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11 Cards in this Set
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- Back
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Creating and Managing multi-brand portfolios |
> A set of brands owned by a company (Reizbos, 2003) >A brand portfolio is not an accumulation of independent brands but the reflection of a global strategy of market domination (Kapferer, 2015). >Questions for the need for positioning the brands in a portfolio in connection to each other and the strategic equilibrium of brands in a portfolio. |
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Brand Portfolio Strategy Aaker (2004) |
>Specifies structure of portfoluo and scope, roles and interrelationships of portfolio brands - goals are to create synergy, leverage and clarity within the portfolio and relevant, differentiated and energised brands. >must understand market dynamics, business strategy, brand equities and identities, brand portfolio audit. >optimise structure of Brands portfolio to changes in market and strategic direction of firm. |
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Brand Portfolio Strategy Aaker (2004) |
>sub-brands - many products were found to use mixed brands, carrying two or more brand names - Apple. >House of brands - individual brands created by different products or makerts Unilever etc. |
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5-Step Framework |
>understand what is in the portfolio - identify brands for review >assess brand contribution - annual revenue expenses >assess market position - sort by strategic imperative - watch people's body language >address problem/opportunity brands - fall into a continuum >develop brand portfolio renewal plan--cut, sell, reposition, promote, demote, revitalise |
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Key rules to manage multi-brand portfolio (Kapferer, 2015) |
>Need strong co-ordination >allocation innovation according to each brands positioning >focus each brand of the portfolio on a different competitor |
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Less brands make you stronger |
>more focus >better quality >more profit >more growth >more power of retailers >more room to grow in future |
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Expansion |
>Extend >Create >Acquire |
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Brand acquisition |
>quicker access to market >existing consumer base >already established brand >existing brand Equity >However - may required future investment and on occasion repositioning/revitalisation |
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Portfolio Strategy |
>Allocate Resources >link brand portfolio to business and brand strategy >relevance is key >branded differentiators can create strong brand positions |
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Advantages (Santos, 2018) |
>optimised structure that allows firm to meet consumer preferences and enhance performance >allows firm to adapt to changes in market and create strong strategic direction >allows firm to exploit full potential and gain competitive advantage over other firms >attract better brand managers >enjoy greater power than media owners and channel members >can provide a link of the firms products to overall consumer perceptions of company >can push into existing markets |
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Disadvantages (Pierce and Moukanas, 2002) |
>I'll defined brands in portfolio can lead to erosion in price premium >can be difficult to harvest value in brand or digest it >can put undue pressure on master brand while trying to cover more market territory (sub-brand) >stretching brand to far by extending - can lead to expensive mistakes, betre to buy one >harvesting weak brands for a log time puts considerable strain on resources(Hill et Al, 2005) |
