Brand architecture definition, process, and frameworks.

1. Proprietary & Confiden0al
brand growth strategy
Brand Architecture
Process & Frameworks
Michael Million
mmillion@fullsurge.com

2. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
2
Agenda
§ What is brand architecture?
§ What business issues does brand architecture help address?
§ A methodology to develop brand architecture?
§ Examples of deliverables

3. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
3
What is brand architecture?
The way in which internal entities (business units, divisions, capabilities) and offerings
(products, services, programs) in an organization’s portfolio are related to each other
perspective (parent / child, leader / follower, etc.) from an external perspective.
While some degree of relatedness is beneficial, the external view of the portfolio does
not necessarily have to align precisely with how the organization is actually structured
internally (brand architecture and organizational P&L structure are not the same thing,
but brand-dedicated teams are desirable).
Effective brand architectures are structured to drive synergies across the portfolio
(sharing and leveraging equity), clarity and distinction among brands, and provide
direction for future acquisitions of new brands by determining how the portfolio should
be organized to drive growth.
Brand architecture is created with a long-term view and typically is accompanied by
some type so decision tool with strong business rationale for determining IF entities /
offerings should be branded, and if so, HOW they should be branded.

4. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
4
Three essential elements of brand architecture
1. End-state Framework composed of:
A. Brand hierarchy - a tiered structure that clarifies which entities / offerings are most
important to those less important in achieve business objectives, and the types of brands
associated with them.
B. Organizing principle – an overarching approach toward strategically structuring a
portfolio in ways that enable the organization to grow and achieve its objectives. There
are two types of organizing principles:
• Relationship of entities / offerings to their parent (typically referred to as a spectrum from
“branded house” to “house of brands”
• Strategic orientation (the underpinning for how brands are organized – the “organized by”
portion of an architecture – e.g. by customer segments, by product lines, by geographies)
2. Decision tree – a criteria-based tool that guides decisions around what entities /
offerings should and should not be branded and what type of brand they should
become (e.g. master brand, product brand, sub-brand, ingredient brand, etc.)
3. Migration plan – an approach to move the current portfolio from the current state
to the desired end-state, including timing / sequencing, operational imperatives,
customer communications, etc.

5. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
5
Business issues brand architecture helps address
The business has historically grown through acquisitions or siloed organic growth (or
both) and has neglected to integrate brands or strategically manage them as a
portfolio of strategic assets, thus resulting in an overly complex set of brands
(typically too many), a lack of distinction across brands, confused customer and
employees, and sub-optimized brand-building resources
A business has “seen the light” relative to becoming more customer centric and
realizes that their portfolio of brands are, at best, have confusing relationships to each
other and thus sub-optimizing cross-selling opportunities; and, at worst, structured in
ways that satisfy a legacy internal organizing structure but at odds with how the
market actually thinks about the company’s category or makes important decisions
about its offers
A business has no rhyme or reason for keeping or eliminating brands and realizes that
each acquisition is forcing “one-off”, reactive decisions vs. following any longer-
term strategic intent or framework for growth.

6. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
6
1
Assessment
2
Hypotheses
3
ValidaEon &
Refinement*
4
Strategy &
MigraEon
Methodology for developing brand architecture
§ Gather and synthesize
existing information
§ Conduct executive
interviews
§ Conduct communications
audit (client and
competitors
§ Map current-state brand
architecture (as
comprehensively as
possible)
§ Gain insights from current-
state, competition & best
practices
§ Assess brand strengths &
weaknesses* (based on
criteria that incorporates as
much financial)
§ Establish guiding
principles for future
architecture – mapped to
client’s big strategic
objectives and agreed
upon by executive team
§ Develop hypotheses for
future architecture led by
guiding principles
§ Develop several
alternative architectural
scenarios – challenging
expected solutions
§ Illustrate scenarios in
representative
communications
§ Facilitate executive work
sessions to narrow options
§ Develop research plan
(sample, methodology,
discussion guide)
§ Analyze findings
§ Clarify Implications
§ Finalize brand
architecture
§ Clarify new brand
roles, scopes and
relationships
§ Develop migration
plan
*Could require primary research if no brand-specific data exists

7. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
7
Case: Situation & Scope of Brands
M&A activity has complicated the current Regal Beloit brand portfolio
§ The accelerated pace of acquisitions has filled capability gaps and capitalized on opportunities, but also
created an overly complex portfolio with too many brands to effectively manage on a global scale
§ While the sheer quantity of brands and overlap in their offers are contributing to confusion, simply
eliminating brands will not be easy, as internal and external loyalties to many brands remain strong
§ Future M&A activity will continue as Regal Beloit continues to grow, so establishing a long-term brand
portfolio strategy is paramount not only for the current brands, but also for future integration efforts
Com. & Ind l HVACR Air Moving Controls Mechanical International

8. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
8
Project Objectives
Key Questions to be answered in this project
Strategically organize Regal Beloit’s brands to achieve greater clarity, realize efficiencies /
synergies, and build stronger brand equities across the portfolio
§ The strategic role of each brand in the future portfolio (e.g. leader, challenger, revenue generator, equity builder)
§ The appropriate scope of each brand in the future portfolio (offers, geographies, customer types)
§ The optimal relationships among the portfolio brands (e.g. master branded, endorsed, sub-brand, endorsed)
Parent Brand
§ What is the “directional” awareness level of Regal Beloit as the corporate brand?
§ What is the optimal positioning for the corporate brand (Regal Beloit or other)?
§ Can/should a new brand name be developed for the corporate entity?
BU Brands
§ Which BU brands have the most equity in the market today? What are those equities?
§ Should any BU brands be eliminated. If, so which ones? Should BU brand change
profiles?
§ For surviving brands, what is the strategic role it serves within the portfolio?
Brand Architecture
§ What is optimal relationship between surviving BU brands and the corporate brand?
§ What is the relative hierarchy/emphasis for brands that are linked together?
§ Does this parent/BU relationship vary by BU brand, or is it standard/consistent?
Visual
Representation
§ How is the brand architecture “brought to life” visually (i.e., high level representation)?

9. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
9
1
Assessment
2
Hypotheses
3
ValidaEon &
Refinement
4
Strategy &
MigraEon
Approach
§ Review existing research;
synthesize findings and
determine implications
§ Understand market
landscape and current
brand portfolio
“configuration”
§ Identify hypotheses for
brand portfolio
development
§ Conduct iterative
working sessions with
Regal Beloit executive
team
to agree on hypotheses
to test through research
§ Conduct research
with customers and
prospects to
understand pros and
cons of different
portfolio scenarios
§ Analyze research
within the context of
hypotheses
§ Determine optimal
brand portfolio
strategy based on
customer research
and pre-defined
decision criteria
§ Develop plan to
guide the migration
of the portfolio from
its current to future
state (sequencing
and timing)

10. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
10
1
Assessment
2
Hypotheses
3
ValidaEon &
Refinement
4
Strategy &
MigraEon
Deliverables
§ Synthesis of existing
research, planning
documents, & mgt.
interviews
§ Insights from current-state
brand architecture,
competition & best
practices
§ Brand scorecards /
assessment summary of
strengths, weaknesses &
future considerations
§ Guiding principles for the
future brand portfolio
§ Initial hypotheses for
future brand roles, based
on assessments
§ Brand portfolio framework
alternatives
§ Brand usage scenarios /
applying different sets of
brands to portfolio
frameworks
§ Illustrative communication
examples of
representative brand
relationships
§ Research plan (sample,
methodology,
discussion guide/
stimuli)
§ Analysis of findings
§ Implications on
strategy and migration
plan
§ Final brand
architecture
§ Brand portfolio
profiles
§ Strategic roles
§ Scopes (offers, geos,
customers)
§ Identity relationships
with Regal Beloit
§ Expression approaches
§ Decision tool(s)
§ Migration plan
§ Clarified implications
of recommended
changes

11. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
11
Illustrative Deliverables Step 1. Assessment
Synthesis of Existing Information & Exec. Interviews Insights from Current-state Brand
Architecture, Competition & Best Practices
Brand Assessment Scorecards
Brand X Sources Score Comments
Economic
Criteria
• A
• B
• C
…….. …
…… …….
… …….
Customer
Criteria
• A
• B
• C
…….. …
…… …
Strategic
Criteria
• A
• B
…….. …
…… ……
Guiding Principles for the Future Brand
Portfolio
Summaries
&
Implications
Existing Information
• Strategic plans
• Brand research
• Customer Sat reports
Executive Interviews
• Chairman
• CEO
• COO
• Build equity into the Regal-Beloit brand
• Make the portfolio easy to understand and
navigate for customers and sales force
• Move toward fewer, stronger brands
• Do: build brands / Don’t: add names
• Express “systemness”
Level 1
Level 2
Level 3
Level 4

12. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
12
Illustrative Deliverables Step 2. Hypotheses
Initial Hypotheses for Future Brand Roles Brand Portfolio Framework Alternatives
Brand Usage Scenarios
(based on narrowed alternatives)
Brand X Score Possible Role
Economic
Criteria
Customer
Criteria
Strategic
Criteria
Illustrative communication examples
RBC
Brand X Brand Y
Regal-Beloit
Sub-brand X
Structure
By BU
By Pdct
Line
By Cust.
Type
Simplification
Slight Significant
RBC
Brand X Brand Y
Brand Y
Platform Brand Y
Regal-Beloit

13. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
13
Illustrative Deliverables Step 3. Validation
Sample Plan Interview Guide / Survey
Analysis of Findings Implications on Strategy & Migration
C&I HVAC Air
Moving
Mechani
cal
Controls Intl.
Title A
5 5 5 5 5 5
Title B
5 5 5 5 5 5
Title C
10
I. Context Setting
II. Frame of reference questions
II. Reaction to brand changes
IV. Rating different architectural scenarios
V. Perspectives on a potential name change
VI. Others …
I. Conclusions
II. Brand-specific findings and equities
III. Strengths & weaknesses
IV. Hypotheses validated / invalidated
V. Others …
I. Narrowed architectural scenarios
II. Future brand roles and scopes
III. Ease and optimal timing of brand changes
IV. Risks / rewards of changes
V. Key success factors going forward
VI. Others …

14. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
14
Illustrative Deliverables Step 4. Strategy & Migration
Final Brand Architecture Brand Portfolio Profiles
Decision Tool(s) Migration Plan
Strategic
Role
Scope Relationship
to RCB
Expression
Approach
Brand 1
Brand 2
Brand 3
Level 1
Level 2
Level 3
Level 4

15. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
15
Brand Assessment Scorecard
Brand: X Key Finding Score Sources
Economic
Criteria
(size & growth)
Revenues
Share (in respective market)
Profitability
CAGR
Customer
Criteria
(presence &
equity)
Breadth of presence (geo,
customer types, offers)
Equity / perceptions / customer
satisfaction
NPS / Loyalty
Strategic
Criteria
(future
potential / other
considerations
Future potential (extendibility)
Other strategic importance
(e.g. helps resolve channel
conflict)
Future Potential Role in Portfolio

16. PROPRIETARY AND CONFIDENTIAL
SUBSECTION TITLE
16
Click to edit Master title style
1603 Orrington
Evanston IL 60201
MMillion@fullsurge.com
fullsurge.com
Thank you