Beyond BH and HOB: a five-part categorisation of brand architecture strategies
8 important questions on Beyond BH and HOB: a five-part categorisation of brand architecture strategies
What is the definition of endorsed branding?
What are the pros of Endorsed Branding?
- Faster market penetration of the individual brands;
- unique brand promise thus identity of individual brands which lowers your brand stretch risk;
- Quality is assured from the parent brand.
What are the cons of Endorsed Branding?
- Risk of dilution;
- You need management of several brands;
- Negative spillover between the brands - this brings risks from related brands when situations take place.
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
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What is the definition of a House-of-Brands?
What are the pros of a House-of-Brands?
- Reducing stretch risk - because of focus on individual market segments;
- Reducing risk of brand dilution - there are separate brand promises and reputations;
- Reducing reputation risk - avoids negative spill-over.
What are the cons of House-of-Brands?
- Risk of cannibalisation - weak brand loyalty and brands are often commoditised (gestandaardiseerd);
- It is inefficient from a operational perspective.
What is a BH-HOB hybrid architecture strategy, that usually comes forth out of a Merger or Acquisition to drive share value?
What is a con of the BH-HOB hybrid architecture?
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- Never study anything twice again
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- 100% sure, 100% understanding
