BRAND PORTFOLIOName- Sagar DusaneRoll No- M-11AIAIMS, Mumbai-1

Dimensions of the brand portfolio strategy

• Brand scope: product categories and subcategories, future scope• Product defining roles: master brands, endorser brands, sub-brands, driver roles• Portfolio roles: strategic brands, branded energizers, silver bullets, flanker brands, cash cow brands• Portfolio structure: brand hierarchy, brand network• Brand portfolio models: branded house, sub-brands, endorsed brands, house of brands

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.

The brands in the Brand Portfolio play the following different roles

1. Flanker Brand2. Cash Cow Brand3. Low-End Entry Level Brand4. High-End Prestige Brand

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.

Cash Cow BrandA 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.

Low-End Entry Level BrandA 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.

High-End Prestige BrandA 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

Models for Brand Portfolios

• Branded House• House of Brands• House Blend

Branded House

Branded House: using a single master brand across multiple products and categoriesCompany 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

House of BrandsHouse of Brands: house of brands contains independent, disconnected brandsClassic and most powerful model for a brand portfolioCompany owns a number of different brands, possibly several brands in the same categoryAdvantages: • 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

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.

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