Wednesday, March 28, 2012
Brand Architecture: Building Brand Value
My latest post is out on MarketingDaily. This one is about brand architecture and, specifically, the usefulness of brand value as a way to evaluate brand architecture options.
Brand architecture is almost always about trade-offs--a single brand strategy may be very efficient but you may lose the ability to focus on a particular customer or market segment whereas a P&G-like house of brands strategy is all about focus but is much more expensive to operate.
Brand value thinking boils down decisions into an evaluation of costs and benefits--will the customer be willing to pay more for a benefit than it costs the company to create that benefit? Such thinking puts a premium on simplicity and challenges businesses to look for sources of inefficiency and waste.
There can be strong arguments for going to market with a portfolio of brands but there's no excuse for wasting money supporting a complicated and expensive brand architecture if it's not paying its way.
In brand architecture, less is often more.
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brand architecture: It’s not only a logo, but it’s a consistent identity, a representation of a set of values and a way to attract new clients and retain existing ones. So brand development is much important as you said.
Great post! It was very interesting to read and had a lot of great points. It is important to have lots of brand value as well as brand differentiation to position yourself as competitive in this marketplace. A big piece of that is brand management and reputation management companies. Thanks for posting!
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