Every brand has its personality and strengths. A brand architecture allows you to distinguish each small brand from the rest. At the same time, you’re also creating a synergy between each product, service, division, or company under your brand umbrella.
Once you distinguish each brand, so they stand on their own, you can define how these brands work together.
Business Growth and Brand Awareness
Acquiring a company or overseeing a merger? Brand architecture can help streamline the process.
During a merger or acquisition, you will need to determine whether you want to rebrand a company or maintain the original brand.
Does your company have a strong presence in the market and a broad audience? Is the acquired company lacking in these areas? If so, a complete rebrand under the monolithic or endorsed brand architecture could help give the acquired company a much-needed boost in brand awareness.
However, if the acquired company already has a lot of brand equity, the individual brand architecture might be the better fit. If a company already has a strong brand, it doesn’t usually make sense to rebrand it.
Brand architecture allows you to set each company up for success and future growth.
Targeting and Messaging
Brand architecture helps you develop precise messages for different target markets.
The type of architecture you choose can impact your messaging for each of your sub-brands. A company within a monolithic brand architecture will look and sound like the parent organization. In contrast, an “individual” company has a unique brand that may greatly vary from its parent.
Diversification and Clarity
Using the same brand and messaging across multiple industries is not usually a smart strategy. Like a person, each industry has unique needs and preferences.
Brand architecture allows you to step into a new marketplace with a well-positioned brand. As your business grows, you will have the flexibility to offer new products or services and the opportunity to choose which brand elements pass from your existing brands, if any.
Clarifying your brand with a clear message, audience, and position also avoids confusion. Imagine if the company that repairs your AC sent you an ad selling coffee, that would be weird. Using an individual brand architecture setup, the AC repair company can operate separately from the coffee dealer and still have the same parent company.
Once you organize your brand architecture, marketing each sub-brand becomes a lot easier. You can make a clear plan for each and learn where they overlap. Well-documented brand architecture can make developing a marketing strategy more efficient. Which, in turn, can save time, money, and stress for everyone involved.
According to this research, brand quality also enhances shareholder wealth, allowing your company to increase in value and improve your ROI. So, use those brand architecture documents to create better brands.
There are also opportunities for companies to cross-promote. A business with excellent brand equity can be used to endorse another. The endorsement can improve the lesser-known company’s customer base and revenue.