Complex Brand Architecture

Whereas the classic brand manager rarely dealt with extensions and sub brands, a brand leadership manager requires the flexibility of complex brand architectures. The need to stretch brands and fully leverage their strength has led to the introduction of endorsed brands(such as Post-its by 3M, Hamburger Helper by Betty Crocker, and Courtyard by Marriott) and sub brands(such as Campbell’s Chunky, Wells Fargo Express, and the Hewlett-Packard’s Laser Jet) to represent different product markets, and sometimes an organizational brand as well

Category Focus The classic P&G brand management system encouraged the existence of competing brands within categories-such as Pantene, Head & Shoulders, Pert and Vidal Sassoon in hair care because different market segments were covered and competition within the organization was thought to be healthy. Two forces, however, have convinced many firms to consider managing product categories (that is, groupings of brands) instead of a portfolio of individual brands.

First, because retailers of consumer products have harnessed information technology and databases to manage categories as their unit of analysis, they expect their suppliers to also bring a category perspective to the table. In fact, some multi continent retailers are demanding one single, worldwide contact person for a category, believing that a country representative cannot see enough of the big picture to help the retailer capture the synergies across countries

Second, in the face of an increasingly cluttered market, sister brands within a category find it difficult to remain distinct, with market confusion, cannibalization, and inefficient communication as the all-too-common results. Witness the confused positioning overlap that now exists in the General Motors family of brands. When categories of brands are managed, clarity and efficiency are easier to attain. In addition, important resource-allocation decisions involving communication budgets and product innovations can be made more dispassionately and strategically, because the profit-generating brand no longer automatically controls the resources.

Under the new model, the brand manager’s focus expands from a single brand to a product category. The goal is to make the brands within a category or business unit work together to provide the most collective impact and the strongest synergies. Thus, printer brands at Hp, cereal brands at General Mills, or hair care brands at P&G need to be managed as a team to maximize operational efficiency and marketing effectiveness.

Category or business unit brand management can improve profitability and strategic health by addressing some cross-brand issues. What brand identities and positions will result in the most coherent and least redundant brand system? Is there a broader vision driven by consumer and- channel needs that can provide a breakthrough opportunity? Are there sourcing and logistical opportunities within the set of brands involved in the category? How can R&D successes be best used across the brands in the category?

Global Perspective Multinational brand management in the classic model meant an autonomous brand manager in each country. As the task of competing successfully in the global marketplace has changed, this perspective has increasingly shown itself to be inadequate. As a result, more firms are experimenting with organizational structures that support cohesive global business strategies, which involve sourcing, manufacturing, and R&D as well as branding.

The brand leadership paradigm has a global perspective. Thus a key goal is to manage the brand across markets and countries in order to gain synergies, efficiencies, and strategic coherence. This perspective adds another level of complexity-Which elements of the brand strategy are to be common globally and which is to be adapted to local markets? Implementing the strategy involves coordination across more people and organizations. Moreover, developing the capability to gain insights and build best practices throughout the world can be difficult.

Communication Team Leader The classic brand manager often just acted as the coordinator and scheduler of tactical communication programs. Further, the programs were simpler to manage because mass media could be employed. Peter Sealy; an adjunct professor at DC Berkeley, ‘has noted that in 1965 a P&G product manager could reach 80 percent of eighteen- to forty-nine-year-old women with three 60-second commercials Today; that manager would require ninety-seven prime-time commercials to achieve the same result. Media and market fragmentation has made the communication task very different

In the brand leadership model, the brand manager needs to be a strategist and communications team leader directing the use of a wide assortment of vehicles, including sponsorships, the Web, direct marketing, publicity, and promotions. This array of options raises two challenges – how to break out of the box to access effective media options, and how to coordinate messages across media that are managed by different organizations and individuals (each with separate perspectives and goals). Addressing both challenges involves generating effective brand identities and creating organizations that are suited to brand management in a complex environment

Furthermore, rather than delegating strategy, the brand manager must be the owner of the strategy-guiding the total communication effort in order to achieve the strategic objectives of the brand. Like an orchestra conductor, the brand manager needs to stimulate brilliance while keeping the communication components disciplined and playing from the same sheet of music.

Internal as Well as External Communication – Communication in the new paradigm is likely to have an internal focus as well as the usual external focus on influencing the customer. Unless the brand strategy _can communicate with and inspire the brand partners both inside and outside the organization, it will not be effective. Brand strategy should be owned by all the brand partners.

From Sales to Brand Identity as the Driver of Strategy In the brand leadership model, strategy is guided not only by short term performance measures such as sales and profits but also by the brand identity, which clearly specifies what the brand aspires to stand for. With the identity in place, the execution can be managed so that it is on target and effective

The development of a brand identity relies on a thorough understanding of the firm’s customers, competitors, and business strategy. Customers ultimately drive brand value, and a brand strategy thus needs to be based on a powerful, disciplined segmentation strategy, as well as an in-depth knowledge of customer motivations. Competitor analysis is another key because the brand identity needs to have points of differentiation that are sustainable over time. Finally, the brand identity, as already noted, needs to reflect the business strategy and the firm’s willingness to invest in the programs needed for the brand to live up to its promise to customers.