Brand Architecture is a systematic framework which organises and manages the relationship between a parent company and its subsidiary brands, products, and services. It aims to create a coherent and consistent brand experience for customers across various touchpoints.
The concept of Brand Architecture has evolved over time, with the first significant developments taking place in the 1950s and 1960s. During this period, companies like Procter & Gamble and Unilever began to diversify their product offerings and needed a way to manage their growing brand portfolios. This led to the creation of the first Brand Architecture models, such as the "House of Brands" and "Branded House."
How to Use Brand Architecture
There are two primary Brand Architecture Models:
- House of Brands: In a House of Brands model, each product or service has its own distinct brand identity, separate from the parent company. Examples include P&G's Tide, Crest, and Bounty. This model allows for greater flexibility in targeting different customer segments and minimising potential damage from negative publicity associated with other brands in the portfolio.
- Branded House: In a Branded House model, the parent company's brand is the primary focus, with sub-brands clearly identified as belonging to the parent. Examples include Google's Gmail, Google Maps, and Google Drive. This model leverages the strength and reputation of the parent brand to build trust and recognition for its sub-brands.
There are a number of practical applications for these models:
- Mergers and Acquisitions: Brand Architecture plays a crucial role in managing the integration of acquired companies and their brands. By carefully considering the relationship between the parent company and the acquired brands, businesses can maximise the value of their investments and minimise disruption for customers.
- New Product and Service Launches: When launching new products or services, Brand Architecture helps businesses determine the optimal branding strategy. Companies can decide whether to introduce a standalone brand or leverage their existing brand equity by launching the new offering under an existing sub-brand.
- Brand Portfolio Management: Brand Architecture enables businesses to evaluate their brand portfolio's overall health and identify areas for improvement. By assessing the performance and positioning of individual brands, companies can optimise their resources and allocate investments more effectively.
Brand Architecture is an essential tool for business professionals seeking to manage and grow their brand portfolios. By understanding the historical context and practical applications of the various Brand Architecture models, companies can build strong, coherent brand experiences which resonate with their customers and drive business success.
Strategic Use of Brand Architecture
For organising and managing a company's brands to maximise their impact and value, Brand Architecture framework can be used for:
- Brand Portfolio Management: Develop a clear brand portfolio strategy which categorises brands into different groups based on their roles, such as master, endorsed, or independent brands. This approach enables businesses to allocate resources efficiently and manage brand relationships effectively.
- Consistency and Differentiation: Ensure that each brand within the portfolio maintains a consistent identity while providing unique value propositions. This balance strengthens the overall brand architecture and minimises confusion for customers.
- Brand Extension: Utilise brand architecture to extend the company's brand(s) into new product categories or markets. A well-structured brand architecture facilitates the introduction of new offerings while leveraging existing brand equity.
- Brand Hierarchy: Establish a clear brand hierarchy that defines the relationships between different brands in the portfolio. This structure helps customers understand the connections between brands and navigate the product or service offerings more easily.
Best Practices
- Regular Audits: Conduct periodic brand architecture audits to ensure alignment with business objectives and market conditions.
- Collaboration: Encourage cross-functional collaboration between marketing, product development, and other relevant departments to maintain a cohesive brand strategy.
- Customer-Centric Approach: Focus on customer needs and preferences when designing brand architecture. This approach increases the likelihood of a successful and enduring brand strategy.
- Flexibility: Be prepared to adapt the brand architecture as the business evolves or as market conditions change.
Common Pitfalls
- Over Complication: Avoid creating an overly complex brand architecture that confuses customers and dilutes brand equity.
- Ignoring Brand Equity: Failing to consider the existing brand equity when making decisions about brand architecture can result in missed opportunities or unintended consequences.
- Insufficient Resources: Inadequate resource allocation can hinder the successful implementation and maintenance of a brand architecture strategy.
- Lack of Communication: Internal and external communication failures can lead to inconsistent brand application and customer confusion.
Brand architecture is a powerful tool for businesses seeking to maximise the impact of their brands and achieve strategic goals. By following best practices and avoiding common pitfalls, business professionals can develop and maintain effective brand architectures that drive growth and success.
