Which brand architecture model presents the highest risk of brand dilution when launching a new product line?

The 'branded house' architecture presents the highest risk of brand dilution when launching a new product line. In a branded house architecture, a single master brand is used across all products and services. For example, Virgin uses its brand name across airlines, mobile, and media. While this leverages the master brand's equity, it also means that any negative association or failure of a new product line directly impacts the perception and value of the entire brand. If the new product line doesn't align with the existing brand associations, the core brand meaning may become confused and weakened, leading to brand dilution. This occurs because the brand is stretched too thin, attempting to represent a wider range of products or services that may not fit together cohesively in the consumer's mind. A 'house of brands' architecture, in contrast, uses individual brands for each product line (e.g., Procter & Gamble's portfolio of brands like Tide, Pampers, and Gillette), minimizing the risk of one product impacting the others. A hybrid approach blends elements of both, but a single master brand across dissimilar offerings creates a higher risk of dilution because the master brand is directly connected to the success or failure of each product line.