Método

Sub-brands and endorsed brands can play a key role in creating coherent and effective brand architecture. In particular, sub-brand decisions are concerned with the number of brands in a product category, their specific roles in attracting customers, and the inter-brand relationship in a pedigree of brands in a firm. Firms tend to adopt a corporate brand approach to the management of their brand architecture having a co-dependency on the principal and overarching brand¹². The sub-brands and endorsed brands allow brands to stretch across products and markets, address conflicting brand strategy needs, conserve brand-building resources in part by leveraging existing brand equity, protect brands from being diluted by over- stretching, and signal that an offering is new and different. A long range of sub-brands within a product category leads to multi-brand approach in a firm. Managerially, multi-brand testing process allows the firm to forecast the impact of the new product introduction on the market shares of competing brands (including those marketed by the firm) at both aggregate and segment levels. The brand loyalty life cycle is thought to comprise five time regimes of brand loyalty including inception of brand loyalty, high brand loyalty, latent brand loyalty, and shift to multi-brand loyalty, and declining loyalty.

The brand relationship is related to the driver role that brands play. The driver role reflects the degree to which a brand drives the purchase decision and use experience. A branded house uses a single master brand to span a set of offerings that operate with only descriptive sub-brands. On the contrary, the house of brands strategy, in contrast, involves an independent set of stand-alone brands, each maximizing the impact on a market. However, the house of brands strategy clearly positions brands on functional benefits and dominate niche segments. Targeting niche markets with functional benefit positions is the main reason for using a house of brands strategy. A shadow endorser brand is not connected visibly to the endorsed brand, but many consumers know about the link. This subcategory in the house of brands strategy provides some of the advantages of having a known organization backing the brand, while minimizing any association contamination. The shadow-endorsed brand

11 Gray, Brendan J (2006), Benchmarking Services Branding Practices, Journal of Marketing Management, 22 (7), 717-758

12 Devlin J (2003), Brand architecture in services: The example of retail financial services, Journal of Marketing Management, 19 (9-10), 1043-1065

represents a totally different product and market segment. The principal attributes of he endorsed brands may be delineated as below¹³:

• It incorporates the shadow brands

• Generates indirect market impact with mother brands

• Represents distinct product and market segments, and

• Endorsed brands operate independently of the mother brands in the market

The importance of fit between the endorser and the endorsed product may be observed in reference to the physical attraction revealed by the customers towards products and brands. In the house of brands strategy, the brands are independent. Endorsed brands are still independent, but they are also endorsed by another brand, usually an organizational brand. An endorsement by an established brand provides credibility and substance to the offering and usually plays only a minor driver role. The token endorser is one of the variants of the endorser strategy. In this approach, usually a master brand is involved in several product-market contexts that are substantially less prominent than the endorsed brand. The token endorser can be indicated by a logo such as the GE light bulb. The role of the token endorser is to provide some reassurance and credibility while still allowing the endorsed brands’

maximum freedom to create their own associations. Another endorsement variant is a linked brand name, where a name with common elements creates a family of brands with an implicit or implied endorser. McDonald's, for example, has McPotato. A linked name provides the benefits of a separate name without having to establish a second name from scratch and link it to a master brand. Sub-brands are brands connected to a mother brand and augment or modify the associations of that mother brand.

The following discussion emphasizes a powerful brand architecture tool, the brand relationship spectrum, as exhibited in Figure 2.1. It is intended to help brand architecture strategists to employ, with insight and subtlety, sub-brands and endorsed brands. The categories of brands play significant role in the process of brand architecture for a company in the following ways:

• Create coherence and effectiveness

• Allow brands to stretch across the products and markets

• Stimulate the purchase decisions by brand drivers, and target market niches and benefit positioning

13 Rajagopal and Sanchez R (2004), Conceptual Analysis of Brand Architecture and Relations within Product Categories, Journal of Brand Management, 11 (3), 233-247

Brand Architecture Constituents

Figure 2.1 : Brand Architecture Map.

The mother brand is the primary frame of reference, which is stretched by sub-brands that add attribute associations, application associations, a signal of breakthrough newness and a brand personality. When both the mother brand and the sub-brand have major driver roles, it is considered a co-driver situation. In case, the mother brand is performing more than an endorser role one does not markedly dominate the other e.g. customers buy and use the products both Gillette and Match-3 without feeling the domination of one on another. In a branded house strategy, a master brand moves from being a primary driver to a dominant driver role across a multiple offerings. The sub-brand goes from having a modest driver role to being a descriptor with little or no driver role.

