Create a Scalable and Sustainable Brand Architecture for Long-Term Growth
At the height of their brand portfolio, in the early 2000s, the largest consumer goods company in the world, Procter & Gamble (P&G), had over 300 brands that touched over 3.5 billion consumers a day. Yes, really. 300 brands. In 2008, the company boasted that it owned over 23 “billion dollar” brands that were sold in over 180 countries. And as of 2022, the company is still thriving--grossing over 80 billion in revenues and touching over 5 billion consumers.
While the average consumer isn’t always familiar with the name Proctor and Gamble, due to their brand architecture, they are intimately familiar with the various billion dollar brands P&G owns, including:
Core Brands P&G Retained
Tide, Bounce, and Downy
Pampers
Bounty and Charmin
Always
Gillette and Venus
Head & Shoulders
Dawn and Febreeze
Crest and Oral-B
While this might seem impressive at first glance, the sheer number of brands was actually causing confusion for both the company and its customers. The 186-year-old company was spreading itself too thin. With resources and attention divided among so many brands, the company was unable to focus on its core brands that drive its revenue. In other words, the company was missing opportunities and losing sales. Not convinced? In the tumultuous period between 2012 and 2016, the period during their brand divestment, the company’s revenues plummeted 11%, a loss of more than $8 billion.
To address this problem, in 2014, P&G took a hard look at their brand architecture and made some changes. In fact, a few years ago, they consolidated their portfolio and focused on a smaller number of strong, well-defined brands that provide 95% of the company’s profits-- selling or retiring over 100 brands.
Some noteworthy brands P&G retired to improve brand focus include:
Popular Brands P&G Divested
Jiff and Crisco: P&G sold its Jif peanut butter and Crisco shortening brands to The J.M. Smucker Company in 2002
Sunny Delight: P&G sold its Sunny Delight juice brand to private equity firm J.W. Childs in 2004
Folgers: P&G sold its Folgers coffee brand to J.M. Smucker in 2010
Pringles: P&G sold its Pringles snack brand to Kellogg Company in 2012
Duracell: P&G sold its Duracell battery business to Berkshire Hathaway in 2016
Ironically, even P&G’s “loser” brands are world-class brands that most companies would feel lucky to have in their portfolio. The result of P&G’s brand divestiture was a streamlined, more focused company with clearer branding and a more cohesive strategy. As a result, the company saw significant improvements in their bottom line and customer loyalty.
Today P&G currently manages a mere 65 brands, many of which earn over a billion dollars in revenue. The Pampers brand alone brings in over 9 billion dollars annually for P&G.
This story of Procter & Gamble's brand architecture struggles is a testament to the importance of having a strong, well-defined brand architecture. By understanding the importance of brand architecture and taking steps to establish a clear framework, companies can ensure they're making the most of their branding efforts and reaping the rewards of a focused, cohesive brand strategy.
Brand architecture is important for businesses because it helps to create a clear and recognizable brand identity that can be easily communicated to customers. In fact, brand architecture is like a blueprint for a house, but instead of walls and roof, it's the structure of your brand--the foundation that holds all the pieces together, making sure everything fits and works seamlessly. In other words, a well-designed brand architecture framework can make all the difference in the world for your business.
To gain a deeper understanding of brand architecture, it's important to first define what it is and what it aims to achieve. According to Alexander Chernov, branding expert and author of Strategic Brand Management:
““As companies grow, they expand their offerings to appeal to a broader range of customers. With the expansion of their portfolio of offerings, companies must decide how many and which brands to use to identify the different products and services they offer. Furthermore, if using multiple brands, companies must decide whether and how these brands should be related. These two questions—how to associate a company’s brand with its products and services, and how to manage relationships between different brands—are at the core of brand architecture.” ”
Specifically, brand architecture is defined as the systematic arrangement of a brand’s sub-brands, products, services, and messaging, and its goal is to create a clear and consistent brand identity that effectively communicates a company's offerings to its target audience. However, this definition--often credited to David Aaker, a renowned marketing expert and author of several branding books--only scratches the surface of the concept and its applications.
In this blog post, we'll provide a comprehensive definition of brand architecture, explain its importance for businesses, and show how to develop a brand architecture that works for your brand no matter its size or age. Whether you're an original gangsta or a newbie in the world of branding, you'll come away from this post with a better understanding of why brand architecture is so important and how mastering it can help you achieve your business goals.
