Description
The purpose of a Brand Architecture Model is to help a company organize its portfolio of brands, products, and services to support a business strategy. These models help illustrate the hierarchy, linkages, and roles for each brand. Brand architecture is fundamental to marketing decision-making, from setting budgets to designing websites. There are four main models: Branded House, House of Brands, Endorsed Brand, and Sub-Brand. Each model has its own set of potential advantages and disadvantages. Companies need to determine the right model based on their own unique situation and strategy. Establishing a coherent brand architecture makes marketing more efficient and effective by providing greater focus and clarity for internal stakeholders and consumers.
Questions
Brand Architecture Models help to answer marketing questions like:
Is this brand separate or connected to another brand?
What is the hierarchy of these brands that are connected?
What specific role does this brand play in our portfolio?
Steps
To start, ensure you have a clear understanding of your business strategy and factors that may impact your brands. Consider future mergers/acquisitions, line extensions/ consolidations, or changes in markets/positioning.
Audit your current portfolio of brands, products, and services. If you have an existing brand architecture, audit that as well. Analyze how your ‘current state’ may need to change to support your business strategy.
Evaluate how different models may address your needs. For example, a Branded House may limit extensions but consolidate investment. A House of Brands may enable diversification but require more resources.
Map your individual brands, products, and services to your chosen model. Many organizations use a hybrid approach, so highlight important nuances or exceptions. Stress-test against your business strategy and future plans.
Finally, ensure that your revisit your brand architecture over time to ensure that it is in tune with your business strategy and portfolio. As your business evolves, your brand architecture should evolve with it.
Considerations
Ensure that your approach provides sufficient clarity and separation between brands where required.
Consider how to reach your target market with fewer brands, as each brand requires additional budget.
Make sure that you do not map your brand architecture to your internal organizational structure.