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Brand Architecture Moving Towards Brand Management

Dilanchian Guide for

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Succinctlystated,astrongbrand:•  Securesgoodwill•  Buildsbrandloyalty•  Becomesasymbolofqualityorvalue•  Differen:atesaproductorserviceororganisa:on•  Encouragestheconfidenceofemployees,investors,consumers,licensees,collaboratorsanddonors

•  Provides“armour”againstpoten:alcompe:torsandinfringers•  Storesvalueasanassetrecognisedbylegalandaccoun:ngprinciples.DavidA.Aakerandothersreferto“brandequity”.Theyrefertoacombina:onofbrandawareness,brandiden:ty,perceivedqualityandbrandloyalty.Otherkeywordsincludedifferen:a:on,relevance,esteemandknowledge.

1.Whatdoesastrongbrandachieve?

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2. Fundamentalprinciples

Brandarchitecturestructuresandintegratestheiden>tyofaventure’sdifferentproducts,servicesandmessages.Complementarymessagesbuildthebrandexperienceoftheaudienceorusersandcreatealegallystrongbrand.

•  Harmonisethetext,designandothercontentofabrandtocommunicateclearlyandsuccinctly.

•  Designmarke:ngandcommunica:ontouchpointstobuildthebrandaccordingtoaconsistenthousestyle.

•  Designthepresenceofthebrandonline,onmobiledevices,inprintandeverywheretohaveaconsistentlook,soundandfeel.

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Legallystrongbrandsaremadebycoordinatedandconsistentbrandingdecisions.Legallyweakbrandshavelimitedrights.Theyarehardandexpensivetoprotect.Inconsistencycommonlyarisesfromnaivebrandingdecisionsinbrandselec:on,developmentanduse.ThisishowthecookieoJencrumbles:

1.   Domainnameregisteredbyfounderofaventure–“Wow,itwasavailable!”

2.   Companynameregisteredbyaccountant–“Ispeltitdifferentlyforareason.”

3.   Logobygraphicdesigner–“It’sgotitall,nameanddesign,looksgreat,eh?”

4.   Trademarkregisteredbyfounder/aPorney–“Greatlogo.Justfileitquick!”

Congratstoall.Alegallyweakbrandcreatedby4uncoordinated,accidentaldecisions.

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Management… Design… Legal…

Abrandislegallyweakifmanagement,designandlegalconsidera:onsarenotintegrated.

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Legalprotec:onisalsoweakenedifpartsofthebrandaremanagedinseparatesilosbydifferentpeople.Thepartsincludecompany

name,domainname,trademark,logoandpackagingdesign.

3.Inconsistencycreateslegallyweakbrands

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1 APPLE 118.863 U.S.

2 GOOGLE 107.439 U.S.

3 COCA-COLA 81.563 U.S.

4 IBM 72.244 U.S.

5 MICROSOFT 61.154 U.S.

6 GE 45.480 U.S.

7 SAMSUNG 45.462 SouthKorea

8 TOYOTA 42.392 Japan

9 McDONALD'S 42.254 U.S.

10 MERCEDES-BENZ 34.338 Germany

11 BMW 34.214 Germany

12 INTEL 34.153 U.S.

13 DISNEY 32.223 U.S.

14 CISCO 30.936 U.S.

15 AMAZON 29.478 U.S.

Rank Value$USBillion Origin

Source: Interbrand. Interbrand’s 15th Annual Best Global Brands Report, 9 October 2014

4.World’svaluablebrands

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Rank Brand 2014VALUE$USBillion

2013VALUE$USBillion

%CHANGE

Winners29 FACEBOOK 14.349 7.732 +86

45 AUDI 9.831 7.767 +27

15 AMAZON 29.478 23.620 +25

31 VOLKSWAGEN 13.716 11.120 +23

56 NISSAN 7.623 6.203 +23

Losers98 NOKIA 4.138 7.444 -44

100 NINTENDO 4.103 6.086 -33

18 GILLETTE 22.845 25.105 -9

19 LOUISVUITTON 22.552 24.893 -9

17 HP 23.758 25.843 -8

Source: Interbrand. Interbrand’s 15th Annual Best Global Brands Report, 9 October 2014

5.Risinganddecliningbrandvalues

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BrandApproaches

MonolithicBrand

Independentbrands

egDove,Lux,Vaseline,Lipton

EndorserBrand

EndorsedbrandsegPost-it,ScotchandNexcare

BrandedHouse

Sub-brandsegiPhone,iPad,iWatchandiMac

6.Casestudiesinbrandarchitecture

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A Breath of Fresh Air™

•  Threebrandelementsworkinsynchinthisexample.•  Thecirculargraphicbelowfirstappearsonitsown.•  Itcombineswithanameanddescriptor(“oxygen”+“accoun:ng”).•  Finallyitworkswithatagline(“abreathoffreshair”).

•  Eachmodulefitswiththeother.

•  Thisillustrateshowagraphic,organisa>onnameandtaglinebuildandintegrated.

Case Study: Brand architecture for an organisation

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Case Study: Brand architecture for a product (wine label)

Thewinerymaybeabrand,egLAKESFOLLY

Thevarietycanalsobea“brand”,egSHIRAZ

ThegeographicregionmaybeabrandegBAROSSAVALLEY

Theyearofvintageisabrandforwinebuffs,eg2001

Thecountryoforiginasabrand,egAUSTRALIA

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Case Study: Australian Government’s Re-Branding

BEFORE - Rejected by Howard Government

AFTER - Adopted by Howard Government

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Nestle’sbrandarchitectureNestleisverysophis>catedinitsbranding.Itisbothamonolithicbrandandanendorserbrand.

