- Published: September 30, 2022
- Updated: September 30, 2022
- University / College: Leeds Beckett University
- Language: English
- Downloads: 24
Performance Brand Portfolio Company should run their brand as a portfolio.
It helps marketing department to vary their focus on different brands according to the strength of the brands. Portfolio approach is not essential when there are small numbers of brands in a portfolio. Increasing the number of brands in a portfolio imposes complexity on product development, sourcing, manufacturing, distribution, sales channel model and marketing promotions. Company can try to invest In sub-brands if the brand is successful Portfolio Strategy
The portfolio strategy should first start from the customers by defining different categories. The company should balance the economic opportunity with brand reality.
Each brand provides a unique contribution to the entire portfolio. There is a weak brand in the portfolio the firm can use the brand to target new customers or completely neglect the brand. Brand restructuring is a tough task and it is regarded highly risky activity. Profit map will give us a crucial analysis of how deferent brand contribute to the entire portfolio.
Managing Portfolio Managing the portfolio of brands Is tough because the brands are Interrelated with ACH other.
Each brand is not managed in isolation. Manager must develop different scenarios in order to do analysis on brand portfolios. Firm should build their strategy on the leading brand. The portfolio goals should be done in view of the internal resources of the firm. Company should be ready to make organization changes in order to develop a better portfolio strategy. Brand portfolio manager Is a key role In a company and It should be given to people who are competent In marketing.
Constant tracking process should be there In order measure the effectiveness of each brand In he portfolio. Firm Performance Many firms have a large portfolio of brands and not just a single brand. They make strategic firm level decisions based on the brand portfolio. There is no clear relationship established between the brand portfolio and marketing and financial performance of the firm. Some say that having a large portfolio of brands enable firms to deter competition as It prevents entry of competitors In to the market.
On the other hand some say that smaller portfolio helps in achieving economies in manufacturing and distribution, and efficiency in advertising and administration. Similarly there is controversy regarding distribution of brands into different geographies, as some say that it brings scale and economy benefits while others say that it dilutes the firm’s brands. Conflicting views are also on whether the brands in the portfolio should complement each other or compete with each other.
A firm’s brand portfolio strategy Involves: 1 Scope: Number of brands in the firm’s brand portfolio and the number of markets in which it competes 2). Competition: Highlights the competition among brands within the portfolio 3).
Positioning: Highlights the quality and perceptions of the brand among consumers How to develop ten Test Brand Protocol? The company should try to develop strategic brands around which the portfolio of the company could be build. Active management of the brands is key in developing the brand portfolio strategy.
Roles of product line and sub brands are crucial in developing the brand portfolio. The business strategy of the company should be aligned with the brand portfolio strategy. There shouldn’t be centralization effect between different brands. There should be significant amount of difference between different brands.
Even if the brand is successful company should try its best to energize the brands through various mechanisms. Company should try to leverage its successful brand in increasing the sales of the companies.
Company should try to revive its old brand. Company should use its powerful corporate brand in order to improve the brands and at the same time improve the performance of the company. There should be ample amount of effort by the company to make the brand portfolio of an adequate size. Brand Acquisitions Most of the large firms adjust the brand portfolios by buying and selling different brands.
There is significant amount of active market in brand trading. The brand acquisition should fit into the core business of the firm.
Brands which don’t meet the long term goal of the company should be removed from the brand portfolio of the company. Brand Logo ; Firm Performance Brand logos are key factors of the brand. Brand logo differentiates itself from the other brands and competitor brand. Logos are primary visual representation of the brand’s image.
Brand logo impact on customer commitment through different types of functional and operational benefits. Research has shown that company having attractive logos outperforms the company whose logos are not that attractive.