The relationship between a corporate brand, consumer brands, sub-brands, products and services, product variants, and acquired businesses within a company’s portfolio is defined by brand architecture. Brand architecture also determines how the corporate brand is involved in the marketing of products and services, which is especially important for companies with complex brand and product portfolios.
In part 1, we covered the two extreme types of brand architecture—the branded house, which describes a company with many products and offerings under one masterbrand, and the house of brands, which describes a company that has varied products and offerings, each marketed with its own identity.
Today, we will explore what lies between these two extremes: sub-brands and endorsed brands. We will continue using the terminology developed by brand architecture expert David Aaker.
Sub-brands
What is a Sub-brand?
A sub-brand is a distinct brand created under a parent brand, possessing some degree of its own identity while remaining closely tied to the parent company’s reputation and values. It leverages the parent brand’s recognition and awareness while enabling differentiation in specific markets or product lines. This brand architecture type is often reflected in the naming convention, where the masterbrand precedes the sub-brand in the product title. However, the sub-brand always remains secondary to the masterbrand.
Sub-Types of Sub-Brands
David Aaker distinguishes between two main types of sub-brands: “Masterbrand as Driver” and “Co-drivers”. The first is closer to the branded house architecture, as the masterbrand plays a dominant role and the sub-brand assumes a secondary position. This hierarchy is typically reflected visually, with the masterbrand’s branding being much stronger than that of the sub-brand. In the Co-drivers subtype, the masterbrand and sub-brand are equally prominent, often represented visually by two logotypes of similar importance.
Examples of Sub-brands
An example of the Masterbrand as Driver strategy is Toyota and its sub-brands, such as Aygo or Tacoma. This approach adds new associations to Toyota’s brand equity and target audiences with slightly different needs. The Toyota masterbrand stands for reliability, with Aygo bringing agility and fun, and Tacoma emphasizing rugged power and off-road capability. Other examples include MTV sub-brands such as MTV Music and MTV 90s, catering to different musical tastes, Nivea Q10, which focuses on specific anti-aging benefits, Armani Exchange, offering a younger, more casual style than the main Armani brand, and Nike AirMax and Amazon AWS, where the sub-brands leverage the strength of the parent brands while offering distinct sub-identities.
The Co-drivers approach gives equal prominence to both the masterbrand and sub-brand, with each shaping the overall brand experience. Adidas Originals exemplifies this—Adidas builds associations with sport and performance, while Originals focuses on lifestyle, fashion, and heritage. Porsche Cayenne, positioned as a sports car for the whole family, balances Porsche’s high-performance image with the practicality of an SUV. Similarly, Garnier Fructis combines Garnier’s commitment to affordable beauty with Fructis’ focus on hair care powered by nature-inspired formulas. Nestlé Pure Life water follows this model, blending Nestlé’s trusted name with Pure Life’s focus on family wellness.
Pros and Cons of Sub-brands
The sub-brand architecture is effective when extending the main brand to new target audiences—for example, Disney Junior targets a younger audience than the Disney masterbrand. This approach also works when enriching the masterbrand with new associations, whether you aim to make it younger, edgier, or more premium.
It’s a useful strategy when marketing budgets are limited, as the sub-brand can build awareness by leveraging the established reputation of the masterbrand. However, it’s important to note that this approach is best suited when the reputation risk associated with different products is low, as issues with a sub-brand can impact the masterbrand.
Endorsed brands
What is an Endorsed Brand?
In contrast to sub-brands, endorsed brands are closer to the house of brands architecture. Similar to a house of brands, endorsed brands operate as distinct entities with separate identities, but they are supported by the masterbrand. In this case, the endorsed brand plays a primary role, using the masterbrand’s endorsement as a quality stamp to build awareness and trust. However, unlike sub-brands, endorsed brands have a limited ability to enrich the masterbrand. In terms of visual identity, the endorsed brand has much more prominence than the masterbrand.
Sub-Types of Endorsed Brands
Using Aaker’s classification, there are three sub-types of endorsed brands: “Linked Name”, “Strong Endorsement”, and “Token Endorsement”. In the Linked Name strategy, the endorsed brand’s name is derived from the masterbrand’s name. The Strong Endorsement subtype gives prominence to the endorsed brand while maintaining a clear connection to the masterbrand. Token Endorsement, on the other hand, features a much lighter connection, with minimal presence of the masterbrand.
Examples of Endorsed Brands
An example of the Linked Name strategy, where the endorsed brand is closely tied to the masterbrand through a shared naming structure, is the approach applied by Nestlé to products like Nespresso, Nescafé, Nesquik, and Nestea. These brands are clearly linked to the Nestlé name, which allows them to leverage the parent brand’s trust and recognition while offering distinct benefits in specifically defined categories. Similarly, Danone uses this strategy for Danonino, Danio, and Danette, and McDonald’s for offerings such as McCafé, McNuggets, McChicken, and McPlant.
The Strong Endorsement approach gives more prominence to the endorsed brand while still maintaining a visible presence of the masterbrand. For instance, Activia (endorsed by Danone), KitKat (endorsed by Nestlé) and Courtyard by Marriott leverage the credibility of their parent brands while building strong individual identities. Calvin Klein’s fragrance brands, such as Euphoria, Obsession, and Eternity, have separate identities but draw prestige from the CK masterbrand. A similar dynamic is seen with Xbox, which has become increasingly integrated into the Microsoft ecosystem, with Microsoft’s role as an endorser of Xbox becoming more prominent.
In the Token Endorsement model, the masterbrand plays a much more subtle role, with minimal visibility. PlayStation, originally strongly endorsed by Sony, now operates with only a light association to the parent brand. Other examples where the masterbrand’s involvement is nearly invisible include Lexus, Acura and Infiniti, created respectively by Toyota, Honda, and Nissan. In practice, token endorsement can be difficult to distinguish from shadow endorsement, a sub-type of the house of brands architecture (represented by Unilever and P&G brands), as explained in the previous post. However, the key difference lies in how widely known the connection between the endorsed brand and the masterbrand is among consumers.
Pros and Cons of Endorsed Brands
The endorsed brands architecture is a good choice when you want to target different audiences while continuing to leverage the power of the masterband. It also works when you want to build different propositions and create new associations for various products. Similar to the house of brands architecture, this approach requires a substantial marketing budget to build awareness for each endorsed brand. However, the presence of the masterbrand in branding and communication can make this process faster and more cost-effective.
In terms of reputation risk, endorsed brands rarely affect other brands in the portfolio.
Although in theory the four brand architecture types are distinct and suggest separate strategies, many companies successfully apply all of them simultaneously. For example, Nestlé, L’Oréal, and Danone have complex brand and product portfolios and use sub-brands and endorsed brands, as well as branded house and house of brands architectures, all at the same time.
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Magda Adamska is the founder of BrandStruck.
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