•  Nestle is a food conglomerate, a house of brands with both diet and non-diet products.

•  NestleusedbrandarchitectureinitsfamousNestleBrandingTree.•  OnglobalproductstheNestlebrand

appeared,egCarna:on,Maggi,Perrier,Quick,KitKat.

•  On7,640regionalorlocalproductsthewordNestledidnotalwaysappear,egLifesavers,Allens,Findus,LeanCuisine.

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Sub-brands-legalrecogni>on

BeechamGroupPlcvColgate-PalmolivePtyLtd66IPR254 •  The use of sub-brands enables the owner of the parent brand to market a

range of different products or services, competing in different market segments, but retaining the values of the parent brand.

•  A parent brand is often used together with a sub-brand so that the positive attributes of the parent brand are attributed to the sub-brand, without the need to create an entirely new set of brand values for the sub-brand, which would cost the company time and money and may not succeed.

•  Sub-brands are also used to communicate to consumers specific and differentiating values pertaining to the sub-brand, which often appeal to different market segments while still having the benefit of attributing to each sub-brand the brand values of the parent brand.

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Whatarethefutureobjec>vesforeach?

Whatarethekeymessagesforeach?

[Your venture company name product name and trade mark

methodology or product features name]

7.Implemen>ngyourbrandarchitecture

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Brandarchitectureservestheneedofposi:oninganorganisa:onanditsofferingsinthemindsofitsaudienceorcustomersandstakeholders.

Belowisasimpleposi>oningstatementmatrix.Whatwouldbetheanswerontherighthandcolumnforyourorganisa:on?

Posi>oningStatement

Who <Targetcustomers>

What <Venture/product/serviceofferings>

Why <Compellingreasontoengageorbuy>

Value-add <Keybenefit–valueproposi:on>

UniqueSellingProposi>on

<Differen:a:on–fromcompe::on>

Whatisposi>oning?Posi>oningisamarke:ngconcept,fordifferen:a:onofanorganisa:onanditsofferings,bybuildingpercep:onsaboutwhatisonofferforcustomersandstakeholders.

Differen:a:onisoneoffourmechanismsforcompe::veness:

1.  Price2.  Timeliness3.  Quality4.  Differen:a:on

Toolsforposi:onsincludetheposi>oningstatement(right),brandarchitectureandothermarke:ngcommunica:ontools.

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•  Legonitsown,acompanyorproductlabel,domainname,trademarkorlogodoesnotcreateapowerfulbrand.

•  Moreisneededtocreatebrandingwhichsingsandstaysonmessage:

1.   Associatedelements,egdescriptor,tagline,labels,swingtags2.   Graphicdesign,eglogo,fonts,colourpalePe,symbols,characters,

layouts,formats3.   In-houseguides,egtemplates,guides,housestyleguide.4.   Legaldecisionsasregardswhattoregister,wheretoregister,in

whichnametoregisterandhowtoregister.

Items1,2,3and4arekeytoolstobuildastrongbrandarchitecture.Developthemtogetbeheroutcomes,includingfromlegaladvice.

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Product Sale Collateral Communication Collateral Marketing Collateral

•  Email Footer •  Website Banner •  Letterhead •  Tax Invoice •  Statement •  Receipt •  Business Card

•  Brochures •  Forms •  Letters

•  Social Media •  Publications •  Blog Articles

•  Packaging •  Labels •  Banners •  Swing tag •  Training materials •  Guides

8.Brandcollateralorformats

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Intellectual Property Law

Business Law

Assets Management

Entrepreneur Support

1.Weiden:fy,shape,contract&protectyourassets

2.Westructurebusinesses,deals&transac:onsforyourassets

4.Weprovidetools&trainingforyoutostandardiseyourprocessesandaddvaluetoyourassets

3.Webuildstrategiesforwealthcrea:onforyourassets

Intellectual Property Law

Patents and copyright Trade mark registration

Branding and trade practices Confidential information

Technology licensing Internet and e-commerce law

IT and communications law Entertainment law

Franchising law

Business Law

Business transactions Business contracting

Structuring enterprises Human resources law

Deal negotiation Securities law

Sale of business Dispute resolution

Commercial litigation

Assets Management

Intellectual property management Intellectual capital management

Valuation of intellectual assets Knowledge management Document management

Project management Strategic planning

Entrepreneur Support

Management consultancy Deal making training

Management training Marketing support

Fundraising

8.Whatwedo:servicesforintellectualassets

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IntellectualPropertyLaw

BusinessLaw

IntellectualAssetsManagement

EntrepreneurSupport

Dilanchianisafirmofspecialistlawyersandconsultantswithover30yearsexperienceinbusinesslaw,emphasisingtechnology,contracts,capitalraisingandintellectualpropertyprotec:onandcommercialisa:on.

9.Connect

Innova>ve>Integrated>Solu>ons

ImportantDisclaimerThisdocumentisanoverviewforgeneralguidanceonly.Itdoesnotreplacetheneedforadviceonindividualcases.Forspecificadviceyourpar:cularcircumstancesmustbetakenintoaccount.LiabilitylimitedbyaschemeapprovedunderProfessionalStandardsLegisla:on.

DilanchianLawyers&ConsultantsSuite302,Level3,105PiPStreet,SydneyNSW2000AustraliaTel(+612)92690229Webwww.dilanchian.com.au|Emailinfo@dilanchian.com.au|Skypenoricd

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