What is Brand Architecture? [+3 Types of Brand Architecture]

A brand architecture is the way in which a company structures and organizes its brands. It can be thought of as a "brand map" that shows how each brand relates to the others. There are many different ways to create a brand architecture, but all aim to provide clarity and order within a company's portfolio of products or services.

There are many different ways to structure a brand portfolio, but the three most common approaches are the house of brands, branded house, and hybrid model.

The house of brands approach is when a company has multiple standalone brands that each have their own identity and marketing efforts. This is common in industries where there are many small competitors and differentiation is key to success.

The hybrid model is a combination of the two previous approaches and is the most common brand architecture in use today. In this model, a company has both standalone brands as well as sub-brands that fall under an overarching master brand. This approach allows for both differentiation and economies of scale.

No matter what brand architecture a company chooses, it's important to have a clear understanding of the strengths and weaknesses of each approach before making a decision. The wrong choice can lead to confusion among consumers and make it difficult to achieve marketing efficiencies.

There are several reasons why companies might choose to implement a brand architecture. One is simply to keep track of all the different brands within the company, especially if there are many of them. This can help ensure that each brand remains distinct from the others and that no two brands are competing for the same customer base. Another reason is to create synergy between brands, so that each one can support and promote the others. This can be done by carefully choosing the relationship between brands, such as making one a sub-brand of another or having them share the same values.

Types of Brand Architecture

There are three types of brand architectures: monolithic, endorsed, and house of brands.

Monolithic brand architecture is when there is only one brand name associated with the company and all products or services fall under that one umbrella brand. For example, Apple Inc. is a monolithic brand because everything the company produces—computers, music players, phones, tablets, etc.—falls under the single Apple brand.

Endorsed brand architecture occurs when a parent company has different sub-brands that operate under their own individual names but are still endorsed by the parent company. A good example of this type of branding would be General Motors (GM). GM has several different car brands that operate under their own names (Chevrolet, Cadillac, Buick, GMC, etc.), but are all still endorsed by GM.

A house of brands brand architecture is when a company has multiple sub-brands that operate independently from one another. An example of a house of brands would be Procter & Gamble (P&G). P&G has dozens of different sub-brands that each operate under their own name and have their own identity, such as Tide, Crest, Gillette, Febreze, Swiffer, etc. However, even though these brands operate independently, they are all still owned by P&G.

So which type of brand architecture is best for your company?

That depends on several factors, such as the size of your company, your budget, your target market, and what type of products or services you offer.

If you’re a large company with a sizable budget, then a monolithic brand architecture might be the best route to take. Having one overarching brand can be very beneficial because it allows you to build a strong identity for your company that is easily recognizable by consumers. It can also be easier to manage one brand rather than multiple sub-brands.

On the other hand, if you’re a smaller company with limited resources, then an endorsed or house of brands architecture might be more ideal. This is because it can be more cost-effective to piggyback off of the parent company’s already established name and reputation. It can also be less risky because you’re not putting all your eggs in one basket—if one sub-brand fails, the others can still keep the company afloat.

Ultimately, there is no right or wrong answer when it comes to brand architecture. It all depends on what makes the most sense for your company and what will help you achieve your business goals.

If you’re not sure which type of brand architecture is best for you, consider talking to a branding expert who can offer guidance and advice based on your specific needs.

There are many benefits to having a well-defined brand architecture. A clear and consistent brand architecture provides guidance to employees and other key stakeholders on how to communicate the brand, which can help to ensure that everyone is "singing from the same hymn sheet." This in turn can lead to more efficient and effective communications, both internally and externally.

A well-designed brand architecture can also make it easier for customers and other audiences to understand what a company does and what it stands for. This can help to build trust and confidence in the brand, as well as loyalty among customers.

Finally, a strong brand architecture can provide a platform for future growth. By clearly defining the core elements of the brand, companies can more easily expand into new markets and product categories while still remaining true to their core identity.

Thus, a well-defined brand architecture is an important element of any successful branding strategy. When done right, it can lead to better communication, deeper customer relationships, and stronger overall performance for the company.

In the end..

Brand architectures come in many different forms, but all share some common elements. The most important of these is a clear hierarchy that defines the relationships between different brands. This hierarchy can be linear, with each brand sitting beneath another in a clear line of descent. Alternatively, it can be more complex, with multiple brands at different levels.

A well-designed brand architecture will make it easy for customers and prospects to understand the connection between different brands, and how they fit together. To know more on how it can help your business grow, reach out to our team at anurag@vridhii.com, we have a team of professionals here to assist you with all your brand requirements.