What Is a Brand Architecture Framework?
Before diving into the nuances of brand architecture, it's crucial to start with a clear definition. Brand architecture or a brand architecture framework refers to the structure and organization of a company’s brand portfolio. Simply put, brand architecture is the way a company manages and presents its multiple brands to the world. It defines the relationships between different brands within a company and how they work together to achieve the company's overall goals and objectives. A well-designed brand architecture framework provides clarity, direction, and coherence to a company's branding efforts.
The Different Components of Brand Architecture
There are several key components that comprise a company's brand architecture, including: brand strategy, brand hierarchy, brand positioning, and brand identity. A company’s brand strategy sets the direction for the company's branding efforts, while its brand hierarchy defines the relationships between different brands within the company. Brand positioning identifies how the company wants to be perceived by its target audience, while brand identity involves the visual and messaging elements that are used to communicate the brand to the world.
Types of Brand Architecture and Their Benefits
There are several different types of brand architecture, including monolithic, sub-brands, hybrid, endorsed, and house of brands. We provide an in-depth look at each of these models further down in this post.
Each type of brand architecture has its own unique benefits and challenges, and companies will need to determine which type of brand architecture is right for them based on their specific needs and goals. The key is to have a well-designed brand architecture framework in place that provides clarity and direction to a company's branding efforts.
The Importance of Brand Architecture Framework
In the ever-changing landscape of the business world, creating a strong brand identity is crucial for staying relevant and competitive. And at the heart of that identity lies a well-crafted brand architecture framework. Think of it as a map that guides your brand's journey--helping you navigate through the complexities of the marketplace and steer your business towards success. In this section, we'll explore why brand architecture is more than just a buzzword, and how a thoughtful and strategic framework can help your brand thrive.
For starters, at its core, brand architecture is about creating a framework for your brand portfolio that aligns with your business objectives and supports your brand strategy. It's about understanding the relationships between different brands within your portfolio, and how they fit together to create a cohesive and meaningful brand identity. Without a clear and well-designed brand architecture, companies risk confusing their customers, diluting their brand identity, and missing opportunities for growth and expansion.
A well-designed brand architecture can help companies to:
Improve brand recognition: A clear and consistent brand architecture can help customers to easily recognize and understand the relationship between different products and services within a company's portfolio. In this respect, brand architecture can be the first step in developing a strong content brand that will inspire trust and help your brand stand out from the competition.
Reduce brand confusion: A well-designed brand architecture can help to minimize confusion among customers and stakeholders by clearly defining the roles and relationships of different brands within the portfolio.
Increase brand loyalty: A strong brand architecture can help to build trust and loyalty among customers by creating a clear and consistent brand identity that aligns with their values and needs.
Optimize marketing and communication efforts: By understanding the relationships between different brands within a portfolio, companies can optimize their marketing and communication strategies to better reach and engage their target audiences.
Facilitate growth and expansion: A flexible and scalable brand architecture can help companies to easily integrate new brands or products into their portfolio, and to expand into new markets or business segments.
Another benefit of a strong brand architecture that’s often left off the list I just provided is increased brand equity. Brand equity refers to the value that a brand brings to a company, and a strong brand architecture can help increase this value. When a brand has a clear and consistent structure, it becomes easier for customers to recognize and associate it with the products and services that the company offers. This recognition and association can help increase the brand's perceived value, which in turn can lead to increased sales and profits.
In short, brand architecture is a critical component of any successful brand strategy, and a key driver of long-term brand value. By taking the time to carefully design and manage your brand architecture, you can create a portfolio of brands that is not only effective in the short term, but also sustainable and adaptable in the face of changing market conditions and customer preferences.
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Types of Brand Architecture: A Deep Dive
Brand architecture is like the ocean, vast and complex, with a multitude of currents and ecosystems. Just as different marine life adapts to thrive in their environment, different types of brand architecture are better suited to different business contexts and goals. In this section, we'll explore the nuances of brand architecture, from the unified and consistent Branded House to the diversified House of Brands, and everything in between. By understanding the unique characteristics of each type, you'll be able to navigate the deep waters of branding, and develop a cohesive and effective brand strategy that will help you stand out in the sea of competition. So, let's chart a course through the world of brand architecture, and discover the types that will best suit your brand's needs.