The shadow endorsement and strong endorsement of the brands have greater impact on various attributes of the constituents of the brand architecture. Samsung brand has transformed itself from a maker of low-end consumer electronics into a legitimate rival to Japanese industry giants such as Sony and Panasonic with a short span. It has been observed that such success emerged largely due to the efforts to reposition the brand as a provider of stylish, leading-edge digital technology. But shadows of the old brand image remain, spurred on by the continued availability of several of the company's traditional products.The Table 2.1 exhibits the brand architecture properties at different levels. The shadow endorsement and strong endorsement of the brands have greater impact on various attributes of the constituents of the brand architecture.

Table 2.1 Market Impact and Brand Hierarchy

Endorser Nominal Strong Associated Name

Average High High High High High

Parent brand

Absent High Average High High High

Resources

Absent High Low High Average Average

Application

association High High High High High High

Breakthrough

names Occasional Occasional Occasional Regular Regular Regular Co-Drivers Absent Always Occasional Always Always Occasional

At one end of the spectrum, international expansion and consumer needs for reassurance about product quality and reliability are resulting in a shift toward corporate endorsement of product brands. This helps to forge a global corporate identity for the firm and gathers its products under a global umbrella, thus generating potential cost savings through promotion of

the global corporate brand rather than multiple independent product brands. At the same time, endorsement by the corporate brand provides reassurance for the customer of a reliable corporate image and enhances visibility. The advantages of the corporate endorsement of the product brands include:

• Building umbrella brands

• Establishing global corporate identity

• Developing customer confidence

• Monitoring key strategic brands, and

• Enhancing the brand value in the new segments.

A corporate brand, plays a critical role in a brand portfolio of a company based on the attributes of products and features of corporate image. Such branding strategy can help to differentiate the company, strenghten internal brand building process, support brand management, build credibility, and provide a scope of interaction with the market community.

However, a company need to respond to many challenges including maintaining its relevance to the company's strategy, demonstrating its benefits to consumers, and avoiding negative associations or controversies in order to manage the corporate brands successfully in a competitive market¹⁴. Corporate endorsement of product level brands is increasingly used as a mechanism to integrate brand structure across country markets, providing a unifying element across product offerings. For example, Cadbury uses the Cadbury name on all its confectionery products, in conjunction with product brands such as Dairy Milk. Equally, a house brand is sometimes used on a product business worldwide. Cadbury's Milk Tray brand has been extended to desserts, leveraging the brand's association with creaminess.

The Campbell food technologists found a challenging task-one of the early prototype fiber-enriched rolls could have been marketed as a hockey puck. By fall 1994, however, about 24 meals that passed early taste tests were ready for clinical trials to determine health benefits.

Over 500 subjects ate the meals for ten weeks, and most reported improvements in cholesterol, blood pressure, and blood sugar levels. None experienced side effects, and many reported they liked the taste. Meanwhile, the company has created Campbell's Centre for Nutrition and Wellness in the Camden, New Jersey employing 30 nutrition scientists and dieticians. Campbell marketing staff selected the name “Intelligent Cuisine” (or IQ Meals), and a blue box or can for packaging. The plan was for UPS drivers to deliver 21 meals (mostly frozen, a few in cans) each week to test subjects' doors. By January 1997, the product was being test marketed in Ohio, backed up with a print advertising campaign and a ten-minute commercial to generate awareness was designed to stimulate toll-free calls to Campbell's information line. Campbell also hired part-time pharmaceutical sales reps to pitch IQ Meals to doctors, and contacted leading hospitals such as the Cleveland Clinic to distribute IQ Meals and promotional material. The first sign of trouble was at the phone bank. Callers found out that the one-week sample pack cost $80, and the recommended plan (10 weeks) cost

$700, and promptly hung up and fixed-income households found the price especially steep. At the American Heart Association's Columbus office, Campbell sponsored a lunch to promote IQ Meals' benefits, but failed to impress many of the dieticians present and so the customers

14 Aaker David A (2004), Leveraging the corporate brand, California Management Review, 46 (3), 6-18

when launched¹⁵. It happened as the brand architecture was not properly planned, implemented and measured for IQ Meals of Campbell.

