Branding

9/1/2023

What is Brand Architecture and When Might You Need it?

What is your brand? It's what makes people remember you. It's what sets you apart from the competition. But what if your company has grown so large that it's hard to keep track of what each unit of your business does, let alone what your overall company stands for?

If this sounds like an issue that might be affecting your business, and you're starting to notice detrimental effects on your brand equity, then you might need a brand architecture strategy.

Okay, but what is brand architecture? What are some examples of brand architecture that you can take inspiration from? And why is brand architecture important to your brand strategy anyway? We're glad you asked.

Defining Brand Architecture

Put simply, brand architecture defines the different subsections of a master brand. Brand architecture helps to show target audiences, marketers - and overall, the world - how the sub-brands of master brands are structured and related to one another.

These distinguishing features not only help direct the right consumers to the right areas of the business, but they also help marketers to know how to keep which parts of a brand separate from each other when necessary, as well as when they can be combined.

Overall, it saves everyone from getting confused with which subsection of a business does what - especially if that business has grown to become an absolute behemoth. This mitigates the business from risk like potentially losing competitive advantage and custom, and helps protect brand equity throughout all of the sub brand extensions.

To show you what we mean, below are some easy brand examples.

Brand Architecture Examples

Branded House Examples

First up in our examples of solid brand architecture is that of the British courier brand, DPD - which overall calls itself DPDgroup. DPDgroup deploys perfect brand architecture in order to help different sections of customers navigate the different subsections of its business by adopting the branded house architecture model.

In a branded house model, the master brand, also called the parent brand, keeps the familiarity of the parent company by using its overall brand identity. So in this example, the main DPD courier services use the red colour logo and traditional font that DPDgroup's customers easily recognise. As the umbrella brand, the Original DPD sits at the top of the tree, and all other DPD-related sub brands sections branch off of this one.

This is evident in the subsections of its business, listed on its website. We have DPDlocal for small local deliveries - distinguished by keeping the same font and logo, but using a light blue colour instead. We have DPDGreen, the brand new eco-friendly subsection of its business, which is distinguished by - you guessed it - using green as its colour, but keeping the same logo and font, and we have the newly introduced DPDLife, which strays slightly from the original font by capitalising it, and using two colours: a navy blue and turquoise blue.

This consistent brand architecture is almost a perfect example. Customers recognise DPD vans whether they turn up in blue or green, and the brand equity - that is the trust and value that customers (depending on who you ask, of course) have in the original existing brand - is not lost because consumer brand awareness remains. They still know that it's DPD, whatever the shape, fuel, or colour of the van.

The House of Brands

Stay with us here because we know that branded house strategy and house of brands sound similar - but we promise there are differences between the two.

In the House of Brands brand architecture type, the parent brand is not reflected in the sub brands. So whereas in the DPDgroup example, DPDgroup brand identity and brand positioning is evident throughout the entire series of sub-brands, in a House of Brands architecture, the opposite will occur. The master brand takes a backseat, and remains in the background being quietly overshadowed by the identities of one or more of the other brands.

A good example of a brand using the House of Brands model to distinguish a clear brand architecture is Nestle. Nestle is the master brand of other, powerful separate brands in their own right, like those of chocolate favourites Milkybar, Smarties, KitKat, Quality Street, Rolo, Yorkie, and more!

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Independently though, away from the Nestle brand architecture, sub brands like Milkybar and Smarties are household names with distinguishable brand identities in their own right. For example, when a consumer thinks of Milkybar they think of the Milkybar Kid and the fun, playful attitude of the brand - they do not immediately conjure images of the Nestle corporate brand identity. Likewise when someone thinks of Quality Street, they'll picture the purple, the enticing multicolour tins (though perhaps not the price) and maybe even Christmas - but definitely not the immediate candy red colour of the Nestle logo.

However, on each of the different brands packaging, Nestle has its logo very subtly placed either atop or alongside the logo of the sub brand. This is an example of one of the many types of brand architecture working perfectly.

As the parent brand, Nestle is still being seen: it's still laying claim to its brand portfolio, but it doesn't need to be front and centre all the time to do so. Instead, by using a brand architecture model its own brand equity is still being recognised and protected, and in return the sub brands benefit from the brand loyalty of Nestle consumers: consumers who like and trust Nestle will then try the sub brands products if it is claiming them as an endorsed brand.

The House of Brands brand architecture is therefore ideal for a large company that's housing multiple brands with multiple sub brand personalities. The brand archetypes of Yorkie and Smarties couldn't be more different - Smarties exudes childlike fun in its colourful branding whereas Yorkie aims to take more a serious, stayed air by deliberately telling its audience it's made for adults - and tough ones at that. However, both of the sub brands fit together under the Nestle master brand name by retaining their independent personalities, and benefiting from existing brand equity.

Endorsed Brand Examples

You might be noticing there are a lot of similarities in brand architecture models, and this is no different: the endorsed brand architecture model is actually one that meets in the middle of both the branded house and the house of brands: also known as a hybrid brand architecture.

In an Endorsed Brand Architecture, a master brand sits at the top of the same tree (like DPDgGroup) as in the House of Brands structure, but the related sub brands don't necessarily share a name with the master brand (like Nestle), as they do in the Branded House structure. However, in the Endorsed Brand architecture, the master brand plays the same role in the lives of the sub brands as it does in the House of Brands structure, unlike where it's invisible in the Branded House structure.

