By M. Isi Eromosele

There is no one-size-fits-all model for brand architecture. It is important to build a customized framework based on a flexible model.

Brands that build strong relationships with their customers are rewarded with higher sales, profits and value over time. The value of the strongest brands continues to rise. Brands that demonstrate their transparency, integrity and authenticity will continue to build successful long-term relationships with their customers.

The economic downturn has changed spending behavior and customers are increasingly more opinionated, savvy and connected. As a result, it has become more important to get your brand architecture and portfolio management right.

Brand architecture can typically be described as the branding framework that organizes and explains the nature and strategic relationships of each of your brands, working hand-in-hand with your portfolio management.

Ultimately, both your architecture and portfolio influence how stakeholders relate and interact with your company's products and services. Getting it right or wrong affects the financial value of customer relationships.

Traditional Brand Architecture Models

Traditional thinking about architecture is based on four well-documented models. These outline the way different stakeholders experience and interact with the brand. The immediate questions and the starting point for these models are still relevant today:

'Who is your Audience?' 'How does it differ across the breadth and depth of your portfolio?'

The most straightforward, cost-effective way to manage your brand architecture is the monolithic model. This can be applied when the portfolio of products and services are broadly in line with the overall brand proposition.

What happens when a strong brand creates another strong brand, such as with Apple and iPod? This would be described as a sub-brand. Apple remains as the parent brand, with its innovative and pioneering values, while iPod contributes coolness and mobility to Apple's equities and both brands benefit from the relationship.

Another great example is presented by Unilever endorsing the Dove brand. Dove has a distinct and unique personality on its own that benefits from a reassuring seal from its parent brand. By stating its relationship with Unilever, a worldwide trusted brand, Dove builds on its quality and source expectations, strengthening its position in the market.

Managing a wide number of brands is no simple task and needs a sophisticated marketing function to make it successful. Brand architecture goes beyond the visual/graphic naming relationship of brands and sub-brands. It is about the overall experience created for your customer segments.

One Size Does Not Fit All

Some brands, such as HSBC and P&G, can apply the one brand architecture model, but increasingly, complex brand portfolios and diverse audiences mean this is becoming more difficult.

Many brands need to adopt hybrid models to remain globally relevant. Presence in different categories, channels (e.g. the internet) or countries require a different approach to brand architecture.

Nestlé uses a range of approaches, from a Nestlé named product through to Nespresso     and the endorsed KitKat brand. Today’s customers are more informed than ever. This means that any approach has to be carefully considered. If you don't signal a connection overtly between brands in your portfolio, customers can make that link by themselves.

Brand Architecture Designed From The Outside In

Today, many companies have a huge amount of information on their customer segments, needs and motivations. The ability to gather information is becoming easier through the use of specialized and customized applications.

Therefore, a company's brand architecture can start to reflect this information by becoming even more refined to the relevant needs and groups. The Audi proposition is very carefully signposted for customers, using disciplined and effective brand architecture throughout the range.

Implementing Effective Global Brand Architecture

Ultimately, brand architecture is about organizing the relationships between your brands and customers to reach your business objectives. Here are some effective approaches to help manage the direction of your brand portfolio:

Brands build value by creating strong bonds with their customers. In today's changing market, those brands that demonstrate transparency, integrity and authenticity are most likely to succeed in building these relationships.

Brand architecture is increasingly important because it is the external representation of how your brands interrelate. Customers are able to make connections to other areas of your portfolio without you necessarily telling them, so it is important to consider how you want this to be perceived.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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