Category — Brand Communication
Why Brand Architecture is a Critical Strategic Imperative
Brand Architecture is a key strategic tool to organize a business so that audiences will understand what you offer and how they can engage.
The rules for organizing brands today are evolving. There are important forces that have changed how external audiences engage with brands. Probably the most important is technology and how it has enabled people to know more, purchase more efficiently, and decide more quickly. The consequence is that a company and its products and services need to be communicated with a new simplicity so that all key audiences easily understand the business you are in, how they can find what they need, and at the same time understand the breadth of value your company brings. This is the goal of building a strong brand architecture.
Why it is an Imperative?
Muddled Offerings. The most common branding issue we see today is that corporations have a very muddled array of products and services that are not well organized and therefore difficult to figure out. This is caused by a variety of circumstances:
- Consolidation through acquisition, merger or organic reorganization
- Evolution of a business into new areas that are either completely new or adjacent to existing capabilities
- Expansion into higher margin businesses from a legacy offering
- Spin-offs that require new levels of explanation.
Need for New Understanding. The shakeout from the economic trough we experienced, while difficult for most businesses, has presented the opportunity to look at the resulting business through a new lens and to sharpen focus to generate new levels of interest and generate higher revenues. Further, this sharpening can have enormous benefit for the financial community, helping them not only understand the business better, but also have more confidence in a company as it moves forward.
Galvanize and Engage Employees. In addition to the obvious outward value of a clear and easy-to-understand brand architecture, in many cases the employee base doesn’t always understand the breadth of what their own company offers, how the parts are interrelated, and the opportunities to expand customer relationships. Just imagine the power if every employee more fully understood your business and could be a true brand ambassador.
So focusing on a clearer and more understandable framework is an essential task in the new economy. The good news is that there is a disciplined process to determine the best way to organize and communicate a business’s offerings to more easily engage with key audiences.
Organizational Architecture Should Not Drive Brand Architecture.
Brand architectures should be designed for external (outside) audiences to “explain” a company’s business so that they can understand and engage. The easier it is for an external audience to understand, the greater the chances they will respond, whether it is a customer audience, a business or trade editor, or a financial analyst.
Companies are often organized for reasons that may not make sense to external audiences. The drivers of internal organization can include:
- Legal requirements
- Tax circumstances
- Financial reporting
- Legacy business history
- Acquisition complexity
- Leadership opportunities
But often these organizational decisions are not the way outside audiences see a company’s business. From their standpoint, they want to engage to find a specific product or service, and really don’t care how the company is organized. The consequence is that a company needs to have a “brand” architecture constructed from the outside in. While this sounds relatively obvious, getting internal leaders to agree is usually a significant challenge.
Below are some helpful ideas about how to engage the leaders to successfully develop an appropriate brand architecture.
What kind of Brand Architecture?
A Brand Architecture is a systematic means of focusing and organizing your brand assets to ensure that target audiences understand the breadth and depth of value you offer them.
There are several basic types of brand architectures that, in a pure or hybrid form, are the underpinnings of clarity. Each is developed by determining the best way to express the business vision through the lines of business.
A Masterbrand Architecture is a monolithic structure where, from a branding standpoint, all business units, subsidiaries and divisions share the same brand. The “Masterbrand “ is also sometimes referred to as the “Corporate, Umbrella, Parent or Mono” brand. Good examples of this strategy are FedEx and GE. In general, everything carries the FedEx and GE Masterbrand and sub-units are defined by descriptive language.
An Endorsement Brand Architecture uses a common endorsement for all of the operating units, and the parent brand functions in a subordinate manner to each operating unit brand. For example, United Technologies operates as a parent brand as it faces Wall Street, but each operating unit is identified by its own brand with an endorsement. The Sikorsky business is branded Sikorsky, “A United Technologies Company,” but uses the iconic “gear wheel” symbol, as does Hamilton Sundstrand, etc. To make matters more complex, sometimes the sub-brands of United Technologies use a legacy identity when facing specific customer audiences.
A Portfolio Brand Architecture, sometimes called a “Free-Standing Brand Architecture”, keeps separate identities for many or all of its brands. Particularly if there is sufficient marketing support for individual brands and it is believed the parent does not provide any brand equity that would benefit the individual brands, a portfolio architecture is appropriate. Procter & Gamble manages a portfolio brand architecture. General Motors also manages a portfolio of brands with little overt brand equity supplied by the parent.
An Ingredient Brand Architecture uses a principle brand (e.g., Intel or NutraSweet) as a common element in supporting and qualifying other brands. The premise is that if the ingredient is good, the brand it amplifies is better than without it. In the case of purchasing a PC, there is research that indicates that consumers look first for the “ingredient”, the (Intel) processor, before the brand it is within.
