Banner

Brand A Brand B

Marketing Banner

Brand C

P&L 1 P&L 2 P&L 3

Corporate Level

Sales/ Solutions

Brand A Brand B

Sales/ Solutions

Brand C

P&L 1 P&L 2 P&L 3

Corporate Level

Category 1

P&L 1

Category 2

Brand A, B

Corporate Level

P&L 2

Brand C, D

P&L 3

Brand E

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