Brand portfolio strategy and brand architecture: A comparative study

Marketing literature offers various definitions about what brand portfolio is. In this paper, brand portfolio strategy can be understood as how firms manage their brands and sub-brands within a targeted market, considering the consumer’s price and quality perceptions and the competition within the targeted market. Brand architecture posits the same challenge in terms of a plain definition about what it is—this paper proposes that the key concept behind brand architecture is customers’ mental organization—it means how a brand, including its sub-brands, is depicted across consumers’ minds, showing them where each brand is located in the entire portfolio of brands, its unique characteristics and which brand will satisfy their current needs. Based on research within current literature about brand portfolio and brand architecture, this paper proposes that both constructs posits similarities and differences under four key elements: brand management strategy, number of brands, competition and brand positioning.