Brand Hierarchy (A&BM 16 Dec 2020)

What Is Brand Hierarchy? How to Develop One?

Brands distinguish their products from competitors through various factors like a name, promise, positioning. But how do they distinguish between their own products? What is the difference between Dell Inspiron 14 and Dell Inspiron 15, other than the product features?

The difference is denoted by an architectural factor, known as ‘brand hierarchy’.

 

What Is Brand Hierarchy?

A brand hierarchy is the systematic branching structure of a brand’s distinctive elements for its sub-products.

When companies begin to diversify their products, with new products and different positioning schemes, they graph a brand hierarchy to help with the identification of their products and services. A brand hierarchy helps inculcate the vital brand elements and modifications within the products.

When a group of products are given the same brand name i.e., different products of company are marketed under one brand name. e.g., Amul.

Brand hierarchy is a means of summarizing the brand strategy by displaying the number and nature of common and distinctive brand elements across the firm’s product revealing the explicit ordering of brand element.

For example, think of Amazon. Amazon provides e-books services, e-shopping services, AI products, etc. But people do not refer to Amazon for all this at once. They refer to Amazon Kindle or Amazon Prime or other hierarchies that Amazon has developed. These hierarchies contain distinctive elements through their name, logo, and brand identity that helps differentiate between the products as well as reduces confusion for customers.

 

Brand Hierarchy Levels

As the name suggests, brand hierarchy is a hierarchical structure. It constitutes multiple levels. These levels start from the corporate brand to the family brand, to individual brand, and lastly to the modifier and descriptor.

 

1. Corporate Brand

The highest level of the brand hierarchy is the corporate brand. This is the main company / corporate brand.

Corporate Branding is the practices of using the company’s name as a product brand name. It is an attempt to use corporate brand equity to create brand recognition. E.g IBM, Heinz, Coca-Cola etc.

 

2. Family Brand

When a group of products are given the same brand name i.e. different products of company are marked under one brand name.

The next lower level in the hierarchy is the family brand. It is also known as the ‘range brand’ or the ‘umbrella brand’. It is called the ‘family’ brand because it may have a range of products under it, but it is not the corporate brand.

E.g. AMUL : Amul Milk, Amul Butter, Amul Cream, Amul Dahi, Amul Chocolates etc.

JHONSON & JHONSON : Jhonson & Jhonson Baby soap, Jhonson & Jhonson Baby hair oil, Jhonson & Jhonson Baby body lotion etc.

 

3. Individual Brand

Individual Branding also called as individual product branding or multi branding. It is the marketing strategy of giving each product in a portfolio its own unique brand name.

Individual brands are linked only to a single product category. This doesn’t mean it has only one product. It can have multiple product versions, models, colours, etc.

E.g. P&G : Head & Shoulder, Pantene, Gillette.

HUL : AXE, Kissan, ELLE 18, Pepsodent, Dove, Lux etc.

 

4. Product Modifier and Descriptor

Modifier refers to word, phrase or clause that functions as an adjective or adverb to qualify the meaning of other word. Regardless of whether corporate, family or individual brands are employed it is often necessary to further distinguish brand according to the different types of items or models involved.

The product modifier and descriptor are the smallest and lowest part of the brand hierarchy. It helps customers identify the various products under the individual brand.

E.g. Pepsico : Lipton Lemon Tea

Mondelez International : Crisfelo, Dairy Milk Crackele.

 

Numerous brand hierarchies exist in the real world today. Here are a few examples of the most well-known ones:

 

Fiat Chrysler Automobiles

The FCA group designs, manufactures, and sells vehicles and their parts worldwide. They are the corporate brand with numerous family and individual brands under them.

The brand hierarchy looks something like:

Corporate brand: Fiat

Family brands: Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati, etc.

Individual brands: Jeep Compass, Maserati GranTurismo, Chrysler 300, etc.

Descriptors: Jeep Compass sport plus, Maserati GranTurismo Sport, etc.

 

Mondelez International

The Mondelez International group is one of the largest snack companies in the world. Ever heard of Oreo, Cadbury, Toblerone, Chips Ahoy cookies, etc.? Did you know these are all family brands under the corporate Mondelez International.

The brand hierarchy looks like this:

Corporate brand – Mondelez International

Family brands – Cadbury, LU biscuits, Nabisco, etc.

Individual brands – Dairy Milk, 5 Star, LU Prince, Oreo etc.

Descriptors – Dairy Milk Crackle, Dairy Milk Silk, Oreo Strawberry, etc.

Pepsico

Pepsi Co. is another large snack and beverage company in the world. But did you know that Pepsico also owns Taco Bell, Pizza Hut, and KFC?

Let’s have a look at Pepsico’s brand hierarchy:

Corporate brand: Pepsico Inc.

Family brand: Pepsi, Frito-Lay, Yum, Quaker, etc.

Individual brand: Diet Pepsi, Lay’s, Pizza Hut, Taco Bell, Lipton, Tropicana, etc.

Descriptors: Doritos Cheese, Lays Classic, Lipton Lemon, etc.