Types of Brand Architecture: Understanding the Options for Your Business
When it comes to developing a brand architecture, a company has only five real options or “types” to choose from and each “type” of brand architecture has its own set of benefits and drawbacks, so choosing the right one for your business will depend on your specific goals and values. In this section, we'll explore the most common types of brand architecture and provide examples of companies that have successfully implemented them.
Brand Architecture Types and Sub-Types
Branded House or Monolithic Brand Architecture:
Monolithic brand architecture is the simplest and most straightforward form of brand architecture. With this type of architecture, a company operates under one central brand name, with no sub-brands.
Apple is a perfect example of a company that uses a monolithic brand architecture. Apple has always been known for its iconic logo and sleek design, and for many years, the company operated with a monolithic brand architecture. This meant that all of its products were marketed under the same brand and shared the same visual identity.
One of the keys to Apple's success with this approach is its focus on creating a strong emotional connection with its customers. By using consistent design and messaging across all of its products, Apple has been able to create a sense of unity and community among its customers, who often identify strongly with the brand.
In recent years, Apple has made some changes to its brand architecture. For example, the company has introduced sub-brands for certain product lines, such as the Apple Watch and the AirPods. However, these sub-brands still maintain the overall Apple visual identity and are marketed as part of the larger Apple brand.
One of the benefits of a monolithic brand architecture is that it can help create a strong and recognizable brand. Apple is a great example of this, with its iconic logo and sleek design being instantly recognizable around the world. Additionally, by having all of its products marketed under the same brand, Apple is able to leverage the power of its brand recognition to increase customer loyalty and drive sales.
However, there are also potential drawbacks to a monolithic brand architecture. For example, if a company's brand becomes associated with negative publicity or controversy, it can be difficult to separate that from the company's other products. Additionally, a monolithic brand architecture can limit a company's ability to experiment with new products or enter new markets without risking damage to the existing brand.
Overall, Apple's success with a monolithic brand architecture is a good example of how a strong brand can help drive business success. By creating a consistent and recognizable brand identity, Apple has been able to build a loyal customer base and drive sales of its products.
Sub-brands Architecture
Unlike the monolithic brand architecture, a sub-brand architecture involves using a parent brand name with different sub-brands for specific product lines. In other words, with a sub-brands approach, all products and services are connected to and sub-branded under a master brand, but unlike an endorsed brands or house of brand’s approach, the master brand retains equal if not greater focus in the branding as the product line. Google utilizes a sub-brand architecture in which the brand name is always incorporated as the first part of the name of its child brands, such as Google Earth and Google Glass. In contrast, Microsoft uses a different approach where there is a clear visual relationship between the parent brand and the sub-brands it creates or acquires. However, in some cases, Microsoft's sub-brands can stand on their own without being closely tied to the parent brand.
Sub-brands Architecture Case Study: Nestle
In the past, Nestlé had a house of brands architecture where each of their products had a separate brand identity. However, in 2018, Nestlé announced that they were shifting towards a sub-brands architecture, where their products would be organized under a few key sub-brands.
For example, they launched their "Nestlé Cereals" sub-brand, which encompasses all of their cereal products, including Cheerios, Shredded Wheat, and Chocapic. The sub-brand has its own logo and messaging, but it still retains the Nestlé name and branding.
The shift towards a sub-brands architecture allowed Nestlé to streamline their brand portfolio and create more consistency across their products. It also allowed them to leverage the strength of their Nestlé master brand while still creating unique brand identities for their products.
The move to sub-brands also allowed Nestlé to respond to changing consumer preferences and trends more quickly. For example, they were able to launch a range of plant-based dairy alternatives under their "Nestlé Dairy" sub-brand, which was designed to appeal to consumers looking for more sustainable and ethical food choices.
Overall, Nestlé's move to a sub-brands architecture allowed them to create a more efficient and effective brand portfolio that better aligned with their business goals and values.
Hybrid Brand Architecture
This type of brand architecture combines elements of both Branded House and Sub-brands. For example, McDonald's uses this type of brand architecture, with the McDonald's name being used for some products and sub-brands like McFlurry being used for others. Another example is Unilever, who uses both its name and sub-brands such as Lipton and Dove.