Strong international brands often have high visibility and are prime candidates for brand penetration through social branding process, especially for entry into new and emerging markets such as Eastern Europe or China. Several companies in Europe, making a virtue of necessity, have come up with alternative brand-building approaches and are blazing a trail in the post-mass-media age. In England, Nestle's Buitoni brand grew through programs that taught the English how to cook Italian food. The Body Shop garnered loyalty with its support of environmental and social causes while Hugo Boss and Swatch backed athletic or cultural events that became associated with their brands¹⁶. However, private labels pose continuous threat to the popular brands and drive into the market when entry barriers are low or when the label is a premium line for a category with low price sensitivity.

The growing prevalence of corporate endorsement and brand extensions, coupled with a focus on building a limited number of strong brands in international markets, has led firms to develop procedures to manage and monitor key strategic brands. A key objective is to maintain their identity and value in international markets. Two important aspects need to be considered; (i) the consistency of brand positioning in different countries and across product lines, and (ii) the value and/or risks of brand extensions in international markets. Widely different approaches have been adopted for managing strategic brands in international markets and assigning custody for them. Typically, these vary depending on the organizational structure of the firm and the desired degree of control, and range from having no explicit custody strategy to highly centralized tight control by corporate headquarters.

Gerber is among the most trusted US brands recognized by virtually all mothers in the USA and, furthermore, enjoys strong positions in Mexico, Poland and Central America and is also a provider of baby care products and juvenile life insurance in the US. In 2000, Gerber began selling a line of powders, oils and other toiletries for children, and in 2002, it launched microwavable meals for older toddlers. It also has a life-insurance unit. But the baby-food business has never been a good fit for a parent company that mainly sells medications. The company has enjoyed good growth in recent years and, as a result of expected cost synergies, further improvement of operational margins is expected. Although Gerber already holds a massive share, it is no secret that the brand has been an awkward fit in Novartis' predominantly pharmaceutical-based portfolio. Nestlé's focus on nutrition and expertise within the baby food market will give the brand the attention it needs to grow further. Acquisition of this brand combined with its strategically perfect fit in Nestlé's portfolio, which makes the purchase of Gerber as a wise move. Nestle has plans to architect Gerber brand by strengthening its core competency and Nestle will focus on reinvigorating the top line. The acquisition of Gerber, which commands the US baby food market, gives Nestlé global leadership of the category, which holds strong brand stakes in the markets ranging from Mexico to Poland¹⁷.

15 Vanessa O'Connell, (1998), Food for Thought: How Campbell Saw a Breakthrough Menu Turn into Leftovers, The Wall Street Journal, October 6, pp A1, A 12

16 Joachimsthaler, Erich and David A Aaker (1997), Building Brands Without Mass Media, Harvard Business. Review, 75(1), 39–50

17 Nestle corporate home page. See press release

The firms with strong country management also operate in the product markets where brands are not important and purchase cues may have no explicit custody strategy. Attention is centered on trademark issues and their infringement in different markets. In cases where product markets are becoming more integrated and there is concern to improve brand harmonization across countries, specific brand positioning may be negotiated between corporate headquarters and country managers. This approach may, however, be somewhat cumbersome where there are multiple brands to manage. An approach that appears to be becoming increasingly popular is to appoint a brand champion. The brand champion is typically given responsibility for building and managing the brand worldwide. This includes monitoring the consistency of the brand positioning in international markets, as well as authorizing use of the brand on other products or other product businesses. The brand champion can either be a senior manager at corporate headquarters or a country manager or product development group. For example, a lead country or one with major market share for the brand can be given responsibility for the brand.

While examining consistency in brand positioning in the competitive market environment, often there is recognition that some adjustment to local market conditions will be needed, especially for mature brands. Typically, it is considered desirable that the core positioning should be maintained, though execution may vary. The extent to which some deviation is permitted typically varies considerably from firm to firm, and from one product business to another. The brand custodian is also often responsible for authorizing or providing an opinion on brand extensions. An important issue with brand extensions is to avoid over-extension or stretching of the brand and dilution of its equity and image. Criteria for sanctioning brand extensions vary considerably depending largely on the firm's organizational structure, the diversity of its product lines and businesses and management philosophy. Often, a proposed extension has to be consistent with the core brand's positioning and reinforce or sustain the existing brand concept. For example, extension of a confectionery brand to ice cream or dessert should emphasize the same core attributes. In many cases, proposed extensions of strategic brands are also required to have market potential. Procedures for resolving conflicts in relation to brand extensions also vary considerably depending on custody management principles and the firm's organizational structure.