If a brand architecture is not proper, it can lead to unwelcome consequences. Few instances are as follows −
When there are too many daughter brands, the parent brand loses the focus. In the bargain of achieving recognition for the daughter brand, the parent brand takes a backstep. While launching a daughter brand, it gets people’s attention and the daughter brand attracts all the investment on the advertisement. It gets remarkably successful thereby taking over the image of the parent brand. The solution to this is, turn daughter brand into a simple product.
For example, Golf, the daughter brand of Volkswagen swallowed it up in image. Amul Lite, a daughter brand is swallowing parent brand Amul butter due to increased health-consciousness of consumers.
The company makes innovative products or makes improvements in the existing product. When a superior product comes up, it is time to decide for the brand managers whether to extend the new product as a part of the original brand or launch it as a new product with a potential of becoming a brand in itself.
While branding the new product out of innovation, the connection between the product and the company that develops it should not be weakened.