Brand Architecture Strategy
When an organization is made up of a number of smaller brand entities, it utilizes a brand architecture strategy. This system organizes the structure of brands and helps consumers understand the master company as well as each of its extensions.
There are four types of companies that may fall into this category. The first is the branded house. This is used when its subsidiaries have a direct relationship with the master brand. For example, the master brand offers a broad range of services, while the services of each sub-brand are very specific. Each of the entities will be governed by the guidelines of the master brand, most likely, each carry the name of the master brand.
The second relationship is a house of brands. In this sector, the master brand serves as the parent company to a number of different smaller brands. Each sub-brand will have a different name and may even appeal to differing markets. The brands are recognized independently, and the parent company may not be made known to the consumer.
The third relationship is endorsing brands. Each of the sub-brands has independent brand strategies but benefit from the endorsement of the parent company. The sub-brands may appeal to different markets or regions, but use their association with the parent company to increase brand recognition.
The last brand relationship is hybrid brand architecture. This relationship combines strategies from the previous situations and is usually done so out of necessity. Each of the sub-brands operates independently but rely on resources from the master brand.
Each of these relationships requires differing marketing strategies and are determined on a case by case basis. Implementing this hierarchy of brands can be a valuable resource to determine the brand identity and increase brand awareness.