product portfolio . loreal

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What reasons lead Loreal to develop a brand portfolio strategy? How can brand portfolio management create a higher and stronger level of competitive advantage for this company?

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<ul><li> 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 </li> <li> A brand portfolio is simply the collection of brands under a companys 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 companys brand portfolio. </li> <li> o Better utilization of resources o Lessen confusion o Higher efficiency </li> <li> 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 </li> <li> 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? </li> <li> Exploratory approach: Case Study Field of cosmetic products - Strong Brand Presence&amp; - Extremely developed multi-brand policies Product category study LOreal </li> <li> 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 </li> <li> MD Jean Paula, asserts: VECTORS for development: 15.6% world market share Company is - Regularly accessible &amp; communicative Their brands - Linked to research &amp; development capacity </li> <li> Non-directive key-informant interviews Key informant: One who holds privileged &amp; reliable information INTERVIEWED: Executives Managers Used public information to collect data from: 1. Strategic level 2. Intermediate level 3. Operational level </li> <li> Semi-structured interviews - Open questions Tape recorded &amp; transcribe: - 15 different interviews - Length: 60 105 minutes </li> <li> Analysed Coded Summarised Identified Read Transcripts for : identifying themes, clusters or patterns Synthesis card Terminology list Independent researcher Intercoder's reliability :89% </li> <li> Brand portfolio adoption Three phases Brand aggregation Brand rationalization Brand formalization </li> <li> 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) </li> <li> Brand rationalization Optimize profitability Preferences for globalization R&amp;D </li> <li> Brand formalization Defining strategic axes for long term growth Organize brands as complementary brands Dealing with complexity </li> <li> Key competences Brand radicalization Brand network arbitration Brand expansion matrix </li> <li> Brand radicalization Maximum differentiation of adding targets (Distribution,needs,price) Integration of very original brands </li> <li> 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 </li> <li> 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 </li> <li> Interpretative Model </li> <li> Discussion and Perspectives 3 Considerations Creation and implementation of brand portfolio happens one after the other Path depend Companys history influences the future o Strong evolutionist character of lOreal </li> <li> Internal Competencies Difficult for the competitor to replicate Causal ambiguity Performance difference between companies Complex Specific to the company Tactic </li> <li> Development of co-specialized asset A brand ensemble A model of internal organization based on specific competences </li> <li> Conclusion What reasons lead Loreal to develop a brand portfolio strategy? How can brand portfolio management create a higher and stronger level of competitive advantage for this company? </li> </ul>