Imagine a brand that encompasses numerous sub-brands. How does each sub-brand discover its voice? How does it communicate with its intended audience in a way that sparks a profound emotional connection? This is the pivotal role brand architecture plays within brand strategy. It’s the well-structured framework that governs how a company organizes and presents its brand portfolio, encompassing the relationships between individual brands, products, or services. A thoughtful examination and selection of an appropriate brand architectural model can ensure clarity, seize opportunities to build brand equity, and align your vision with the emotional and rational needs of your consumers.
Crafting Connections: Choosing the Right Brand Architecture to Win Hearts
At its heart, brand architecture is about making sure your brand feels like a friend to your customers, not just a corporate entity. There are four distinct models of brand architecture: Monolithic, Endorsed, Hybrid, and Pluralistic. These models are strategically chosen based on a company’s vision, product characteristics, and market positioning, directly influencing the perceived value, strength, and consumer connections with the brand and its sub-brands.
In the Monolithic architecture, also known as the Branded House, a single, dominant master brand reigns supreme over all sub-brands. This structure comes with several advantages:
- Unified Identity
- Single Brand Strategy
- Strong Brand Equity
Famous brands that use monolithic brand architecture:
- Google — Google Maps, Google Ads, Google Pay
- Apple — iPay, iPad, iPhone
- Virgin — Virgin Mobile, Virgin Records, Virgin Media
The Endorsed brand model places sub-brands under a master brand’s umbrella while allowing each sub-brand to maintain its unique identity. This type of brand architecture simply contains independent brands that are endorsed by the master brand. Benefits of using endorsed brand architecture: The endorsement adds credibility to the sub-brand. Here are some benefits:
- Sharing emotional connections between the master brand and sub-brands.
- Leveraging existing equity in sub-brands.
- Sub-brands benefit from the equity of the master brand.
- Flexibility in choosing shared or independent brand strategies.
- Sub-brands may have distinct brand identities and naming conventions, catering to the diverse emotional and rational needs of various target audiences.
Famous brands that use the Endorsed brand architecture:
- Marriott — Courtyard, Fairfield, SpringHill
- Nestle — Nesquik, KitKat, Cheerios
- Kellog’s — Rice Krispies, Crunchy Nut, Corn Flakes
Hybrid brand architecture blends elements from different models, such as Monolithic, Endorsed, and Pluralistic. This approach provides a balanced and adaptable structure to accommodate a diverse range of products or services. In the hybrid model:
- Sub-brands can benefit from the emotional connections consumers have with the master brands or establish their own connections based on unique brand strategies catering to distinct emotional and rational needs.
- Unique and shared brand equity.
- Unique and shared sub-brand identity.
- Unique and shared naming conventions.
Famous brands that use hybrid brand architecture:
- Amazon — Amazon Kindle, Amazon AWS, Amazon Echo
- Alphabet — Google, Waymo, Google Ads
- Microsoft — Microsoft Windows, Xbox, Skype
The Pluralistic model, also referred to as the House of Brands, separates the master brand from its extensions and keeps each extension independent. This allows each individual brand to build its own emotional connection with its target audience. Key features include:
- Diverse target audiences
- Individual Brand Equity
- Separate Brand Strategies
- Operate Independently
- Unique brand identities and naming.
- The master brand typically remains invisible or inconspicuous.
Famous brands that use pluralistic brand architecture:
- Procter & Gamble — Gilette, Tide, Old Spice
- Unilever — Dove, Lipton, Ben & Jerry’s
- Coca-Cola — Sprite, Powerade, Fanta
In each brand architecture model, the impact extends beyond brand equity, significantly shaping the emotional connections consumers form with the brand or brands. These connections influence perceptions, recognition, and loyalty, serving as critical components for the success of any brand.