Chapter 5

Managing Brand Portfolios

Prof. Serdar S. Durmusoglu
serdar.durmusoglu@khas.edu.tr
KHAS, F2023
Outline

1. Designing a
Brand Portfolio
Strategy
2. Single-Brand
and Multi-Brand
Portfolio
Strategies
3. Private-Label
Portfolio
Strategies

Slimming Brands

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Designing a Brand Portfolio Strategy:
Mondelez International

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Designing a Brand Portfolio Strategy

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Designing a Brand Portfolio Strategy

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Designing a Brand Portfolio Strategy

Product line

Target Customers A Target Customers B

Value Proposition A Value Proposition B

Market Offering A Market Offering B

Product Service Brand Product Service Brand
Price Incentives Price Incentives
Communication Distribution Communication Distribution

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 Designing a Brand Portfolio Strategy:
Toyota

Toyota product line

Target
customers Segment A Segment B Segment C Segment D Segment E
Value Practical and Everyday Commercial Utilitarian Luxury
proposition inexpensive transportation transportation transportation experience

Product

Service Standard Standard Standard Standard Premium

Brand
Brand Scion Toyota Toyota Toyota Lexus portfolio
Price $ $$ $$ $$ $$$
Toyota Toyota Toyota Toyota High-end
Distribution dealership dealership dealership dealership dealership

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Designing a Brand Portfolio Strategy:
The Brand-Offering Matrix
Target Customers TA TB TC TD TE Marketing
strategy
Value Proposition VA VB VC VD VE

Product P1 P1 P2 P2 P3
Service S1 S2 S2 S3 S3
Brand B1 B1 B1 B2 B3 Brand
portfolio
Price R1 R2 R2 R3 R4
Incentives I1 I2 I3 - - Marketing
Communication C1 C2 C2 C3 C4 tactics
Distribution D1 D2 D1 D3 D3

Market offering
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Designing a Brand Portfolio Strategy:
The Product-Brand Matrix

Brand A Brand B Brand C Brand D

Product 1 Offering A1 – – Offering

– D1

Product 2 – Offering B2 – –

Product 3 – Offering B3 – –

Product 4 – Offering B4 – –

Product 5 – – Offering C5 –

Product 6 – – Offering C6 –

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Single-Brand versus Multi-Brand
Strategies

Single-brand Brand A
approach
Offering 1 Offering 2 Offering 3

Brand A Brand B Brand C

Multi-brand
approach
Offering 1 Offering 2 Offering 3

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 Single-Brand versus Multi-Brand
Strategies
Brand A

Offering 1 Offering 2 Offering 3

The Gap, Victoria’s Secret use a

family brand approach: aka
single-brand (or ‘branded house’)
– Use letters, numbers, combine
the brand with other words to
differentiate individual
offerings
– More subtle version: Use
“Nes…” tea, quik, presso, etc.
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 Single-Brand versus Multi-Brand
Strategies
Brand A Brand B Brand C

Offering 1 Offering 2 Offering 3

Macy’s uses a portfolio

approach: aka multi-brand;
several brands with
different merchandise
types (e.g., Charter Club,
First Impressions,
Greendog, INC, The
Cellar, Tools of the Trade)
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 Single-Brand Strategy Example

• Central…

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 Single-Brand: Advantages and
Disadvantages
Advantages: Disadvantages:
• Cost efficient • Dilution
• Speedy • Negative halo
• Creates synergy • Opportunity cost

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 Multi-Brand: Advantages and
Disadvantages
Advantages:
• Distinct brand image
• Limited chances of
negative halo
• Separable company
asset
Disadvantages:
• High investment
requirement
• Need for long term
planning
• No synergies w/other
brands
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 Internal Co-branding
• Two or more brands owned by the same company

Brand X

Brand A Brand B Brand C

Offering 1 Offering 2 Offering 3

• Types:
– Sub-branding (e.g., several automotive brands)
– Endorsement branding (e.g., Courtyard by Marriott)

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 Brand Portfolio Strategy Continuum

The degree to which offerings in the portfolio share the

same brand
Single parent New Endorsed Independent
brand sub-brand new brand new brand

Single-brand Multi-brand
strategy Cobranding strategy

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 Collaborator Branding
• Involves partnerships
• Types:
– Product cobranding (e.g., airlines with credit cards)
– Ingredient cobranding

– Certification cobranding (next slide)

– Social cause cobranding
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 Collaborator Branding
Certification cobranding

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 Cobranding: Advantages and
Disadvantages
Advantages: Disadvantages:
• Visibility • Dilution
• Credibility • Negative halo
• Value transfer: brand
associations are
transferred

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 Private Label Portfolio Strategies

• Private-label (aka Store/House/Own)

brands (e.g., Kroger Vegetable Oil)
• Developed by a retailer and sold only in
that retailer’s outlets
• In the above example, Crisco Vegetable
Oil can also be found at other grocery
stores or discount stores, not only at
Kroger

Private label product sales are growing faster

than their national brand competitors
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 Private Label Portfolio Strategies:
Advantages and Disadvantages
Advantages: Disadvantages:
• Differentiation • Need for brand building
• Price sensitive customers expertise
• Channel power • Lack of manufacturer incentives
• High profit margins • Limited scope
100% 100%
Store National
Brands Brands

The Gap Macy’s Wal-Mart Best Buy

Limited Target Home Depot

Marks & Meijer
Spencer
IKEA

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END OF CHAPTER 5

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