Brand portfolio architecture: House of brands (P&G owns Tide, Gillette, Pampers) vs branded house (Virgin Everything). Choice impacts trademark costs - P&G protects 65+ separate brands vs Virgin's 1 master brand + 400 sub-brands.
The Three Models
House of brands: Separate identities per product. Each brand independent. P&G, Unilever, Nestle model. Target different segments without confusion.
Branded house: Master brand on everything. Virgin Atlantic, Virgin Mobile, Virgin Galactic. Single brand equity pool. Extensions easier, cheaper.
Cost Analysis
House of brands: High. Each brand needs separate trademark, domain portfolio, social handles. 10 brands in 5 countries = 50 trademark applications.
Branded house: Low. One master trademark, sub-brands often descriptive (not separately protected). Virgin owns "Virgin", not "Virgin Atlantic" trademark in most classes.
Hybrid Architecture
Endorsed brands: Sub-brand + master brand (Courtyard by Marriott). Share equity, maintain distinction. Common in hospitality, automotive. Toyota owns Lexus separately but cross-promotes.
Strategic flexibility: Launch risky products under separate brand. Protect master brand reputation. Pivot without damage.
Trademark Strategy Impact
House of brands: File each brand in all active classes. Monitor competitors for each brand separately. Opposition proceedings multiply. Budget scales linearly with brands.
Branded house: File master brand broadly (15+ classes). Sub-brands often unregistered or registered in 1-2 classes only. Monitor master brand intensively, sub-brands lightly.
Domain Management
House of brands: Each brand needs .com + country extensions. 10 brands x 5 domains = 50 domains minimum. $600-1,000/year just for renewals.
Branded house: Master domain + subdomains (virgin.com/atlantic). Or pattern domains (virginatlantic.com). Fewer registrations, lower cost.
Acquisition Strategy
House of brands: Acquire company, keep brand separate (Facebook bought Instagram, WhatsApp - kept names). Preserve brand equity. Integrate backend only.
Branded house: Rebrand acquisition to master brand (Google bought Android - kept name, rebranded to Google ecosystem). Simplify portfolio. Lose acquired brand equity.
When to Choose What
House of brands if: Entering unrelated markets. Targeting conflicting demographics. Need failure firewalls. Premium + budget offerings. Complex regulatory landscape.
Branded house if: Related products/services. Shared customer base. Building single brand powerhouse. Limited marketing budget. Startup scaling fast.
Hybrid if: Large portfolio. Mix of strategic and cash cow brands. Operating in multiple tiers. Need flexibility for M&A. Corporate + consumer offerings.
Portfolio Pruning
Kill zombie brands. If brand generates under $5M revenue, consider folding into master brand or selling. Trademark renewals + monitoring cost $1,500-3,000/year per brand.
Unilever cut 400 brands to 14 core brands. Revenue grew. Simplified trademark portfolio saves $2M+ annually in legal costs alone.
Trademark Lens checks each brand name individually - portfolio architecture decisions require trademark clearance for every planned brand before committing to structure.