What are the benefits and challenges of using the brand relationship spectrum model?

1 What is the brand relationship spectrum model?

The brand relationship spectrum model, developed by David Aaker and Erich Joachimsthaler in their book Brand Leadership, is a framework that classifies brands into four types based on the degree of prominence and linkage of the parent company name and the individual brand name. These four types are House of brands, Endorsed brands, Sub-brands, and Branded house. For example, Procter & Gamble owns Tide, Gillette, and Pampers, but does not use its name on the products or in the marketing - this is an example of a House of brands. Marriott Hotels uses its name as an endorsement for its sub-brands, such as Courtyard by Marriott or Fairfield Inn by Marriott - this is an example of an Endorsed brand. Apple uses its name as a prefix for its sub-brands, such as iPhone, iPad, or MacBook - this is an example of a Sub-brand. Finally, Virgin uses its name as the master brand for all its businesses, such as Virgin Atlantic, Virgin Mobile, or Virgin Media - this is an example of a Branded house.

2 What are the benefits of using the brand relationship spectrum model?

The brand relationship spectrum model can offer multiple advantages to your brand portfolio, such as clarifying the role of each brand and how they support the overall business strategy and objectives. It can also enhance customer loyalty and satisfaction by creating clear expectations and consistent experiences across the portfolio. Additionally, it can maximize the efficiency and effectiveness of marketing resources and activities by avoiding duplication, confusion, or cannibalization among the brands. The model can also be used to exploit opportunities for cross-selling, up-selling, or co-branding by leveraging the equity and awareness of the parent company or the individual brands. Finally, it can facilitate innovation and growth by introducing new products, services, or markets under the appropriate brand type and name.

3 What are the challenges of using the brand relationship spectrum model?

The brand relationship spectrum model presents certain challenges and limitations, such as the need to balance the trade-offs between the benefits and costs of using the parent company name or the individual brand name in different contexts. Additionally, there is a risk of diluting, damaging, or conflicting the brand image or reputation due to poor performance, quality issues, or negative associations. Furthermore, adapting to changing customer needs and preferences may require adjusting the brand type or name over time. It is also important to align the internal culture, structure, and processes with the external brand identity, positioning, and communication across the portfolio. Lastly, measuring and evaluating the performance and value of the brand portfolio and its impact on business outcomes and stakeholder interests is essential.

4 How to apply the brand relationship spectrum model effectively?

To use the brand relationship spectrum model effectively in your brand development strategy, it is important to conduct an analysis of your current portfolio and identify your target customers. You should also define your brand vision, mission, values, and personality for your parent company and individual brands. Additionally, you need to choose the optimal brand type and name for each brand based on strategic fit, customer relevance, competitive advantage, and market potential. Furthermore, it is essential to develop a coherent and consistent brand architecture, identity, positioning, and communication for your brand portfolio. Finally, you should implement, monitor, and refine your brand portfolio strategy based on feedback, results, and insights.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?