Brand architecture and brands portfolio: a clarification

Abstract

PurposeThis research aims to clarify the nature of the links between brand architecture and brands portfolio. Although these two themes have been the focus of significant research, the question of a link between the two concepts has not truly been asked; and yet the major role of brands raises the question of brand optimisation and balance at the core of an individual company.Design/methodology/approachAfter having clarified the two concepts by way of synthesising various works, the paper examines the similarities, differences, complementarities and oppositions between these two methods of organising and utilising brands.FindingsThis work shows that brand architecture corresponds, in its essence, to a hierarchical relationship approach between brands; whereas the brands portfolio concept corresponds to a non‐hierarchical method of organising the brands within themselves. The combination of these two approaches allows going beyond the idea of competition at the individual brand level and rather to replace that with a metadimension better suited to reconcile the needs expressed by consumers with organisational logistics and company profitability.Practical implicationsThe research may assist managers in better understanding and controlling brand regrouping because the research illustrates some benefits for a company that executes well‐coordinated multi‐brand management.Originality/valueThe discussion distinguishes clearly the concept of brand architecture from the one of brand portfolio and shows their contribution to a stronger link between marketing and strategy.