What is Brand Architecture

Brand architecture refers to the structure and presentation of a company’s brand portfolio to various audiences, including consumers, business partners, and internal staff. It specifies the relationship between your brands and the parent corporation. You may strengthen your brand’s identity, increase its value, and maximize your marketing efforts with the help of a well-designed brand architecture. Let’s explore what brand architecture is, why it’s useful, and what kinds of brand architecture models are out there.

What is brand architecture?

Brand architecture refers to the structure and presentation of a company’s brand portfolio to various audiences, including consumers, business partners, and internal staff. It specifies the relationship between your brands and the parent corporation. Building a solid and consistent brand identity, capitalizing on your brand’s equity, and refining your marketing strategies are all possible with the aid of brand architecture. There are three basic types of brand architectural models: branded house, house of brands, and hybrid. Your business objectives, target market, and brand positioning will determine which model is best for you.

Branded House

A branded house is a specific kind of brand architectural model in which a single parent brand controls and shapes all of the other brands in the company. No matter how varied the products may be, they are all represented by the parent brand. All of the subsidiary brand benefits from the goodwill and identity of the main company. Companies like Google, Apple, and Starbucks are great instances of branded homes. All of their products and services share the same name and logo, which streamlines their branding and increases customer recognition.

House of Brands

Branding in a house of brands is directed toward the individual brands under the umbrella of the parent brand. The parent brand is either unheard of or plays a secondary role in the promotion of the sub-brands. Sub-brands can employ the house of brands strategy to reach a wider audience, protect themselves from internal competition, and stand out in a crowded market. Procter & Gamble, Unilever, and Nestle are just a few examples of companies that employ the house of brands strategy.

Hybrid

A hybrid brand architecture model uses features from many brand architecture models, such as the branded house, house of brands, and/or approved brand models. It is commonly employed by businesses with many brands aimed at distinct customer groups or those shifting between brand architectural models. The parent and subsidiary brands can both benefit from the hybrid model’s flexibility and differentiation while still retaining their respective equity. Coca-Cola, Volkswagen, Amazon, Microsoft, and Banyan Tree are just a few examples of corporations that adopt the hybrid approach.

The Importance of Brand Architecture

The following list provides a concise summary of the significance of brand architecture:

• It makes sense in the industry to assist consumers in comprehending your company and its brands in the manner that you desire.
• By enabling firms to complement one another with appealing products and value propositions catered to a variety of customers, it boosts income through cross-selling.
• By leveraging the identity and reputation of the parent brand and its sub-brands, it improves brand equity and raises the value of the entire company.
• By fostering a sense of alignment and belonging among staff members who comprehend their brand’s role in the larger picture, it enhances corporate culture.
• By lessening the effect of risks to a brand’s reputation on the parent firm or other sub-brands, it lessens brand damage.

How Business Coaches Can Help Develop Brand Architecture

Brand architecture is an area where business coaches excel, as they advise their clients on how to establish, maintain, and develop a unified brand identity for all of their offerings. The following are areas where business coaches can aid in brand architecture:

• Brand development: The vision, mission, values, personality, and positioning of your brand may all be defined with the assistance of a business coach. They’re useful for figuring out who you’re trying to reach, what sets you apart from competitors, and what you’re promising to consumers. They can also assist you in developing a brand identity, including a memorable name, logo, tagline, and slogan.
• Brand presentation: If you need assistance developing a brand strategy that fits in with your brand’s architecture and effectively conveys your brand’s message, consider hiring a business coach. They will advise you on whether your company would benefit more from a branded house, a house of brands, or a hybrid brand architectural model. They may also assist you in developing a unified brand identity that can be used in all brand communications.
• Brand evaluation: Business mentors may aid in tracking how well your brand is doing and how customers feel about it. They can assist with brand audits, surveys, and research to gauge consumer and business-level exposure to and satisfaction with your brand. They can also assess your brand’s SWOT (strengths, weaknesses, opportunities, and threats) and make development suggestions based on their findings.

Benefits of Brand Architecture Strategy for Entrepreneurs

A brand architectural plan is a technique of organizing and presenting your brand portfolio to your customers, stakeholders, and workers which is why it is crucial for any entrepreneur. It specifies the relationship between your brands and the parent corporation. Your brand’s identity, marketing, and performance can all benefit from a well-thought-out brand architectural approach. The following are some of how your business can profit from a well-defined brand architectural strategy:

• It helps customers see your business and brands the way you intend them to be seen, bringing clarity to the marketplace.
• Profits rise thanks to cross-selling when complementary products and services from different brands appeal to more customers.
• It raises the value of the entire company by capitalizing on the goodwill associated with the parent and subsidiary brands.
• It promotes business culture by fostering a sense of belonging and alignment among employees who understand their brand’s place in the wider picture.
• It lessens the blow dealt to a company’s reputation by attacks on one brand by protecting other brands under its umbrella.
• It paves the way for development and growth by laying a firm foundation for potential additions, mergers, and acquisitions.
• Stakeholder confidence is increased as a result of a demonstrated commitment to the future of the company and its brands.
• By clearly outlining the interdependencies between your brand’s various components, streamlines administration and facilitates better brand-related decisions over time.