Brand portfolio strategy presentation

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  • Presented by

    Muthoni Kanyana CEO

    MK-AFRICA

    Brand Por.olio Strategy

  • - David Aaker

    You need to change the orienta0on of a company so that people think of brands as assets. Then you must manage your

    por;olio of brand assets.

  • Ques0ons You May Hear from Management

    Why do we have two brands serving the same purpose in our por5olio?

    How should we use our budget to drive brand growth? We need to consolidate brands. What is your

    recommenda;on? What is the ra;onale for how you have allocated your

    marke;ng budget? How well do our customers understand what we have to

    offer?

  • Brand Por.olio Strategy

    The effec=ve crea=on, deployment and management of brand assets in support of simultaneous top- and boFom-line growth

  • Topics About MK-Africa Brand and brand porIolio strategy Brand architecture vs. brand porIolio strategy An approach to brand porIolio strategy Brand porIolio strategy in the hotel industry Leading brand porIolio prac=ces for driving

    growth Conclusion

  • A Sustainability Marke=ng Firm

  • Who We Are

  • Topics About MK-Africa Brand and brand porIolio strategy Brand architecture vs. brand porIolio strategy An approach to brand porIolio strategy Brand porIolio strategy case study Leading brand porIolio prac=ces for driving

    growth Conclusion

  • hFps://www.youtube.com/watch?v=JKIAOZZritk

    What is branding?

  • What is a Brand Por.olio Strategy? The effec=ve crea=on, deployment & management of

    brand assets in support of simultaneous top and boFom-line growth

    Maximum PorIolio Value

    Access to new markets and Consumers

    Marke=ng Investment Efficiency

    Strengthened Customer

    Rela=onships

    Uncovered Latent Brand Poten=al

    Key Benefits

  • Relevance of a Brand PorIolio Strategy Brands =e a company to its customers the brand strategy must inform and be informed by the business strategy

    Brand strategy is business strategy

    Business Strategy

    Professional Experience & Execu=on

    Research Brand & Brand

    Company PorIolio Strategy Customer Experience

    Feedback, percep=ons, sa=sfac=on, etc.

  • Why is Brand PorIolio Strategy So Challenging? Generally, no single group is reviewing or has the authority to manage the en=re porIolio, resul=ng in many challenges for senior execu=ves

    Overlapping brands in a porIolio offering similar products/services targeted to the same customer

    Inefficient alloca=on of brand-building resources including having to support mul=ple brands across mul=ple countries

    Mergers & acquisi=ons resul=ng in bloated brand porIolio

    No clear brand-driven growth plaIorms to fuel future growth

    Internal constructs, poli=cs, and new product development drive porIolio strategy vs. customer-insights and strategic growth drivers

    Lack of porIolio management system

  • Topics About MK-Africa Brand and brand porIolio strategy Brand architecture vs. brand porIolio strategy An approach to brand porIolio strategy Brand porIolio strategy in the hotel industry Leading brand porIolio prac=ces for driving

    growth Conclusion

  • Brand Architecture vs. Brand Por.olio Strategy

    Brand Architecture Brand Por.olio Matrix

    Addresses how a company can Addresses how a company can best structure and communicate use its brand(s) to achieve top-

    its por5olio of brands and boEom-line growth

  • Brand Architecture vs. Brand Por.olio Strategy

  • Brand Architecture Strategy

    Brand Architecture, describes how a family of brands relate to one another

    There are essen=ally 3 architectural naming models to which businesses subscribe: - Masterbrand, Endorsed Brand & Individual Brand.

    Many brand architectures are complex, requiring diligence in streamlining and aFemp=ng to maintain consistency

    Brand architecture is a cri=cal component of brand porIolio strategy

  • Brand Por.olio Strategy

  • Cash Cows Low Growth; High Market

    Share

    Strong compe==ve businesses, which generate cash surplus

    Typically have a strong brand recall which allows the company to charge higher prices than its compe=tors.

    The excess cash generated could be deployed by the company for dividends, debt repayments & driving future growth in other segments of the company (i.e. Ques=on Marks or Stars)

  • Stars High Growth; High Market

    Share

    Stars have a high market share in a fast-growing industry.

    However, since they operate in a fast paced industry, they require huge amounts of investment to sustain their market leadership.

    The inten=on in running such businesses is to turn them into cash cows should they sustain their market leadership for a long =me, especially when the economy slows down, if not, they may have to be divested (like Dogs).

  • QuesDon Marks High Growth; Low Market

    Share

    Ques=on Marks are businesses which hold a small share in a fast-growing industry.

