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