What Is A Brand Portfolio (Models, Types and 6 Top Examples)

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 
subscribe to get notified when new videos like   This get released until next time Brian like 
a master and I'll see you in the next video Foreign

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