ADJUSTMENT TO

BRAND PORTFOLIO &

BRAND PORTFOLIO
RATIONALIZATION
REEMA DAWRA(07/2010)
RAHUL YADAV(01/2010)
VARCHA CHANDRA(02/2010)
 Migratio
n
Strategie
s

ADJUSTMEN
T TO
BRAND
PORTFOLIO
Acquiring
Retiring the New
Brands Customer
• BRANDS PLAY SPECIAL ROLE IN MIGRATION OF
CUSTOMERS WITHIN BRAND PORTFOLIO
• CORPORATE OR FAMILY BRANDING STRATEGIES
IN WHICH BRANDS ARE IN LOGICAL MANNER
COULD PROVIDE THE HIERARCHICAL STRUCTURE
IN CONSUMERS’ MINDS TO FACILITATE BRAND
MIGRATION.
Example: BMW with its 3-, 5-, and 7-series numbering
systems

MIGRATION STRATEGIES
 • Multiple marketing
ACQUIRING communication
programme
NEW • Brand extensions and
CUSTOMERS sub- brands
• New distribution outlets
 • Tradeoffs in their marketing efforts between attracting new
customers and retaining existing ones
• Firms must proactively develop strategies to attract new
customers, especially younger ones.
• Example:- Volkswagen; Dove

ACQUIRING THE NEW CUSTOMERS

 Multiple Marketing Communication
Programme
This approach to attracting a new market segment and
satisfying current ones is to create separate advertising
campaigns and communication programs for each
Example:-Dewars scotch launch “AUTHENTIC” &
“PROFILES” and Beer Companies

New Distribution Outlets

A new market segment may be as simple as making the product
more available to the group.
Example:- Sunglasses industry, Automobile industry
 Brand Extensions & Sub- Brands
This approach to attracting new customers to a brand and
keeping the brand modern and up-to-date is to introduce a line
extension or establish a new sub-brand. These can incorporate
new technology, features, and other attributes to satisfy the
needs of new customers as well as satisfy the changing desires
of existing customers.
Example:- Jeep introduced new SUV with a V-8 Hemi engine
that featured three rows of seating
• DUE TO DRAMATIC OR ADVERSE CHANGES, SOME
BRANDS ARE JUST NOT WORTH SAVING.
• HOW DO YOU DECIDE WHICH BRANDS TO ATTEMPT
TO REVITALIZE AND WHICH ONES TO OBSOLETE?
 Market Prospectus – is the rates of decline orderly &
predictable; are these pockets of enduring demand and what are
the reasons of the decline etc.
Competitive intensity – are these dominant competitors with
unique skills; are these price pressure; are customer brand loyal
etc.
Brand strength and organizational capabilities – is the brand
strong; market share position and trends; synergy with other
businesses; exit barriers etc.
Example:- Bajaj auto , Yamaha Bikes etc.

RETIRING BRANDS
BRAND PORTFOLIO
RATIONALIZATION
• Companies sometimes want to reduce the number of brands that
they market. This process is known as "Brand rationalization."
Some companies tend to create more brands and product variations
within a brand than economies of scale would indicate.
Sometimes, they will create a specific service or product brand for
each market that they target. In the case of product branding, this
may be to gain retail shelf space (and reduce the amount of shelf
space allocated to competing brands). A company may decide to
rationalize their portfolio of brands from time to time to gain
production and marketing efficiency, or to rationalize a brand
portfolio as part of corporate restructuring.
• A firm may accumulate more and more brands as it grows and the
product lines become longer. At some point, the firm recognizes
that it has too many brands, which dissipate its resources and
effort. The firm decides to cut short the product line and prune its
brand portfolio by eliminating some of the brands.
• Worldwide, P&G is known as the votary of brand
proliferation
• Of late P&G has been taking a re-look at its brand
portfolio with a view to containing costs and enhancing
brand productivity
• P&G is not only dropping brands, it has also been cutting
brand variants and line extensions
• By the close of the 1990s, P&G India decided to
drop/sellout some of its brands.

P&G - Brand Portfolio

Rationalization
• By the late 1990s, Dabur found that it had accumulated a huge
collection of brands, which adversely affected its marketing
efficiency
• Dabur finally decided to stay with three product lines— foods,
personal care and healthcare and with 12 to 15 brands overall
• The chosen brands include Chyawanaparash, Hajmola, Pudin
Hara, Hingoli, Restora, Amla hair oil, Vatika, Anmol coconut
oil, and Real fruit juice. Dabur is also increasing the marketing
and advertising spend by 50% on the selected brands

DABUR - Brand Portfolio

Rationalization
• Sales and Profits have been slowing down during the years 2000 and 2001
• In the year 2001, HLL initiated a series of measures towards rationalizing its portfolio of
brands
• Keeps 30 power brands plays down 80 others: In 2001, HLL initiated plans to prune its
brand portfolio – to almost one quarter of its size
• The 30 power brands shown contribute almost 75 percent of HLL’s turnover and profits.
• The remaining 80 odd brands, which contribute about 25 per cent of HLL’s turnover, fall
under three categories; they will be given different treatments.
• 1. HLL will keep few brands as purely regional brands and support them in these areas.
2. Brands, which are both small and unprofitable.
3. Brands with overlapping positioning; the bulk are here; they also overlap in market
targeting with one of the power brands. Whenever you have the same benefits and same
price point, there is no advantage to carry two brands. Solution was Merger of two brands

HUL - Brand Portfolio

Rationalization
Many thanks for
your attention