What Is Brand Architecture, And Learn About The Benefits

Brand architecture is a system for organizing and aligning a company’s image internally and in its consumers’ perception. Check out the content and learn about the countless benefits of this practice.

When we think about big brands like Coca-Cola, Disney and McDonald’s, what comes to mind is well-structured and aligned branding between its various communication channels, whether physical or digital. 

The logos, slogans, publications and even the experience they convey to consumers are cohesive and coherent. This is only possible with efficient communication within these companies.

But what about when we talk about organizations formed by different companies? This is where brand architecture comes in. This concept aims to organize and interact with brands in the same group.

What Is Brand Architecture?

Brand architecture is a system of organization and alignment of products, services and even companies to build cohesive communication, whether internal or to the consumer public. 

Using this method, it is possible to create a hierarchy of brands that make up an organization, always thinking about the main objectives of the “mother brand”. 

Coca-Cola, for example, doesn’t just sell soft drinks under its label; its portfolio includes names like Fanta, Sprite, Eisenbahn, Crystal mineral water and much more.

Types Of Brand Architecture

Within brand architecture, we have three approaches corresponding to the hierarchy of companies in a group and how their images are worked on. Check out:

Monolithic

In the monolithic approach, we have a mother brand that overlaps the others. Its products, visual identity, services and everything involving secondary companies follow the standard of the leading company. 

A great example is Samsung, which maintains a strong identity with a broad positioning; this is the company consumers seek out and are most connected to.

Endorsed

The endorsed brand consists of a corporate brand with sub-brands with their identities but benefits from association with the parent brand.

For example, Google has an excellent reputation and credibility with other lines of services. This way, the parent company links its consumers to its other branches.

Independent

The third type of architecture is independent, characterized by a parent company that does not jump to the consumer’s mind at first glance. Often, the customer does not know that there is a group behind the brand they consume. 

We can use Nestlé as an example, which has several well-known brands in its range of products.

Benefits Of Brand Architecture

Brand architecture is not exclusive to large organizations; small and medium-sized enterprises can also practice the organization and alignment of their products or services. 

The benefits of this practice include:

Segments Consumer Needs

A company with an extensive portfolio of products or services can benefit from brand architecture when finding its target audience.

This is because the more segmented, the better the communication with the consumer since the brand understands precisely who it is talking to.

Reduces Costs

When an organization organizes its sub-brands, it can see where more growth opportunities and significant investment are needed. 

With this, the company can identify what needs immediate attention and does not waste its resources, such as time and money, on less urgent demands.

Offers New Possibilities

With a well-structured architecture, the brand can identify which company in its portfolio can support a new product or service as the company grows. 

This way, a new addition to the catalogue is not seen as strange, as the organization can fit it inefficiently and naturally.

Influences Consumer Perception

Brand architecture, when done well, helps build trust and loyalty and makes the company gain space in the minds of consumers. 

This way, when thinking about the brand, the customer immediately recognizes its visual elements, values ​​and services.

Facilitates The Fusion Process

Brand architecture can make mergers, acquisitions, and partnerships more natural for the consumer. This is because, with a smooth transition, the audience does not feel strange. 

Use Brand Architecture To Enhance Your Business

Architecture and branding is an organization system between companies in the same group. With it, it is possible to align the image of sub-brands so that they follow the organisation’s objectives as a whole.

Among its approaches are endorsed, independent and monolithic. Each of these has its characteristics and strategies towards the consumer public. 

It is worth remembering that large organizations such as Nestlé, Apple and Samsung practice brand architecture and show how alignment is essential for success.

Also Read: Brand Consistency And How To Develop It In your Business