Brand architecture

Brand architecture is the structure of brands within an organizational entity. It is the way in which the brands within a company’s portfolio are related to, and differentiated from, one another. The architecture should define the different leagues of branding within the organization; how the corporate brand and sub-brands relate to and support each other; and how the sub-brands reflect or reinforce the core purpose of the corporate brand to which they belong. Often, decisions about brand architecture are concerned with how to manage a parent brand, and a family of sub-brands – managing brand architecture to maximize shareholder value can often include using brand valuation model techniques.

Brand architecture may be defined as an integrated process of brand building through establishing brand relationships among branding options in the competitive environment. The brand architecture of an organization at any time is, in large measure, a legacy of past management decisions as well as the competitive realities it faces in the marketplace.

There are three key levels of branding:

Procter & Gamble is quoted by many authors as the antithesis of a corporate brand (Asberg and Uggla, Muzellec and Lambkin, Olins). "However, this situation changed in 2012. After more than 150 years of invisibility of the organization for consumer, the brand developed corporate brand promise during the 2012 Olympic games. Commercials are aired on television around a message thanking all the "moms". In addition, each of their products is associated with the brand "PG" in advertisements for products.

A recent example of brand architecture in action is the reorganization of the General Motors brand portfolio to reflect its new strategy. Prior to bankruptcy, the company pursued a corporate-endorsed hybrid brand architecture structure, where GM underpinned every brand. The practice of putting the "GM Mark of Excellence" on every car, no matter what the brand, was discontinued in August, 2009. In the run-up to the IPO, the company adopted a multiple brand corporate invisible brand architecture structure. The company's familiar square blue "badge" has been removed from the Web site and advertising, in favor of a new, subtle all-text logo treatment.

Ambassador Brands Those brand that reflect the image of the company are Ambassador Brands. Success or Failure of these brands affect the favorable or unfavorable opinion respectively, of the company. E.g.: Colgate toothpaste, the market leader in toothpaste segment in India, can be rightly called Ambassador brand.

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