Hybrid Brand Architecture Case Study--Coca-Cola
In 2016, Coca-Cola introduced a new hybrid brand architecture to better align with their business goals and values. The new structure focused on three core brands--Coca-Cola, Diet Coke, and Coca-Cola Zero--and created sub-brands within each of these categories. The new structure also allowed Coca-Cola to focus on local markets and create more targeted marketing campaigns.
A perfect example of Coca-Cola’s new hybrid structure is the "One Brand" strategy, which launched in 2016. This strategy involved using a common visual identity across all Coca-Cola products, including Coca-Cola, Diet Coke, and Coca-Cola Zero. This allowed Coca-Cola to promote all three products under the same umbrella, while still maintaining their individual identities.
Another example of Coca-Cola's hybrid structure is their regional marketing campaigns. Coca-Cola has created regional sub-brands such as "Coca-Cola Life" in Argentina, which was marketed as a lower-calorie, natural option to appeal to health-conscious consumers in the region.
The shift to a hybrid brand architecture has allowed Coca-Cola to maintain the strength of their master brand while also catering to local markets and creating more targeted campaigns. The "One Brand" strategy, in particular, helped to simplify the brand and make it more recognizable to consumers. Overall, this hybrid structure has helped Coca-Cola to stay relevant and competitive in a constantly changing market.
Endorsed Brand Architecture
Endorsed brand architecture is similar to monolithic brand architecture, with the difference being that sub-brands are allowed to use the parent brand's name and identity. In short, it involves using a well-known parent brand to endorse and promote other product lines. There are many examples of endorsement branding including, Courtyard by Marriott, Disney Presents, Polo by Ralph Lauren, Solar Turbines--A Caterpillar Company. There is often a fine line between a true sub-brands architecture and an endorsed brand architecture, but essentially it comes down to how much weight the master or parent brand is given in branding. How connected the sub-brand is to the master brand.
Endorsed Brand Architecture Case Study--GE
A good example of a company that recently changed to an Endorsed Brands architecture is General Electric (GE). In 2018, the company announced a significant change to its brand strategy, moving from a monolithic brand architecture to an Endorsed Brands architecture.
Previously, GE had a monolithic brand architecture, with all of its business units using the GE name and logo. However, over time, the company had expanded into a wide range of businesses, including aviation, healthcare, power, and renewable energy. As a result, there was a growing recognition that the GE brand had become stretched too thin, and that it was difficult to communicate the specific value proposition of each individual business unit.
To address this challenge, GE decided to move to an Endorsed Brands architecture. Under this new approach, each of the company's business units would be able to develop their own individual brand identity, while still being connected to the GE brand through an endorsement. This would allow the company to maintain the overall brand equity of the GE name, while also providing greater clarity and focus for each individual business unit.
As part of the rebranding effort, GE also introduced a new visual identity, with a simplified logo and a refreshed color palette. The company also developed a new set of brand guidelines to help ensure consistency across all of its business units.
The move to an Endorsed Brands architecture was a significant shift for GE, but it was seen as a necessary step in order to better communicate the value of each individual business unit, while still leveraging the strength of the GE brand. Since the rebranding effort, the company has continued to evolve its brand strategy, but the move to an Endorsed Brands architecture has helped to provide greater clarity and focus for the company and its various business units.
House of Brands Architecture
Branded house architecture is a type of brand architecture where a company markets its products under multiple, unrelated brand names. For example, Unilever is an example of a company that uses a house of brands architecture. Their products, including Axe body spray, Hellmann's mayonnaise, and Lipton tea, are marketed under individual brand names and have little or no connection to the Unilever brand. This allows each individual brand to establish its own unique brand image and personality, while still benefiting from the credibility and reputation of the Unilever brand.
House of Brands Case Study--Alphabet
Alphabet, the parent company of Google, underwent a major rebranding in 2015. The company announced that it would be restructuring its various subsidiaries under a new parent company named Alphabet. This move was designed to give Google more flexibility in its operations, as well as to separate its core businesses from its experimental ventures.
The rebranding involved a shift in brand architecture from a monolithic brand to a holding company model. Previously, Google was the main brand under which all of the company's products and services were offered. The new brand architecture, however, places Google as a subsidiary under the parent company, Alphabet.
