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Abstract
Brands play a significant role in developing marketing strategies for specific product categories in a firm. A coherent international brand architecture is a key component of a firm's overall marketing strategy as it provides a structure to leverage strong brands into other markets, assimilate acquired brands, and rationalise the firm's branding strategy. This paper discusses how firms can develop brand architecture, and considers the factors that contribute in shaping the architecture. The managerial implications for marketing management and the impact of architecture on the brand hierarchy are also analysed.
Brand architecture may be defined as an integrated process of brand building through establishing brand relationships among branding options in the competitive environment. The brand architecture of an organisation at any time is, in large measure, a legacy of past management decisions as well as the competitive realities it faces in the marketplace. The firm's history creates 'brand baggage'. This includes strong brands with rich traditions (like Louis Vuitton) as well as the burden of weak brands with strong traditions (Samsonite). Management inertia and vested interests within the firm often create barriers to the pruning of weak brands or their absorption into strong brand categories.
Brand architecture also reflects the characteristics of the product market. Where products are strongly culturally embedded, local or national brands are likely to proliferate, catering for specific local preferences. On the other hand, where customer preferences and desired product attributes are relatively homogeneous worldwide, and products share common functions, there are greater opportunities for global or international brands at the corporate or product divisional level.
The brand architecture helps in the revival, rentention or merger of brands that have low market impact and tend to cause organisational conflicts with the strong brands of the company. This process of brand building categorically determines the performance of the brand and allows the brand manager to choose the specific strategy position for the brand in the market.1 The brand architecture can be used to rejuvenate weak or dormant brands and to launch new brands. The architecture of brands, however, also encompasses the management aspects of the launched brands in the market.
Brand architecture inevitably reflects previous management directives. In the first place, the firm's administrative heritage and, in particular, its organisational structure,...