Every new product your company develops chooses a totally unrelated name, individually picked by whomever is leading the project, and your product portfolio now looks like a drawer of mismatched socks. Knowing what Brand Architecture you want to pursue will help your business scale successfully.You can find some of our other posts related to branding and marketing below! Reach new audiences by unlocking insights hidden deep in experience data and operational data to create and deliver content audiences cant get enough of. Be forewarned: This step could involve some tough decisions. You wont believe what Walmart tried to promise with their Neighborhood Market brand. What is Brand Architecture? By Steve Gilman. Brand Architecture is a system that organizes brands, products and services to help an audience access and relate to a brand. A successful Brand Architecture enables consumers to form opinions and preferences for an entire family of brands by interacting or learning about only one brand in that family. The brand name is usually the name of the company itself. Above all, it helps the engineers, designers, stakeholders and anyone else involved We call this loss of meaningbrand dilution. A focused (branded house) or a diversified (house of brands) portfolio of brands. It also has the Coca-Cola, Coke Zero, and Diet Coke sub-brands as well. Brands with clear brand architecture achieve 3.5 times more visibility compared to brands without it. It is likely to be more costly to provide different services and products under each brand, and the parent or umbrella brand doesnt offer assistance in terms of brand equity. This type of brand is at the top of the hierarchy in the brand architecture, but its sub-brands and the products they sell do not have to be within the same category. Brand Architecture is a crucial responsibility of executives and brand managers. Every brand, product offering, or service tells a story. Different configurations may make more sense for a certain company, customer, or category. The most helpful and straightforward way of defining these relationships is with a visual diagram; a tree diagram works well. There is logic used to tie together the diverse products sold by these enormous companies. A brand architecture diagram is a simple, clear visual schematic that shows every brand in the company portfolio and articulates how each relates to the others. Executives make the decisions that define each and every brand that the company owns or licenses. Step 2. BRAND EXPERIENCE BRAND IDENTITY BRAND POSITION BRAND PROMISE. Deliver breakthrough contact centre experiences that reduce churn and drive unwavering loyalty from your customers. Here, the sub-brands have their own distinct identity and Coca-Cola employs this brand architecture. Drop your email address below to receive awesomeness delivered directly to your inbox on a just-right basis: 7 Essential Not-Technically-Marketing Books for Business Leaders, Why Video Marketing is Important for Your Brand. Outlined below are the key features of each component, and their relationship to one another. Yes that spells what you think it spells, and it was not an accident, as you can read about in this story from Fast Company. Instead This will help you evaluate whether naming is unevenly handled in different parts of the organization, or whether it is out of control completely and needs to be reined in. Now that we know our options, which brand architecture do we choose? There are also products completely detached like Sprite and Fanta. For example,Lays,Doritos, andRufflesshould be adjacent inPepsicos brand architecture diagram because they are all flavored potato chips. Encourage people to mark up your version and edit it until they think it is right. Brand management requires effective data collection and analysis, with insights that can help to develop a brand architecture strategy that serves the best needs of customers and the company. A branded house strategy makes the most use of the existing brand equity, and all goodwill accrues back to the brand. -A snapshot of your audit and what it reveals. The parent companys name can be used to market the product or left out entirely. DAM software lets you control who sees what and when across brands. This helps you to propose a solution and the types of diagrams accordingly. This is helpful for streamlining the often complex review and approval process that occurs when dealing with multiple intersecting brands. Master brands can better target their communication with consumers by addressing specific and unique pain points through the niche sub-brands. There are many ways brands can relate, and thus many ways to build a brand architecture. It is likely to be more costly to provide different services and products under each brand, and the parent or umbrella brand doesnt offer assistance in terms of brand equity. Its brand extensions clearly benefit from the master brands equity and influence in the market. Model 4 makes a nice transition from the most recent product, the Model 3. They are both no-calorie colas; Coca-Cola Zero Sugar tastes nearly the same as classic Coca-Cola, but Diet Coke has a light flavor, which some people prefer. Guess what? A