Under the new structure, Google remains the largest and most recognizable brand in the Alphabet portfolio, but other subsidiaries, such as Waymo (a self-driving car project) and Nest (a home automation company), operate as independent brands. The rebranding also allowed Alphabet to focus on innovation and experimentation, without the risk of affecting the Google brand.
The Alphabet rebranding received widespread media attention, as it was seen as a bold move by the tech giant. The new brand architecture was praised for its flexibility and potential for innovation, while some critics argued that it could lead to confusion among consumers who were used to the Google brand being the face of the company. Nonetheless, the Alphabet rebranding serves as an example of how a major corporation can successfully shift its brand architecture to better align with its business objectives.
Brand Architecture Subtypes
Think of brand architecture like a fancy cheese board. Sure, you've got your goudas and your bries, but each one has its own distinct flavor and texture that deserves to be savored. Similarly, brand architecture can be broken down into different subtypes that provide a more detailed and nuanced understanding of each type. By understanding the subtle differences between each subtype, you can create a brand strategy that's as delicious as a perfectly curated cheese board (okay, maybe not that delicious, but you get the idea). So grab a cracker and let's dive into the world of brand architecture subtypes!
Branded House architecture can be divided into two subtypes: Same Identity and Different Identity. In Same Identity, all sub-brands use the same visual identity and messaging, creating a unified brand experience for customers. For example, Marriott Hotels & Resorts and Courtyard by Marriott both use the same visual identity and messaging, creating a cohesive brand experience. On the other hand, Different Identity involves each sub-brand using its own visual identity and messaging, while still being associated with the parent brand. For example, Nike has several sub-brands such as Nike Running, Nike Basketball, and Nike Training, each with its own visual identity and messaging.
Sub-brands can also be broken down into two subtypes: Master Brand as Driver and Co-Driver. In Master Brand as Driver, the parent brand is used to drive sales and recognition, while the sub-brands are used to target specific customer segments. For example, Johnson & Johnson has several sub-brands such as Tylenol, Band-Aid, and Listerine, each targeting a specific customer segment. In Co-Driver, both the parent brand and sub-brands are used to drive sales and recognition, creating a more equitable brand relationship. For example, Virgin Group has several sub-brands such as Virgin Atlantic, Virgin America, and Virgin Hotels, each with its own recognition and sales goals.
Endorsed Brands can also be broken down into four subtypes: Strong Endorsement, Linked Name, Token Endorsement, and Shadow Endorser. In Strong Endorsement, the parent brand is prominently featured in all marketing and communications, providing a strong endorsement of the sub-brand. For example, P&G Endorsed Brands such as Tide, Crest, and Downy, all feature the P&G logo and messaging in their marketing materials. In Linked Name, the parent brand and sub-brand are linked in name only, creating a weaker brand relationship. For example, Nestle's Nespresso and Gerber are linked in name only, creating a weaker brand relationship. In Token Endorsement, the parent brand is only minimally featured in marketing and communications, providing a minimal endorsement of the sub-brand. For example, Honda's Acura brand is only minimally endorsed by Honda, providing a minimal endorsement of the sub-brand. In Shadow Endorser, the parent brand is not featured at all in marketing and communications, creating a separate brand identity. For example, Apple's Beats brand is not featured in Apple's marketing materials, creating a separate brand identity.
Finally, House of Brands can also be broken down into two subtypes: Shadow Endorser and Not Connected. In Shadow Endorser, the parent brand is used as a reference in marketing and communications, creating a shadow endorsement of the sub-brand. For example, Amazon's AWS, Alexa, and Kindle brands are all referenced in Amazon's marketing materials, creating a shadow endorsement of the sub-brand. In Not Connected, the parent brand and sub-brand are not connected in marketing or communications, creating a separate brand identity. For example, Samsung's SmartThings and Bixby brands are not connected in Samsung's marketing materials, creating a separate brand identity.
Benefits and Drawbacks of Each Type of Brand Architecture
Each type of brand architecture, whether it is a sub-brand architecture or a house of brands architecture, comes with its own set of benefits and drawbacks that need to be carefully considered before making a decision.
