Why you need to understand brand hierarchy
Brand hierarchy refers to the structured organization of a company's brands. From the corporate brand down to each of its offerings’ brands. It can help potential customers better understand what you offer, and identify why it is valuable to them. Plus it can make it easier for you to introduce new offerings and much more.
What it looks like
At its core, brand hierarchy is a strategic framework that arranges a company's products, sub-brands, and extensions in a structured and logical manner. It helps in establishing the relationships between them in a way that customers can easily comprehend. A brand hierarchy typically comprises three main levels: the corporate brand, the product brand categories, and individual product brands.
Corporate brand – The highest level, representing the overall identity and reputation of the company itself.
Product brand categories – This level groups together products that share certain commonalities
Individual product brands – These are the specific products or services offered by the company, with their unique features and benefits.
What a solid brand hierarchy can do for you
At its core, a brand hierarchy quickly helps those you hope to serve understand who you are, what you offer, and why all of it might be important to them.
It can help you make sense to your customers
When you have a well-conceived brand hierarchy, it becomes easier for you to brand your offerings in a way that distinguishes each while demonstrating the connection back to the master or corporate brand. This eliminates any cognitive dissonance that can cause confused customers to simply give up trying to understand why they should care about your brand(s).
It can help you lend your brand equity
Brand equity refers to the intangible value a brand holds in the minds of its customers and prospects. Let’s say that one of your offerings is well-regarded. That offering is one that has brand equity. In other words, people recognize it and associate positive qualities with it.
With a great brand hierarchy, you can lend that brand equity to a lesser-known offering of yours. After all, your brand hierarchy allows you to design and communicate your offerings in a way that shows their interconnectedness. As a result, potential customers would see your lesser-known offering, recognize its relation to your well-known offering, and immediately have a level of trust in and positive feelings about your lesser-known offering.
It increases your chances of improving your brand recognition
Again, your brand hierarchy allows you to design and communicate your offerings in a way that shows their interconnectedness. Each of your offerings isn’t trying to build recognition on its own. With each demonstrating a connection to your entire brand offering, you build brand awareness faster.
It helps you successfully launch new offerings
With a well-defined brand hierarchy, it’s easier to launch new offerings. You will know how the new offering needs to fit (what product brand category it falls into). Plus, it becomes easier to understand how it needs to be portrayed and messaged.
Moreover, customers will see the connection and associate all the good feelings they have about your existing offerings with this new one (there’s that brand equity thing).
An example of brand hierarchy
Okay, we’ve talked a lot of theory. Let’s look at something a little more concrete to get a better handle on this thing called brand hierarchy.
Consider an example of a well-structured brand hierarchy for a fictional outdoor apparel company called "Big Audacious Meaning Apparel". Here is how the hierarchy breaks out.
Corporate brand – Big Audacious Meaning
At the top of the hierarchy, we have the corporate brand, "Big Audacious Meaning". This level represents the overall purpose, identity, vision, and reputation of the company. It communicates the company's commitment to providing high-quality outdoor apparel and gear that helps people explore their connection to our world.
Product brand categories
Big Audacious Meaning Outdoors – Under the corporate brand, we have the product brand category "Big Audacious Meaning Outdoors”. This brand category encompasses a range of outdoor apparel and equipment designed for various outdoor activities, such as hiking, camping, and trekking. It focuses on performance, durability, and functionality while also tying back to the company’s purpose of helping people explore their connection to our world.
Big Audacious Meaning Active – Another product brand category within the hierarchy is "Big Audacious Meaning Active." This brand caters to individuals who engage in sports and physical activities. It offers athletic wear, sport-specific clothing, and accessories designed to enhance performance. Again, it also ties to the purpose of helping people explore their connection to our world.
Individual product brand examples
Big Audacious Meaning Hiking Boots – As part of the "Big Audacious Meaning Outdoors" product brand category, "Big Audacious Meaning Hiking Boots" is an individual product brand that specializes in premium, durable, and comfortable hiking boots for outdoor enthusiasts. It also emphasizes the brand’s purpose.
Big Audacious Meaning Running Apparel – As part of the "Big Audacious Meaning Active" product brand category, "Big Audacious Meaning Active" focuses on designing top-notch running apparel and accessories for fitness enthusiasts and athletes. It also makes a point to connect back to the brand’s purpose.
With this example, you can see how the brand hierarchy of “Big Audacious Meaning” enables the company to effectively cater to different customer segments while maintaining a cohesive brand identity. Furthermore, it’s easy to imagine how the hierarchy allows for seamless brand storytelling, resource optimization, and sustained customer loyalty.
By crafting a thoughtful brand hierarchy, businesses can create invaluable clarity for each of their offerings while building an interconnectedness between all their brands. That can help foster trust and loyalty among customers and prospects, help brands build that coveted brand equity, and help launch successful new offerings.