Brand architecture is the structure of brands within an organizational entity and a brand portfolio is used to encompass all these entities under one umbrella. Under this topic,

1. Brand Architecture/ Brand Portfolio
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2. 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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3. 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”.
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4. Brand architecture
Corporate
dominant strategy
Dual brand
strategy
Mixed brand
strategy
Endorsed brand
strategy
Brand dominant
strategy
Classification
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5. Comparison of two competitors
Store brands
Private labels
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6. 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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7. 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
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8. Sample of companies
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9. 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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10. Brand roles in the brand portfolio
 94% of the companies have at least one silver bullet usually pointed out in
advertising but often no “sales driver”
 90% have strategic brands that are supported by the company (may be
identical with the silver bullet of the company)
 63% of the companies have cash-cows in their brand portfolio
 88% believe that their brand portfolio as a whole is more valuable for the
company compared to the sum of brand equity of single brands
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11. Effects on the brand architecture
strategy
Factors influencing the brand architecture
(12
)
(14
)
(11
(10)
(8) )
(8)
n=34 respondents; February -August 2002;
77%
77%
74%
71%
68%
65%
62%
59%
59%
53%
53%
53%
41%
35%
32%
29%
24%
24%
global ization
market research findings
mergers & acquisi tions
changes in consumer trends
changes in target markets
direct competi tors
changes in technology
new media (the Internet)
changes in law
business cycle variation
capi tal market/investors
corporate cul ture
indirect competi tors
global pol i tics
labor market
environmental pol lution
retai ler's expectations
lobby
(26
)(26
(2)5
)
(24)
(23
)
(22
)
(20
)(20
(18)
)
(21
)
(18
)
(18
)
0% 20% 40% 60% 80% 100%
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12. 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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13. 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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14. Thank You
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