In creating a brand it is good to define your business, its market positioning and the offer of products and services in its entirety in a structural and hierarchical manner.
Or what is the optimal hierarchical organization with which a company can offer itself and its products to the public? To answer we will rely on branding models (brand architecture ).
Thanks to the branding models, in fact, it is possible to clearly state the ways in which a company, a group of companies or a set of products, present themselves to the market and to consumers: a real strategic analysis on what will be the ‘architecture company in its different forms and identities (hence the term brand architecture).
In practice a brand architecture strategy can come into play for example when a brand decides to launch a new product or service on the market. How will this news be positioned and what will be its relationship with the parent company?Would it be better to present it as a line extension or with a new brand? The brand architecture helps to rationalize the issue ; to shed light on the relationships between the different corporate identities; to explain the positioning of the various souls; to optimize the distribution of resources between different sectors and give credibility to the various entities with respect to the parent company.
To hierarchically order the totality of the offer of a business in a correct manner, 3 branding models are used :
- Monolithic Model
- Multiple Model
- Derived Model
The monolithic model is chosen by companies that decide to put themselves on the market with a single brand , both for future offers and for very different product sectors. In this case, the logo or logotype remains the same as the parent company, which is accompanied by a descriptor of the business area.
The advantage of the monolithic model is that of being able to count on the financial , value , image and notoriety of the parent company, which it can easily transmit to all offers and related companies. However, a monolithic architecture also has considerable disadvantages : first of all the difficulty for the consumer to perceive and correctly position the new productor service. This occurs above all in the case in which the various sectors of specialization are very distant from the sector for which the parent company is historically known. Another disadvantage is determined, in the case of a bankruptcy product, from the possible damage to the image that could indiscriminately invest the entire organization.
The multiple model is the exact conceptual and organizational opposite of the Monolithic model. Multi-model companies make use of completely different brands for each of their companies or offering segments . The choice certainly protects against the risk of generalized image damage and helps the consumer to better perceive and place the individual offers. On the other hand, the greater effort needed to promote a new brand is evident, not only from the financial and distribution point of view, but also from the point of view of value characterization.
The derived model stands as a valid cross between the first two. In the derivative model the different entities, always accompanied by the logo or the name of the parent company, retain a certain identifying autonomy. The result is that of being able to differentiate fairly effectively the different offers, without ever leaving the link with the set of values of the reference brand, which thus assumes a function of guarantee and promotion towards the related entities .