Posted in Marketing and Strategy Terms, Total Reads: 2778
Definition: Brand Portfolio
The brand portfolio of a company is the complete range of all brands and brand lines it offers for sale in a particular category or market segment. A brand portfolio is said to be optimal when each brand complements each other in the product portfolio range.
The basic principle of a brand portfolio is to maximize market coverage and to offer enough brands so that no potential customers feel left out, but at the same time to minimize overlap so that no two brands cannibalize each other. A good brand portfolio is marked by the clear differentiation of the component brands ad economy (Marketing and production costs are justified by the size of the end customer segment).
Brand portfolios must be continuously pruned, so as to identify weak brands, reenergize them or to kill off the unprofitable ones.
Within a portfolio, brands can play the following roles:
• Flankers (or fighters): Positioned with respect to the competitors’ brands so that the flagship or more important brands are protected. Care should be taken so as not to cannibalize the flagship brand.
• Cash cows: these may be showing falling sales but still command decent profits despite less marketing support.
• Low-end entry level: Relatively low-priced brands designed to attract the first-time consumer to the brand franchise. These customers can later be “traded up’ to higher-priced brands.
• High-end prestige: Higher-priced brands to add prestige and credibility to the entire portfolio