Did you know how you have siblings, cousins, aunts, and uncles? Well, brands kind of do too — only their other brands probably don’t get far too aggressive about the conspiracy theories they believe in while everyone’s just trying to enjoy Thanksgiving dinner like somebody’s Uncle Gary does every year.
Whilst brands don’t go through that kind of situation that completely doesn’t apply to me, they’re still generally related — falling under umbrellas arranged by larger, overarching firms. And if we’re running using the whole family analogy, your family trees those umbrellas fixed are known as brand portfolios.
Here, we’ll get a a lot more thorough understanding of brand portfolios, see the different kinds of brands that can compose one, and explore some prominent brand portfolio examples.
Firms generally create, expand, and maintain brand portfolios to gain footholds in multiple markets and appeal to a wider variety of prospects. This particular trend has a presence within virtually every industry. For the sake of instance, let’s imagine a firm that runs a single fast-food chain.
That flagship brand serves typical fast-food fare in bargain prices. That string is doing well, but executives at the firm are noticing a significant shift in consumer preferences. Now, a solid segment of the chain’s market is usually starting to err towards healthier options.
The flagship brand’s identity has been firmly founded as a value-oriented albeit not-so-healthy franchise — so much so that will making its menu healthier might alienate the majority of its customers who aren’t thinking about health-food.
In this case, the company could explore the possibility of developing a new restaurant — a single with an emphasis on healthy options. If it decides to take that route, it would add another brand to its brand name portfolio.
The brands included within your average brand portfolio tend to fall into four main roles: flanker brands, cash cow brands, low-end basic brands, and high-end respect brands. Each category acts a purpose, and in many cases, a firm will create and maintain brands that will fulfill different roles to fit one another.
1 . Flanker Brand name
A flanker brand is really a brand a company releases within a product category in which it already has an existing brand name. The hope is that the new brand helps increase the company’s business within that product group and serves the needs of prospects the original brand might not cover.
For instance, alcoholic beverage organization Molson Coors leverages the flanker brand strategy in its approach to the low-calorie ale market. The company has launched multiple brands — which includes Miller Lite, Coors Light, and Keystone Light — that all occupy a similar specialized niche.
Still, the brands are usually distinct enough to attract different consumers and fit different situations. Even though they’re technically competing, flanker manufacturers complement more than they cannibalize . These people designed to help a company skin out its market presence and crowd out rivals.
2 . Cash Cow Brand name
A cash cow brand name is one that has reached a specific level of maturity with respect to its market presence and ability to make money. These brands can generate enough profit to essentially sustain themselves — keeping themselves afloat after businesses recoup their preliminary investments from them.
It’s a lot less expensive to sit back plus let these brands always bring in cash than to launch any sort of new product to replace all of them. As a result, they’re rarely taken out of the market.
3. Low-End Entry-Level Brand
A low-end basic brand is one that’s put into a brand portfolio to be offered by a lower price than the various other products or services that portfolio addresses. The principle behind low-end entry-level brands has to do with hooking customers.
The idea is that customers will buy the low-end basic brand initially — efficiently introducing them to that brand’s broader portfolio. Once a client has engaged with plus been impressed by the company behind the low-end entry-level brand name, they’ll be inclined to explore the broader suite of products in its portfolio.
4. High end Prestige Brand
High-end respect brands are ones made to create the impression associated with premium quality and luxury. The particular hope is that some of the confidence the brand creates will trickle down onto another brands within the company’s broader portfolio.
These kinds of brands are usually tailored to lead customers to think, “If this company can create a product of its caliber, maybe its other ones are high quality in their own right. ”
1 . Coca Cola
Image Source: Coca Cola
Coca Cola’s brand portfolio is about because eclectic, far-reaching as they come — certainly when it comes to the food and beverage industry. The suite of brands contains drinks and edible items that cover a massive selection of purposes, prices, qualities, and regional markets.
2 . Nestle
Picture Source: Nestle
Nestle will be the largest food and beverage corporation in the world, and the graphic above barely scrapes the surface from the scale. Its brand profile is eclectic and contains manufacturers that suit a massive variety of categories and needs.
three or more. General Electric
Image Source: GE
GE’s brand portfolio can be monolithic, meaning all the brands that fall under its wider portfolio are similarly top quality. They all feature fundamentally comparable names and sport the same logo.
4. Johnson and Johnson
Image Source: Johnson and Johnson
Johnson and Johnson’s brand portfolio covers a number of markets that fit beneath the broader healthcare industry umbrella.
Major brands generally don’t exist in a vacuum. Almost all of them are a part of a broader brand portfolio, so virtually every brand has a firm, company, or conglomerate at the top of its lineage.
That’s important to bear in mind whenever taking actions like trying to be ethical with your money. Any brand you use starts somewhere. If you can navigate that product’s portfolio back to a company whose values and activities don’t sit well together with you, you’ll know to avoid it.