What's up brand builder Stephen Houraghan here
at BrandMasterAcademy.com and in this video You're going to learn what a brand portfolio
is with models types and six top examples So you can learn how Brands strategically spread
their wings to grow their customer base and market Share across multiple markets and segments
now sometimes a collection of Brands falls Under the overarching umbrella of a larger
firm or company now a large parent company Uses various brand names to introduce products and
services to fulfill the requirements of different Market segments and this relationship between
Brands is called a brand portfolio with the Parent brand holding a portfolio of silk Brands
picture a family tree with the primary brand at The head of the family now in that case all the
branches and offshoots are different brands often Targeting different audiences and market segments
and these sub Brands can be directly aligned or Independent from the rest now each brand is its
own entity and it can be operated differently from Its parent company but is ultimately part of the
parents brand port folio strategy now depending On the relationship there are different levels
of alignment for example Emporio Armani Giorgio Armani and Armani Exchange are all brand
extensions within the broader Armani brand Portfolio in contrast always head and shoulders
and Pampers are individual brands in their own Right within Proctor and Gamble's brand portfolio
so let's unpack the idea of brand portfolios Explore their advantages and examine some
well-known examples as well so what is a brand Portfolio well a brand portfolio is a group of
brands that are part of a broader brand umbrella And are created by a business usually to try and
manage the businesses that they're operating in The markets within which they're operating so
they can extend the reach and market share so for Example the Coca-Cola company is one of the best
known brand portfolios now of course the Coca-Cola Company's most famous brand is its Flagship
beverage Coke but apart from Coke the Coca-Cola Company has over 200 Brands within its worldwide
brand portfolio including Brands offering soft Drinks alcoholic beverages juices and teas and
dairy products as well so household brand names Like Sprite Fanta Costa Coffee they're all within
the Coca-Cola brand family companies typically Build extend and maintain brand portfolios to
establish themselves in different market segments And appeal to a broader range of potential
customers brand portfolios exist in virtually Every single industry and that's because there's
always a case for a brand portfolio strategy to Allow a company to grow and increase its market
share to show this let's engage in a hypothetical Case study so when would you use a brand portfolio
well although some of the best examples of a brand Portfolio polio are giant Brands this approach and
strategy is not limited to brands with hundreds of Millions of dollars in Revenue small brands with
multiple products may decide to Brand each product To create clear and transparent offering to its
customers which can provide the structure for Growth later on established brands that want
to enter a new market or increase its market
Share may decide to create a new sub brand thus
creating an umbrella branding structure and the First in this brand portfolio more often than not
the decision to use a brand portfolio comes down To diversification expansion and increasing market
share so to illustrate the strategy let's imagine A company that sells high-end luxury clothing now
this Flagship brand has gained a reputation as a Status symbol meaning it can sell products at a
high price point to exclusive clientele however The company's market research shows that a
significant portion of its Target Market has Shifting priorities customers preferences are
airing more towards cost-effective clothing Options now this scenario presents a dilemma for
the flagship brand now of course the flagship Brand's identity and reputation is built upon
offering luxury items and the audience expects To pay premium prices for a high quality luxurious
product offering new products at more affordable Prices risks cause and damage to the company's
brand by turning off the most loyal customers Now in this scenario the flagship brand may choose
to create an entirely new brand or acquire a brand To satisfy the demand of the growing Market
segment now this new brand would concentrate On offering more affordable clothing with a
branding strategy to match and this strategy Helps the flagship brand to avoid engaging in
conflicting messages that could be harmful if It was to bring a more affordable product to
the marketplace so the new brand would be part Of the flagship Brand's brand portfolio now a
very similar situation actually happened back In 1989 in the automotive industry Toyota decided
to enter the luxury car market but they knew that They would face a challenge with a reputation as
an affordable car brand so rather than confusing The market they created the luxury car brand
Lexus as a sub brand within the Toyota brand Portfolio now within a brand portfolio Brands
tend to fall into one of several predetermined Roles each brand category has a part of playing
the overarching brand portfolio strategy often Businesses will build and sustain brands with
different roles to complement one another to Maintain a competitive advantage and increase
market share within a category so let's focus On four main brand portfolio roles flanker Brands
Cash Cow Brands entry-level Brands and high-end Prestige Brands now a flanker brand is a company's
launching of a brand in a product category where It already has an established brand the new brand
intends to meet the needs of potential customers That the original brand might not be able to
satisfy within that product category now the aim Here is to present distinctive Brands to appeal to
various consumers within different market segments Without stepping on the toes of other brands
within the portfolio for example Diet Coke is A flanker brand of coke allowing them to extend
their reach into the more diet conscious market Now although the flagship and flanker brands
are officially competitors I.E a customer may Choose either Coke or Diet Coke they actually
work as a team to complement each other rather Than eat into a shared audience so by targeting
different types of consumers within a product
Category a parent company aims to strengthen the
company's market position and drive away Rivals The next example are Cash Cow Brands now Cash Cow
Brands tend to be the parent Brands these are the Trend setters these are the Pioneers that went
into the market and established the brand name as A whole within a given category now this is the
brand that sits on top this is the parent brand It's the one that has gained Equity over time it's
gained a reputation in the market and it uses that Equity and it uses that reputation to float the
other sub Brands to bring other brands into the Market and use the trust that it's generated with
consumers in various categories to get a foothold In a given market so these Brands continue
to generate Revenue they continue to satisfy Their clients and they continue to generate and
earn that respect equity and reputation in the Marketplace and they use that as an asset to get
the other brands off the ground so the cash cow Brands tend to be the parent brands that sit on
