#UcheBriggsTalksBrands: Understanding brand architecture- The Chocolate City Example

by Uche Briggs

From mere commodity to being an essential fabric of society, the trajectories of brands all over the world fascinates me. I hope to share some of the knowledge I have on the subject matter using this column.

Brand Architecture Strategy or Portfolio strategy is a structure by which brands in an organization relate to one another and to the corporate entity. Some schools of thought argue that the Portfolio Strategy is a business strategy and not just a brand strategy. I am inclined to agree. The portfolio strategy transcends marketing, advertising and visual identity. A plethora of authors and brand experts discuss the subject matter largely in terms of nomenclature of the brands within the corporate umbrella.

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Brand architecture ultimately gets interesting when different brands within the portfolio cater to the same broad audience. How does Promasidor structure brands like Cowbell, Loya and Miksi that largely play within the same Milk Category? The key to winning in this situation lies in positioning and segmentation. The audience for the brands should be clear and unambiguous.

There are generally two broad models of brand architecture available in practice, and literature – House of Brands and Branded House. In ‘House of Brands’, the parent brand is silent and the visual identity of the sub brands is independent of one another and of the mother brand. This is what is obtainable in companies like Promasidor with sub brands like Cowbell, Loya, Miksi, Onga, Top Tea etc. The advantage of this strategy is that the individual brands each have a life of their own and as a damage to the equity of one brand is not transferred to the others.

In a Branded House however the sub brands draw their life from the parent brand with the name of the parent brand running across all extensions. A very common example of this is Dangote Group with extensions like Dangote Cement, Dangote Flour, Dangote Spaghetti etc. This goes beyond just the name and visual representation. The ethos of the sub brands will ultimately be driven by that of the mother brand.

In between these two extremes is a hybrid as seen in Marriot where some of the themes of the parent brand is carried across the sub brands whilst allowing them to maintain their independence. The choice of strategy to uphold will ultimately depend on business specifics.

Image Via: Branding Business

Why is a brand portfolio strategy vital for every business? Here are a number of reasons:

1. An effective brand architecture strategy will detail the hierarchy of the brands and the structure that will be adopted.

2. It significantly reduces cannibalisation – a process where a brand begins to feed off another.

3. Optimises resources.

4. Reduces the cacophony in the mind of the consumer by simplifying the role of each brand within the portfolio.

Brand architecture ultimately gets interesting when different brands within the portfolio cater to the same broad audience. How does Promasidor structure brands like Cowbell, Loya and Miksi that largely play within the same Milk Category? The key to winning in this situation lies in positioning and segmentation. The audience for the brands should be clear and unambiguous.

Take Chocolate City for example – an entertainment company with a record label as one of its business units. The record label houses MI Abaga, Ice Prince, Pryse, Dice Ailes, Victoria Kimani, NOSA and DJ Caise. Clearly the brand positioning for the artistes differ: MI Abaga remains the lead brand for the label targeting the Hip Hop heads, a ‘black coffee without cream’ breed if you will. Ice Prince, the cash cow of the label is the undeniable king of commercial rap in Nigeria and he appeals to a relatively larger audience whose interest are more directed towards a pop kind of sound. Dice Ailes, a new entrant in the family, seems to be a clear target towards the university and teenage crowd. As a space yet exists for the queen of rap in Nigeria, Pryse is amply positioned to fill those shoes. These artists play in the industry called rap but the differentiation and market segmentation is clear and unambiguous. Indeed there is inevitably some degree of overlap; which has significantly reduced the risk of cannibalization – a direct result of poor portfolio strategy.

It is important to note that Ice Prince was never a 2Chainz type of rapper by default. Ice Prince was rap king in Jos long before MI; for a region with such a vibrant rap culture, this was no mean feat. When one listens to the discography of the young artist, it is clear that beneath the bubble gum delivery lies a mean streak. Listen to Freestyling and Truth and this begins to make some sense. However, dynamics and Market realities made it imperative for him to create a style that is uniquely differentiated from MI’s. The result: Together they all increase the share of pocket that Chocolate City commands from the Nigerian populace.

Remember, the brand portfolio strategy must align with business strategy with utmost clarity on the role of each brand and their interaction with one another and the parent brand.

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Uche Briggs is a brand manager resident in Lagos. For feedback, kindly mail [email protected] or find him on Twitter @UcheBriggs

Op-ed pieces and contributions are the opinions of the writers only and do not represent the opinions of Y!/YNaija.

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