60 Managing Multiple Brands

The question of how multiple brand identities might peacefully coexist only recently became an issue. In the past, you might have seen multiple logos on a NASCAR driver’s jumpsuit, but you wouldn’t see a jumble of logos on the same magazine advertisement. Today, companies create logos for things that may or may not even warrant their own identity. How committed is Lincoln to Ecoboost technology?

The first choice is whether or not a company needs multiple brands. A good rule of thumb: Don’t build another brand until you have to. More brands mean more money.

If an organization establishes multiple, overlapping brands, the question of whether the organization should become a branded house or remain behind the scenes as a house of brands needs to be considered. Very few companies actually have the wherewithal to create a house of brands. Up until it reorganized after emerging from bankruptcy protection, General Motors was widely criticized for maintaining too many brands. Brands are expensive to build and maintain. In general, fewer is better. Ultimately, companies that are deliberate about their brand strategy and stay the course will win out in the end.

BRANDED HOUSE

Too big to fail.

HOUSE OF BRANDS

Courtesy: People Design

If you think it’s hard to run a country, try the United Nations.