How do you decide which type of architecture is best? If you remember the golden rule (from the “outside in”), that should be the starting point. You start by determining which are the most important audiences. For most companies it is customers. But for others, it is financial & industry analysts, key trade media, and even governments. Therefore, the first task is to determine audience priority. The next step is to determine what each discrete audience needs to “hear” or understand in order to engage with your brand. You must look at your company from their point-of-view. This often requires outside help and research so that you can have an objective view of the marketplaces you serve. Almost every company we work with has a belief about how external audiences view them, and this view is naturally biased and often incorrect. Having objective insights also helps put in perspective internal beliefs that have built up over the years.
How do you engage the line of business and other leaders? Evolving to an external facing brand architecture is a process. It not only requires audience research, but also leadership team involvement so everyone understands their role in how the company speaks outwardly. Today, when companies have many different lines of business and products and services, it becomes imperative for the key stakeholders to work together to arrive at a brand architecture that serves both their individual need, but more importantly the corporate vision.
Where we have seen the most resistance is in situations where the broad leadership is not deeply involved. Because how a company portrays itself is so critical to the future, developing a strong, outward-facing brand architecture is a strategic mandate. Get the leadership involved and keep them involved.
Who should manage the process? Development of brand architecture is a strategic initiative and should be managed by the most senior corporate leader who can rise above line-of-business interests. In some cases it is the CEO, but more often it is the Chief Strategy Officer or Chief Marketing Officer. Among other values, strong brand architectures usually signal a new future while creating clarity. Thus, if a specific line-of-business leader is tasked with the initiative, the solution often becomes weighted in favor of that business unit, and not reflective of where the long-term business is headed.
Brand architecture can be a powerful tool to help a company accelerate its growth. Investing the time and effort to optimize a company’s brand architecture can deliver higher near and long-term revenues and profits.
For deeper insights, contact:
John K. Grace
President & Managing Partner
April 26, 2018 Comments Off on Why Brand Architecture is a Critical Strategic Imperative
Can Trust in a Brand Be Revived?
The question is… can trust be revived in a brand that is seriously damaged? Almost every year there are brands that amaze us with incredible stupidity… mostly generated by a drive for bigger sales numbers. Volkswagen not only misled consumers and dealers about emissions and gas mileage claims, but
tried to make it a small and inconsequential issue until investigators uncovered an ever-growing circle of management and leaders who actually knew exactly what was going on. [Read more →]
September 30, 2016 Comments Off on Can Trust in a Brand Be Revived?
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May 20, 2015 Comments Off on recherche rencontres lyon
Updating Intel’s Font for the Mobile Future
Intel just created its own proprietary corporate font to be easier to read in the global digital world. They call it “Intel Clear”. A smart move in a number of ways. First, it gave them the opportunity to assess the equity in their existing font and think through whether and how much to change. Second, It caused them to think about how their critical audiences, internal and external, national and international, should perceive Intel as the communications media evolve so dramatically and rapidly.
April 8, 2014 Comments Off on Updating Intel’s Font for the Mobile Future
How Brands Can Put Us on Our Best Behavior
Inertia is an amazingly powerful force, and “reason” often proves inadequate to overcome it. Think about how hard it is to get people to move their bank accounts even when it is clearly in their financial interests. Or why nearly three-quarters of all corporate change initiatives fail, no matter how well argued, or how compelling the business case.
Human behavior is hard to change, and this is one of the biggest obstacles facing businesses selling sustainable products and services. We believe that brands are uniquely well placed to help, because they can speak two languages – reason and story. And they can leverage the unusually powerful relationships they have with consumers.
November 12, 2013 Comments Off on How Brands Can Put Us on Our Best Behavior
Using the Shared Services Brand to Overcome Negative Perceptions
This blog was originally featured on the Shared Services and Outsourcing Network’s website on July 22nd, 2013.
Shared Services often miss the opportunity to communicate the value they provide, and consequently live under a pervasive and somewhat negative perception. This doesn’t have to be the case. Focusing on the Shared Services “brand” is one way to change these perceptions.
Because the origin of Shared Services is rooted in cost cutting, there is a naturally built-in stereotype that what costs less must not be as good. But this doesn’t have to be the case. Strengthening the Shared Services brand, especially to internal audiences, is a very powerful way to communicate the positive value of a Shared Services model. Aside from the corporate arguments that Shared Services are really about reducing costs, you should be promoting the realization that there is an enormous amount of condensed wisdom in a Shared Services organization. It is, de facto, the central node of knowledge and insight. Imagine if internal customers understood this value and could tap into it. So use the brand to focus their attention. [Read more →]
July 26, 2013 Comments Off on Using the Shared Services Brand to Overcome Negative Perceptions
Why David Brooks Almost has it Right about Brands
David Brooks, an Op-Ed Columnist at the New York Times writes a very interesting article about the differences between the use of and understanding of brands between the Americans and the Chinese. His premise is that the Chinese are not good at building brands that connect with consumers in the West despite the fact that they have the largest economy in the world. This will hinder their achievement of global economic dominance. He is right.
