Search

Which Branding Strategy is Right for You?


As many businesses operate in oversaturated markets, companies must evolve to maintain their distinctive status as a trusted brand. Branding architecture can assist in solidifying a deeper connection with any consumer. Change is critical in this current climate, so it is important to weigh up which strategy is right when examining your business's next course of action.


Any branding transformation should revolve around consumers. So, what do they look for in a brand?


"86 percent of consumers say authenticity is important when deciding what brands they like and support" (Stackla)

Therefore, it is important to analyse the pros and cons of the two main modes of thinking to preserve brand equity when choosing a branding strategy. The question is, which house should your business reside in, the House of Brands or the Branded House?


House of Brands Strategy


This approach is appropriate for a brand that is well-established in the hearts of consumers. It is a tactic that offers a home to numerous brands that are not interlinked. Each brand maintains its own entity, including their own target audience and how they market themselves; they are not dissolved together. This permits each brand to keep its voice, minimises risks, and targets a broader audience.


Proctor & Gamble is a successful example of this strategy. They have many different products that live in their house, ranging from beauty (Olay), grooming (Gillette), baby (Pampers), and even health care (Metamucil).


This strategy is not without pitfalls. Maintaining a brand reputation is a complex undertaking, and managing numerous brands can be costly. In addition, it can create confusion as to who the leading company is, its true identity, and what they stand for.


Nonetheless, having multiple brands under one house is a great way to offer a presence across different markets and may be a good option to consider especially if your brand targets consumers (B2C).


Branded House Strategy


The other approach is the Branded House strategy, which maintains the integrity of any brand by standing alone and strong. All resources are pooled into one, which can make marketing easier. The connection between sub-brands allows for a more integrated marketing approach and cross-referencing between products.


Virgin is a prime example of this strategy. Virgin is the overarching brand and consists of numerous sub-brands, including Virgin Airlines, Virgin Mobile, Virgin Records, and recently Virgin Galactic, etc.


This strategy also has its downfalls. First, it can be difficult to gain or entice new audiences / clientele loyal to other brands. Second, your reputation is on the line; it can be risky business when all eggs are placed in one basket. Finally, the task of keeping a single unique identity across all sub-brands may become challenging at times and may seem repetitive.


Nevertheless, this Branding strategy provides efficiency and strength by having all products under one roof.


Increasing your brand portfolio


If you are looking at increasing your brand portfolio and unsure which brand strategy will suit your business, contact an expert branding specialist before taking any action such as undertaking logo redesign and marketing collateral refresh.


We can help you discover how to leverage your business and which house to make your

home.


14 views0 comments