    The future performance of these businesses is uncertain and companies should invest very carefully in Ques=on Marks.

    If their performance does not live up to the expecta=ons, Ques=on Marks should be reclassified as Dogs and should be divested.

  • Dogs Low Growth; Low Market

    Share

    These are businesses, which have a low market share with no scope for growth.

    Because these businesses do not hold much economic promise, organiza=ons should either not invest in them or sell them as soon as possible.

  • Brand Por.olio Strategy

    Brand porIolio strategy addresses key strategic business issues and decisions rather than the linkages of brands within the

    It is the intersec=on of brand and business strategy By strategically building, leveraging, and protec=ng the

    companys brands, the brand porIolio strategy op=mizes the value of the en=re porIolio

    It is not sta=c but is grounded in market dynamics and can change drama=cally over =me

  • Brand Architecture vs. Brand PorIolio Strategy

    Brand architecture provides a more tac=cal focus while brand porIolio strategy provides a more strategic focus

    BRAND ARCHITECTURE BRAND PORTFOLIO STRATEGY

    Sample QuesDon: Sample QuesDon:

    What should this brand be called? Is this not only the right brand, but Should it be linked to the master the right category in which to grow brand or not? revenues by 15%?

    Primary ObjecDve: Primary ObjecDve:

    Achieve clarity and synergy among VS. Maximize porIolio value by brand(s) in the porIolio strategically growing, leveraging,

    and protec=ng brands in a porIolio

    Scope of AcDviDes: Scope of AcDviDes:

    Customer research to understand Comprehensive fact base (customer exis=ng equi=es of brands and brand data qual./quant.)

    Brand, business, and customer filters PorIolio mapping to iden=fy op=mal solu=on

    Business case development Naming and visual iden=ty system

    .

  • Topics About MK-Africa Brand and brand porIolio strategy Brand architecture vs. brand porIolio strategy An approach to brand porIolio strategy Brand porIolio strategy in the hotel industry Leading brand porIolio prac=ces for driving

    growth Conclusion

  • An Approach to Brand Portfolio Strategy Take a long-term, holistic approach to managing your portfolio of brands

    Stage 1 Stage 2 Stage 3

    Renovation & Identification of Optimization Rationalization Growth Opportunities

    Focus and clarify portfolio Expand brand and business Maintain brand relevance to ensure efficient allocation frame of reference Manage portfolio roles to of resources Leverage brand(s) into new combat market pressures,

    Determine scope, roles and markets or customer e.g., consumer bifurcation relationships of brands in segments Build branded differentiators the portfolio (brand Make strategic brand or energizers to maintain architecture) acquisitions brand-built margins

    Ongoing

    Management System

    Determine appropriate organizational structure to manage brands as a portfolio

    Develop metrics system to track brand and business performance across the portfolio

    Other operationalization issues, e.g., channel, sales force, pricing?

  • An Approach to Brand Portfolio Strategy The following questions begin the brand portfolio strategy process

    ! What is the optimal number of brands in a specific Optimal

    Number? portfolio?

    ! What is the scope of each brand within the portfolio? Scope?

    ! What are the roles and responsibilities for each brand Roles / Responsibilities? (silver Bullet)

    within the portfolio?

    ! How do brand linkages affect equity of other brands in Equity Transfer?

    the portfolio? (brand architecture)

    ! How should acquired brands be integrated into the Acquisitions? portfolio?

    ! What is the strategic roadmap for the portfolio to facilitate Strategic

    Roadmap? future growth?

  • Case Analysis

    Dove: Evolu=on of a brand

  • What is Dove? A cleansing brand in the

    health and beauty sector owned by UNILEVER

    Unilever, a leading global manufacturer of packaged consumer goods, operates in the food, home and personal care categories

  • UNILEVER Por.olio

  • UNILEVER CompeDtors

    (Annual revenue of $69 billion)

    (Annual revenue of $68 billion)

    (Annual revenue of $34 billion)

  • In February 2000 Unilever embarked on a five-year strategic ini=a=ve called Path to Growth. An

    important part of this ini=a=ve was a plan to winnow its more than 1,600 brands down to 400.

  • Why the need for fewer brands?

    Global decentraliza=on brought problems of control. Lack of a unified global iden=ty. A small number of brands would be selected as Masterbrands

    and there would be a global brand unit for each Masterbrand.

