How do you create and manage a brand portfolio and architecture?

A Brand Portfolio's goal is to showcase the different nuisances or shades of multiple brands that are apart of a larger Brand Umbrella. For example: The Coca-Cola Company (Master Brand) is the umbrella under brands you know and love including Sprite, Fanta, PowerAid, MinuteMaid, Simply Beverages and more. An example of Brand architecture that is monolithic is FedEx. They have one logo regardless of the different services and products that they provide (Freight, Ground, etc..) Another example is pluralistic which can be seen in "Yum Brands." Yum Brands is not easily recognizable but you would recognize the brands that they know including Pizza Hut, Taco Bell, & KFC.

A portfolio of brands occurs when a company introduces multiple brands into the market. It's important to clarify that having various products doesn't necessarily equate to having distinct brands. A product becomes a brand, when it has a unique identity, a separate personality and different audience and go-to-market strategy than its parent brand. Efficiently managing a brand portfolio involves structuring and understanding the relationships between the brands in the portfolio = brand architecture. It helps companies clarify how their brands interconnect and enables consumers to comprehend the connections between these brands. I like to talk about branded house or house of brands (and hybrid structures in between)

Adding to the definition: a well-designed brand portfolio helps a company effectively manage its different brands and sub-brands in support of its product portfolio and business strategy and promote them in a clear and consistent way. A well-designed brand architecture is aligned with the company’s vision and business strategy and provides strategic direction for the brand portfolio, specifically with regards to deciding when to invest in new brands, the naming and branding of new products and services and collaborations with partners.

Brand architecture has also come to mean much more than is suggested here, and can refer to the strategy, tone, communications and energetics of a brand, and how these key elements fit together. “Brand architecture” is fast becoming a buzz word in its own right for people who want to convey more than pure “brand strategy”.

A brand portfolio encompasses all the brands owned and managed by a company. It includes the main brand, sub-brands, and possibly even co-brands. Brand architecture, on the other hand, refers to the structure and relationship between these brands within the portfolio. It outlines how they interact and relate to each other, whether it's through hierarchical levels, product categories, or market segments.

A brand architecture shapes a company's ability to effectively communicate with and appeal to its target markets. It can take various shapes. In some cases, consolidation might be the objective to maximum impact and in others maintaining multiple brands is better to cater to diverse audiences. The way to approach brand architecture depends of the objectives, GTMs, budgets available but also of the background of the company. In a "house of brands" approach (think Procter and Gamble) the parent brand matters less to end-users, while in a "branded house" strategy (think Apple) the parent brand gives credibility and weight to its entire portfolio.

They both are important because they allow clear, advertising channels which brands can market to their audiences. The best brand portfolios house multiple different archetypes that resemble human character traits. A few of these human traits are the Explorer, Sage, Lover, Ruler, and more. When a brand's archetype is clear, then all of the marketing efforts can be aligned to their target audiences desires, goals, and wants. The problems of the target audience now can be solved by the solutions each brand provides, creating a very aligned market fit and in turn more profit for the brand. Without having clear descriptions and characteristics, marketing efforts can be jumbled and loose effectiveness.

The brand architecture and brand portfolio strategy provide the foundation for how customers navigate the company's offerings and how the company makes decisions around new launches and investment in strategic brands and initiatives. Without a sound portfolio strategy that is shared and understood by key stakeholders across the company, the company faces a several brand risks and practical hurdles affecting competitiveness. These include the misalignment of business unit goals and overarching brand strategy, inefficient and time-consuming integration of acquired brands. investments in sub-brands failing to deliver the anticipated value and subtle portfolio creep. As AI is reshaping branding, a clear portfolio strategy is paramount.

Clear brand portfolio and architecture provide several benefits: 1- Clarity and Consistency: It ensures that each brand's positioning and messaging align with the overall company strategy, avoiding confusion among consumers. 2- Efficiency in Resource Allocation: With a structured portfolio, resources can be allocated more efficiently based on the strategic importance of each brand. 3- Maximized Market Coverage: A well-designed architecture allows for better targeting of diverse consumer segments without cannibalizing sales.

This varies a lot depending how the company created its portfolio - mostly though organic growth, new product development or through acquisitions for example. It always starts with clear business goals - and how the portfolio can beat serve the business strategy. Then market research is essential to understand the awareness and perception of the brands in the portfolio - do they appeal to various audiences, are they clearly differentiated, so they have distinct GTM strategies?

1- Define Business Objectives: Start by aligning the brand strategy with the overall business objectives. Understand the target market, competitive landscape, and long-term goals. 2- Analyze Current Portfolio: Conduct a thorough analysis of the existing brands within the portfolio, evaluating their strengths, weaknesses, and market positions. 3- Segmentation and Positioning: Segment the market based on consumer needs, preferences, and behaviors. Develop a clear positioning strategy for each brand, ensuring differentiation and relevance. 4- Design Architecture: Choose an appropriate brand architecture model (e.g., branded house, house of brands, endorsed brands) based on the business objectives and portfolio characteristics.

Key strategies to optimise brand portfolio strategy include: 1) Visualize your brand architecture: Make it easy for all employees to access and view your complete portfolio. 2) Facilitate brand portfolio strategy governance and adoption. The most effective way to do this is to embed the strategy into company workflows. 3) Foster collaboration and knowledge sharing. Invest in a platform that makes it intuitive and immediate 4) Track usage patterns and frequency and get clarity around any weaknesses 5) Develop a process for quick decision-making, transparency, dual buy-in to efficiently integrate acquired brands 6) Smartly plan for new brands - invest in processes that facilitate the identification of brand opportunities and diversification.

It shouldn't be a one-set-and-done deal. Regular research and evolution might be necessary. The brand architecture should be monitored, and companies should be ready to evolve it if needed.

1- Maintain Consistency: Ensure consistency in branding elements such as logos, colors, and messaging across all brands within the portfolio to build brand equity and consumer trust. 2- Flexibility for Growth: Design the architecture with flexibility to accommodate future expansions, acquisitions, or changes in market dynamics. 3- Regular Review and Optimization: Continuously monitor the performance of each brand and adapt the portfolio and architecture accordingly to capitalize on emerging opportunities and address challenges.

Actionable steps to create a strong and effective Brand Portfolio and Architecture: 1. You want to either look at your strategy to see how effective it is or a brand strategy that is very effective. Research and understand why it is effective and what elements you can embody in your current business. 2. Align a model that will work with your current budget. If you are starting out, you may want to focus on a brand model that allows for easy production and repetitive marketing. This means to have a product that does not have as many product lines. Focus on one or two first. 3. Then create a blueprint for your brand. Create a step by step model from Producing Content to someone Purchasing your product and sharing it with others.

> Conduct a comprehensive audit of your brand portfolio annually to assess its relevance and alignment with business objectives. > Regularly review market trends and consumer insights to anticipate changes in consumer preferences and adjust the portfolio accordingly. > Prioritize brand investments based on their strategic importance and growth potential within the portfolio.