The role of brand research in helping define your organisation’s brand architecture strategy

The role of brand research in helping define your organisation’s brand architecture strategy

Monday, 12 October 2020 08:40

Brand architecture remains one of the most complex components of brand strategy.

Throughout traditional B2B business, organic additions to both the product and service portfolio can occur, and these additions can simultaneously (and unwittingly) strengthen and weaken an organisation’s alignment towards its key audiences. They can help customers and clients navigate the scope of a company’s offer, but also undermine their confidence and confuse them, meaning they often then seek out alternatives.

Brand Architecture is the way you organise, manage and present the portfolio of brands that sit within an organisation; much like a family tree. Sounds easy, yet this external summation and presentation of the organisations business strategy is frequently fraught and highly complex. This means it often becomes a challenging and sometimes daunting task for even senior marketers and those in the C suite. As organisations evolve and grow, there are often products and services that are built or acquired that can compete and cannibalise each other, just as there can be products and services that have very little alignment to the overall brand strategy.

As is often the case, specialist advice is required to cohesively, comprehensively, yet succinctly develop a sustainable brand architecture strategy. Especially considering the entire brand portfolio may require realignment, restructuring, reorganising or reinventing. Therefore, the process of developing a concise external-facing brand strategy and understandable navigation for your audiences is a key strategic task and not something that can be half done.

In such a complex and crucial task, without properly understanding the current composition of each brand within a portfolio, the level of risk is significantly heightened. So, what is the most effective tool that can mitigate this risk for B2B organisations?

Deploying well-defined brand research to uncover insights to optimise brand architecture strategy

Brand research is an effective and often underutilised asset that can significantly appease this risk. Powerful and well-articulated brand research will uncover and deliver insights that will help an organisation optimise their brand architecture portfolio.

When considering the most appropriate architecture of the brands, products and services in your organisation, there are several considerations that must be taken into account. These considerations are likely to be intrinsically linked to the brand strategy of your organisation and need to consider not just your current portfolio, but acquisitions or divestments you may make in the future.

By considering the wider brand implications through the brand architecture process, you will be able to build a robust and evidenced approach that has considered the pros and cons of each separate architecture option. These options are detailed below and more regarding these options can be found in our ebooks The Introductory Guide to Brand Research and The Guide to Brand Research for B2B organisations

How many brands are appropriate for your organisation and how strong are they?

What internally may be perceived as strong brands with clear differentiation from each other in the marketplace, may not be equally perceived by target audiences. Brand research is essential to understand the market perceptions and attitudes towards an organisation’s portfolio. Brand research will uncover the role and relevance of each brand within the portfolio from a customer or consumer perspective.

Avoiding market confusion, and blurred lines between each brand within the portfolio from a positioning and value perspective will help organisations avoid cannibalisation within an organisation’s own portfolio. Making a well-informed decision on the most appropriate brand architecture model is critical to successfully drive the business forward.

Types of brand architecture considerations answered through brand research

There are several considerations when determining the appropriate architecture for your organisation. Below are some of the typical questions a well-articulated brand architecture research program will address:

  • How are your brands currently being perceived in the market?
  • Is the market clear or confused by your organisation’s offer?
  • Where does brand equity reside, in the parent or at the product/service level?
  • Is there an opportunity for sunset or divestment of specific brands within the portfolio?
  • Are there any gaps in your portfolio that may satisfy the audience’s needs and wants?

More specifically, when considering longer-term strategic mergers and acquisitions to the product portfolio, brand research can help answer:

  • What is the long-term cost/benefit of the organisation’s current assets, including brand reputation and value?
  • What is the current position, strength and value of each brand in the newly formed organisation’s brand portfolio?
  • Considering what the newly formed organisation looks like, what is the new strategic direction? What are its long-term goals?
  • What are the customer expectations and how will the M&A impact the loyalty of existing customers?
  • How does/do the newly acquired brands fit within the existing architecture?

If your organisation requires answers to the questions such as the ones above, or if the conditions for a brand architecture review are relevant to your business, then that is a decisive indicator that it is time for your organisation to research your portfolio and rethink the brand architecture strategy of the business.

Please feel free to reach out to the Insights and Strategy team at BrandMatters if you have any other questions about brand research and brand portfolio strategy. We have a wealth of experience and case studies and can prescribe a bespoke approach that is suitable and aligned to your organisation’s unique situation.