The Relationship Between The Brand Strategy And Business Strategy

Abstract: In this study the relationship between three companies brand strategies and business strategies were investigated based on Aaker’s view on brand architecture. The concept and its strategies are characterized by the driving roles brands possess. At the top of the spectrum, “House of Brands” allows the brands to have the entire driver role which decreases moving downwards on the spectrum, first comes “Endorsed Brands” where the master brand has a little driver role, followed by “Subbrands” where the master brand and the subbrand share the driver roles. At the bottom “Branded House” strategy can be found, it is characterized by allowing the master brand to have the entire driver role. Considering (Porter, 1998) and his three generic strategies, three companies: Colgate-Palmolive Company, Kellogg’s, BMW Group and their relationship between brand and business strategy was investigated. All of these three companies are characterized by possessing leading roles within their industries where they operate. All three companies, BMW Group, Kellogg’s and Colgate-Palmolive Company differentiate themselves with help of the brand strategies. In the Kellogg’s case, except the “House of Brands” strategy, they also use “Endorsed Brands” and “Subbrands”. The BMW Group applies “House of Brands” and “Branded House” to achieve differentiation. When it comes to Colgate-Palmolive Company, the main difference is that, both BMW Group and Kellogg’s achieve differentiation through applying several brand strategies. Colgate-Palmolive Company’s differentiation efforts is limited to the “House of Brands” strategy. Despite their different choices of brand strategies the study shows that each company achieves differentiation. Furthermore, the study shows that one differentiation can also be achieved by implementing a single brand strategy, as in the case with Colgate-Palmolive Company. However, the study shows that each of the investigated companies succeeds to target the desired segments and position their offerings on specific attributes.