Brand Architecture, is an important Brand Strategy tool that studies and defines the relationship of parent brand with its various child brands. It is a very deliberate exercise that defines how closely each child brand should be linked to the Masterbrand. Associations or Dissociations are visually & verbally depicted in brand communication – though its name, logo, packaging, sales collaterals etc. Let’s have a look at the 3 most popular types of Brand Architecture.
This Brand Architecture type has the parent brand, which is always closely associated with the child brand. The names of the sub-brands are attached to its parent brand. We can also see the relationship in the logo, packaging, and brand communication – all are aligned to the parent brand.
Virgin is an example of Branded House Architecture. Virgin airlines, Virgin café, Virgin digital etc.
Is this Strategy right for your brand? Branded House is built on fundamentals to gain great visibility for the Masterbrand. It broadens the perception of the organization's capabilities / business. It helps in leveraging brand investment most effectively.
HOUSE OF BRANDS
House of Brands is a Brand Architecture Strategy where a parent brand owns and manages various sub-brands, each of those is a unique brand. Those sub-brands don’t closely relate themselves to its parent brand. Their distinctive personalities are seen through Brand names, logos and communication style.
Chevrolet, Hummer, Chrysler, Cadillac, Jeep, Mazda, Opel, Buick etc. You’d be surprised to know that the age old General Motors is their parent brand.
Is this Strategy right for your brand? House of Brands Architecture is slightly more flexible Architecture. Under this Architecture, each brand can address distinct market segmentation needs, with unique marketing and communication strategies.
This type of Brand Architecture Strategy uses merits of both – Branded House and House of Brands. This is a combination model where all kinds of parent-child relationships can co-exist. Some of the sub-brands are associated closely with the parent brand while some other sub-brands dissociate or have a distant relationship with its parent.
The classic example of this architecture is that of Volkswagen. VW owns brands like Bugatti, Seat, Audi and Skoda. But it also carries a brand on its own name.
Is this Strategy right for your brand? Hybrid Brand Architecture is a combination of Branded House and House of Brands. This architecture has the most flexibility for acquisitions; spin-offs, leveraging brand equity, different products / brands that suit different marketing segments etc.
- Article contributed by Aditya Deole, Marketing Team, Yellow Fishes
Read more on Brand Architecture here.