What are the most effective brand architecture models for managing a large portfolio?

One prominent example of House of brands is Proctor & Gamble (P&G) company. Some well-known brands in the P&G portfolio include - Whisper, Tide, Oral-B, Gillette, and more. Each of these brands operates independently, with its own marketing, advertising, and product development teams. They target different customer segments and have their unique brand stories. This allows P&G to effectively manage a diverse range of products under its corporate umbrella while catering to various consumer needs and preferences.

Today, personal brands are a new model of “House of Brands”. Creators are building ecosystems around their personality. A good but controversial example is … Elon Musk ?? ?

managing house of Brands itself is a heavy responsibility and requires a team of seasoned experienced professionals into the in dusty because you serve different age groups and different income segments, your perspective to see the market should be broad and the main goal of House of Brands is to acquire a market share.

the branded house brand architecture model offers distinct advantages and disadvantages. On the positive side, it allows the parent company to harness the equity and recognition of its master brand across its entire portfolio. This consistency can build trust and credibility with consumers, as they associate the sub-brands or products with the reputable parent brand. It simplifies marketing and communication efforts, streamlining messaging and creating a unified image in the market.

In my view, the hybrid brand architecture model offers a valuable middle ground, allowing companies to leverage the strengths of both the house of brands and the branded house models. By endorsing some sub-brands or products with the master brand while allowing others to maintain independent identities, a company can strike a balance between consistency and flexibility. This approach is particularly beneficial in dynamic markets where innovation and adaptation are essential. It allows a company to capture the equity of the master brand when needed, providing credibility and recognition to new offerings.

there is no universal brand architecture model that suits every organization. The choice of brand architecture should be a carefully considered strategic decision, influenced by a range of factors specific to the company's context and goals. Business objectives play a pivotal role. Companies aiming for brand dominance and seeking to build a strong, unified image may lean toward a branded house model. In contrast, those with diverse product lines or a need for innovation may opt for a house of brands or a hybrid approach.

ITC Limited, an Indian conglomerate, is a prime example of a house of brands. Established in 1910 as the Imperial Tobacco Company, ITC has evolved into a diversified conglomerate spanning various industries, including consumer goods, hotels, agriculture, paperboards, and information technology. The company's journey into diverse sectors began in the 1970s, driven by its aspiration to reduce dependence on its tobacco business. ITC's foray into FMCG (Fast-Moving Consumer Goods) is one of its most prominent successes. The company introduced brands like "Classmate" (stationery), "Aashirvaad" (flour), "Bingo!" (snack foods), and "Fiama Di Wills" (personal care), among others.