Brand architecture is how a company’s brands are structured and related to each other, with options including a single corporate brand, sub-brands, or individual product brands. Choosing the right architecture is critical for building customer loyalty and integrating new products.
Brand architecture describes the way a company’s brands are structured and related to each other. A company can have a single brand that appears on all of its products, it can have brands that are used and subordinate to the main brand, or it can have an individual brand for each product in its product line. Brand architecture is an important concept as it affects how the company and its brands are perceived by consumers.
If a company has a single brand that appears on all of its products, it is known as a corporate brand. A corporate brand is sometimes also referred to as a family brand or umbrella brand. A corporate brand identifies the company as the manufacturer of each product in its line. The company uses the same brand name and logo on all of its products, and it is obvious to the consumer which products the company produces.
Some companies will use the corporate brand on all of their products, plus another brand for each individual product. These individual brand names are known as sub-brands. The product name includes the corporate brand and sub-brand so that the product is linked to the company in the consumer’s mind. The subbrand is sometimes called an endorsed brand.
In the case of an individual product brand, each product in the company’s product line has its own brand identity. The company name is not used in the product name. Proctor & Gamble uses this strategy, branding products like Crest Toothpaste and Jif Peanut Butter without invoking the company name. The consumer may not even be aware of the identity of the parent company behind these marks.
Choosing which type of brand architecture to use is a critical decision for a corporation. Using a corporate brand makes it easier to introduce new products to consumers who are already familiar with the company and can build more customer loyalty. Adopting an individual branding strategy facilitates new brands in the company’s product mix in the event that another company is acquired and allows the company to more easily integrate new products that are outside the scope of its core business. The sub-brand strategy bridges the gap between the corporate brand and the individual brand. Selecting a brand architecture is not easily changed; therefore, companies must carefully consider the advantages and disadvantages of each option.
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