Brand Portfolio Strategy and Firm Performance
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 different brand contribute to the entire portfolio. Managing Portfolio
Managing the portfolio of brands is tough because the brands are interrelated with each 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 the 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...
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