Brand Architecture

If a company was a building.

There is an ideal design structure for each brand architecture.

Corporate identity depends directly on the brand architecture of the company and its divisions, subsidiaries and joint ventures. Mergers and acquisitions have led to history-based brand systems that do not follow the requirements of pure brand science.

This competitive situation requires designers who not only demonstrate visual sensitivity, but also think strategically. Lünstroth therefore develops design concepts that optimally fulfill the different requirements and offer scope for future flexibility.

The fitting brand system

Unlike umbrella branding, multi-brand architectures are low in risk; an image damage affects only one area and can not weaken the entire company. On the other hand, there are of course no synergy effects. That’s why functional questions arise for corporate design.

Should the companies have the same key color, the same fonts, as a unity?

What should be considered as overarching?

What should be experienced better as separated?

You may also need to keep decisions open until overarching strategic goals are defined?

Brand architecture is the structure of brands within an organizational unit. It is the way in which the brands within an organization’s portfolio are related to and differentiated from each other.

Brand architecture provides clients with an effective strategy for managing their brands in a competitive marketplace.

Types of Brand Architecture

A brand can leverage the trust built by its larger brand or company while entering new markets that are easier to enter because of a stronger sense of brand loyalty. When sub-brands are used in marketing, the results are more powerful. Key product features can be highlighted and focused on when messaging is more targeted. Product options become clearer based on the customer’s needs, making their choice and conversion journey as easy as possible.

The best type of brand architecture for a company depends on a number of factors, including the company’s size, industry, and target market. However, all of these types of brand architecture can be effective if implemented correctly. Here are 5 main types of brand architecture you should know about:

Branded House

In a branded house architecture, the parent brand is dominant and all sub-brands are closely aligned with it. This type of architecture is often used by companies that want to create a strong brand identity and a sense of consistency across all of their products and services. Examples of companies that use a branded house architecture include Apple, Siemens, and Samsung.

Subbrands

A sub-brand is a brand that is part of a larger brand or parent brand. Sub-brands are often created to target specific market segments or to offer new products or services that are different from the parent brand. These sub-brands are all part of the Virgin brand, but have their own unique identities and target different market segments.

Endorsed Brands

In an endorsed brand architecture, the parent brand endorses the sub-brand, but the sub-brand has its own distinct identity. This type of architecture is often used by companies that want to leverage the equity of the parent brand to launch new products or enter new markets. Examples of companies that use an endorsed brand architecture include Coca-Cola, Disney, and Marriott.

House of Brands

In a house of brands architecture, each sub-brand is independent and has its own distinct identity. This type of architecture is often used by companies that want to target different market segments with different brands. Examples of companies that use a house of brands architecture include Procter & Gamble, Unilever, and Johnson & Johnson.

Hybrid Branding

A hybrid brand is a type of brand architecture that combines elements of different schemes. This type of architecture is often used by companies that want to leverage the strengths of several approaches.

Benefits of a well designed brand architecture

Lowered marketing costs

A well-designed brand architecture can significantly reduce your organization’s marketing spend by eliminating the need to launch multiple brands simultaneously.

Increased flexibility for future product and service expansions

Creating a strong foundation from the start ensures that you have room to grow in the future without having to change everything all at once (or risk losing momentum).

Strong stakeholder confidence in the strategic direction of your brand(s)

By clearly communicating what makes each part of your business different, you build trust with customers, investors, and other stakeholders who are essential to your success; they understand why each decision has been made and have confidence that those decisions will continue to move forward, whether they agree with them or not.

Identity is always on the move.

In digital times, brand management and brand architecture require a high degree of flexibility. A rapid response to changing markets, target group attitudes and technological developments should already be possible during the development of the corporate identity.

For Lünstroth CI developers, brand architectures and their implementations in corporate design solutions are dynamic processes. Facing the competitive environment in constant motion the agency takes these market requirements into account by offering constant support.