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Brand Architecture: It's the system, what counts.
Enterprises are growing. They integrate smaller (or bigger) different companies and expand to other markets, segments and even cultures.
A well structured brand architecture brings transparency not only for external views but also for employees and potentials.
Strength of brand becomes more important than size of company. Industrial age and its brand life cycles demand flexibility from brand strategy and architecture. Some decades ago an enterprise could be sure that product portfolio and brand aura are two sides of a medal and remain in their statuses for longer periods. Today fast reaction in changing markets, target group behavior and technological developments is required.
Exemplary brand architectures are rare; one can find them only in literature. Mergers and acquisitions led to market- and history driven mixed brand architectures, which do not fit to academic models.
Brand System Changes: a tightrope walk
Driven by pressure for innovation the danger of brand erosion is increasing; danger of disuse of synergetic effects is shrinking dramatically instead. Line extensions even in the field of corporate brands are first steps to a powerful future. Luenstroth Brand Consultants see brand architecture as a dynamic process: The architecture should be flexible to make best use of the brand dominance but avoid erosion of brand assets.