Brand architecture refers to the way a company organizes and structures its brands, products, and services. It is the strategic design of a company's brand portfolio, with the goal of maximizing brand recognition, reputation, and value. Effective brand architecture requires a deep understanding of a company's business objectives, target audience, and competitive landscape. Here are the answers to seven commonly asked questions about brand architecture:
Brand architecture models are frameworks that companies use to organize their brands. They can be categorized into three main types: house of brands, branded house, and hybrid. In a house of brands model, each product or service has its own unique brand identity. In a branded house model, all products and services fall under one overarching brand. A hybrid model is a combination of both.
Brand hierarchy refers to the order in which a company's brands are positioned within its portfolio. It is important because it helps consumers understand how products and services relate to each other and to the overall company brand. A clear brand hierarchy can also help companies optimize their marketing efforts by focusing on their most valuable brands.
Brand extension strategies involve leveraging an existing brand to launch new products or services in different categories. There are two main types: line extensions and category extensions. Line extensions involve adding new variants or flavors within an existing product category. Category extensions involve launching new products or services in entirely new categories.
Sub-brand development involves creating a distinct brand identity for a specific product or service within an existing brand portfolio. This can help companies target different audiences or differentiate products based on specific features or benefits. Sub-brands can also help companies optimize their marketing efforts by tailoring messaging to specific audiences.
Brand portfolio optimization involves evaluating a company's existing portfolio of brands to identify opportunities to improve performance. This can involve consolidating brands, repositioning brands, or discontinuing underperforming brands. The goal is to create a more streamlined and efficient brand portfolio that maximizes value for the company.
Determining the right brand architecture for a company requires a deep understanding of its business objectives, target audience, and competitive landscape. It involves evaluating the strengths and weaknesses of existing brands, identifying opportunities for growth and differentiation, and determining how best to leverage existing assets. It is important to work with professionals who have experience in brand strategy and architecture.
Examples of effective brand architecture include Procter & Gamble's house of brands model, where each product has its own unique brand identity (e.g. Tide detergent), and Nike's branded house model, where all products fall under the Nike umbrella (e.g. Nike running shoes). Other examples include Coca-Cola's hybrid model, which includes both sub-brands (e.g. Diet Coke) and separate brands (e.g. Sprite).
