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Managing multiple brands

Managing multiple brands
This presentation is about managing multiple brands.
Very few brands live on their own. And most brand directors or brand managers have to manage multiple brands, both multiple brands inside their organisation through a discipline called brand architecture and multiple brands outside their organisation through the techniques of co-branding. And we’ll look at each of these two things in this presentation. First, managing multiple brands inside your organisation. This is brand architecture. Every organisation has components within it. Brand managers need to make sure that these different components, these different divisions, or products, or businesses make sense to customers, and most broadly adopt one of four approaches.
And here they are, the four kinds of brand architecture– portfolio, endorsed, family, and monolithic. Portfolio is all about growing a portfolio of offerings with maximum flexibility to acquire and offload them. P&G is an example. And what you do here is present each of your brands quite separately to the world, and consumers don’t know that you own them. Endorsed is about growing a range of offerings with a common focus and shared knowledge. Unilever is an example. And here, although all of the Unilever products are distinct, they also all have the Unilever logo on their packaging or on their advertising. So people know that they come from Unilever. Dove or Marmite would be examples.
The family approach is about growing a family of offerings with a strong ethos and an emphasis on cross-selling. So getting people, for instance, who fly on Virgin Atlantic also to use Virgin Active health clubs. And then, finally, the monolithic approach, which is growing by maximising people’s commitment to a single idea with maximum marketing efficiency. You have just one brand for everything, which is what IKEA does. The left-hand end of this spectrum is often known as “house of brands” because you have lots of brands, separate brands within your house. The right-hand side is known as “branded house,” because you have one house, one brand.
The left-hand end of the spectrum gives you high flexibility, low risk, because if something goes wrong with one of your brands, it doesn’t affect the others. The right-hand side of the spectrum gives you high synergy because you only have to invest in one brand, but higher risk if something goes wrong. Interestingly, organisations often move over time. So Unilever has been moving from portfolio to endorsed. UBS, the bank, moved from portfolio to monolithic. BBC has been moving from monolithic to endorsed. And it’s worth thinking about why.
Now let’s look at managing multiple brands outside your organisation. This is co-branding.
And almost every organisation teams up with other organisations. But brand managers need to make sure that this makes sense to customers because you’re known by the friends you keep.
And there are four main motives for co-branding.
First, top left here, to get higher perceived value, higher prices by deepening your brand’s meaning through things like endorsements or ingredient branding. Second, to attract new kinds of customer, top right, by broadening your reach through things like sponsorship or licencing. Third, bottom right, to get new revenue streams by extending your capabilities through partnering and alliances. And finally, bottom left, to start a new kind of business by combining with the others and creating joint venture. Let’s have a look at some examples.
So H&M, the retailer, deepens its design credentials by partnering with Lanvin, a designer, through– it’s a kind of endorsement of the H&M brand, deepens the meaning of H&M, makes H&M more designer-y. Top right, Barclays broadens its reach by sponsoring Premier League football in the UK, so reaching the huge audience of football fans. Bottom right, British Airways extends its coverage by joining the One World Airline Alliance, which gives it many more routes and many more destinations and many more airport lounges, actually, that its customers can use. And finally, bottom left, the whole idea of joint ventures. Here is one called Tata DOCOMO. Tata is the big Indian conglomerate, DOCOMO the Japanese mobile phone business.
The two have come together to create a very successful mobile phone network in India, something that, on their own, neither of them could have achieved. Together, they can. So here are some partnerships. Interesting question, what’s the most unlikely partnership that you could think of?

Many brands work alongside others – either sister brands owned by the same company, or brands owned by others. Managing these relationships can be complex. This slideshow introduces some frameworks for managing multiple brands.

If you’re interested in this topic, you might also enjoy this radio programme. You’ll hear Robert discuss the topic with experts from Diageo and Johnson & Johnson.

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The Secret Power of Brands

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