top lending the equity to their soap Brands the Next example are entry level Brands now entry
level brands do exactly as they say on the tin They're Brands within a portfolio that offer low
price products these are often the cheapest Brands Within the overarching parent Brands portfolio and
it gives that parent brand access to that market Segment low prices can hook customers and attract
them to the Brand's family now the strategy here Is that once exposed to the lower price points of
the entry level brand a consumer may be tempted To try other options provided by the parent brand
their tastes may change over time they may have More disposable income and want um a better option
or a more luxurious option now a great example Of this brand portfolio strategy is the Marriott
Hotel chain now the Marriott has different levels Of hotels within the market category it has low
priced options it has mid-range options and it Has luxury options now if somebody stays at a low
priced option as their lifestyle changes as they Grow over time as their revenue grows as their
income grows as their disposable income grows They're more likely to want a different level of
experience to want a higher level experience over Time and the Marriott has a brand portfolio
to cater to that Journey it has a low priced Options it has the mid-range options and it has
the luxury options as well now in contrast to the Entry level options the high-end Prestige Brands
tend to cater to the top of that ladder they tend To convey a sense of luxury and Superior Quality
and really cater to that level of Market segment Now as mentioned in the earlier example it will be
very difficult for a brand such as Toyota that has A reputation of affordability to earn a slice of
the luxury car market under the same brand name Creating an independent luxury brand disassociates
from this reputation and allows the brand to Establish its own reputation for Prestige so these
different roles within a brand portfolio strategy Allows a parent brand to cater to different
segments of the market without diluting the Equity or the reputation of any of their brands so
let's have a look at some advantages of the brand Portfolio strategy now effective brand management
relies on understanding the audience you must make
A connection with the audience through Brown
messaging and experience and carefully manage That relationship over time as well but customer
preferences shift and sometimes a single brand can Find that faces a diminishing market share despite
having a loyal customer base now in this case the Brand strategist May believe that their existing
brand can't expand into new market segments Without compromising their relationships with
their existing customer base and this is where The brand portfolio strategy can help to increase
a company's market share by acquiring existing Brands or introducing new brands to the market
now not all brand portfolio structures are the Same some Brands create clear alignments within
portfolios from one brand to the next in a branded House structure such as virgin or FedEx where
brands are clearly within the same brand family And and the parent brand are leveraging that
equity and those associations now on the other Hand a house of brand structure such as Unilever
or Procter and Gamble create more Independence For the brands within their portfolios with
many customers unaware that those associations Or those connections even exist now the brand
architecture is a structural representation of The affiliations and Partnerships between those
Brands and where those associations are clear Brand equity and reputation is leveraged so when
Nestle or Kellogg's introduce a new food product The new product has a perceived credibility with
the Nestle or the Kellogg's logo on the box now In another example version is the parent brand
and the head of the Brand family they're the Virgin Brand family leverages the Branded house
structure where each sub brand is an endorsed Brand I.E endorsed by virgin with the Virgin logo
part of the sub brand identity now as each new sub Brand is launched it enters the market with the
competitive advantage of the existing reputation Of the parent brand allowing virgin to launch
sub Brands such as Virgin Media Virgin Mobile and Virgin Atlantic to name just a few but generally
speaking if a customer trusts the products of one Brand of a company and has a positive experience
with that product then there's a higher chance That they'll also trust the products of the other
brands of that company so let's have a look at Some examples of brand portfolios now you can
find brand portfolios across all Industries and You'll find a variety of different approaches as
well Unilever House of Brands now Unilever is the Parent company of a vast Brand family of over 400
companies worldwide offering products across the Home Goods food and Healthcare Industries now they
join the brands through a shared Vision to to do Good and to make sustainable living commonplace
now Nestle is a hybrid structure Nestle is the World's largest food and beverage company offering
an Eclectic mix of food products with something on Almost every aisle of the supermarket now unlike
other structures Nestle's brand architecture is A hybrid of both a branded house and a house of
brands with endorsed brands with clear alignment And independent Brands without alignment PepsiCo
House of Brands now PepsiCo is another brand Behemoth often thought of as the main competitor
to the Coca-Cola Company due to the Rivalry
Between the flagship Brands and after bringing
Frito-Lay into the fold is brown portfolio Includes some of the Giants of the beverage
and potato chip industry Johnson and Johnson House of Brands now Johnson and Johnson's brand
portfolios Brands several different industries That fall under the broader Healthcare sector now
look we can make a brand portfolio strategy and To be as complicated as we want but really it's
pretty simple Brands try to dominate markets they Try to claim as much market share as possible and
even those brands that are really successful they Can only make it so far because they can only
appeal to certain segments within the market Brands that have a portfolio of Brands and have a
brand portfolio strategy they're able to introduce Brands or acquire brands that appeal to different
segments of the market ultimately increasing their Market share and dominance that's what a brand
portfolio strategy is all about it's all about Bringing new products to different market segments
to appeal to those market segments and ultimately Spread the wings and grow the brand now look at
the end of the day a brand portfolio strategy Is not really that complicated ultimately a
brand aims to establish itself in the market And to claim as much market share as possible and
even really successful brands with with a great Reputation and a large market share can only go
so far because there are different segments within Every single Market brand portfolio strategies
allow those Brands to introduce other brands to Take advantage of different markets and different
market segments ultimately increasing their market Share revenue and to grow the ultimate brand now
if you want to dive deeper into brand strategy Then this video here will help you out but
before you click it if you want to become a Master of brand make sure you hit the like And
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