What is
Brand Architecture
& Brand Portfolio?
Think of Brand Architecture and Brand Portfolio as a brand’s family tree or its hierarchy. It is how an organization organizes the various named entities within its portfolio. Ideally, the brand architecture is simple with no more than two levels: brand and sub-brands. In fact, brand/sub-brand is the type of architecture most often used. It takes many forms, mostly based upon the type of name used for the sub-brands. Some organizations add a third level: named products. But, any more than two levels can be confusing.
What is Brand
Architecture & Brand Portfolio?
Think of Brand Architecture and Brand Portfolio as a brand’s family tree or its hierarchy. It is how an organization organizes the various named entities within its portfolio. Ideally, the brand architecture is simple with no more than two levels: brand and sub-brands. In fact, brand/sub-brand is the type of architecture most often used. It takes many forms, mostly based upon the type of name used for the sub-brands. Some organizations add a third level: named products. But, any more than two levels can be confusing.
BRAND Portfolio & architecture Models:
Fanta is always fruit flavor and has an exuberant brand personality so all the extensions can easily fit under the Fanta brand umbrella. Dove is a little more complicated because although it is primarily known as a skin care brand, it has extended into hair care. However, the emotional brand benefit of inner beauty and confidence is so strong it is able to make it work.
Apple, as I mentioned earlier, has always been clear about what can be included in its brand family and why its sub-brands (iPhone, Apple Air, and Apple TV) communicate strong family values of creativity, individuality, and elegant design. Some feel that Porsche has undermined its brand position as the ultimate sports car with the brand extensions of Cayenne SUV and Panamera luxury sedan, but it took this highly analyzed step after studying existing users and realizing that sports car buyers don’t buy a new model very often, yet luxury SUV and luxury sedan customers buy a new model every 2-3 years. Porsche made the sound business decision to reposition from sports cars to luxury cars and is now the number one luxury brand in the world. They gave up a little to gain a lot, but they were fully aware of the consequences on their brand positioning each step of the way. It didn’t take this major step on a whim, but by looking closely at who was buying their brand and who was not…and why for each. Brands aren’t religions, their tools to help you sell more stuff, to more people, more often, for more money as my old boss at Coca-Cola, Sergio Zyman, used to remind us. Porsche did exactly that and is a more powerful brand a more profitable company by doing so. Imagine where Apple, the most valuable company in the world would be if they would have strictly kept their brand only in personal computers.
Most of the large consumer products companies use an endorser brand approach such as P&G, Unilever, and Mondelez. Procter & Gamble may be the first brand ever when in 1879 it started marking its wooden crates of soap that happened to float with the iconic moon and stars logo. But over the years the customer need for different types of soaps required more branding expertise to differentiate (Ivory, Coast, Safeguard, etc.) and the company also moved into new product categories like potato chips (Pringles) and peanut butter (Jiff).
