What are some best practices for creating and managing sub-brands within a house of brands?

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Brand architecture is the way a company organizes and presents its products or services to the market. It defines the relationships and roles of the parent brand, sub-brands, and extensions. A house of brands is a type of brand architecture that features multiple distinct and independent brands under one corporate umbrella. This strategy allows for greater flexibility, differentiation, and customer appeal, but also poses some challenges for brand management and consistency. In this article, we will explore some examples of successful house of brands and share some best practices for creating and managing sub-brands within this framework.

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Define clear brand architecture:

Outline the relationship between the master brand and sub-brands. This ensures each sub-brand has a distinct identity while staying aligned with overall corporate values.### *Utilize dedicated social media pages:Create specific social media profiles for each sub-brand. This helps differentiate their unique offerings and engage directly with their target audiences.

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1 Why choose a house of brands?

A house of brands can be a powerful way to leverage the strengths and opportunities of different markets, segments, and niches. By creating and acquiring multiple brands, a company can offer a diverse portfolio of products or services that cater to different customer needs, preferences, and values. A house of brands can also reduce the risk of cannibalization, dilution, or confusion that may arise from extending a single brand too far. Additionally, a house of brands can foster innovation, creativity, and experimentation, as each brand can have its own identity, positioning, and voice.

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Shivani Sharma

Emerging Luxury Brand Marketer | Passionate About High-End Consumer Engagement
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To create and manage sub-brands within a house of brands effectively, start by defining a clear brand architecture that outlines the relationship between the master brand and sub-brands. Tailor messaging for each sub-brand to resonate with its target audience while ensuring alignment with overall brand values. Maintain consistency by adhering to brand guidelines, ensuring quality across all offerings. Leverage shared resources to create efficiencies and enhance brand recognition. Regularly monitor performance through analytics and customer feedback to make informed adjustments. Stay agile to adapt to market changes and utilize cross-promotion to boost visibility.

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2 How to create sub-brands within a house of brands?

Creating sub-brands within a house of brands requires a clear and strategic vision of the purpose, value proposition, and target audience of each brand. A sub-brand should have a distinct name, logo, design, and personality that reflects its core attributes and differentiates it from the parent brand and other sub-brands. A sub-brand should also have a strong and consistent brand identity, story, and message that resonates with its customers and builds trust and loyalty. A sub-brand should be aligned with the overall corporate vision and values, but also have enough autonomy and flexibility to adapt to changing market conditions and customer expectations.

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Erica Swerdlow

Experienced Strategy, Communications and PR Services Professional
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Most importantly, a sub brand should have a story that is memorable and relevant. It can be as simples as how the brand got its name or how the product or service was invented. Most importantly, sub-brands should have a story thread that aligns with the parent brand or other sub-brands within the portfolio. There is usually a good reason - financial, R&D, employees - that a house of brands exist together. Finding ways to align, even if it is only an internal message or story, can build affinity, pride, and opportunity that often translates to a strong reputation by association. (Provided that those companies have strong reputations).

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3 How to manage sub-brands within a house of brands?

Managing sub-brands within a house of brands requires a careful balance between coordination and independence. A company should establish clear and coherent guidelines and policies for brand governance, communication, and collaboration across the sub-brands. A company should also monitor and measure the performance, reputation, and equity of each sub-brand and provide feedback and support as needed. A company should also foster a culture of learning and sharing among the sub-brands, encouraging cross-brand innovation, best practices, and synergies. A company should also respect and celebrate the diversity and uniqueness of each sub-brand and avoid imposing unnecessary or conflicting constraints or expectations.

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Brian S.

Digital Marketing Strategist / Motiongrapher / Video Editor / Website Content Manager
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An example of a sub brand or division is our brand Collins Compressors. It sits within the overall offering of The Collins Companies but it is service and repair and sales driven. To differentiate it we have a Linkedin Showcase page made specifically for that division or brand.

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4 Examples of house of brands

Successful house of brands can be found across different industries and sectors. Unilever, for example, owns and operates over 400 brands, ranging from food and beverages to personal care and household products, such as Dove, Lipton, Ben & Jerry's, Axe, and Knorr. This strategy allows them to appeal to different customer segments, regions, and occasions, while also leveraging their scale, expertise, and resources to drive growth and sustainability. Procter & Gamble, another consumer goods leader, owns and manages over 60 brands, covering categories such as beauty, health, fabric, and home care, such as Tide, Gillette, Pampers, Olay, and Oral-B. Volkswagen Group, an automotive giant, owns and operates 12 brands, each with its own identity, positioning, and customer base, such as Audi, Porsche, Skoda, Lamborghini, and Bugatti. This approach allows them to cover the entire spectrum of the car market, from luxury and sports to mass and budget, while also leveraging their engineering, technology, and design capabilities to create and deliver outstanding vehicles.

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What are some best practices for creating and managing sub-brands within a house of brands?

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4

1 Why choose a house of brands?

2 How to create sub-brands within a house of brands?

3 How to manage sub-brands within a house of brands?

4 Examples of house of brands

Brand Development

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What are some best practices for creating and managing sub-brands within a house of brands?

1

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3

4

1 Why choose a house of brands?

2 How to create sub-brands within a house of brands?

3 How to manage sub-brands within a house of brands?

4 Examples of house of brands

Brand Development

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