Brand Portfolio
A brand portfolio refers to the collection of all brands owned by a company. This portfolio serves as a strategic tool that allows a company to offer a wide range of products or services to different target segments in the market. Managing a brand portfolio is crucial for maximizing the overall brand value of the company and expanding its market share.
Components of a Brand Portfolio
Flagship Brand
The central brand of the company, which has the highest recognition and trust.
Example: The "Coca-Cola" brand of The Coca-Cola Company.
Family Brand
A brand name used for multiple product lines.
Example: Nissan's "Fairlady Z" series.
Individual Brand
Different brand names for each product or product line to cater to various market segments and needs.
Example: P&G's "Pantene" and "Head & Shoulders."
Endorsed Brand
A sub-brand supported by the reputation of the main brand.
Example: Marriott's "Marriott Courtyard."
Sub-brand
Positioned under the main brand to target specific segments or needs.
Example: Toyota's "Lexus."
Objectives of Brand Portfolio Management
Optimizing Market Segmentation
Using different brands to approach various market segments.
Example: Unilever deploying multiple brands to target different price ranges and customer bases.
Maximizing Brand Value
Leveraging brand synergies to enhance overall brand value.
Example: Apple's complementary product lineup (iPhone, iPad, Mac).
Strengthening Competitive Advantage
Expanding market share and securing competitive advantage with a diverse range of brands.
Example: Nestlé offering different brands in each food and beverage category.
Brand Portfolio Strategies
Brand Extension Strategy
Using an existing brand name to enter new product categories.
Example: Nissin Foods extending from "Cup Noodles" to "Cup Noodle Rice."
Brand Repositioning
Refreshing the brand image to appeal to different target segments.
Example: Starbucks repositioning from a high-end coffee brand to a casual relaxation space.
Creating New Brands
Launching new brands to meet new market demands or needs.
Example: Toyota launching the "Scion" brand targeting younger consumers (now discontinued).
Brand Rationalization
Reducing underperforming brands in the portfolio to focus resources on the most successful ones.
Example: P&G reviewing its portfolio and selling off multiple brands.
Benefits of a Brand Portfolio
Approach to Diverse Market Segments
A wide range of brands allows reaching various customer segments.
Risk Diversification
Multiple brands spread risk, so the failure of one brand does not jeopardize the entire portfolio.
Synergy Effect
Leveraging synergies between brands to streamline marketing costs and enhance brand value.
A brand portfolio is an essential strategic tool for companies to succeed in complex market environments. Properly managed portfolios support the growth and competitiveness of a company.