Brand architecture is a strategic tool in value creation. Thanks to it, it is possible to organize the business in such a way that audiences better understand the offer, also facilitating engagement with the brand.

Let us understand here the concept of value generation as the net effect of that initiative that allows the value obtained by the initiative to be greater than the cost of achieving it.

The Best Brand Architecture Model

Today, new forces have emerged that have changed the way citizens connect with brands. Undoubtedly, the main one is the technology that has made it possible to know more about brands and streamline decision-making and purchasing processes. The big consequence of this is that brands need to communicate more simply, so that their audiences better understand what value the brand brings to them.

This scenario would lead us to think that a brand architecture that is capable of enhancing the role of the corporate brand in all its product categories could benefit. But the truth is that there is no ideal model, and the architecture model that best suits the business will be the best.

Moments to Develop Brand Architecture

It is never too late for a company to reconsider how its brand architecture should evolve, according to how the business itself may have evolved. There are several situations that impact the organization of brands:

  • Organic growth: Businesses grow, creating divisions, business units, product lines, and anything else that adds complexity and confusion, both internally and externally.
  • Mergers and acquisitions: Increase business capabilities based on combination and acquisition models of other companies, as well as other assets.
  • Market segmentation: When the brand needs diversification into specific niches that require specific value propositions.
  • International expansion: The business is developed towards other geographies with different market characteristics.

More than obstacles along the way, these are opportunities to project the business with a new lens that allows you to focus on new levels of interest and generate greater returns, not only helping to better understand the business, but also strengthening confidence in a Company that evolves and adapts to new realities.

Choosing a Brand Architecture Model

There are different models of brand architecture developed based on how it helps to better express the vision of the business. We deal with them extensively here.

From the monolithic system that focuses all the focus on a single brand, although that makes it difficult for it to enter areas that require greater specialization; to the model of independent brands that benefits from the fact that each brand can have a specific positioning, even if this represents a greater investment in communication; through the different endorsement and hybrid models that combine different architecture models based on different business strategies.

Choosing one or the other will depend on multiple factors in each case, although it is very appropriate to start with a projection from the outside in. That is, first determine who the main target is, prioritize it and try to understand what they want to hear and need to understand to connect with the brand. It is really necessary to make a projection of the business from the point of view of the customers, this often requires external help and specific research to minimize the gap between what the Company believes and the customers think.

Keys to Good Brand Architecture

Evolving towards a brand architecture developed from an external perspective requires a strategy oriented towards the construction of value, defined by the premise that everything that does not add value must be eliminated. It’s a mindset that rewards simplicity. As a general principle, it is true that the simplest brand architecture will be the most efficient solution. This does not necessarily imply the monolithic model, but it is necessary to calibrate that all those brands added or complementary must respect the principle of ensuring that the benefits obtained by maintaining them outweigh the costs derived from it. Each company must find the model that best suits its business.

A good brand architecture strategy will align with the business strategy, engaging the management team and ensuring that customers and employees continue to understand what the Company’s value proposition is. It will be a powerful tool in itself to accelerate business growth, providing value and return.

 

Carlos Puig Falcó

President of Branward®

Photos: Shutterstock


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