Decisions regarding how to structure brands within a portfolio can have a significant impact on consumer perception and the long-term success of the brand. In this article, we aim to explain the different models of brand architectures, examining their advantages and disadvantages, and offering practical advice on how to choose the most suitable brand system for a portfolio of products or services.

1. Monolithic Portfolios

The single brand, also known as corporate or monolithic brand, is one in which all products or services are marketed under a single brand name. A prominent example of this model is Fedex, which offers a wide range of services, all under the same brand.

Advantages:

  • Consistency and clarity in brand communication.
  • Strengthening of brand image and recognition.
  • Simplification of brand management and promotion. Synergies.

Disadvantages:

  • Lack of differentiation between products or services.
  • Risk of damaging the brand’s reputation if one of the products or services fails.
  • Possible limitation in expanding into new markets or segments.

 

2. Subbrands and Endorsed Brands

In this model, a parent brand covers a variety of products or services that may be different from each other. An example is Nestlé, which encompasses brands like Nescafé, KitKat, and Purina under its umbrella.

Advantages:

  • Leveraging existing brand value to introduce new products.
  • Flexibility to diversify the product portfolio. Greater value transfer in both directions.
  • Economies of scale in marketing and advertising.

Disadvantages:

  • Similar business units cannot have brands, as it generates contradictions and destabilizes the overall structure.
  • Risk of consumer confusion about the relationship between products and the parent brand.
  • Risk of damaging the brand’s reputation if one of the subbrands or endorsed brands fails.

 

3. Independent Brands

In this approach, each product or product line has its own independent brand. An example is Procter & Gamble, which markets brands like Dodot, Evax, and Gillette.

Advantages:

  • Clear positioning and differentiation of each product.
  • Adaptability to different market segments and consumer needs.
  • Greater flexibility to adjust marketing strategies for each product.

Disadvantages:

  • Need for greater resources and marketing efforts to build brand equity for each product.
  • No value transfer occurs between different levels of the same portfolio.
  • Difficulty in maintaining brand consistency across the entire product portfolio.

 

Some tips to consider when choosing the most suitable brand system for your portfolio:

  • Know your audience and understand their preferences and needs.
  • Evaluate the relationship between your products and services and determine if there is a natural coherence between them.
  • Consider your long-term business objectives and how brand architecture can support them.
  • Conduct a competitive analysis to understand how other brands in your industry are structuring their brands.
  • Do not be afraid to adapt your brand architecture as your products, services, and target market evolve.

 

At DinamarKa, we understand the importance of a strong brand architecture to build and maintain a coherent and effective corporate identity. Through a customer-centric and creative approach, we collaborate with each client to develop brand strategies that reflect their unique values and objectives. We are always committed to finding the right brand system that drives the growth and long-term success of our clients.

And remember: The key to any brand architecture lies in the value of differentiation.