I am often asked that question. My usual response is asking a few questions back. Something along the lines of what is your mission? Or, what are your core values? Or, how does your brand strategy align with your strategic plan? Before an organization can answer the question posed in the headline, the organization has to determine who it is, what it stands for and where it is going.
The next step is to assess the organization's internal culture and external reputation, and determine how closely aligned those two are. Another important step is to determine how closely aligned stakeholder opinions are and how do those perspectives align. Once those steps are completed the organization will be in a better position to determine if they are or want to be a branded house or a house of brands.
In my view a good example of a house of brands is Procter & Gamble. The company has a multitude of sub-brands that often stand on their own and many people do not even know that they fall under the P&G umbrella. Most don't know know what the P&G umbrella is. A good example of a branded house is Southwest Airlines. Everything that SWA does and every action their stakeholders take is based on the SWA brand.
I lean towards a branded house as the best strategy because it is easier for internal and external stakeholders to become champions of one brand, rather than many. It is also much easier to develop a strategic plan and a culture to support the brand strategy with an overarching brand platform that connects the entire organization. Is your organization a house of brands or a branded house? Why?
Rex Whisman
Brand Champions Blog
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