Brand Architecture

Branding is increasingly discussed during strategic planning session conversations among senior level decision makers and in boardrooms throughout the corporate world. That is because of the substantial impact a well-managed brand can have on the bottom line. Corporations must routinely ask "how should we allocate existing financial and human resources among our brands to grow shareholder value". Firms should focus on getting the most from existing brands through better organizing and managing brands and brand inter-relationships within the existing portfolio. Changing market dynamics and new business strategies have forced a critical re-evaluation of how the various pieces of the brand portfolio fit together - or how they do not. The way these pieces are structured, managed and perceived in terms of how they relate to each other and add value to the organization is known as brand architecture.

"Brand architecture" is the way a company organizes, manages, and markets their brands. It must align with and support business goals and strategies. Different business strategies require different brand architectures. The two most common types (as discussed by authors) are: "Branded house" architecture - employs a single (master) brand to span a series of offerings that may operate with descriptive sub-brand names and "House of brands" architecture - each brand is stand-alone; the sum of performance of the independent brands is greater than they would be if under a master brand. Neither type is better than the other. Some companies use a mix of both. The key is to have a well-defined brand architecture strategy. Steps to maximize brand architecture (as suggested in paper): take stock of your brand portfolio from the perspective of customers because their view is the foundation for your strategy; do "brand relationship mapping" to identify the relationships and opportunities between brands across your portfolio. Check

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