Brand arhitecture in achieving the optimal brand portfolio

Coherent brand architecture is a key component of the firm's overall marketing strategy as it provides a structure to leverage strong brands in domestic and other markets, assimilate acquired brands, and rationalize the firm's international branding strategy. This paper examines brand architecture as an evolutionary strategy decision making. Brand architecture is the way a company organizes, manages, and markets their brands and achieves optimal brand portfolio. It must be aligned with and support business goals and strategies. Different business strategies require different brand architectures. The two most common types are: “Branded house” architecture – employs a single (master) brand to span a series of offerings that may operate with descriptive sub‐brand names and “House of brands” architecture – each brand is stand‐alone ; the sum of performance of the independent brands is greater than it would be under a master brand. Neither type is better than the other. Coherent brand architecture can lead to impact, clarity, synergy, and leverage rather than market weakness, confusion, waste, and missed opportunities. Brand architecture is an organizing structure of the brand portfolio that specifies brand roles and the nature of relationships between brands. This article introduces a powerful brand architecture tool with intent to help brand architecture strategists employ insight and subtlety to sub brands, endorsed brands, and their alternatives. Sub brands and endorsed brands can play a key role in creating coherent and effective brand architecture. As a case study will be used company from FMCG industry in Croatia.