3. Brand Portfolio
Definition: The Brand Portfolio refers to an umbrella under
which all the brands or brand lines of a particular firm functions to
serve the needs of different market segments. In simple words,
brand portfolio encompasses all the brands offered by a single firm
for sale to cater the needs of different groups of people.
• Most large firms have a portfolio of brands (P&G)
• In managing this portfolio there are two dimensions to consider
– Breadth of product mix: number and nature of different
product categories linked to the brands sold
– Depth of branding: number and nature of different brands and
lines/models/SKUs (stock-keeping unit) in a product category.
4.
5. The brands in the Brand Portfolio
play the following different roles
1. Flanker Brand
2. Cash Cow Brand
3. Low-End Entry Level Brand
4. High-End Prestige Brand
6. Flanker Brand
A Flanker Brand also known as a Fighter Brand is a new
product launched in a market by the company in the same
category wherein an established brand is already
positioned. This is primarily done for the increased market
share as well as to cater to the need of all the segments of
customers.
7. Cash Cow Brand
A cash cow brand is that product in the brand
portfolio that has reached the maturity level in the
product life cycle but is able to bring in profits
necessary for its survival. These brands are not
removed from the market because necessary cash is
flowing in through its sale which is better than
incurring heavy cost on the launch of a new product.
8. Low-End Entry Level Brand
A low Entry Brand in a brand portfolio includes the
product which is offered at less price. The low priced
product is added to the portfolio to ensure the purchase at
least once and bring the customer into the brand family.
Once the customer becomes a part of the family, he is
then persuaded for the purchase of the higher priced
product in near future.
9. High-End Prestige Brand
A High-End Prestige Brand in the brand portfolio
is the product offered at a high price with the
intention of creating a sense of prestige in the
minds of customers. Other brands in the portfolio
also get the recognition because of the premium
brand and its quality do have a halo effect on each
product line
10. Models for Brand Portfolios
• Branded House
• House of Brands
• House Blend
11. Branded House
Branded House: using a single master brand across multiple products
and categories
Company takes a single primary brand across the board
Advantages:
•Creates focus on the brand
•Maximizes scale
Disadvantages:
•May lose its power to differentiate (all new products and new brands
must fit within the primary brand)
•Constrain innovation and growth
•Risky
12. House of Brands
House of Brands: house of brands contains independent, disconnected brands
Classic and most powerful model for a brand portfolio
Company owns a number of different brands, possibly several brands in the same
category
Advantages:
•Each brand can precisely target a group of customers with a distinct product
offering and positioning
•Company can stretch the brand to cover another target market
•Easy to make global
•Creates a distinct corporate brand
•Minimize risk because of diversification
Disadvantages:
•Hard to manage due to complexity
•Senior management cannot focus on each brand individually
•Company is forced to devote resources to marketing the corporate brand
13.
14. House Blend
The “House Blend” – This is an architecture based on the
development of sub-brands with the added credibility of the
the existing parent brand. Google, for example, started as a
search engine then continued to establish the primary brand
through offerings such as Gmail, Calendar, and Maps.
Eventually, they began to acquire other, smaller tech
companies such as Blogger, Picasa, and YouTube. These
acquisitions maintained their existing brands but gained
credibility through the primary brand of Google.
15. The key to managing a successful
Brand Portfolio
• Build and extend core brands
• Add brands to the portfolio to address major
opportunities
• Proactively prune weak and redundant brands
• Keep things simple
• Involve senior management
