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 a ‘house of brands’ structure, a main brand is absent or much less present. Each brand has its own identity and marketing efforts focus on the individual brands in each case. Because of the unique, independent positioning, there is no link between the different brands. You often find this structure in companies that offer multiple brands in one product category. You need to differentiate those brands sufficiently from each other to appeal to different target groups and make sure you don’t compete with your products.Advantages of house of brands structure
With a house of brand structure, you can successfully launch multiple brands in the same market because each brand stands on its own. This allows your company to appeal to various target groups with a unique product or service tailored to the customer and creates the impression of specialization. Your main brand or company will also suffer less reputational damage when one brand underperforms because the brand builds its reputation.Disadvantages of a house of brands structure
Because the different brands are not interconnected, you have to market each brand separately with its name, identity and message. You can only get very limited synergy and economies of scale from the different activities, resulting in high marketing expenses.Example of a house of brands structure
Unilever operates with a typical house of brands structure. They sell more than 400 brands in very diverse product categories. For example, Unilever is active in the personal care market with brands like Dove, Rexona and Axe. It also has a strong position in the ice cream market with brands like Ben & Jerry’s and Magnum.
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.
