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BRANDING June 18, 2024, 6:26 p.m.

Brand Architecture And Why Is It Very Important?

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What is brand architecture?

Brand architecture is a company’s organizational structure for its parent brand and related sub-brands, products and services.

 It’s the framework in which connected brands relate to one another in terms of the overarching master brand story they’re telling. This allows audiences to navigate your offerings and clearly understand your brand’s value. A master brand is the name applied to a group of brands overall. Your brand architecture models may include logos, colour palettes, style guides and other components that ensure consistency for products and services. 

Brands with clear brand architecture achieve 4 times more visibility compared to brands without it. That’s because consistently presented brands are easier to recognize and understand. Without brand architecture in place, companies with expanding product lines, mergers and acquisitions may find that their overall presentation is confusing and disorganized to both internal teams and customers. No matter how much you invest into marketing your business, without brand architecture you’ll still hear people ask, “So, what is it that your company does again?”

To clear up the confusion and keep customers interested, you need to infuse what you offer into how your master brand communicates, looks, and feels. That’s where brand architecture comes in.

Why is brand architecture important?

The guidelines your company includes in your brand architecture help creative teams quickly create deliverables they know exactly what words, colours or images to use to stay true to your brand. Brand architecture is also important externally. It helps customers recognize your products or services. Consistency in branding can boost sales by 33%-40%.

Here’s what a strong corporate brand architecture does for your business:

1. Clarity
2. Trust and credibility
3. Efficiency
4. Growth and flexibility

A well-thought-out brand architecture allows for introduction of new products, services and experiences under the same brand umbrella whilst maintaining the integrity of the brand.

Types of brand architecture

The three types of brand architecture are Branded House, House of Brands and Endorsed Brand.

The Branded House

In a Branded House model, the company has one single master brand with several house brands. Typically, a branded house’s brands target a more specific segment of its audience.

House of Brands

In a “House of Brands” structure, the master brand takes a back seat, giving the sub-brands the freedom to shine on their own. Brands under the house of brands model are “rogue” brands because they can have their own audiences, marketing strategies and brand identities.

The Endorsed Brand:

If the house of brands and the branded house are opposites, the endorsed brand falls somewhere in between. Endorsed brands have their own identities, but they are not separate from the master brand. As is the case with the House of Brands structure, endorsed brands have their own identities. The only difference is that the master brand is also well-known, and most people are aware that the master brand owns and operates other companies under different names. The endorsed brand is the primary focus and will generally be known to a wider audience.

Sub-brands: are similar to house brands, but unlike house brands they don’t replicate the master brand’s image, and they expand upon the master brand’s offerings.

Hybrid brand:

When companies acquire new brands and want to preserve the integrity of those brands, they may create a hybrid brand. A hybrid brand combines two or more branding structures into one unified brand. Companies who follow this structure may choose to apply some of the master brand’s architecture to the newly acquired brand.

Ready to elevate your brand? Reach out to Magsmen Brand Consultants and let our experts transform your brand architecture into a powerhouse. Start your brand’s journey with us today!