Building an effective brand architecture is essential for the growth and success of companies and organizations. How best to go about it depends on several factors, but at least keep it simple and clear. In this 5-part series, you will read all about the pros and cons of the most common types of brand architecture, complemented by striking examples.
Do you know which brand architecture best suits your objectives? Could you use professional support in doing so? Then contact our specialists on the subject: greetje@brandstrategists.be or maxim@brandstrategists.be.
The concept
In endorsed brands, an umbrella brand is used to support several sub-brands. The individual brands are positioned in the market separately from the main brand, have their name and retain their unique identity. However, the main brand is always subtly present, often in the form of a visual reference such as adding the main brand as a quality label on the packaging. There is also usually a logical connection between the individual brand and the umbrella brand.Advantages of endorsed brands
Endorsed brands offer a lot of flexibility. They are almost completely separate from the umbrella brand, allowing them to enjoy their image and appeal to specific target groups. At the same time, the brand can benefit from the reputation of the umbrella brand. Nor does brand awareness have to be built from scratch thanks to its association with the main endorsing brand.Disadvantages of endorsed brands
Endorsed brands require their approach. Synergies and economies of scale are limited. You invest per brand, which results in high marketing expenses. Moreover, the presence of the main brand on different products and in different product categories can in some cases blur the brand image. Consumers sometimes find it difficult to understand the brand identity because the brand does not come across as specialized.Examples of endorsed brands
Nestlé is a brand that uses the endorsed brand’s strategy, for example in the chocolate product category. The main Nestlé brand is co-branded on the product packaging of Smarties, KitKat, Lion, Rolo and Quality Street, among others, and acts as a quality label there.
Do you know which brand architecture best suits your objectives? Could you use professional support in doing so? Then contact our specialists on the subject: greetje@brandstrategists.be or maxim@brandstrategists.be.
