UGBA 10 Lecture Notes - Lecture 32: Brand Architecture, Apple Watch, Williams-Sonoma

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Architecture April 27
I. Brand architecture
Brand architecture: how your portfolio relates and how you face your competitor; it is the face of
your business strategy and where you plan to go
o Management of products and service offerings
o Brand architecture is part organization and part military strategy
o It simplifies the brand so that customers can build relationships with different products at the
same time ie: Mii sells to Mii ustoers, BMW’s sell to BMW ustoers, ee though they
are all under the same company)
o Brands are not always overtly linked (ie: West Elm falls under William Sonoma)
Brand architecture definition: architecture is about optimizing the hierarchy, linkages, and roles of
brands within the portfolio in support of the business strategy that suggest/imply the brand (ie:
Apple Wath is ot uder the I rad; this is a strategy so that differet earales a e reated
under the Apple Watch)
II. Benefits of a clear architecture
Brand architecture helps organizations structure their brands and products to drive value and
growth though greater:
o Clarity: gives a coherent face to the offering and business strategy so customers can
understand what you are offering
o Efficiency: enables brand leverage without overstretching (ie: marketing leverage for Gap
because it is under Gap Inc.)
o Focus: distinguishes strategic brands from others in the portfolio
o Growth: extends credibility from existing, successful brands ie: Apple’s e ar ould gie it
more growth/credibility since it is a product under Apple)
o Equity: extends equity by defining the relationships between brands (ie: Courtyard by
Marriot is more successful because the Marriot brand is credible)
III. Takes an outside-in view
Optial arhiteture usually does’t lie up eatly ith iternal organizational structures
Helps aigate a opay’s offerigs ie: portfolio: Tazo, Eolutio, ad other rads
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UGBA 10 Full Course Notes
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Apple wat(cid:272)h is (cid:374)ot u(cid:374)der the (cid:862)i(cid:863) (cid:271)ra(cid:374)d; this is a strategy so that differe(cid:374)t (cid:449)eara(cid:271)les (cid:272)a(cid:374) (cid:271)e (cid:272)reated under the apple watch) Marriot is more successful because the marriot brand is credible) Takes an outside-in view: opti(cid:373)al ar(cid:272)hite(cid:272)ture usually does(cid:374)"t li(cid:374)e up (cid:374)eatly (cid:449)ith i(cid:374)ternal organizational structures, helps (cid:374)a(cid:448)igate a (cid:272)o(cid:373)pa(cid:374)y"s offeri(cid:374)gs (cid:894)ie: portfolio: tazo, e(cid:448)olutio(cid:374), a(cid:374)d other (cid:271)ra(cid:374)ds(cid:895) Brand architecture solutions: house of brands: p&g has independent brands, each maximizing its impact on the environment, builds strong brands for category dominance. If everything went wrong, all the brands would be affected: hybrid: coca-cola has a bunch of brands with the trademark name, but there are many brands in the portfolio that are(cid:374)"t (cid:272)o(cid:374)(cid:374)e(cid:272)ted i(cid:374) a(cid:374)y (cid:449)ay to coke. It uses a hy(cid:271)rid stru(cid:272)ture to (cid:271)uild a(cid:374)d prote(cid:272)t its diverse businesses: what solution is best to have an optimal business impact, companies must make tradeoffs because you cannot have all 3.

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