brand manager should be looking for signals that the products make sense for their respective brands or if a product under the wrong brand is confusing the market. When your value propositions are crystal clear, the links between your product offerings become obvious as well. Transform customer, employee, brand, and product experiences to help increase sales, renewals and grow market share. A branded house offers a very logical path to brand extensions and new brands. But the product marketing team already has a clear naming architecture for new vehicle names. Read our blog post on, to better understand the difference between the two.. Brand architecture models - branded house and house of brands Toyota, the master brand, has a sub-brand named Toyota Prius, recognisable on its own but always within the context of its parent company. For example,Kimberly-Clarkmakes a wide variety of paper-based products. The parent or umbrella brand is able to maintain a distinct identity, while also being able to create a roster of products and services that reach a wider demographic under its other brands. If you have to hire an outside agency to help you develop new logos, content or slogans, you could quickly incur a lot of expenses, especially during the approval and revision process, which can drag on for months in some cases. Here on BMB, we discussed how Dyson started selling lighting products when James Dyson purchased his sons company in 2015. At its core, brand architecture is a set of decisions. Benefits to a house of brands strategy: Drawbacks to a house of brands strategy: Marketers and executives came around to the idea that not everything can or should be under one name in the mid-1900s. Brand Architecture: The House Of Brands Strategy This, of course, presents many opportunities for cross-selling. Join us in-person for the 2023 X4 Experience Management Summit. A parent brand is a branching off point for multiple sub-brands that sell different products, sometimes in various categories. Decrease churn. 2) Are the new products fulfill a completely different need? The executives can only redefine the brands. Youll want to have broad agreement on what the current brand architecture looks like (which is often harder than it sounds) before you start deciding on how to add new things to it. First, it ensures that everyone staked in the new product name has a wider strategic view of all of the company brands and how they fit together. Theres also the question of what the master brand is. Your brand architecture models may include logos, color palettes, style guides and other components that ensure consistency for products and services. See how GM Financial improves business operations and powers customer experiences with XM for the contact centre. The brands underneath the umbrella brand are all beverages of some kind. Brands that are broadly defined are on top, and brands that are nested within other brands fall below. If there is little connection, customers will find it harder to believe the endorsement is genuine or useful to them. A hybrid brand combines two or more branding structures into one unified brand. This type of brand architecture approach can easily solve cost problems for brands looking to consolidate their resources. I want to suggest to you some great kitchen, bathroom, and additions remodeling contractors. A master brand can also be referred to as a parent brand, parent company, corporate brand, umbrella brand, or main brand. And the final decision? Brand Architecture: How Firms Organize Their Brands Find experience gaps. There will always be one node at the top of the diagram (the corporation), and brands will branch off from there, and there 12 min read It might be the original brand, or it might be from a parent company that took over a brand. Enter your business email. This is the main brand for your business and is likely the most recognisable of the brands for customers. One step to determining the answers to these and more important questions is a full brand audit of your current brand architecture as well as the existing industry landscape. Its easy to fall into the trap of making cool looking Architecture diagrams for internal team (or distributor) presentations. Brand equity is the value that a company gets from being recognisable, being perceived as of a higher value than a generic product or service provided by an unknown brand. Brands are more frequently considering hybrid brand strategies as hierarchical models prove limiting when flexibility is needed. Apple is the master brand for several sub-brands: Apple Music, Apple TV, iPhone, and more. Brand architecture - digital guide | Victorian Government Set up an initial meeting to share: -What a brand pyramid is and why it matters. Youll need buy-in from your internal team in order to create your brand architecture. Here on BMB, we discussed how Dyson started selling lighting products when James Dyson purchased his sons company in 2015. Learn on the go with our new app. It does share the type of product theme, however. There will always be one node at the top of the diagram (the corporation), and brands will branch off from there, and there may be hundreds of offerings on the