The document presents a case study on brand portfolio management, focusing on L'Oreal's strategies and the significance of maintaining a diverse brand portfolio. It outlines the phases of brand adoption including aggregation, rationalization, and formalization, aimed at optimizing profitability and responding to market demands. The study emphasizes L'Oreal's competitive advantages, operational efficiencies, and the historical context influencing its brand management approach.

1. CASE STUDY PRESENTATION by
- AMY FRANCIS
- HARIHARAN RAMANATHAN
- JUSTINE THOMACHAN
- NITHYA U
- SANTOSH PADMANABAN
FROM AN AGGREGATE TO A BRAND NETWORK:
A STUDY OF THE BRAND PORTFOLIO AT

2. A brand portfolio is simply the collection of
brands under a company’s control. Small
businesses with just one shop may have only a
single brand, but large and multinational
corporations may have dozens of distinct brands
in their portfolios. In some cases, a business may
present the same product or line under different
brands in different markets; each of these
brands is a component of the company’s brand
portfolio.

3. o Better utilization of resources
o Lessen confusion
o Higher efficiency

4. • Brand Relationships within portfolios
Single brand name across the entire
organization
A primary brand to endorse sub brands
A house of brands to encompass individual
brands

5. • Purpose of Study:-to understand brand portfolio
management by examining the brand portfolio
strategies of world leading company, L'Oreal.
• Research questions
What reasons lead L'Oreal to develop a brand
portfolio strategy?
How can brand portfolio management create a
higher and stronger level of competitive
advantage for this company?

7. • Exploratory approach: Case Study
• Field of cosmetic products
- Strong Brand Presence&
- Extremely developed multi-brand policies
• Product category study –L’Oreal

9. • Successful within markets
• Leader not only because of:
1. Sales Turnover
2. Growth
3. Financial Results
• But also : Exceptional longevity of
performance
• Created -1907
• Current employees ≤ 61,000 worldwide

10. MD Jean Paula, asserts:
VECTORS for development:
• 15.6% world market share
• Company is
- Regularly accessible & communicative
• Their brands
- Linked to research & development capacity

12. • Non-directive key-informant interviews
• Key informant: One who holds – privileged & reliable information
• INTERVIEWED:
• Executives
• Managers
• Used public information to collect data from:
1. Strategic level
2. Intermediate level
3. Operational level

13. • Semi-structured interviews
- Open questions
• Tape recorded & transcribe:
- 15 different interviews
- Length: 60 – 105 minutes

15. • Analysed
• Coded
• Summarised
• Identified
• Read Transcripts for : identifying themes, clusters or patterns
• Synthesis card
• Terminology list
• Independent researcher
• Intercoder's reliability :89%

16. Brand portfolio adoption
Three phases
Brand aggregation
Brand rationalization
Brand formalization

17. Brand aggregation
• To respond to segmentation and needs of
existing brand
To be present in different distribution circuits
To give rise to internal emulation(SBU set up)

18. Brand rationalization
• Optimize profitability
• Preferences for globalization
• R&D

19. Brand formalization
• Defining strategic axes for long term growth
• Organize brands as complementary brands
• Dealing with complexity

20. Key competences
• Brand radicalization
Brand network arbitration
Brand expansion matrix

21. Brand radicalization
Maximum differentiation of adding targets
(Distribution,needs,price)
 Integration of very original brands

22. Brand network arbitration
• Differentiating brands
 Mature brands(Established stars)
 Highly profitable brands(Rising stars)
 International/Potentially
international(Potential stars)
• Managing all divisions(hair care, skin
care,make-up,hair color)
• Balancing funds between brands

23. Brand expansion matrix
• A model for development based on
 Consumer segment
 Product category
 Distribution network and countries
Attribution to innovation
Globalization and new capture markets

24. Interpretative Model

25. Discussion and Perspectives
3 Considerations
• Creation and implementation of brand
portfolio happens one after the other
– Path depend
– Company’s history influences the future o
– Strong evolutionist character of l’Oreal

26. • Internal Competencies
– Difficult for the competitor to replicate
– Causal ambiguity – Performance difference
between companies
– Complex
– Specific to the company
– Tactic

27. • Development of co-specialized asset
– A brand ensemble
– A model of internal organization based on specific
competences

28. Conclusion
• What reasons lead L’oreal to develop a brand
portfolio strategy?
• How can brand – portfolio management
create a higher and stronger level of
competitive advantage for this company?