Brand Portfolio?
One brand, unless… The balancing act between efficiency and effectiveness.
BR-ND People published a handy white paper named '10 Things you need to know about brand portfolio' on how deliberate management of brand portfolios can support the performance of organizations.
It explains the basic principles of brand portfolio thinking and shows which considerations precede an efficient and effective strategy. If you are a brand owner or consultant, this booklet will provide you with insights to think about and tools to bring into practice. Happy reading!
And is it becoming too complex for you? Do not hesitate to ask us for advice. Since 2005 we have assisted many organizations with complex brand portfolio issues.
Optimizing your brand portfolio is one of the most critical rebranding strategies, as you touch the personal identity of people and their feelings. Brands add value to products, services and organizations by touching the hearts and minds of people. But what if organizations do not have one, but several brands? But what if organizations do not have one, but several brands? Every organization with multiple products, services or subsidiaries faces the choice to focus on one or more brands. Do we opt for the power of the whole, or for the power of specialization?
Every organization with multiple products, services or subsidiaries faces the choice to focus on one or more brands. Do we opt for the power of the whole, or for the power of specialization? After all, one brand is complicated enough. Research into brand portfolio management shows that brand portfolios are usually created randomly. Without a well-considered brand portfolio policy. To efficiently and effectively manage the structure and cohesion of brands, a well-considered strategy is required. Fragmented media, consumer segments that are difficult to reach and internationalization are just a few factors that make branding an increasingly complex and expensive activity.
Positioning & brand portfolio are related.
Brand positioning and brand portfolio policy are two sides of the same coin. The strategy of the organization behind the brands gives direction to the cohesion between the main brand and the (sub) brands. With brand portfolio policy the relationship between the parent brand and the other brands is established and the relationship between the brands themselves.
Scientific research of brand portfolios shows that there are several roads to Rome. Some organizations rationalize their brand portfolio (KPN stops XS4ALL and ANWB stops with FOX Verre Reizen & Pharosreizen) and other organizations introduce new brands.
The best solution for brand portfolio issues stems from fact analysis and assessment of the relevant strategic determinants.
Under mother’s umbrella.
Kim Cramer obtained her doctorate from the University of Amsterdam on a SWOCC grant. She wrote her dissertation named "Under mother's umbrella". It’s about the determinants and effects of brand portfolio strategies.
Dissertation ‘Under mother’s umbrella’ by Kim Cramer PhD
Image credit: Janiek Dam
Brand architecture with Brand Fan®
Brand portfolio issues cannot be viewed separately from the brand architecture of the individual entities. This is about the extent to which and how the coherence of individual brands, sub-brands and endorsed brands with the main brand is made visible visually and verbally.
The individual entities from the brand portfolio are assessed on the basis of the Brand Fan®.
The Brand Fan is a tool to visualize the current and future brand portfolio and brand architecture. Makes complex coherence transparent. So that portfolio strategy decisions can be made quickly, and the evolution can be monitored. The model is based on the dynamic relationship between the degree of dominance of other (sub) brands, category names and propositions.
The dynamic relationship is important because brand portfolios are never static in practice. It translates complicated portfolio management into an understandable and practical tool for branding and other professionals throughout the organization.