Simple and not confusing at all, right?

Let's use an endorsed architecture example to break this down. A good one is that of Hilton Hotels.

Hilton Hotels follows an endorsed brand architecture, and it isn't shy about doing so. In fact, if you do a web search for "Hilton hotels" their title URL is "book the best rates across all brands". By brands, they mean their endorsed brands - the same ones which carry their name ahead of the hotel name, and which therefore fall under their master brand umbrella.

On their homepage, Hilton also helpfully lists all their endorsed brands to make it even easier for consumers to find them. This is where the branded house element of its brand architecture comes in - just like DPDgroup, Hilton shows all of its sub brands on its website for all to see and makes clear they're under the Hilton name.

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On the other hand, the Endorsed Brand structure gives more flexibility to sub brands, like those under the Nestle parent company in the House of Brands element, because it allows them to be flexible when it comes to brand building, brand naming and brand identity.

However, unlike the quietness of Nestle in that same structure, Hilton stakes a huge claim to its sub brands by being very clear that they are under its parent umbrella. For example, the Conrad suite of hotels may have its own name and identity but it does not have its own website - instead it has a subsection on the overarching Hilton website, and it's very clear it's "Conrad by Hilton" and not just "Conrad".

Whilst this obviously enables new brands to grow under the safe and experienced brand management of previously existing brands, it could also be restrictive depending on the sub brands later ideas around personality. For example, a new brand following a rebellious brand archetype is unlikely to last long under the Hilton umbrella, which prefers its brands to adopt an elegant and classier air to fit in with its overall brand identity.

When Might You Need Brand Architecture?

So, is there a best brand architecture?

When it comes to brand architecture, it's not a case of one particular structure being better than another - it's a case of a particular architecture working better for one business and its needs than another.

No matter the type of brand architecture used, they still come with significant benefits for businesses who are expanding or acquiring other sub-brands or business departments. Notable benefits include:
GAINING CLARITY IN THE MARKETPLACE

Instead of a variety of brands or business units that look and sound different, you can now communicate their relationship to the parent brand through a consistent visual and verbal expression. Even better, your board of directors, stakeholders, internal departments and customers can all benefit from that clarity.

BETTER STORYTELLING FOR GRABBING ATTENTION

Every business has a story, but there are times when the most fascinating parts of that story go unnoticed. Consolidating your brand under one big umbrella allows you to put forth why you established your firm—what unifies you, what unique skills you've developed, and how each part of the business - or its acquisitions - came together in the manner that it did to create the business that it has.

REVENUE GROWTH THROUGH CROSS SALES AND NEW MARKETS

New business expansions or new acquisitions give you new access to brand new competitive markets. But to enter those, sometimes it helps to have some overriding brand equity or brand loyalty behind you. That's where brand architecture can help by giving you the chance to put forward your most recognisable brand, and then introduce the new subsection that will be operating the new market on your behalf.

What's more, consumers that may have secretly harboured a desire for you to enter that market will be more likely to flock to your sales, helping empower your potential market takeover.

Rebrands can also boost business growth. Find out how.

CULTIVATE AN INCLUSIVE CULTURE

A compelling and unified brand serves as a rallying cry for all of your employees. If employees from different sub brands feel isolated, or not part of the bigger picture, this can have a detrimental impact on motivation and productivity.

Using brand architecture however makes them all feel like they're fighting for the same goal - regardless of their department, location, or independent brand.

Get support structuring your brand architecture

In many situations, a branding agency can provide significant value to a brand architecture project. They can act as an unbiased observer who asks pertinent questions and offers the type of structured guidance necessary when navigating a large scale project.

Also, because your company doesn't undergo a major branding effort very often, you won't be able to match the expertise of an agency that specialises in branding.

And brand architecture needs expertise. Brand architecture is more than just what we call the way a company structures their brands. It's what unifies them, and it can also help with things like marketing clarity and revenue growth. With so many potential benefits to consider when deciding on what type of brand architecture you need for your business, it pays to really think about what will work best for you before implementing anything.

A specialist branding agency - like us - can provide you with various brand architecture examples that have succeeded in your industry and market. We can conduct the research necessary to determine which type of branding and structure is optimal for you, as well as help you down the correct road to implementation and seamless execution.

So no matter which type of brand architecture you choose, you'll be certain that your brand—or brands—will be consistent across all touch points.

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Brand Architecture FAQs

What is the purpose of a brand architecture?

Brand architecture serves a variety of purposes, but the most common reasons businesses implement it are to help unify their brands, increase brand awareness and recognition, and support revenue growth through new markets. It can also be used to cultivate an inclusive company culture and increase the cohesion between different departments or groups within a company.

How do you create a brand architecture?

Collating your most recognizable brand and then introducing new brands or sub-brands that operate in new markets can be one way to create a brand architecture. However, this is not the only approach, and there are many other factors that need to be taken into consideration when designing an effective brand architecture for your business, such as the size of your company, brand recognition and awareness, market positioning, and cohesion between departments or groups.

Is brand architecture part of brand strategy?

Yes, brand architecture is usually an important part of broader brand strategy. In fact, brand architecture can be used to support and inform other aspects of your overall branding efforts, such as marketing campaigns and messaging. For this reason, it's essential for companies to carefully consider the goals behind their branding initiatives before moving forward with any implementation.

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