Brand architecture: The dynamic enabler businesses need to power growth.
Although perceived as an incredibly dry, dull term, a robust brand architecture system is the lifeblood of any business. Revealing how brands within a portfolio relate to one another, it highlights where they may be issues around cannibalisation, inefficiencies in marketing and communications, and where it makes sense to invest in the portfolio and where to stop.
Often, these questions are the reality for many firms post M&A.
But unnecessary complexities often come into play. Conversations surrounding brand architecture have consisted of conflicting and unbalanced rationales when trying to define what it actually is. Hearing business leaders, agencies and marketeers express their “expert” opinion, only to muddy the waters with pseudo-intricacy.
“It’s a site navigation”. “An organisational chart”. “It forms the structure of our visual identity”.
It’s no wonder some get lost in the haze when seeking clarification on the role and purpose of brand architecture.
At Tammaro & Partners, we see brand architecture as the critical tool for good business management — a dynamic enabler that not only drives ease of portfolio navigation, but aligns the strategies to support future visions and exponentially power growth.
Traditional approaches to brand architecture, focus on organising portfolios in service of masterbrand acknowledgement. Naturally, this helps inform naming and narrative principles, alongside visual identities. Well as great as that sounds, we encounter limitations that end up in the production of a static document that overlooks key elements like experience, product and service innovation, and design system implications.
Most importantly, this approach doesn’t answer the critical questions businesses are facing in todays modern world.
⁃ Is the story behind each of entity clear and compelling?
⁃ How do you partner with other brands?
- How do you design your brands, products, services and experiences?
- Where do you prioritise innovation and investment?
- How do you talk about multiple brands together?
- What’s your future look like?
It should also be guiding businesses towards criteria for recruitment, the approach towards future acquisitions and working practices.
We’ve highlighted the four critical things that a future-focused brand architecture strategy needs to facilitate and become that dynamic enabler businesses need.
1. Inform your go-to-market strategies, not just the swim lanes
Instead of just organising brands beneath a parent, the usefulness of a brand architecture system comes from clarifying how value is transferred throughout the portfolio and how end customers would engage with different entities.
- Are you focusing on the right entities?
- Is your story clear?
- Is your workforce clear on what you are trying to achieve?
2. Inform verbal and product design, not just logos
Beyond organising and distinguishing sub-brands, the architecture should provide the strategic foundation for verbal and visual design across the portfolio. This is where the unbranded strategic principles play a fundamental role in brand architecture systems as they provide the guidance towards bringing brands, products, services and experiences to life.
- Are you clear on how your portfolio is segmented?
- Are you entities playing the right role within your portfolio?
3. Prioritise future innovation, not just rationalise today’s categories
Rather than capturing point-in-time value, the brand architecture should serve as a filter for future product and service development, remaining strategically linked to the business strategy and brand differentiators.
- Are you clear on where to invest?
- Are you clear on where your big opportunities lie?
4. Spearhead your partnerships, not just proprietary brands
Rather than creating multiple different brands for different industries and diluting brand equity, an architecture can help inform how to use an ingredient brand to flexibly partner across those industries.
- Does your portfolio need to be streamlined?
- Are you offerings diluting your corporate or flagship brand/s?
- Are you clear on where your partnership opportunities lie?
Conclusion
Our partnerships with the likes of Amman Minerals, E.On and Morgan Stanley has demonstrated that well-optimised brand, product or service portfolio’s are a game-changer for business and significantly impacts financial performance.
By strategically aligning offerings to cater to various customer needs or segments, businesses can diversify and expand revenue streams, while also efficiently allocating resources to minimise wastage and boost profitability.
A healthy portfolio strengthens the impact a brand can have as a business asset. When a business curates its portfolio with care, it can sharpen its brand’s positioning and messaging — fostering deeper connections with the target audience, leading to increased customer loyalty, heightened brand equity and a more commanding presence in the market.
Lastly, a well-structured portfolio enhances business agility. It enables quick responses to changing market dynamics and consumer preferences. This adaptability provides a competitive edge, allowing businesses to stay ahead of industry disruptions and emerging trends, ensuring they not only survive, but thrive.
Is your brand architecture strategy fit for today’s modern business landscape?
Contact us for an initial conversation on how we can help you power business growth.