Brand architecture is the logical, strategic and relational structure for your brands or put another way, it is the entity’s “family tree” of brands, sub-brands and named products. As organizations grow through mergers and acquisitions they are faced with many important decisions regarding brand architecture, including how many brands should be managed. Here are the reasons a company might want to maintain different brands or sub-brands:
1. If there are channel conflict issues, especially if key customers who resell to the end consumer want to offer something different from competitors
2. If the same (or very similar) products are sold at different price points – separate brands or sub-brands create more distance between the offerings
3. If one set of products are upscale or premium, while the other are standard or value products
4. If one brand appeals to a very different market segment with different needs from the other brand (making the messaging different)
Regarding linking brands, usually, there is no significant danger, especially if one is endorsed by the other. (The exception to this is if one brand’s associations somehow detract from the other brand.) Brand endorsement indicates the linkage but also creates some distance between the two brands. Endorsed brands make the parent brand relevant (or at least increases its awareness) to the market served by the endorsed brand.
The advantage of using fewer brands or a singular brand is marketing efficiency in brand building and customer communication.
Brand architecture strategy and the issues that arise from growth can be quite complex, for that we have developed this comprehensive guide to brand architecture. For those brands that need one-on-one help The Blake Project developed The Brand Architecture Workshop.
The Blake Project Can Help: The Brand Architecture Workshop
Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Growth and Brand Education
