Introduction to Brand Architecture

What is brand architecture

Brand architecture is a strategic framework that defines the organisation and hierarchy of brands within a company’s brand portfolio. It outlines how individual brands or sub-brands relate to each other and to the overarching corporate or master brand. Brand architecture helps organisations manage their brand portfolio effectively and communicate their brand strategy clearly.

Brand architecture encompasses the following elements:

Corporate or master brand: this is the top-level brand that represents the company as a whole. It often carries the company’s name and logo. The corporate brand sets the tone for the entire brand portfolio.

Sub-brands: sub-brands are brands that exist under the corporate brand but have their unique identities. They can have their names, logos, and messaging. Sub-brands are used when a company offers a range of products or services that cater to distinct markets or customer segments.

Product brands: product brands are individual brands for specific products or services offered by the company. These brands may have their names, logos, and marketing campaigns. They can exist within sub-brands or stand alone, depending on the brand architecture strategy.

Endorsed brands: in an endorsed brand architecture, the corporate brand lends its name or endorsement to sub-brands or product brands. This approach provides credibility and trust to the sub-brands.

Stand-alone brands: stand-alone brands are independent brands with no visible connection to the corporate brand. They often operate as separate entities in terms of branding and marketing.

Brand relationships: brand architecture defines the relationships between brands, including how they complement, compete with, or differentiate from each other.

Brand strategy: the brand architecture strategy aligns with the company’s overall business strategy and marketing objectives. It guides decisions about brand development, management, and communication.

Brand architecture can take different forms based on the organisation’s goals and structure:

Branded house: under this approach, the corporate brand is prominent, and sub-brands or product brands are closely aligned with it. This creates a strong, unified brand identity.

House of brands: in this scenario, the corporate brand takes a backseat, and individual sub-brands or product brands operate independently. This approach allows for more flexibility and differentiation.

Hybrid: some organisations use a combination of both branded house and house of brands strategies to strike a balance between a unified corporate identity and distinct product or service identities.

 

The importance of brand architecture lies in its ability to:

Clarify brand relationships: it defines how brands within the portfolio relate to each other, reducing confusion among customers and stakeholders.

Support decision-making: it guides decisions about branding, marketing, and product/service development, ensuring alignment with the brand strategy.

Leverage brand equity: brand architecture can help leverage the equity of a strong corporate brand to enhance sub-brands or product brands.

Optimise resource allocation: it assists in allocating resources efficiently across the brand portfolio.

 

Example of brand architecture

Imagine a well-known automobile company that has a brand architecture consisting of several vehicle models and product lines. They may categorise their vehicles into sub-brands, like “eco series” for environmentally friendly cars, “luxury series” for high-end vehicles, and “sport series” for performance-oriented cars. This brand architecture helps customers easily identify and choose the type of vehicle that suits their needs.

 

Importance of tracking brand architecture

Tracking brand architecture is important because it ensures that the brand’s structure and organisation align with its strategic goals. It helps in maintaining consistency, reducing customer confusion, and ensuring that each product or service contributes effectively to the overall brand’s reputation and identity.

Alignment with business strategy: brand architecture tracking helps organisations ensure that their brand structure remains aligned with their evolving business strategy. It ensures that brands within the portfolio support overall business objectives.

Effective communication: tracking ensures that the intended relationships between the corporate brand, sub-brands, and product brands are effectively communicated to customers, stakeholders, and employees. This clarity aids in brand recognition and understanding.

Consistency and cohesion: by tracking brand architecture, organisations can maintain consistency in branding elements such as logos, visual identity, messaging, and naming conventions across the brand portfolio. Cohesiveness enhances brand integrity.

Customer experience: consistent brand architecture enhances the customer experience by making it easier for customers to navigate and understand the product or service offerings within the portfolio. This reduces confusion and fosters trust.

Resource allocation: tracking allows organisations to assess resource allocation within their brand portfolio. It helps ensure that branding and marketing resources are distributed effectively to support each brand’s growth and success.

Brand equity protection: effective tracking helps protect the equity of the corporate brand and any endorsed brands. It ensures that sub-brands or product brands do not dilute or negatively impact the reputation of the parent brand.

Market responsiveness: brand architecture tracking enables organisations to respond to changes in market dynamics, customer preferences, and competitive landscapes. It facilitates adjustments to the brand portfolio when necessary.

Differentiation: organisations can use tracking data to assess whether their brand architecture effectively differentiates their brands from competitors in the market. This informs strategies to stand out and capture market share.

Efficiency and cost control: by monitoring the performance and clarity of brand architecture, organisations can identify areas where streamlining or adjustments may be needed to reduce operational costs and improve efficiency.

Brand equity enhancement: tracking can lead to brand equity enhancement by identifying opportunities to leverage the strengths of the corporate brand to bolster sub-brands or product brands.

Market expansion: as organisations enter new markets or launch new products and services, tracking ensures that the brand architecture strategy evolves to accommodate these changes while maintaining brand cohesion.

Customer loyalty: a well-tracked brand architecture strategy contributes to customer loyalty and trust. It ensures that customers recognise and connect with the brand structure, fostering stronger relationships.

 

Using brand architecture for data-driven decisions

To make data-driven decisions using brand architecture, follow these steps:

Audit your brand portfolio: begin by assessing your current brand architecture, identifying sub-brands, products, or services, and their relationships.

Customer feedback: gather feedback from customers to understand how they perceive and navigate your brand’s architecture. Are they finding it clear and easy to understand?

Analyse performance: use data analytics to measure the performance of each element within your brand architecture, considering factors like sales, customer loyalty, and market share.

Competitor benchmarking: compare your brand architecture to that of competitors in your industry to identify strengths, weaknesses, and opportunities for improvement.

Optimise and streamline: based on data insights, adjust your brand architecture to enhance clarity, alignment with market trends, and competitive advantage.

 

5 tips to get started with brand architecture

Clarify your brand hierarchy: clearly define the relationships between your main brand and any sub-brands, product lines, or services.

Consider customer needs: structure your brand architecture to align with your target audience’s preferences and needs.

Maintain consistency: ensure consistency in visual elements, messaging, and customer experience across all brand components.

Regularly review and adjust: continuously assess the effectiveness of your brand architecture and be prepared to make adjustments as your business evolves.

Seek expert guidance: if you’re unsure about how to structure your brand architecture effectively, consider consulting with professionals who specialise in brand strategy.

 

Brand architecture help

If you need more information or assistance with developing or optimising your brand architecture, don’t hesitate to get in touch with Boldspace, a leading brand value agency based in London. Our brand experts can help you create a clear and effective brand structure that keeps you ahead of the competition and aligned with market trends.