Brand Portfolios

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Topic: - Brand Portfolio

Definition: The Brand Portfolio refers to an umbrella under which all


the brands or brand lines of a particular firm functions to serve the needs
of different market segments. In simple words, brand portfolio
encompasses all the brands offered by a single firm for sale to cater the
needs of different groups of people.

Brand portfolio is generally created because each brand has certain


boundary beyond which it cannot fulfill all the needs of different market
segments.

The advantage of having the Brand Portfolio is that management can


keep a check on all the brands as a whole and frame the policies with a
broader perspective. Also, the resources can be allocated to the brand
that needs the most.
The brands in the Brand Portfolio play the following different roles:

1. Flanker Brand: A Flanker Brand also known as a Fighter Brand is a


new product launched in a market by the company in the same
category wherein an established brand is already positioned. This is
primarily done for the increased market share as well as to cater to the
need of all the segments of customers.e.g. Armani’s brand portfolio is
one of the best examples to explain the concept of a flanker brand. In it,
the brands are distinguished on the basis of price and customer
segment.
2. Cash Cow Brand: A cash cow brand is that product in the brand
portfolio that has reached the maturity level in the product life cycle but
is able to bring in profits necessary for its survival. These brands are not
removed from the market because necessary cash is flowing
in through its sale which is better than incurring heavy cost on the
launch of a new product.E.g. The best example of cash cow brand is
Gillette Company that is keeping the old brands viz. Gillette Atra, Gillette
sensor and Gillette Trac II in its brand portfolio despite new razor
technology such as Mach III turbo and Gillette Fusion.
3. Low-End Entry Level Brand: A low Entry Brand in a brand portfolio
includes the product which is offered at less price. The low priced
product is added to the portfolio to ensure the purchase at least once
and bring the customer into the brand family.Once the customer
becomes a part of the family, he is then persuaded for the purchase of
the higher-priced product in near future.E.g. Hero MotoCorp explains
this concept very accurately wherein low priced bikes viz. CD Dawn, CD
Deluxe are added in the brand portfolio to gain the customer base along
with the high priced bikes such as Karizma, Ignitor, Impulse, Achiever,
etc.

4. High-End Prestige Brand: A High-End Prestige Brand in the brand


portfolio is the product offered at a high price with the intention of
creating a sense of prestige in the minds of customers. Other brands in
the portfolio also get the recognition because of the premium brand and
its quality do have a halo effect on each product line.E.g. Tata is the
best example to elucidate high-end prestige branding.

Thus, a firm tries to have all the different brands operating independently
under its periphery to protect the sources of equity by not letting
customers move away due to the unavailability of their desired product.

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