Brand Architecture: How to Manage Brand Portfolios

What is brand architecture?

Brand architecture is the way a company structures and presents its brands to the public. It defines how the different brands within an organization relate to one another and how they are positioned to consumers. There are different brand architecture models, each with its own advantages and disadvantages, depending on the company's goals and needs.

There are three main types of brand architecture: monolithic, multi-brand, and endorsed brands. Each of these strategies offers different levels of independence and relationship between the brands, which directly influences how they are perceived by consumers and the flexibility the company has to manage its brand portfolio.

What types of brand architecture are there?

Monolithic Architecture

In a monolithic architecture, all of a company's brands are presented under a single name and a common graphic mark (logo). This approach reinforces the master brand, as all products and services benefit from the recognition and trust associated with the corporate name. However, it also means that any crisis or problem with one product can affect the entire brand.

Multi-brand Architecture

A multi-brand architecture allows a company to operate multiple brands that are independent of each other. This approach is common in large conglomerates that manage brands in different markets or consumer segments. Each brand has its own identity and strategy, allowing them to compete with each other and in different categories without affecting the others.

Endorsed Brands

In an endorsed brands architecture, individual brands have their own identity but are endorsed by a master or corporate brand. This offers a balance between the independence of the individual brands and the security provided by the master brand's endorsement, which can be especially useful in markets where trust and reputation are key factors for success.

How to apply brand architecture in large companies?

Brand architecture is especially relevant for large companies with internal divisions and business groups that bring together several organizations. These types of companies can benefit enormously from a well-defined brand architecture strategy. A well-designed architecture not only facilitates internal management but also improves external perception, aligns the company's offerings with consumer expectations, and ensures coherent and effective communication.

However, it is important to recognize that not all brands need to be part of a formal brand architecture. Although there may be a natural inclination to organize and structure brands, this is not always a real need. In many cases, brands and sub-brands are created that ultimately do not add significant value and only add unnecessary complexity.

What are the common mistakes in brand architecture?

One of the most common mistakes in implementing a brand architecture occurs when there is an "organizing will" that overrides real needs. This impulse to create and structure brands can lead to the creation of sub-brands or structures that do not respond to the company's actual needs. It is crucial that the decision to implement a brand architecture is backed by a clear strategic need, rather than being a response to a desire for order on the part of designers or brand managers.

Another common mistake is not adequately considering how the different brands within an architecture affect each other. In a monolithic architecture, for example, a failure in one product can damage the perception of all products under the same brand. Similarly, in an endorsed brand architecture, a lack of coherence among the brands can confuse consumers and dilute the strength of the master brand.

How to implement an effective brand architecture?

To implement an effective brand architecture, it is essential to start with a thorough analysis of the company's and the market's needs. This analysis should include an assessment of how the brands are currently perceived and how they are expected to evolve in the future. Based on this analysis, it can be determined which of the brand architecture models is the most suitable.

The implementation must be careful and consider both strategic and operational aspects. It is crucial to ensure that all levels of the organization understand and support the strategy. Additionally, clear metrics should be established to evaluate the success of the brand architecture and make brand design adjustments as needed.

Is brand architecture strategic?

Brand architecture is a powerful branding tool that can help companies organize their brands more effectively, align their marketing efforts, and maximize the value of their portfolio. However, its implementation requires careful consideration and planning. Not all companies need a brand architecture, but for those that do, the correct choice and management of it can be the key to sustainable success.