A brand hierarchy is the structured organization of brands within a company, and it is a defining feature for a company’s marketing strategy and brand management.
At MKA Insights, we guide clients through the various levels of brand hierarchies. Understanding how a brand hierarchy influences marketing strategies is essential for effective brand communication and market positioning.
Corporate brands sit at the top of any brand hierarchy. This level represents the overarching identity of the entire corporation. Procter & Gamble and LVMH operate at this level, overseeing a range of product brands with varied uses which are united by a house style. Corporate brands represent the face of the company as a whole. Typically, these are concerned with global image and stakeholder relations, including investors, employees, and customers. Corporate branding strategies emphasize values, sustainability, and overall brand ethos. The challenge lies in aligning multiple product lines with a cohesive corporate message.
A master brand is similar to a corporate brand. It serves as the overarching identity for a range of products or services. It’s the main reference point for the consumer, often holds significant brand equity and influences consumer perception of all products or services under its umbrella. Google is a master brand. Products like Google Maps, Google Drive, and Google Chrome all leverage the Google brand’s strong reputation and recognition.
While corporate and master brands share similarities as overarching identities, a master brand is more consumer-facing and directly links to the products or services offered.
Sub-brands are a collection of products or services marketed alongside the master brand.
Sub-brands combine the reputation of the master brand with their unique characteristics, which allows marketers to target niche consumer segments. This also introduces some flexibility in marketing and positioning. For example, Sony PlayStation is a sub-brand of Sony Corporation, targeted specifically at the gaming market. Auto companies like Ford feature recognizable sub-brands, where individual products like the Ford Mustang and Ford F-150 exist as separate entities, building on the reputation of the Ford name.
Sub-brands emphasize consistency in quality and image across all products. They rely on the established reputation of the family brand to market new products. The strength of a brand reputation, however, can be diluted if one product underperforms.
Endorsed brands are similar in that they tap into a master brand’s equity. They do so by referencing the name of the master brand. Typically, an endorsed brand will be linked in the name, such as Disney Presents…, Polo by Ralph Lauren, Virgin Hotels, Vice Munchies or Kellogg’s Cornflakes.
The primary challenge for marketers is maintaining a balance between the parent brand’s identity and the sub-brand or endorsed brand’s distinctiveness. Targeted marketing and specific positioning to specialized users can pay off. However, this likely requires more resources and can lead to a lack of synergy with the corporate brand.
Parent brands and umbrella brands share similar brand architecture but emphasize differences over similarity. Parent brands carry multiple products that don’t share a unified brand identity or compete in the same sector. Unilever’s diverse product portfolio, including Dove, Lipton, and Axe, each have a unique brand identity.
Umbrella brands may even compete among themselves. For instance, The Coca-Cola company has multiple soft drinks under its umbrella, which compete against each other. Similarly, cosmetics conglomerates, such as Estee Lauder, own multiple fragrances and makeup brands that target similar customers.
House brands, also known as private-label brands, are products that a particular retailer markets but a third party manufactures. These brands, exclusive to the retailer’s stores, typically position themselves as cost-effective alternatives to national brands. For example, supermarkets, such as Whole Foods and Trader Joe’s, produce a wide range house-branded grocery and household items. Marketing for house brands tends to focus on value and exclusivity, often competing on price and convenience.
Within the context of brand hierarchies, different types of brands play specific roles. Understanding the nuances of master brands, sub-brands, house brands, and endorsed brands is crucial for effective brand strategy and marketing in diverse environments.
What is a Brand Hierarchy?
