What Is Brand Architecture and Why Is It Important for Business Success?

From the font choice to the logo, there’s no denying the power of a distinctive brand identity. However, it can be challenging to communicate this identity as your business grows and becomes more complex. This is particularly true as new products are developed and new markets are explored. That’s where brand architecture comes in.

In aligning otherwise disconnected brands, sub-brands, products, and services, brand architecture makes for clarity and cohesion. It can be the difference in helping customers to understand and engage. Read on as we present more of an in-depth definition, sharing examples, models, and strategies for the creation of your brand architecture.

What is Brand Architecture?

As mentioned, brand architecture organises a company's brands, products and services within a clear and intuitive structure. This may involve the organisation of a company’s chosen brand colours, styles, and symbols. Done effectively, it will create a seamless connection between your offerings and customer perceptions.

Why Does Brand Architecture Matter?

Brand architecture links sub-brands and business offerings, fostering a shared sense of trust and quality. For instance, a customer who has been happy with a Glade bathroom air freshener is likely to have greater confidence in the brand’s aromatherapy candles.

Here are some other benefits of brand architecture:

• Enhancing customer understanding through the clarification of different brand offerings.

• Improving customer experience through consistent and streamlined messaging.

• Enhancing marketing efficiency, with time and resources saved for unified campaigns.

• Strengthening brand positioning and building greater customer loyalty through clarity.

• Improving scalability, helping brands adapt to new markets and product categories.

What are the brand architecture models?

There are various brand architecture models, and it’s worth reflecting on the best fit for your business. We’ll explore the main three here.

Branded House

In a branded house, all sub-brands operate under a single, overarching name. This structure offers consistency and unity. Apple is one of the best branded  house architecture examples, with sub-brands like Apple TV and Apple Watch reinforcing the parent brand’s identity.

Advantages of the branded house include:

• Direct association between the qualities of the primary brand and sub-brands.

• Cost-effective marketing, as it applies to the complete brand portfolio.

• Sharing of resources among the master brand and sub-brands.

Drawbacks of the branded house include:

• Negative press for one sub-brand potentially impacting others in the portfolio.

• Sub-brands lacking individual identity or clarity.

• Dilution of brand equity given the need for rebranding after mergers.

House of Brands

A house of brands allows distinct brands to operate independently under a parent company. As an example, Automate UK serves as the unifying brand and voice for member organisations such as BARA (British Automation & Robot Association) and UKIVA (the UK Industrial Vision Association).

House of brand benefits include:

• Potential to engage specific customer segments with targeted marketing.

• Limiting the reputational risk across brands.

• Greater opportunity for risk-taking in the promotion of new products and services, with minimal impact on the wider portfolio.

House of brand downsides include:

• Greater investment required for the promotion of each individual brand.

• Limiting the sharing of brand equity between the parent and sub-brands.

• Increasing the risk of customer confusion and competition among sub-brands.

Hybrid

As you might expect, the hybrid architecture combines elements of both the branded house and house of brands. Sub-brands benefit from the main brand’s equity while maintaining their own distinct identity. Microsoft is a world-renowned example, with sub-brands such as LinkedIn, Skype, and GitHub.

Pros of the hybrid architecture include:

• Flexibility to draw on parent brand strengths and engage in distinct marketing.

• Expanding the reach into diverse markets and audiences without diluting parent brand equity.

• Reducing the risk of negative sub-brand publicity affecting the wider portfolio.

Cons of the hybrid architecture include:

• Complexity of the hybrid model making for customer confusion.

• Separate investment needed for the promotion of distinct sub-brands.

• Difficulty in keeping separate brand books up to date.

How can brand architecture future-proof your business?

A well-chosen brand architecture ensures your business can adapt to market changes, expansions, and acquisitions. It lays the groundwork for a clear and scalable brand strategy while preserving the unique identity of each sub-brand. However, care must be taken, adopting a brand architecture strategy in consideration of factors such as the desired sharing of brand equity and levels of sub-brand visibility. You should also be prepared to revisit and refine the brand architecture as your business evolves.

Thankfully you can count on the support of De Bono Marketing. From strategic development to positioning, our brand experts can help you every step of the way. The same is true whether you’re looking to create a new brand or develop an existing one. Working as an extension of your business, we’ll define your purpose and build a narrative that brings your brand to life.

Get in touch and discover the benefits of an architecture tailored to your brand needs.

Contact us today