Monolithic brand architecture is easy to implement and provides a clear and straightforward message to consumers. However, it can also lead to brand dilution if the company has a wide range of products that are difficult to market under one single brand name.
Endorsed brand architecture allows sub-brands to benefit from the parent brand's reputation, but it can also lead to confusion among consumers. Additionally, if the sub-brands are not managed properly, it can lead to brand dilution and damage to the parent brand's reputation.
Branded house architecture provides greater flexibility for the company, allowing it to market its products under multiple, unrelated brand names. However, it can also lead to a fragmented brand portfolio and difficulty in establishing a consistent brand identity.
Choosing the Right Type of Brand Architecture for Your Business
Selecting the appropriate brand architecture for your business can be a perplexing challenge. You don't want to end up with a hodgepodge of sub-brands that no one can keep track of, or a bunch of independent brands that don't have the support of a strong master brand. That's where a comprehensive brand audit comes in. It's like a full-body scan for your brand, helping you identify areas that need improvement and ensuring that your brand architecture is aligned with your goals, values, and target audience. But don't go it alone! Partner with a marketing expert who can help you develop a brand architecture that's as unique and compelling as your business itself. Together, you can create a clear and consistent brand identity that will have your customers saying "wow, they really know who they are!"
How to Develop a Brand Architecture
In today's hypercompetitive marketplace, a well-structured brand architecture can be the key to differentiating your business and standing out from the crowd. But where do you begin? In this section we’ll walk you through the essential steps involved in creating a brand architecture that will set you up for long-term success. From defining your brand pillars to mapping out your product hierarchy, we'll show you how to create a brand architecture that's rock solid.
Step 1: Conduct a Brand Audit
Before you can build a strong brand architecture, it's essential to have a deep understanding of your current brand identity. A brand audit is the first step in this process. Conducting a brand audit involves a thorough review of your current branding elements, including logos, colors, messaging, and brand guidelines. It's also an opportunity to evaluate the effectiveness of your current brand architecture and identify areas for improvement.
To conduct a brand audit, begin by gathering all of your existing branding materials. This includes your website, social media profiles, advertising materials, and any other touchpoints that feature your brand identity. Review each of these elements with a critical eye, considering the following questions:
Do the logos and colors accurately reflect your brand's personality and values?
Is your messaging consistent across all channels, and does it effectively communicate your unique selling proposition?
Are your brand guidelines clear and comprehensive, providing guidance on how to use your branding elements effectively?
In addition to evaluating your existing branding materials, it's essential to assess the effectiveness of your current brand architecture. This involves examining the structure of your brand, including any sub-brands, product lines, or service offerings. Consider the following questions when evaluating your brand architecture:
Is your brand structure easy to understand and navigate for customers?
Are your sub-brands or product lines effectively differentiated from one another, or do they create confusion in the marketplace?
Are there any areas where your brand architecture could be streamlined to improve efficiency and clarity?
By conducting a comprehensive brand audit, you'll gain valuable insights into your current brand identity and be better equipped to develop a brand architecture that's cohesive, effective, and tailored to the needs of your business.
Step 2: Assess Your Business Goals and Values
With a clear understanding of your current brand identity in hand, the next step in developing a brand architecture is to assess your business goals and values. This involves a deep dive into what your brand represents and the values you want to communicate to your audience. By defining your business goals and values clearly, you'll be able to develop a brand architecture that's closely aligned with your company's vision and mission.
To assess your business goals, begin by considering your long-term objectives. Where do you see your business in five or ten years? What are the key metrics you want to achieve, such as revenue growth or market share? By defining your long-term goals, you'll be better able to create a brand architecture that's designed to support your growth and success.
Next, consider your brand's values. What are the core beliefs that your brand represents? How do these values inform your business decisions, and how do you communicate them to your customers? Defining your brand's values is essential to developing a brand architecture that's authentic and meaningful to your audience.
It's also important to consider your target audience when assessing your business goals and values. Who are your ideal customers, and what are their needs and desires? By understanding your audience, you'll be better equipped to develop a brand architecture that resonates with them and speaks to their pain points.
Assessing your business goals and values is a critical step in developing a brand architecture. By defining your long-term objectives, values, and target audience, you'll be able to create a brand architecture that's closely aligned with your company's mission and designed to support your growth and success.
