let's talk a little bit about brand

architecture this is really when we have

multiple brands in the stable so to

speak brand architecture is the

structure of brands within the

organizational entity and the way we

think of this as brands uh either are

totally embraced by the by the company

or are allowed to stand individually in

other words it's a portfolio decision a

decision whether or not the brand is

related to the overall portfolio or

whether it's differentiated and we think

of this umbrella branding versus multi

branding as being the two markers and if

we think about this we think about

branded house versus house of brands on

the left you can see FedEx all of those

things are very visually similar and

they express different parts of the

company corporation express freight

round differentiated by color but no one

will be confused you are not talking

about FedEx over on the house of brands

many people might be able to identify

the P&G brands here

but not necessarily and it's not

intentional nor is it an idea that P&G

necessarily wants to push forward they

really want to highlight the individual

brand and the product that it represents

then we look at these other two

midsections here and we think about sub

brands and endorsed brands Apple you

could say Apple that Big Apple is

endorsing all those brands but the way

they do it is that they actually have a

visual similarity in the products so

they are sub brands no one's confused

that in fact iPad pro is an apple brand

or that iPhone is or that I want or that

Apple watch or any of those things are

nothing more than Apple brands whereas

an endorsed brands Kellogg's special K's

kind of a giveaway but minimax chocolate

or crunchy nut those are not necessarily

known to be Kellogg's brand but

Kellogg's would like you to know they're

part of the family so they put it right

on the logo so that's what we think

about when we think about these various

kinds of ways branded house and sub

brands and endorsed brands and house of

brands so what are the benefits and you

know maybe the disadvantages scale of

economy is the umbrella issue by

promoting a single brand there's a lower

advertising

during communication cost and over on

the other side multi branding allows you

to really focus on the verticals in the

uniqueness of each one of the sub brands

of the brands within the overall family

that are not necessarily labeled that

way the it allows positive transfer on

the umbrella size in other words if

you're a good Custer if you're good at

customer satisfaction as an organization

in toto it transfers to other units a

good Apple product will confer some

benefits on another Apple product that

maybe someone has not known which we

call that pre purchase decision benefit

the inability to transfer positive

customer experiences is really what

happens over on the other side say for

example a house of brands I don't know

whether or not P and G's you want to

detergent any better than another and I

don't really have that opportunity to

inspect on the visual image up front

company culture this is important

enhances the ability to deliver a

consistent message when your an umbrella

brand and on the other hand the negative

associations often what's bad for one

brand will rub off to its sister brand

oddly enough people will will think and

look at the label and understand who

else is associated with that so there's

some negativism that's that if in fact

you're all working under the same aegis

that really helps significantly whereas

if you are not it's multi branded and

there's many different brands under the

con Agra Foods name then this can

actually maybe create friendliness but

unlikely more likely to happen is that

customer relationships are not fully

developed because rivalry sets in that's

the story on brand architecture