ADJUSTMENT TO BRAND PORTFOLIO & BRAND PORTFOLIO RATIONALIZATION

REEMA DAWRA(07/2010)

RAHUL YADAV(01/2010)

VARCHA CHANDRA(02/2010)

ADJUSTMENT TO BRAND

PORTFOLIO

Migration Strategies

Acquiring the New

CustomerRetiring Brands

MIGRATION STRATEGIES

• BRANDS PLAY SPECIAL ROLE IN MIGRATION OF CUSTOMERS WITHIN BRAND PORTFOLIO

• CORPORATE OR FAMILY BRANDING STRATEGIES IN WHICH BRANDS ARE IN LOGICAL MANNER COULD PROVIDE THE HIERARCHICAL STRUCTURE IN CONSUMERS’ MINDS TO FACILITATE BRAND MIGRATION. Example: BMW with its 3-, 5-, and 7-series numbering systems

• Multiple marketing communication programme

• Brand extensions and sub- brands

• New distribution outlets

ACQUIRING NEW

CUSTOMERS

ACQUIRING THE NEW CUSTOMERS

• Tradeoffs in their marketing efforts between attracting new customers and retaining existing ones

• Firms must proactively develop strategies to attract new customers, especially younger ones. • Example:- Volkswagen; Dove

This approach to attracting a new market segment and satisfying current ones is to create separate advertising campaigns and communication programs for eachExample:-Dewars scotch launch “AUTHENTIC” & “PROFILES” and Beer Companies

Multiple Marketing Communication Programme

A new market segment may be as simple as making the product more available to the group.Example:- Sunglasses industry, Automobile industry

New Distribution Outlets

This approach to attracting new customers to a brand and keeping the brand modern and up-to-date is to introduce a line extension or establish a new sub-brand. These can incorporate new technology, features, and other attributes to satisfy the needs of new customers as well as satisfy the changing desires of existing customers. Example:- Jeep introduced new SUV with a V-8 Hemi engine that featured three rows of seating

Brand Extensions & Sub- Brands

RETIRING BRANDS

• DUE TO DRAMATIC OR ADVERSE CHANGES, SOME BRANDS ARE JUST NOT WORTH SAVING.

• HOW DO YOU DECIDE WHICH BRANDS TO ATTEMPT TO REVITALIZE AND WHICH ONES TO OBSOLETE?

Market Prospectus – is the rates of decline orderly & predictable; are these pockets of enduring demand and what are the reasons of the decline etc.

Competitive intensity – are these dominant competitors with unique skills; are these price pressure; are customer brand loyal etc.

Brand strength and organizational capabilities – is the brand strong; market share position and trends; synergy with other businesses; exit barriers etc.

Example:- Bajaj auto , Yamaha Bikes etc.

BRAND PORTFOLIO RATIONALIZATION

• Companies sometimes want to reduce the number of brands that they market. This process is known as "Brand rationalization." Some companies tend to create more brands and product variations within a brand than economies of scale would indicate. Sometimes, they will create a specific service or product brand for each market that they target. In the case of product branding, this may be to gain retail shelf space (and reduce the amount of shelf space allocated to competing brands). A company may decide to rationalize their portfolio of brands from time to time to gain production and marketing efficiency, or to rationalize a brand portfolio as part of corporate restructuring.

• A firm may accumulate more and more brands as it grows and the product lines become longer. At some point, the firm recognizes that it has too many brands, which dissipate its resources and effort. The firm decides to cut short the product line and prune its brand portfolio by eliminating some of the brands.

P&G - Brand Portfolio Rationalization

• Worldwide, P&G is known as the votary of brand proliferation

• Of late P&G has been taking a re-look at its brand portfolio with a view to containing costs and enhancing brand productivity

• P&G is not only dropping brands, it has also been cutting brand variants and line extensions

• By the close of the 1990s, P&G India decided to drop/sellout some of its brands.

DABUR - Brand Portfolio Rationalization

• By the late 1990s, Dabur found that it had accumulated a huge collection of brands, which adversely affected its marketing efficiency

• Dabur finally decided to stay with three product lines— foods, personal care and healthcare and with 12 to 15 brands overall

• The chosen brands include Chyawanaparash, Hajmola, Pudin Hara, Hingoli, Restora, Amla hair oil, Vatika, Anmol coconut oil, and Real fruit juice. Dabur is also increasing the marketing and advertising spend by 50% on the selected brands

HUL - Brand Portfolio Rationalization

• Sales and Profits have been slowing down during the years 2000 and 2001• In the year 2001, HLL initiated a series of measures towards rationalizing its portfolio of

brands• Keeps 30 power brands plays down 80 others: In 2001, HLL initiated plans to prune its

brand portfolio – to almost one quarter of its size• The 30 power brands shown contribute almost 75 percent of HLL’s turnover and profits.• The remaining 80 odd brands, which contribute about 25 per cent of HLL’s turnover, fall

under three categories; they will be given different treatments.• 1. HLL will keep few brands as purely regional brands and support them in these areas.

2. Brands, which are both small and unprofitable.3. Brands with overlapping positioning; the bulk are here; they also overlap in market targeting with one of the power brands. Whenever you have the same benefits and same price point, there is no advantage to carry two brands. Solution was Merger of two brands

Many thanks foryour attention