Step 3: Define Your Brand Architecture
Developing an effective brand architecture requires careful consideration of a variety of factors. One of the key decisions that a branding team must make is which type or structure of brand portfolio to use. There are several options to choose from, including a branded house, house of brands, and hybrid models.
A branded house model features a strong overarching brand that is used for all products and services. This type of brand portfolio is most effective when the brand is well-established and has a strong reputation that can be leveraged to drive sales of new products.
In contrast, a house of brands model involves creating multiple brands that are independent from each other and have their own unique identity. This type of brand portfolio is best suited for companies with a diverse range of products or services that cater to different target audiences.
A hybrid model, as the name suggests, combines elements of both the branded house and house of brands models. This approach allows for some degree of flexibility and customization while also maintaining a consistent overall brand identity.
Determining which type of brand portfolio to use requires careful consideration of a range of factors, such as the company's size, product offerings, target audience, and marketing objectives. It is important to take a holistic approach that considers all of these factors when making this decision to ensure that the brand architecture is aligned with the company's overall goals and values.
The size of a company can have a significant impact on the type of brand architecture that it uses. Larger companies with a diverse range of product offerings may benefit from a hierarchical or umbrella brand architecture that allows for clear distinctions between sub-brands and product lines. On the other hand, smaller companies may benefit from a simpler brand architecture that emphasizes a single brand or product line.
The type of product offerings is also a key factor in determining the appropriate brand architecture. For example, a company that offers products in multiple categories may benefit from a hybrid brand architecture that combines elements of both a house of brands and a branded house. This allows for clear differentiation between product categories, while still maintaining a strong overall brand identity.
The target audience is another important consideration in determining the appropriate brand architecture. Companies targeting multiple demographic groups may benefit from a hybrid brand architecture or a house of brands, whereas companies with a single, well-defined target audience may be better suited for a branded house.
Finally, marketing objectives should be taken into account when determining the appropriate brand architecture. For example, a company with a strong focus on innovation may benefit from a more flexible brand architecture that allows for new product lines to be easily introduced, while a company with a focus on stability and reliability may benefit from a more rigid brand architecture that emphasizes consistency and continuity.
Ultimately, the type of brand architecture that a company chooses should be carefully considered based on a range of factors, to ensure that it aligns with the company's overall goals and values.
Step 4: Create a Brand Guidelines Document
Once you have defined your brand architecture, the next step is to create a brand guidelines document.
Creating a brand guidelines document is an essential step in ensuring that your brand is consistently and cohesively represented across all touchpoints. The brand guidelines document should include specific instructions on how your brand should be represented, including details on your brand colors, typography, logos, and messaging.
When it comes to brand colors, it is important to specify the exact color codes and color combinations that should be used to represent your brand. This ensures that your brand colors are consistent across all platforms and materials. The typography section should include guidelines on font size, typeface, and font style for all brand materials, such as websites, social media profiles, and printed materials.
The guidelines for your brand logos should include specific instructions on how and when to use each variation of your logo, as well as details on the clear space and size requirements for your logo. Additionally, the messaging guidelines should provide specific instructions on how your brand should be communicated in all marketing materials, such as taglines, tone of voice, and brand messaging.
The brand guidelines document should be easily accessible to all employees and stakeholders involved in representing your brand. It should be updated regularly to reflect any changes or updates to your brand architecture. Having a well-defined brand guidelines document ensures that everyone involved in representing your brand is using consistent and cohesive branding elements, which ultimately strengthens your brand identity and increases brand recognition.
Step 5: Implement and Review Your Brand Architecture
Implementing your brand architecture is the final step in the process, but it is also one of the most critical. This step involves putting your brand architecture into action and making sure that everyone involved in representing your brand is using the new brand guidelines and messaging consistently.
Implementing your brand architecture requires buy-in from all stakeholders, from employees to partners to vendors. You need to communicate the new branding elements and guidelines clearly to everyone involved in representing your brand, and provide training and support as needed. It is important to set clear expectations for how your brand should be represented, and provide resources to help ensure that everyone has the tools they need to implement the new branding consistently.
It is also important to review your brand architecture regularly to ensure that it remains aligned with your business goals and values. This involves assessing the effectiveness of your branding efforts, and making adjustments as needed to ensure that you continue to communicate your brand message effectively.
