Typically, there are 3 broad types of brand architecture. Organizations can decide the right structure for their brand depending on the type of businesses they run.
- Branded House
A branded house architecture is when the parent company can be easily associated with the extended brands. In this case, the master brand (parent company) is always present and is easily leveraged by its extensions.
The Branded House structure minimizes confusion and makes for a consistent experience. It also helps create equity for the bigger master brand.
Examples- Apple, FedX, Virgin, Ford, etc.
- House of Brands
This brand architect has a group of distinct, familiar brands operating under a parent brand. The customers are not necessarily aware of the relationship between these brands. The parent brand is primarily important only to the investment community.
Since the brands and the parent company are not clearly related, this structure allows the Master Brand to have competing brands in the same segments.
Example- Procter & Gamble, Unilever, Nestle, General Motors.
- Endorsed or Hybrid Brand
An endorsed or hybrid brand architecture is a combination of the first two types, where brand extensions (sub-brands) are given separate identities and may or may not be associated with the master brand, depending on the context.
Like the house of brands, even in this structure, all the other related smaller brands come under the umbrella of the parent brand but the related brands don’t necessarily share a name with that parent like in the branded house. In this structure, some brand extensions feature the parent name, and some do not.
However, the relationships between all the sibling brands within an endorsed architecture are often mutually beneficial.
Example- Marriott, Toyota, Google, etc.
Why do you need a Brand Architecture?
Having a clear brand architecture can serve multiple benefits to your organization. Some of which are listed down below-
- To provide internal clarity & ensure smooth functioning
- Sets a clear roadmap of your organization
- Provides Brand Value
- Establishes a clear & distinct brand positioning
- Reduces marketing expenses
- Provides a platform for growth and expansion
- Increases confidence among investors and stakeholders
- Generate more revenue by providing cross-selling opportunities
- Builds brand equity
- Helps in Maintaining brand consistency
The Takeaway
Creating a distinct brand architecture for your organization is a must for every business that operates through multiple small brands and exists in complete chaos. A clear brand architecture helps an organization to eliminate all confusion that exists within its umbrella of smaller brands and establishes clear relationships among all of them and also with the parent brand.
However, the creation of the right brand architecture for your company is quite a critical as well as a complex process; which is why many bigger organizations take professional help from brand agencies.
At Way Forward, as a Brand Architecture Agency we understand the importance of having the right brand structure. So, with the help of a professionally qualified team of experts, we, at Way Forward, focus on understanding the brand and its needs and work on a model that will best fit the brand.
The ultimate goal should focus on the mutual benefit of all the subsidiary brands as well as the parent company. So, if you don’t yet have a clear brand architecture yet, start streamlining things today and emerge as a successful business entity!