Brand architecture by definition is the structure of brands within an organizational entity. It is the way in which the brands within a company’s portfolio are related to, and differentiated from, one another. Different brand architecture models
Branded House (also called a monolithic brand) emphasizes a single master brand, that sits over of the other brands within an organization. This is a particularly good option when the products are in the same category or offer a similar set of benefits. Examples of a branded house are Apple, BMW and Mercedes
House of Brands (also called freestanding brands) are designed to stand entirely on their own in the marketplace. This allows for more independence of brands within the organization and help develop a portfolio of brands, each with a unique brand positioning tailored to a particular product or market segment. Examples of it are P&G, Unilever and GM. This model is specially popular with FMCG companies.
Endorsed Brands (also called hybrid model) Uses both models described above. Here, brands are combined in such a way that one is designed to work in concert with the other. Think Courtyard By Marriott, Polo by Ralph Lauren, Microsoft Windows.
Many organizations fail to clearly identify and differentiate their products and services and an undefined brand architecture which leads to brand chaos!
Brand chaos causes confusion within the organization which in turn causes the following negative impact:
Brand value and equity decline
Ultimately, the sales figures will be dramatically decline and the companies P&L will suffer.
The beginning of the end: Brand starts to disintegrate and collapse.
If you’re not sure where you fit or what brand architecture model is best for your organization, get in touch for a consultation over a cup of coffee!