Business development can be driven by multiple factors. One of the most recurrent is the growth of brand portfolios. For this reason, brand portfolio management strategies are an essential requirement to ensure the long-term success of companies structured into multiple brands.

No matter the sector or the size of the business, what is really important is to have a clear vision of how each of the brands fits into the whole, making it more powerful, and what the evolution of each of the products or services associated with these brands can be. To do this, it will be necessary to have an external vision, but also an inward look to achieve a clearer, easier to understand offer that is directly linked to the business strategy. Each of the brands will have to add to this and will have to be managed individually with a clear global objective.

The key to a good brand portfolio

The key to the issue lies in prioritization. In most markets, one-third of products generate more than 70% of a company’s value. Traditional growth levers, such as boosting volume, raising prices, or reducing costs, have become less effective. However, optimizing the mix of products and services or prioritizing customers and markets represents a great alternative.

The analysis and mapping of these scenarios will facilitate growth strategies focused on the most profitable segments and reduce investments in the least profitable ones. And all of this will improve the experiences that customers have with brands. With the focus on those brands that show the greatest growth and with the redefinition of those that do not achieve the desired objectives, in this sense Brand Management will provide:

  • Greater clarity regarding the role of each of the brands, making it easier for the consumer to understand.
  • Increased visibility of corporate brands, reinforced by a set of sub-brands that work together from a level that directly contacts customers.
  • Better credibility of all brands, as specialists in specific segments, also increasing their relevance.

How to create a strategy for your brand portfolio?

It must be said that there is no perfect model and each of them will be subject to particular circumstances, but given the certain immediacy of customer response, companies will need to adapt their structures to facilitate quick reactions to the decisions made. Here, too, the adequacy of the metrics established to evaluate the results will be critical.

In general terms, 5 basic points for an adequate brand portfolio strategy are identified:

1. Start your own business

What are the business objectives that should be covered by brands? How is the current portfolio performing in terms of finances and growth? It also identifies the different categories and the role consumers play in each of them.

2. Identify the degree of reality

What is the gap between what customers want and what the brand satisfies them with? It is not only an analysis of the past but also a projection into the immediate future that allows us to detect new opportunities for the business.

3. Find the balance between the reality of the brand and the business opportunity.

Does the current situation of the brand coincide with the opportunities for growth?

Finding the answer requires a combination of market segmentation strategies and channel distribution strategies. This will result in an interesting map that combines category, consumer, product and trends, making it easier to identify new opportunities.

4. Determine the roles for each brand.

What criteria are necessary to prioritize some brands over others? The best way to assign roles starts with a quantitative analysis based on facts and figures. Identify if you’re chasing growth, performance, or maintaining market share… When the goal is clear, it will be easy to assign each brand its own role.

5. Develop a specific strategy.

Are the differences between the brands clear enough? The hierarchy established internally between brands must be easily understood on the outside by consumers. Efficiently communicate differences by articulating your own messages for each market.

Finally, if you want to ensure success in the implementation, it is advisable to have guidelines and a roadmap that guide all the movements, point out the different responsible parties and determine which are the measuring instruments. Remember, a valuable brand brings many more benefits than simply an available brand.


Carlos Puig Falcó

President of Branward®

Photos: Shutterstock

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