Brand architecture is the highly strategy based and foundational structure of a brand. It is like a business model for an organization. In other words, it is like a hierarchy between corporate brand, sub-brands, and underlying products. You can see the parent brand or corporate brand on the top of the hierarchy tree and on its nodes, there are sub-brands and products. This structure works as a baseline for the organizational relationship and management of sub-brands in the company.
The Brand architecture strategy will establish a simple yet successful model to structure an efficient brand architecture. This strategy not only helps you to understand the basic organisational design for the brand but also helps to analyse major factors related to branding. Brand architecture should be capable of explaining the relation and dependabilities of brand and sub-brands within the organization. It should be able to define all the hierarchies and their possible attachments with each other. It should explain how are sub-brands interacting with each other and how are they communicating and contributing to the success of the corporate brand.
A well-structured Brand architecture is essential for a well-managed brand. It helps in strengthening of long-term strategic goals of an organization. A corporate organization which lacks Brand architecture may lead to a failure or huge mismanagement while communication and interaction between parent brand and child brands. A clear, logical and flexible Brand architecture strategy is required in order to develop an effective architecture.
A flexible and fluid Brand architecture can be very useful at the times of market drop or market change. It helps to make maximum business and earn maximum possible value with a variety of option available in structure. Brand architecture strategy is required to designed on the base of expertise in the market. At the time when the organization will find it difficult to handle the sub-brands and underlying products then it can utilize the structure to understand the working model.
The sole purpose of brand architecture is to explain that what are the main components of the organization and how are they interacting with each other. Secondly, it should be able to address the issues related to branding and hierarchy between sub-brands and products. Another point which important here is that rules should be defined for creating new sub-brands.
There are advantages and disadvantages of adding sub-brands to the parent corporate brand. The most important strength is that you can share marketing resources. And the weakness is that adding more sub-brands can lead to mismanagement. So the fewer sub-brands are better. There are no fix rules for a brand architecture strategy and each organization develops their own set of rules for their structure.
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