Brand architecture is the building plan for any organization. It is the adhesive that keeps all the parts of the organization together. Every organization is built on two legs- organizational structure, and brand values. While the former defines the relationship of one part of the company with the other, brand values keep the entire enterprise together. Brand values also cement the relationship of the company with its customers.
Brand architecture is the building plan on which brand values stand. Let’s start with the basics of brand architecture by taking up an example of naming a child. As a newborn child enters a family, everyone is at joy and bliss. However, they face a giant confusion soon after; it is so difficult to name her. We consult countless naming websites and dictionaries, choose so many names, dropping many of them, and finally selecting an appropriate name.
The fundamental thought that is crossing our minds here is whether the child and her name will be the right fit for each other. In ancient cultures such as the Japanese and Indianmythologies, names often have a deep-rooted meaning. So, people want to be sure the name they pick reflects the attributes and characteristics of the bay as she grows up. In the corporate environment, establishing a brand architecture (relationship of the brand to the company) is much more difficult. Let’s visit some of those difficulties.
- At its launch, what should be the name of the company?
- When this company is acquiring another one, should the acquired company retain its earlier name?
- Brand extensions; What should be the new name of a brand if it is getting extended?
- When a company acquires a new brand, should the relationship be explicit? Or should it be in the shadows?
- Should different brands from the same company like Unilever or Procter and Gamble, have the same website?
- Which goes better- A descriptive name or the fanciful one?
- At what time should a brand be retired?
These questions become more complicated as your company becomes bigger and acquires more brands. Please note these aren’t the only questions you will face; there might be others that are unique to your setting. The purpose of brand architecture is to establish a working relationship between the holding company, its brands, and sub-brands. Good brand architecture is one where all the brands work in synergy.
Is your architecture working? Please ask these three fundamental questions;
- Does your brand portfolio have enough breathing space? Is each of your brands unique?
- Is the company’s inter-relationship clear? Do your brands complement each other?
- Have you prioritized your brands? Which brand is strategic, and which one is a low priority?
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Brand architecture issues
Every brand owner should revisit their brand architecture strategy once in a while. It should be a conscious decision and not be triggered by business events or a marketing need.
- Product or Line Extensions
Companies like Apple have redefined product or line extension strategies. Apple doesn’t brand its iPhone after its company name. Similarly, products like the iPad and iTunes are far removed from the phone business. This strategy works for organizations which want each of their brands to be their profit centres.
- The Spandex rule of Branding
Marketing gurus like David Aaker have argued that just because you can extend your brand doesn’t mean you should. Mindless brand extensions will not only dilute your brands but also deprive you of strategic growth.
- While reaching new markets
Sometimes, you may need a new brand name while reaching out to new markets and new consumers. Therefore, we recommend you conduct extensive research before launching your programmes.
- Mergers and Acquisitions
Often, companies rejig their brand architecture after a merger or an acquisition. For example, after its acquisition of Nextel, Sprint brought all the operations of the former under the Sprint brand name. Similarly, At&T brought all the wireless operations under its brand name after the acquisition of Cingular.
