In this section, we will explore various examples of organizational structures for brands within a company. Understanding these structures will help you see how different companies organize their brands to optimize coherence, value, and market presentation.

A "House of Brands" structure is where a company owns a collection of distinct brands, each with its own unique identity, target market, and marketing strategy. The parent company is often not prominently featured in the branding of the individual products.

Procter & Gamble is a classic example of a House of Brands. P&G owns numerous brands across various product categories, such as:

• Each brand operates independently.
• Brands have their own marketing strategies and budgets.
• The parent company’s name is not prominently featured.

• Flexibility to target different market segments.
• Risk diversification across multiple brands.
• Ability to sell or discontinue brands without affecting others.

• Higher marketing and operational costs.
• Potential for internal competition between brands.

A "Branded House" structure is where a single master brand spans across multiple products and services. The master brand is prominently featured, and all sub-brands are closely linked to it.

Google uses a Branded House strategy, where the master brand "Google" is used across various products and services:

• Strong master brand presence.
• Sub-brands are extensions of the master brand.
• Unified marketing strategy.

• Strong brand equity and recognition.
• Economies of scale in marketing.
• Consistent brand experience for customers.

• Risk of brand dilution if one product fails.
• Limited flexibility to target niche markets.

An "Endorsed Brands" structure features individual brands that are endorsed by a parent brand. The endorsement provides credibility and trust while allowing the individual brands to maintain their own identities.

Marriott International uses an Endorsed Brands strategy, where the Marriott name endorses various hotel brands:

• Individual brands have their own identities.
• Parent brand provides an endorsement.
• Balance between independence and association with the parent brand.

• Leverages parent brand’s reputation.
• Flexibility for individual brands to target specific markets.
• Reduced risk of brand dilution.

• Potential confusion if the endorsement is not clear.
• Requires careful management to maintain balance.

A "Hybrid Structure" combines elements of the House of Brands, Branded House, and Endorsed Brands strategies. This approach allows companies to leverage the benefits of multiple structures.

Coca-Cola employs a Hybrid Structure, using a mix of branded house and endorsed brands strategies:

• Combination of different brand architecture strategies.
• Flexibility to adapt to market needs.
• Strategic use of parent brand and sub-brands.

• Maximizes brand equity and market reach.
• Flexibility to use different strategies for different products.
• Ability to target diverse market segments.

• Complexity in brand management.
• Potential for brand confusion if not managed well.

Understanding these examples of organizational structures helps illustrate how companies can strategically manage their brands to optimize coherence and value. Each structure has its own set of advantages and disadvantages, and the choice of structure depends on the company's goals, market conditions, and brand strategy. In the next section, we will delve into the relationships between brands within these structures to further understand their dynamics.