bottom. With a holistic view of employee experience, your team can pinpoint key drivers of engagement and receive targeted actions to drive meaningful improvement. The sorting of products into brands is no accident; it takes sophisticated marketing thinking to decide the boundaries and relationships between brands. : Coca Cola offers products with its name such as Diet Coke, Coke Zero, etc., but is also the parent company of Sprite, Fanta, Minute Maid, and Dasani water. Typically, a branded houses brands target a more specific segment of its audience. Benefits of Creating Cloud Architecture Diagrams. A tech giant may be able to effectively brand hundreds of pieces of software under the same brand. Your company culture should influence your branding, and vice versa. Increase market share. Reach new audiences by unlocking insights hidden deep in experience data and operational data to create and deliver content audiences cant get enough of. What you want to do is combine all these seemingly disparate stories and allow them to tell one overarching story that speaks to your audience on a deeper level. Let's get something on the calendar and give all your assets a happy new home. A DAM platform can help you do that. Brand equity is the value that a company gets from being recognisable, being perceived as of a higher value than a generic product or service provided by an unknown brand. However, brand management across these varying businesses means it can be difficult to maintain a consistent brand architecture. When deciding between tide and gain, for example, many consumers arent aware that theyre both P&G brands. It would be equally silly to believe they could all be marketed in the same way. A house of brands is the mirror image of a branded house. Design experiences tailored to your citizens, constituents, internal customers and employees. Decrease time to market. A brand architecture schema should make it easier is to understand what products and services would make sense to be offered under what brand. We go into more detail in BMBs Overview of Brand Relationship Strategies. How this agencys Digital IQ test Generates Top of Funnel Leads [Case Study], QBConfidential: How Wed Drive More Profit & Scale For Kurt Warners Business, Anybody want cookies?Not the Kind You Eat, the Kind That Track You, Zero to CEO: Why audio can make or break your brand with Jodi Krangle, Sarah Akram, Board Licensed Esthetician, Skincare Specialist, and Founder of Sarah Akram Skincare, 5 Practical Tips To Write A Killer Email Pitch Subject Line (+3 Examples), How Ive Taken an Agile and Iterative Approach to Building my Personal Website, How to Redesign Your Website Without Killing Your SEO, The lead engineer of the team building the product comes to you with a name his team is head over heels in love with, but it doesnt work for the business. Designed by Elegant Themes | Powered by WordPress. All the brands will likely be within the same sector but have different audiences, offerings, and identities. Brand architecture: what is it, why is it important and how can you use it to better service your customer base? Brand architecture makes sense to do on a regional basis, usually by country. As is the case with the House of Brands structure, endorsed brands have their own identities. Whether you want to increase customer loyalty or boost brand perception, we're here for your success with everything from program design, to implementation, and fully managed services. The overarching marketing strategy of the master brand must take precedence over your brand variants. This one doesnt feel enterprise-enough. Find out how Brandfolder can simplify your brand management take a closer look! An architecture diagram is a visual representation of all the elements that make up part, or all, of a system. In this model, you have a master brand, under which all your other brands fall. : Kelloggs owns many brands with their own brand identities, but you can easily find their logo on all of their sub-brands packaging, with some brands even having Kelloggs in the name, such as Kelloggs Rice Krispies., Benefits of an Endorsed Brand Architecture, The options of independence and/or beneficial relations with the master brand.. A consistent brand architecture and clearly defined master brand generates clarity within the organization itself. The main issue with having one endorsing brand is that all the brands are at risk of reputational damage if there is a PR crisis, financial issue, or other public problem. What is Architecture Diagram The software architecture diagram is a visual presentation of all of the aspects that constitute a system, either in part or whole. On the flip-side, any negative associations tied to the overall equity will also be transferred to the associated offerings. Understanding brand architecture Brand equity is the value of your brand, products and services as perceived by customers. These are brands to an innovative material, design or process represented in multiple products. World-class advisory, implementation, and support services from industry experts and the XM Institute. Thats because consistently presented brands are easier to recognize and understand. Large companies