Brand Architecture Analysis, Recommendations on Brand Portfolio Optimization
The term ‘brand architecture’ refers to a system of relations between trademarks in a company’s portfolio. Trademarks complement each other and support the company’s positioning.
There are two main types of brand architecture:
- House of Brands: one company owns many trademarks, and the target audience is unaware that different brands have one owner.
- Branded House: all products are marketed under one brand.
Brand architecture should provide answers to the following questions:
- Are all trademarks profitable for the company?
- Do brand architecture elements meet positioning?
The main trademarks in the portfolio are called strategic ones and generate the biggest share of income. Some brands work as coverage to avoid competition in adjacent segments. A company can also support trademarks that do not play a clear role in its positioning but do not contradict it either.