Some key metrics to track include brand awareness, brand loyalty, and customer engagement. By regularly monitoring these metrics, you can assess the effectiveness of your branding efforts and make data-driven decisions to improve your brand architecture over time.
In addition to tracking metrics, it is important to gather feedback from your customers and stakeholders. This can be done through surveys, focus groups, or other feedback mechanisms. By listening to feedback, you can identify areas where your brand architecture could be improved, and make changes to ensure that your brand remains relevant and resonates with your target audience.
In short, implementing your brand architecture requires buy-in from all stakeholders and a commitment to ongoing monitoring and improvement. By taking a holistic approach and regularly reviewing your branding efforts, you can ensure that your brand remains consistent and effective in communicating your message to your target audience.
Once you have a solid understanding of your current brand architecture, you can then start developing a new brand architecture that aligns with your business goals and values. There are a few key elements to keep in mind when creating a strong brand architecture:
Clarity: Make sure your brand architecture is clear and easy to understand for both internal and external stakeholders. A clear brand architecture helps to reduce confusion and ensures that everyone is on the same page.
Consistency: Consistent messaging and visual elements across all brand touchpoints are key to building brand recognition and equity.
Alignment: Ensure that your brand architecture aligns with your business goals and values. This will help to create a consistent brand experience for your customers and make it easier for your brand to achieve its goals.
By following these tips, you can create a strong brand architecture that supports your business goals and helps to build a strong and recognizable brand.
Maintaining a Strong Brand Architecture
As your business grows and evolves, so too should your brand architecture. In order to maintain a strong and consistent brand identity, it's important to regularly review and update your brand architecture to ensure that it continues to support your business objectives and resonate with your target audience.
Here are some tips for maintaining and evolving your brand architecture:
Review and update regularly: Regularly review and update your brand architecture to ensure it remains relevant and aligned with your business goals and values.
Monitor brand performance: Monitor the performance of your brand portfolio to identify any areas for improvement.
Evolve with your business: As your business evolves, so should your brand architecture. Ensure that your brand architecture remains aligned with your business goals and values as they change over time.
Keep your stakeholders informed: Keep your stakeholders informed of any changes to your brand architecture and the reasons for those changes.
Empower your employees: Empower your employees to implement and maintain your brand architecture by providing them with the tools and training they need to do so effectively.
It's important to regularly review and update your brand architecture to ensure it remains aligned with your business goals and values. A strong brand architecture provides direction, clarity, and consistency for your business, and it's essential to ensure that it remains relevant and effective over time. Failing to regularly review and update your brand architecture can result in confusion, inconsistencies, and decreased brand equity. By regularly reviewing and updating your brand architecture, you can ensure that it remains aligned with your business goals and values, providing a strong foundation for your brand and your business.
Building a Strong Foundation: The Importance of Evolving Your Brand Architecture Framework Over Time
Brand architecture is a crucial aspect of any business looking to establish a strong, recognizable brand. A well-designed brand architecture can help companies differentiate themselves from competitors, increase brand clarity and equity, and ultimately achieve their business goals.
There are various types of brand architecture, including monolithic, endorsed, and house of brands, each with their own benefits and drawbacks. When developing your brand architecture, it's important to conduct a brand audit, align your architecture with your business goals and values, and regularly review and update it to ensure it remains effective.
Investing time and resources into developing and maintaining a strong brand architecture is an investment in your business's future. A well-constructed brand architecture can pay dividends in the form of increased brand recognition, customer loyalty, and overall business success. So don't wait, start creating a strong brand architecture today and watch your business soar!
So there you have it, everything you need to know about brand architecture. But if you're still not convinced, just remember: even Batman has a brand architecture. (Think about it – he's got the Batmobile, the Bat-signal, the Batarang etc)
Ready to flex your branding muscles? Challenge yourself to analyze the brand architecture of your favorite company. Take a deep dive into their logos, colors, messaging, and product offerings. Who knows, you might just discover some hidden branding gems that you can apply to your own business. Go ahead, channel your inner branding ninja and see what you can uncover!
Ready to take your brand to the next level?
Contact Verge’s team of branding experts to learn how we can help you create a brand architecture that will set you apart from the competition and drive business success.