Branded House vs. House of Brands: Why brand strategists and residential architects are asking themselves similar questions

Have you ever furnished an apartment or even built a house and perhaps asked yourself the following questions — Should all rooms follow the same style, with uniform colours, furnishings and design? This creates a uniform appearance and gives visitors orientation as to which house they are in and what atmosphere they can expect. Or should every room have a design that corresponds to its function, in which, for example, the kitchen is modern and minimalistic, while the living room is more of a classic, cozy style? As a result, visitors would experience a new atmosphere in every room, which can be specifically tailored to the respective function. Or is a mixed form the best solution? Should a part of the house, such as an open living and dining area, be harmoniously designed and blend into one another, while other rooms, such as the bedroom are deliberately designed differently and individually? These decisions are similar to the considerations in brand architecture; should everything be combined and presented uniformly under one umbrella brand, or would a differentiated approach be better, in which individual brands can develop their own identity and appearance?

Basically, there are two main forms of brand architecture, as well as any hybrid forms between these two. On one side of the spectrum, there is the “Branded House”, which offers all products or services under a uniform brand umbrella and a consistent identity. A well-known example is Apple, where all products, from iPhones to MacBooks, speak the same visual and communicative language and bear the same branding. The aim is to maximise the strength and recognition value of the umbrella brand.

On the other hand, there is the “House of Brands”, in which each brand acts independently and individually. Procter & Gamble is an example of this model, as every brand in the portfolio, such as Pampers or Gillette, has its own identity and market position.

In between, there are any hybrid forms of the two, in which the various elements of the brand presence (imagery, colour, typography, wording, etc.) can be combined. One example of this is Coca-Cola, which both markets products under the strong Coca-Cola brand and offers independent brands such as Fanta or Sprite.

We recently conducted a brand study for one of our clients to discuss the various arguments behind the respective decisions. Unlike a house, brand architecture is rarely built on green fields. These are often existing brands that need to be modernised or expanded. It is, therefore, more about redesigning existing “rooms” or incorporating new “extensions.”

We would be happy to share with you a few insights on what, according to our experts, must be considered when making adjustments to brand architecture:

Involvement of employees:

• An internal launch of the new brand is crucial so that all employees understand the content and consistently communicate it to the outside world.
• Use the momentum created by the change as a signal to increase employee motivation and identification

Supportive communication:

• Communication must be consistent across all channels. Incongruent messages can create confusion and weaken brand image.
• Consistency in communication promotes consumer trust and strengthens brand credibility.
• Conveying the values and content of the desired (new) positioning (e.g. through campaigns with emotional stories)

Consistency across the entire customer journey:

• Consistent implementation of the new presence along all touchpoints (such as app, stores, advertising, customer service, personal consultation) to strengthen the “new” customer experience

Bonus tip:

• The attention generated in various types of media by the change process can be exploited to place strategic brand messages.

The considerations when designing a home and brand architecture are at least similar. Whether it is about harmoniously coordinating spaces or clearly separating brand identities — both require strategic decisions that shape how people experience the space or the brand in the long term. Regardless of the chosen strategy, the key to success lies in its implementation.

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