  • 1957

    Launched in the market

    1 970s Popularity i nc reased as milder soap

    2 000

    Campaign for real beauty

    2 002

    Self-esteem project

    1995

    Extension of Doves range of products

    Evolu=on of brand Dove

  • 1957: The QuesDon Mark Phase

    The 1957 launch adver=sing campaign for Dove was created by the Ogilvy and Mather adver=sing agency.

    The message was, Dove soap doesnt dry your skin because its one-quarter cleansing cream.

    hFps://www.youtube.com/watch?v=6sU8g0b1vDY

  • 1970s: The QuesDon Mark Phase

    The term cleansing cream was replaced with moisturizing creambut Dove stayed with the claim not to dry skin, and with the refusal to call itself a soap,

    for over 40 years

  • 1995: The QuesDon Mark Phase

    Brand extension: from 1995 to 2000, Dove extended its range of products.

    It also ventured into mens products.

  • The Star Phase: Campaign for Real Beauty

    In 2000, Doves global brand director led a worldwide inves=ga=on into womens responses to the iconography of the beauty industry.

    Unilever went to 3,000 women in 10 countries and explored some of the hypotheses generated by the psychologists.

    Among the findings was the fact that only 2% of respondents worldwide chose to describe themselves as beau=ful.

  • The Star Phase: Campaign for Real Beauty Young, white, blonde and

    thin were the almost universal characteris=cs of women portrayed in adver=sing and packaging

    For many women these were unaFainable standards, and far from feeling inspired, they felt taunted.

  • In the search for an alterna=ve view of the goal of personal care, Unilever tapped two experts: Nancy Etcoff, a Harvard University psychiatrist and author of the book, Survival of the Prexest and Suzy Orbach a psycho-therapist and author of the book, Fat is a Feminist Issue.

    Unilever also hired photographer John Rankin Waddell, an Avant-guarde fashion photographer well-known for using ordinary people in supermodel contexts and for books of nudes featuring plain-looking models.

    The Star Phase: Campaign for Real Beauty

  • Campaign for Real Beauty

    hFps://www.youtube.com/watch?v=XpaOjMXyJGk

  • Campaign for Real Beauty Most viewed and 3rd most shared commercial of all =me -

    viewed more than 114 million =mes & uploaded in 25 languages to 33 of the brand's YouTube Channels

    The 12-year old campaign has won a plethora of ad awards and sales have jumped to $4 billion today from $2.5 billion in its inaugural year.

    In September 2006, Landor Associates iden=fied Dove as one of 10 brands with the greatest percentage gain in brand health and business value in the past three years. It computed that the brand had grown by $1.2 billion.

  • Unilever BCG Matrix

  • Topics About MK-Africa Brand and brand porIolio strategy Brand architecture vs. brand porIolio strategy An approach to brand porIolio strategy Leading brand porIolio prac=ces for driving

    growth Conclusion

  • Leading brand por.olio pracDces for driving growth

    Three considera=ons for driving growth through brand porIolio strategy:

    1. Set a clear customer focus Understand customer profitability, iden=fy

    customer targets, and evaluate how well each brand in the porIolio meets customers needs

    A more comprehensive understanding of drivers of customer choice enables marketers to beFer structure the porIolio

  • Leading brand por.olio pracDces for driving growth

    2. Op=mize the brand porIolio The goal is to drive growth and generate marke=ng

    efficiencies

    Decisions o{en require tough calls and must be guided by detailed analysis of customer targets, brand performance and impact on business results

    3. Organize for success Most companies fail to op=mally manage their brand

    porIolios

    Senior execu=ves must ins=tute the organiza=onal structures, processes, and metrics that foster long-term brand-building

  • Topics About MK-Africa Brand and brand porIolio strategy Brand architecture vs. brand porIolio strategy An approach to brand porIolio strategy Leading brand porIolio prac=ces for driving

    growth Conclusion

  • ParDng Thoughts Some key success factors regarding the development & implementa=on of a winning porIolio strategy:

    A brand porIolio strategy should logically flow from, and lend

    support to, the broader business strategy

    As a rule, a porIolio of fewer, bigger and beFer brands is preferred over a broader porIolio of regional and niche brands

    A brand porIolio strategy must provide clarity on the scope, role and interrela=onship for all brands within the porIolio

    Brand porIolio strategy should dictate the level and mix of investment and communica=on priori=es across the porIolio

    It is impera=ve to have an organiza=onal structure that is empowered to manage the brands and is aligned with the right talent and processes

    A measurement system needs to be establish to gauge and guide success of the brand porIolio

  • How to unify & scale sustainability across brand por.olio

    People . Planet . Profits

  • Unique Positive Contribution (UPC)

  • Asante Sana