Brand proliferation through acquisition
Fast-growing corporates, particularly those backed by private equity, often retain acquired brands rather than bring them under the parent brand.
In some cases, this makes strategic sense. An acquired brand may occupy a niche market outside the group’s core offering, with no natural synergies to the corporate brand. More often, the decision is driven by internal dynamics such as a desire to preserve autonomy or maintain local control. It is not uncommon to hear, “Our brand has a strong reputation. Changing it will damage our business.” In reality, brand equity can be successfully migrated. Customers rarely walk away because of a rebrand unless it is accompanied by a decline in service quality.
The impact of unassimilated acquisitions is often most visible online. Multiple separately branded websites create a fragmented user experience and make cross-selling more difficult.
Brand proliferation through product branding
This pattern also appears in innovation-led corporates, particularly in B2B and tech environments. A new app, platform or service is launched and immediately given its own identity, name and logo.
Creating a new brand can generate momentum. It gives a project team a rallying point and helps build internal energy. But without alignment to the corporate brand strategy, it can dilute investment and create unnecessary complexity.
Before defaulting to a standalone brand, it is worth asking whether the initiative could go further and faster by leveraging the equity of the corporate brand.
Brand proliferation through internal initiatives
Branding decisions also show up internally. From health and safety campaigns to employee engagement surveys and recognition schemes, internal functions often create branded initiatives in the hope of greater visibility.
This approach can lead to noise rather than clarity. Each campaign becomes one more thing for employees to interpret. Over time, these internal sub-brands compete with one another and detract from the coherence of the corporate identity.
Often, a better solution is to work within the corporate brand, using strong headlines, clear messaging and direct calls to action to create standout.
Why you need a brand architecture strategy
A brand architecture strategy removes emotion from branding decisions and helps focus energy and resources in the right creative direction.
It should define your overall approach, whether you pursue a unified brand strategy (one brand for everything) or a diversified brand strategy (a portfolio of distinct brands). It should also include a clear framework for how to treat acquisitions, product launches and internal campaigns. Governance, ideally with executive-level oversight, ensures the strategy is applied consistently.
Should you pursue a unified or diversified brand strategy?
Diversified brand strategies are more common in consumer-facing sectors such as FMCG, hospitality, luxury goods and automotive, where individual brands are used to target different market segments and justify premium positioning. In these cases, each brand typically has its own budget, team and strategic plan.
For B2B and professional services corporates, the default should usually be a unified brand architecture.