Back to basics today, taking a dive into the concept of brand architecture with the help of this article, written by Julian at The Branding Journal.

What is Brand Architecture?

Brand architecture only applies to organisations that have multiple brands or products within their portfolio. Brand architecture defines the role that each brand or product plays within the organisation, and how they relate to each other.

Why does Brand Architecture matter?

• Clarity - A well-crafted brand architecture ensures that people understand the organisation, and the brands/products within them, more clearly.

  Example - Rolex and Tudor. People know that Rolex is the more expensive, more luxurious brand, whilst Tudor is slightly more affordable - an entry-level option.

• Cross-Selling - A properly implemented brand architecture means brands can feed off each other, creating opportunities for one brand by giving customers a great experience with another.

  Example - Virgin Atlantic provides flights, serving as a gateway for customers to book the rest of their trip with Virgin Holidays.

• Brand Equity - With more brands or products serving different customers across similar categories, there is a higher overall contribution to brand equity.

  Example - Volkswagen operates brands in nearly every segment of the car market, from hyper-luxury to value. Each brand contributes to the overall brand equity of Volkswagen.

3 Types Of Brand Architecture

The Branded House

In this type, the organisation is known as the master brand. The master brand owns various sub-brands that usually feature the master brand name or logo.

The best example is Apple. Every single one of Apple's brands features the Apple logo, the Apple name, and the same style of branding. iPad, iPhone, Apple TV, Apple Music.

House Of Brands

In this model, one organisation owns a collection of distinct and individually-branded brands, without any clear reference to the parent organisation.

The best example is P&G. They own and operate brands like Always, Vicks, Pampers, and Ariel, but none of those brands have any distinct visual relationship to P&G.

Hybrid Brand Architecture

Hybrid architecture consists when organisations have a portfolio of brands that feature both elements of the branded house, and the house of brands models.

A good example is Volkswagen. Volkswagen sells cars under the VW brand but also owns brands like Audi, Bugatti, and Skoda.

All credit goes to Julian at The Branding Journal - the original article is here. I highly recommend you read it, it goes into much greater depth including the advantages and disadvantages of each structure.