Brand-usage networks: a demand side approach to brand architecture

Abstract

Brands represent the outcomes of marketing investment and are an important component of the market value of the firm. Managing a brand portfolio requires an understanding of the role or function of each brand; this critical analysis yields the brand architecture. Typically this involves supply side analysis of a company's owned brands. Using an approach modeled on market structure analysis, we propose simultaneously capturing the interdependence of brands within the portfolio as well as competitive positioning. In this paper we advocate the use of network analysis to provide metrics on brand relationships in the market place. This demand side approach examines the interaction between brands and usage, and provides behavioral insights into the brand architecture that can be used to develop brand portfolio strategies. An example using data from the US car rental industry demonstrates brand-usage interactions as separate and distinct entities in a relational structure. Strategic utility is demonstrated by using network analysis to define the Dollar Thrifty Automotive Group brand architecture.