However, one of his notions is only partly correct and flies in the face of what great brands work hard at every day. Brooks believes that “People who create great brands are usually seeking some inner longing of their own…”. In this he is thinking about romantic notions of founder-led brands like Nike or Ralph Laruen.
What he is missing is that great business leaders spend a great deal of time and energy to understand their customers and their needs, and then address them in a way that builds an enduring relationship that can last a long time. In most cases it is the diligence and hard work requiredto build stronger relationships with consumers than competitors in every category that leads to sustainable market leadership.
Much of what Brooks writes about is very true, and he is astute to recognize as much as he does. Where he misses the mark is realizing that there is a process and method to establishing and building a strong brand that connects with key audiences that works on it’s own and is not necessarily founder led. Just look at a few minor brands like IBM, General Electric, BMW, New York Yankees, Mayo Clinic, etc. Sure each was founded by great thinkers and leaders, but they have evolved into very strong brands generations past founder longing.
Congrats to Brooks for recognizing how brand have become an engine of the Western economic growth. His basic premise is more than correct.
May 31, 2013 Comments Off on Why David Brooks Almost has it Right about Brands
Why Brand Strategy Matters Even More Online
To ensure a seamless image, smart brands take responsibility for both the content of their ads, as well as the environment in which their ads appear.
Vigilance is especially necessary online, where intelligent software and e-marketing technologies allow brands to target the user, not the environment. The old adage of ‘fish where the big fish are’ has never been more true. With varying degrees of success.
A friend of mine recently joked on Facebook: ‘If the ads that Facebook so cleverly targets at me are correct, I need to: a. Lose 9kg. b. Buy a motorbike and c. Attend the classic rock concert at Willowbridge Barnyard Theatre. Now that’s artificial unintelligence if ever I saw it.’
She’s a fit, slim, married, mother of two in her 40s, who lives in the suburbs and drives a family-friendly 5-seater VW.
But getting it wrong can have more sinister results. What happens when a brand finds itself in an online environment that potentially undermines its image? [Read more →]
April 30, 2013 Comments Off on Why Brand Strategy Matters Even More Online
Protecting & Enhancing Your Brand in Social Media – Whether You’re Joining or Creating the Conversation
As the old saying goes, “you have to be in it to win it”. That pretty much sums up the role of social media for brands today. Social media is no longer just one of many tools a marketer can use. It has all but become the cost of entry. In the 2012 Social Media Marketing Industry Report, 94% of marketers said that they use social media for marketing purposes. It goes without saying that some social media marketing is better than others, and therefore more effective at driving business results. But the bottom line is that companies can no longer ignore social media. This is true for every category and industry from consumer goods to professional services, from healthcare to the financial industry and for both B2C and B2B.
Here’s the rub: Because social media is a two-way street, gone are the days when a brand can control messaging through a monologue of traditional advertising and communication. What is compelling to consumers today, and to a large extent, expected, is a dialogue, back and forth. These conversations can be strategically initiated by the brand to disseminate a particular message, i.e. a new way of “advertising”, or a brand can strategically participate to help steer the conversation in a way that protects the brand.
Either way, whether you are creating the conversation about your brand, or joining in conversations about your industry, which may ultimately involve your brand, follow these rules to not only protect your brand, but to take advantage of this new reality and use it to actually strengthen your brand:
April 3, 2013 Comments Off on Protecting & Enhancing Your Brand in Social Media – Whether You’re Joining or Creating the Conversation
Why “Watering Down” a Brand is a Fundamental No-No.
The postulate that “watering down” a brand has long-term affects is generally well understood by smart marketers everywhere. But recently, two brands have been caught up in literally and figuratively watering down their products and consequently, their brands. We’d suggest that the act of watering down a product, or even the suspicion of it, will have very serious and long-term impacts on the business.
The two brands are Maker’s Mark Kentucky Bourbon Whisky and Budweiser. Maker’s Mark announced that they were lowering the alcohol content of their premiere product from 94 proof to 86 proof because demand is exceeding capacity, and consumer testing had indicated that the difference was undetectable. While possibly statistically true, the idea that slowly diluting a product so that the perceived change in the taste profile is negligible could end up taking the teeth out of a product and without ever understanding why. This incremental product thinking almost always gets manufacturers in trouble. [Read more →]
March 1, 2013 Comments Off on Why “Watering Down” a Brand is a Fundamental No-No.