end up making a very diverse set of products. Hold a brainstorming session and ask employees to share words they think describe your culture. Now they want to do a brand extension with Water, Cocktails & Iced Tea category? Take action on insights. Creatives may see the value in this process once they realize how it will help them work more efficiently. There can also be consumer confusion over the role of the umbrella or parent company in the other brands, both internally and externally. Cloud Architecture Diagrams: The Complete Guide Actually I am also about to outline a brand architecture for my own company, which is a single auto-media app trying to extended business into wider services such as offline car retail store, after-sale services, second hand car retail etc. Interestingly, Coca-Cola has multiple brands in the same category. The ability to develop new offerings or weather reputational storms without being concerned about the effect on the other brands is also another advantage. Youll probably gather some interesting insights and a better understanding of how your brand is being represented. We call this loss of meaningbrand dilution. However, brand management across these varying businesses means it can be difficult to maintain a consistent brand architecture. Brand architecture helps you work more efficiently, identify opportunities for growth and cross-promotion and ensure your messaging is consistent as you grow. Still, it may be too broadly defined to be meaningful to anyone. Increase customer loyalty, revenue, share of wallet, brand recognition, employee engagement, productivity and retention. You would not want to make it confusing what has or is made for alcohol and what is not. Deciding on which one will be most effective for your brand or brands will requirea thorough understanding of your reputationand growth potential. Innovate with speed, agility and confidence and engineer experiences that work for everyone. As a Companies with a strong corporate brand like Tesla should feel less pressure to develop unique names for each and every product because these sub-brands gain strength from their association with the master brand. Yet, all of their extensions branding shows the unique red Virgin logo. by Colin Finkle | Jan 13, 2021 | Branding Definitions | 8 comments, What products should be marketed under what brands is a curious question. There is also the question of whether the endorsing brand and the endorsed brands marry well together. The below diagram lays out all of Coca-Colas brands in a hierarchy and outlines its brand architecture. In a Branded House model, the company has one single master brand with several house brands. Brand Archetypes Wheel Gauge your brand experience with our free Qualtrics Brand Awareness Survey. If youve spent time leading a technology marketing team, you are probably familiar with at least one of the following naming scenarios: You can avoid product naming problems like these by adding a little more structure to the process. There are multiple types of brand architecture approaches, each with its own benefits and drawbacks. Master brands can continue to expand while keeping their own brand identity. 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Brand extensions are also known as sub-brands or in some instances, sister brands or endorsed brands. 3) Do the new product conflict with the original brands values? Next, they plugged each name option into the brand architecture diagram to see how they looked in the context of the rest of company brands (and went ahead and killed off the Roadster at the same time). Meet the operating system for experience management. Examples: Samsung Galaxy, Toyota Prius, Virgin Galactic. The brands underneath the umbrella brand are all beverages of some kind. For a more in-depth understanding of brand equity, check out, Deciding the right Brand Architecture strategy takes an extensive amount of research, and an in-depth understanding of your position, offerings, and brand strategy. Its the framework in which connected brands relate to one another in terms of the overarching master brand story theyre telling. Brand Archetypes Wheel. Select Program Structure. Read our complete guide with brand architecture examples and strategies. Coca-Cola, as mentioned, has several sub-brands but also has stand-alone brands under its umbrella. It helps structure a brand portfolio so that customers can easily tell which brands are affiliated and at what level. These extensions may benefit from the. Customers are much more willing to try your other sub-brands products and services with the knowledge that the master brand offers quality and reliability. If the equity of one brand is diminished, it wont adversely affect the others. The master brand provides resources to the sub-brands. A digital asset management (DAM) platform is a tool that makes it possible for companies to organize, distribute, collaborate on and securely store all types of digital files for all of their brands. Deciding on which one will be most effective for your brand or brands will require a thorough understanding of your reputation and growth potential. 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