What defines a 'House of Brands' strategy?

A 'House of Brands' strategy is characterized by the practice of marketing each brand in a portfolio under its own distinct name. This approach allows each brand to develop its own identity, positioning, and target market, which can be advantageous for appealing to diverse customer segments without the influence of other brands in the portfolio.

By having individual brands, a company can tailor marketing efforts specifically to the needs and preferences of different consumer groups, enhance brand loyalty, and mitigate risks associated with brand reputation. For instance, if one brand experiences a setback, it does not adversely impact the other brands under the same umbrella as they maintain their unique identities.

In contrast, a unified brand identity for all products reflects a 'Branded House' approach, where a single brand name promotes all products, which is not the essence of a 'House of Brands.' Similarly, a single brand promoting multiple products or grouping brands under one umbrella describes strategies that align more with brand extensions or multi-branding approaches rather than the distinctiveness central to a 'House of Brands' structure.