In a comparative study, marketing sources show that there are different definitions of what a brand is.
The brand portfolio strategy defined in these sources is how a company manages its sub-brands in its target market according to factors such as consumer perceptions of price and quality as well as how competitors behave in the market.
The brand design also poses the same challenge of considering a simple definition of what it is.
This article emphasizes that the main concept of brand architecture is the mental organization of brand users.
And that means how the parent brand and its sub-brands are portrayed in the consumer’s mind.
How do customers perceive the following aspects of this brand?
- A: Where is the position of each brand in the brand portfolio?
- B: What are the unique characteristics of each brand?
- A: Which of the brands meets their basic needs
Brand portfolio strategy and brand architecture
- A: Brand Management Strategy
- B: Number of marks
- C: Competition
- D: label placement
Introduction
A brand investment strategy is an important part of building a company’s brand equity, which is influenced by brand identity.
Next, consider the resource’s designed identity that can create extra value for your brand.
It includes consumer awareness of the brand name, brand diversity, influencing factors, and the presence of unique and loyal customers and associations that the company seeks to create or maintain.
- A: Balancing the number of brands necessary to achieve balanced management of the company’s brand
- B: The impact of globalization on brands
- C: How to best manage relationships between brands
- 1. When the company has a fast growth goal.
- 2. When the company is merged.
- 3. Time to change the manager.
- Determine strategies for each brand in the portfolio that needs to be repositioned.
- Identify underperforming brands and eliminate them
- And it also helps companies to be aware of the risks faced by a single branding strategy and avoid these strategies.
- Some examples of brand architecture strategy definitions mentioned in various sources are as follows.
Keller said that brand architecture strategy determines which of the 3 visual elements such as the company’s brand name, logo, symbol, etc. can help customers understand the products and services provided by the company, thereby organizing the customers of those products and services. in your mind.
- a: Clarification or brand awareness; increasing customer understanding and unique similarities and differences between products and services for brand audiences.
- b: Motivation Brand Image: The right image created by the brand in the mind of the audience motivates the four audiences.
- A: Giving brand and marketing professionals a unique approach how to improving brand management.
- B: It helps to decide and formulate strategies and which brand architecture model or brand strategy may be more suitable for their business.
- C: It helps to measure the number of financial resources used by companies in terms of brand and advertising of products in global markets.
3Cs in brand portfolio strategy
- a: The price the buyer expects
- b: perceived quality
- c: the type of competition in the target market
- 1: Type of brand management approach (brand house, brand house, sub-brands, approved brands, and mixed brand portfolio management)
- 2: Number of species
- 3: Brand evaluation
- 4: Competition between a specific brand basket and other brand structures
- 1-2 key elements
- 1-1-2 Adopt brand portfolio management strategies
- Building and maintaining sustainable local brands
- Use local changes and global ideas to update a brand or create something new
1) Branding: This strategy, also known as a brand portfolio, is used by companies that use the company brand in common across all products.
The benefits associated with this strategy are increased brand awareness and brand awareness, reduced marketing and advertising costs due to amortization, and generalization of costs across the brand portfolio, in general terms, it is also called a positive spillover effect on all products.
However, in particular, If there is a problem with a product, There are risks associated with this strategy; especially those that damage the brand name; It causes a negative effect; Which means it can be created. across the entire namesake brand portfolio.
On the other hand, it creates what is known as the risk of dilution, which occurs when the same name is used in multiple product categories, which causes its meaning to be too diffuse and creates different associations and confusion for customers.
2) House of Brands: This approach is more common than single-brand strategies.
Separate brands are created for different products or markets.
Some companies that use a separate brand may mention the identity of the parent company with something like an address or a small logo on the package.
However, some brands choose not to define cross-brand relationships due to specific strategies based on a different quality, price, or target customers.
3) Sub-brands: Many products use hybrid brands that consist of two or more brands.
This happens when a company combines a brand or range (primary brand) with another brand (sub-brand) in a hybrid relationship for building and communication purposes.
4) Approved Trademarks: Hereby, such trademarks are certified in the name of the company or house.
For these strategic reasons, they are usually marketed with claims such as “brought to you“, “by the manufacturers” or “branded (original brand)”.
Using approved brands does not expose companies to reputational risk and allows for a more diverse brand position than when corporate branding is the only option.
5) Mixed (or Mixed) Brand Strategy: This includes some of the above.
A closer look at companies coded for a hybrid strategy.
This approach plays an important role in mergers and acquisitions of new companies: the hybrid strategy is more likely to be a temporary strategy rather than an active brand strategy.
The same authors say that these five strategies differ in terms of tools, prominence, or the degree to which corporate brand equity is presented (e.g., corporate branding communications), and brand identity, which drives consumer behavior (e.g., the role of stimulus -brand), distinguish.
In terms of marketing performance (effective marketing to increase loyal customers or increase market share), the greater number of brands served to a smaller segment of the market, the lower level of competition within the basket, and the stronger consumer awareness they will be the strongest driver of brand portfolio strategy for consumer loyalty.
Conversely, in terms of increasing market share, the exact opposite appears to be the case, with smaller brand portfolios offered in more market segments, with intra-category competition and lower perceived quality, and with higher market share. There is more to it than the market. (Morgan and Rego 2009)
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