Brand & Product Portfolio



Brand Portfolio Definition: The Brand Portfolio refers to an umbrella under which all the brands or brand lines of a particular firm function to serve the needs of different market segments. In simple words, a brand portfolio encompasses all the brands offered by a single firm for sale to cater to the needs of different groups of people.


The advantage of having the Brand Portfolio is that dividing what types of products to include in a category is often to fully satisfy consumer needs or to ensure the brand's competitiveness against the competition and management can keep a check on all the brands as a whole and frame the policies with a broader perspective.


The brands in the Brand Portfolio play the following different roles:


1. Cash cow brand

A cash cow brand is a product in the brand portfolio that has reached the maturity level in the product life cycle but is able to bring in profits necessary for its survival. The brand has a good reputation, good brand equity makes a lot of money with fewer investment costs. Cash Cow can create new trends, lifestyles, and behaviors to benefit the brand itself. An example of a cash cow brand is Unilever with Omo washing powder.


2. Flanker brand

A Flanker Brand is also known as a Fighter Brand is a new product launched in a market by the company in the same category wherein an established brand is already positioned. The goal is to eat the market share of the competitor, neutralize the competitor's most dynamic points of difference so that other brands like Cash Cow, strategic can go hands-free. This is primarily done for the increased market share as well as to cater to the need of all the segments of customers.

For example, Unilever has Omo washing powder as Flagship Brand (a company's leading brand). Then Unilever launched Viso, a washing powder in the lower segment to protect Omo against competitors. If customers choose cheaper detergent than Omo, they can choose Viso instead of a competitor. Since then, Unilever's market share in the laundry industry has been maintained.


3. Low-end entry-level brand

A low Entry Brand in a brand portfolio includes the product which is offered at less price. The goal is to bring fast cash flow for businesses & optimize COGS & Operation cost types. Then as a way to bring the customer into the brand family. Once the customer becomes a part of the family, he is then persuaded the purchase the higher-priced product in near future. Surf powder laundry detergent of Unilever for example.


4. Silver-bullet brand

Silver-bullet (silver bullet) is understood as a magical weapon. A sub-brand that targets a set of customers, while trying to create a positive impact on the perception of other customer groups to improve the brand's own image perception to its parent brand. The brand here is created to bring resonance to the Original Brand. For instance, Biti’s Hunter is an example of the silver bullet brand in the brand's product architecture of Biti’s. It not only upgrades the image of the parent brand, but it also helps to change the attributes of the parent brand, switching to USP as a fashion icon of young people.


5. Strategy brand

When the company wants to target a higher segment or create a new trend in the market. They will use a strong brand to launch a new sub-brand to penetrate new segments, higher-margin (niche market with a high price such as baby cooking oil, toothpaste for sensitive teeth, vegetarian noodles,...). Ariel created a new trend of using laundry detergent for washing machines.


Sources:

  1. businessjargons.com

  2. www.brandcamp.asia


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