Definition
Brand architecture is the structured framework that organises and defines the relationship between a company’s master brand and its sub-brands, products, or services. It provides clarity on how brands coexist, interact, and support one another within a business portfolio.
There are several common models of brand architecture. These include the branded house (all offerings under one unified brand), the house of brands (each brand stands alone), the endorsed brand (sub-brands supported by a parent brand), and hybrid models. By defining these relationships, businesses ensure that each brand contributes to the overall strategy while avoiding confusion in the market.
Advanced
At a technical level, brand architecture integrates brand equity management, market segmentation, and portfolio strategy. It often requires research into customer perceptions, competitive positioning, and brand equity overlap to decide whether to unify, separate, or endorse brands.
Tools such as brand portfolio mapping, equity transfer analysis, and brand hierarchy modelling are applied to optimise growth. A clear brand architecture also helps with resource allocation, marketing efficiency, and risk management, especially in mergers and acquisitions.
Why it matters
- Ensures clarity for customers navigating multiple brands.
- Maximises brand equity across a portfolio.
- Reduces internal conflicts and overlap in positioning.
- Simplifies communication and marketing strategies.
Use cases
- Structuring brands after a merger or acquisition.
- Deciding whether to launch a new product as a sub-brand or a standalone brand.
- Streamlining a large portfolio of products.
- Clarifying relationships between corporate and consumer-facing brands.
Metrics
- Brand recognition and recall within a portfolio.
- Cannibalisation rates between sub-brands.
- Marketing efficiency and cost savings.
- Customer clarity and satisfaction surveys.
Issues
- Poor architecture causes customer confusion.
- Overlapping brands may cannibalise each other’s sales.
- Weak hierarchy can dilute parent brand equity.
- Inconsistent structures increase operational and marketing costs.
Example
A global food company manages multiple product lines under different brand names. Through a house of brands approach, each product has its own identity but benefits from the parent company’s resources. This structure allows the company to target diverse markets, avoid brand dilution, and limit risk. If one brand underperforms, others remain unaffected.