One is the House of Brands model and the other is the Branded House model.
Under the House of Brands model, the brands within a portfolio are distinct from each other and operate independently. In many cases, consumers might not even realize that two brands are part of the same portfolio because there is little or no mention of their shared ownership in their publicly available materials.
Nestle uses the House of Brands model; globally, the company operates more than 2, distinct brands, including DiGiorno frozen pizza and Purina pet foods. Under the Branded House model, every brand within a portfolio retains a connection to the primary brand while operating as its own brand. Some companies use a mixture of the two recognized brand portfolio models.
How to design a brand portfolio for business strategy Mission
Another famous company that uses the Hybrid House model is Microsoft. Although Microsoft operates numerous brands under its name, like Microsoft Office and Microsoft Azure, it also operates the more independent Xbox brand. Regular brand portfolio analysis is necessary for any company to successfully operate multiple brands. Lindsay Kramer has been a full-time writer since In that time, she's experienced the ups, downs and crazy twists life tends to take when you're launching, building and leading a small business.
As a small business owner, her favorite aspect about writing in this field is helping other small business owners and aspiring entrepreneurs become more fluent in the terminology and concepts they face in this role. Previously, she's written on entrepreneurship for 99designs and covered business law topics for law firms. Share It. Even though these two portfolio models exist, in reality firms tend to use components of both models together in their brand portfolio strategy.
For any company which has more than one or two brands, it is important to regularly review their portfolio strategy; here are some thoughts to help:.
Brand Portfolio Management. Basic principles and recent trends
There are two basic principles for the design of a successful brand portfolio. The first is to maximise market coverage , so that no potential customers are being ignored. If you can achieve both of these then your brand portfolio will have a solid foundation. Webcast, October 15th: Your Baby is Ugly.
Suppose you sell a carbonated soft drink and think you are in competition with other carbonated soft drinks. Consumers on the other hand see your brand as being in a larger category of soft drinks which also includes fresh fruit juices, because your product contains juice as well as being carbonated.
Advantages of Using a Brand Portfolio
It is essential to ask consumers about the category in which you are competing; a simple brand or pack sort is a great exercise for this. Need states are the intersection between what customers want and how they satisfy this need. Although many marketers think about need states from time to time, most define their brands by consumer demographics or product attributes. This can lead to brand overlap and cannibalization. Although the exercise of identifying needs states can be a challenge, the results can often identify new ways for existing brands to compete.
Once found, both situations can be addressed, offering the potential for significant growth , often without the need for new brand launches. Not all brands in your portfolio will be of equal value to the organisation. Once the category and need states have been identified, and the current brand role is plotted, it is important to differentiate and communicate these differences to customers. Hopefully this short post has given you some food for thought on your own brand portfolio strategy. What would you add?
- Making brand portfolios work!
- Fodors 1,001 Smart Travel Tips: Advice from the Writers, Editors & Traveling Readers at Fodors (Special-Interest Titles)?
- Brand Portfolio Strategy : David A. Aaker : .
- An Introduction to Analysis, Second Edition!
- Gravitational Measurements, Fundamental Metrology and Constants.
- BUSINESS IDEAS.
Learn more about writing for B2C. Join over 50, of your peers and receive our weekly newsletter which features the top trends, news and expert analysis to help keep you ahead of the curve. Your Baby is Ugly. It's natural to want results and to want them right. In fact,. While everyone loves the ability of technology to scale our sales efforts, save time and my personal favorite,. Free Webcast: Your Baby is Ugly!
Toggle navigation Business 2 Community. Image: Heading to a Business Meeting?
- General Smedley Darlington Butler: The Letters of a Leatherneck, 1898-1931.
- Mentoring in the Lifelong Learning Sector?
- Exact Confidence Bounds when Sampling from Small Finite Universes: An Easy Reference Based on the Hypergeometric Distribution.
- About the Author.
- What is brand architecture?.
Related Brand Portfolio Strategy
Copyright 2019 - All Right Reserved