Understanding Brand Architecture

Brand architecture is the arrangement of an organization’s brands relative to each other and, each to the overall entity. A well-structured brand architecture enhances coherence and efficiency, delivering value to both consumers and the business. Without a plan, the development of products and services risks duplication, inefficiencies, and brand confusion, creating a significant drag on growth.

The need for a coherent brand structure increases in direct proportion to the size of the company and the number of brands under management. For instance, diversification into new products, services, or geographies often prompts the need for a structured brand architecture plan.

That said, planning brand architecture early in the growth phase fosters clarity, allowing for swift and cost-effective integration of new elements into the brand portfolio. This proactive approach aids strategic decision-making, particularly concerning brand extensions and acquisitions. Larger, established businesses, especially those in fast-moving consumer goods, benefit significantly from a considered brand architecture as part of brand portfolio management.

At its core, there are three core branding models-monolithic (branded house), endorsed (house of brands), and independently branded —that are used to construct these brand relationships. By carefully considering each building block’s characteristics, a brand architecture can be constructed to encompass the entire portfolio, making sense to consumers and employees, fostering strong marketing and efficiencies, and providing a framework for long-term brand strategy development.

In summary, brand architecture:

• Is a critical discipline in modern brand management.
• Creates coherence and efficiencies across the product range, benefiting both consumers and the organization.
• Serves as a strategic tool for future planning, especially in terms of brand extensions and acquisitions.
• Provides value and guidance, even in the early stages of growth.
• Becomes increasingly indispensable as the organisation grows.