• 5 min read

🔥 Who's selling your Skippy?

IKYMI, I launched a LinkedIn series explaining in no-BS terms what all the brand jargon means (like brand archetype, brand parity, and brand equity). Why? My fellow industry friends pretend its some mystical etherial thing and frankly... it's not that hard.

Ya'll wanted to go a little deeper into brand architecture (invite me to a dinner party and this is what I'll probably talk about; it's the "organizing your closet" of the brand world) and I am here to de-li-ver.

In my words:

Brand architecture is the system that organizes a company’s portfolio of brands, sub-brands, and products so they make sense to consumers.

Today, I'm going to clarify the models I mentioned—house of brands, branded house, and endorsed brands—and discuss why companies choose one over the other.

House of Brands: Sub-Brands Lead

The parent company acts like a silent benefactor. It owns a portfolio sub-brands that retain their own unique brand identity, target market, and marketing.

Example: Unilever. While the name 'Unilever' might not ring a bell for the average consumer, its sub-brands like Skippy peanut butter and Dove soap certainly do.

A few advantages:

  1. Market Segmentation: It allows companies to target different market segments effectively without diluting the parent brand. For instance, a company can have a budget laundry detergent for the average consumer and a premium version for luxury fabrics, each positioned under different brand names (and at different costs).
  2. Risk Diversification: If one brand faces a PR crisis or a product recall, the damage doesn't necessarily spill over to the other brands under the same parent company. This compartmentalization helps contain potential negative impacts.
  3. Flexibility in Brand Acquisition: Want to sella. brand? Companies can do so at the sub-brand level rather than having to get rid of the whole portfolio or deconstruct the brand.

Branded House: Parent Name Leads

A 'Branded House' is where the parent company’s name is front and center, modified slightly for different sub-brands. This model works best for companies with strong brand equity in the parent name.

Example: FedEx. When they acquired Kinko's, the service was temporarily rebranded as FedEx Kinko's to maintain brand equity, then as FedEx Office once it became well known among consumers that Kinko's was now FedEx.

A few advantages:

  1. Cost Efficiency: Investing in one strong brand reduces marketing costs and can enhance the ability to cross-promote and cross-sell products effectively across different services, like from FedEx Ground to FedEx Freight.
  2. Simplified Consumer Choices: For consumers, this model simplifies decision-making. Choosing FedEx means accessing a suite of services under a single trusted name.

Endorsed Brands: Parent Name Supports Sub-Brand

When the parent name has strong brand equity, it can provide social proof for the sub brands. Think Unilever's model but the sub-brands don't have to work so hard because the parent is their sidekick. This model blends the autonomy of individual brand identities with the strength of the parent brand.

Example: Kellogg’s offers a perfect illustration of an 'endorsed brand' strategy. It owns various sub-brands like Pop-Tarts and Eggo, each marketed independently but with the endorsement of the Kellogg's name.

A few advantages:

  1. Target Market Differentiation: Similar to a house of brands, this model allows for targeting different consumer segments under the umbrella of the parent brand’s equity.
  2. Innovation Safety Net: If a new product fails, it can be discontinued without significant repercussions to the parent brand or its other sub-brands.

Deciding the right brand architecture is more than a mere operational decision; it involves deep strategic planning, market understanding, and a forward-looking approach. Whether it's through mergers, acquisitions, or organic growth, getting it right the first time with the help of an experienced brand strategist can define the future success of your portfolio (ahem, ahem).

Want more hands on brand training? Workshops are free for members Join here.

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Did you miss our session with Tara Fox? Check the event replay here.

📆 AI Essentials

January 23, 4pm ET
Speaker: Mark Briggs

This workshop is for people who want to use AI to get more done but haven't had the time or help to learn what's out there. Learn how to apply new generative AI-powered tools to real-world practices, build your personal AI toolkit, and improve workflows.

📆 Building a Personal Brand

January 28, 4pm ET
Speaker: Brianna Doe

Brianna Doe of Verbatim & current LinkedIn creator with over 240,000 followers will be teaching us the fundamentals of building and monetizing a personal brand.  

What to know this week

🍋‍🟩 Timothée Chalamet pulled up on a Lime bike to his movie premiere for A Complete Unknown in what apparently was not a brand deal, rather a nod to Bob Dylan, the subject of the movie's biopic (he also allegedly got fined €65 for parking it at the event).

⚖️ The Supreme Court heard on the TikTok ban. What's to come? We'll see Sunday. Listen to the preceedings here.

👨‍💼 Severance fan? IKYMI they had what I would call one of the most genius promo stunts in Grand Central last week to promote Season 2. It works because it has star power, feels like the actual show, and appropriately aligns the activation with the corporate dystopia of the series.

đź“ş Episodic content is kicking TF off for 2025 and Raegan Lynch is all the social proof I need to verify my trend prediction. With over 197k followers as of this posting, and only SIX posts on a 1-week-old account, people want TV back - but on social.

🔪 American Psycho still slaps. Not a trend, just rewatched it this week and Christian Bale is a specimen and the story is so well done. There's a reason memes from this film are still hot 25 years later.

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