Brand Portfolio Management: It`s "Decision Time"

Brand Portfolio Management:
It’s “Decision Time” for
Managing Growth
Professor Richard Ettenson
[email protected]
Thunderbird School of Global Management
Copyright Richard Ettenson 2015
Alternative session titles
Growing Your Business Through
Strategic Innovation
Managing. Organizing, and
Leveraging Your Branding Efforts
Why Branding (and Marketing)
Matter to Your Business
Smart Brand Portfolio Management Can
Deliver Profitable Growth -Tell Your CEO and CFO!
Opening Remarks

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
Great pleasure to be back with the IHA
 Who has attended before?
I am familiar with and understand the scale, scope, and
resources of IHA members and conference attendees
My role today is to demonstrate how smart brand
management can help you grow your business
 Take you out of your “comfort zone”
 We
will analyze and discuss:
• Large high-profile companies
• Leading high profile brands
• Industries different from yours
 Lessons learned will translate to your
company/industry’
My Professional Experience

Academic Background
 Professor & Keickhefer Fellow in Brand Strategy and Global
Marketing, Thunderbird School of Global Management
 Visiting Professor – ESADE (Spain); Bond University
(Australia)
 Visiting Scholar – Russia, Poland, Hungary; Senior Technical
Advisor in China for the United Nations Development Program
(UNDP)
 Consulted with and/or taught executives on 5 continents;
clients include:
 Intel, McDonalds, ExxonMobil, LG Electronics, Amway,
Acer, China Telecom, Honeywell, Briggs & Stratton, Dow
Chemical, BP, Volvo, Fluor, Delta Airlines, SABIC, Best
Western, among others
 Dual citizen – United States & Australia
My Professional Experience

Practitioner/Managerial Background
 Senior Partner -- Type 2 Consulting (brand and business
strategy consultancy based in New York City)
(www.type2consulting.com)
 Founder -- market research firm and 3 other start-ups

Have served as:
• CEO
• CMO
• CSO
 Applied
thought leadership articles have appeared in:
Let me ask a few volunteers –
Describe your current job
So, What is Your Job “Really Like”?
Take You Out of Your “Comfort Zone”
What is Your “Mission”
at Your Company?
Regardless of Position,
Rank, Country or Function
Contribute to Your Company’s
Business Strategy and Success!


How to Make it Happen?
 Create value in a dynamic and fiercely competitive
domestic/global business environment
 The organization has to grow in a reliable and
sustainable way
Our Objectives(s) Today:
 Understand how strong well-managed brand
portfolios deliver profitable growth
 Learn how to analyze, manage, evolve and grow
your brand portfolios to deliver on your business
strategy
Let’s Look at the Big Picture
Value Creation &
Value Capture
WHAT IMPACT
DO WE HAVE?
CUSTOMER &
STAKEHOLDER
EXPERIENCE
PRODUCTS,
SERVICES, &
ACTIVITIES
HOW SHOULD
WE DO IT?
Your
Organization
Marketplace
Perceptions,
Brand &
Reputation
BUSINESS
STRATEGY
WHAT SHOULD
WE DO?
Business Model,
Competitive
Advantage &
Value Creation
The world of management
and “customer-facing” execution
CUSTOMER
&
BRAND
STAKEHOLDER
STRATEGY
EXPERIENCE
PRODUCTS,
MARKETING
SERVICES,
&
STRATEGY
ACTIVITIES
BUSINESS
STRATEGY
The world of the
senior business leader and strategist
Key Objective:
Get You Thinking in a “Strategic Brand Mindset”
What is a Brand?
A Multitude of Ways to Think About Brands

Speaking Formally….
“A brand is a name, term, sign, symbol, or
design or combination of them, intended to
identify the goods/services of one seller or
group of sellers and to differentiate them
from the competition”
“A brand is the sum of all the characteristics,
tangible and intangible, that make the
product offering unique”
Managing Brands as a Strategic Asset

The 3 P’s of Brands
Presence
Personality
Performance

Strong Brands Are an Asset -- Generates a
Stream of Incremental Revenue
Brand equity
Can be a platform for growth

Still Other (External/Customer) Ways to Think
About Brands
A brand is the relationship between a company
and its customers that secures preference and
loyalty
An emotional shortcut between a company and
its customers
This
will be critical with brand portfolios
A brand creates expectations about what a
customer will experience -- in any and all
interactions with the company
Seems straightforward … yes?
The “ICEBERG VIEW” of Branding
Your brand portfolio is a
key marcomm element (a
very visible part of the
marketing effort)
What your
customers know
about you and
experience
Your organization’s business
strategy and strategic intent
must be supported by a
focused brand strategy and
portfolio managed to provide
distinctiveness, clarity, and
consistency
Customer and stakeholder
experience
Brand propositions
What
customers
know and
experience…
Brand personality &
communications
Brand
positioning
…must be
supported
and
managed in
order to build
a clear brand
positioning
and message
Strategy
& Vision
Values and
capabilities
Strategic
Brand Management
Bringing the brand alive -Actions & behaviours
For Our Purposes, Brands Can Be
Summed Up This Way
“What your current (and
prospective) customers know,
think and feel about your
company and its products and
services --prior to, during, and
after purchase and engagement”
Your Role as an Effective Manager with
Brand-Related Responsibilities
Provide meaning, expectation,
distinction, and attraction to
your company and its portfolio
of brands. You must create
and manage the associations
and synergies about your
brands. In doing so, you will
be communicating to
customers and other
stakeholders how entire range
of brands is different and
relevant.
From a Business Perspective –
What Keeps You Awake At Night?
1. What Will Drive Organizational Growth?
2. What Will Be My Source of Business (S.O.B)?
Your Company’s Brand Strategy, Brand
Portfolio (and Brand Architecture) Decisions
Should Deliver on Your Business Strategy
Key Concepts

3 Core Principles
Superior customer value
Sustainable competitive advantage (SCA)
Strategic focus
Environment
•
/ Market Analysis
the “3 C’s”
• Part 1
• Part 2
 What do you do well?
 What makes you special?
 What are the boundaries
beyond which YOUR
COMPANY will not venture?
It’s “Decision Time”:
Key Drivers of
Company Growth
Focus and Build
Current
Product/Brand(s)
Develop New
Offering –
Innovation (NPD)
Develop New Offering/NPD
and Brand Portfolio Strategy
(It’s “Decision Time”)
Develop
New Brand—
-- Line or Category
Extension
Brand Leverage-Brand Extension
--Line or Category
Extension
Brand Strategy Decisions –
A Complex Set of Tradeoffs (lots of choices!)
Business Needs
and Capabilities
Employee Needs
Brand
Portfolio &
Architecture
Decisions
Brand Needs
Customer Needs
New Product Development (NPD)
& Brand Strategy-- 2 Main Choices

Choice #1
Develop a “New” Brand (Empty Vessel)

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
Three flavors are available at launch, including MIXXTAIL
Firewalker, MIXXTAIL Hurricane, and MIXXTAIL Long Island.
“With Bud Light MIXXTAIL, consumers spoke and we listened. We
created a cocktail-inspired beverage to quench consumers’ demand
for more variety, mixology and easy, convenient cocktail solutions.
MIXXTAIL’S bold cocktail taste makes it the perfect pregame in a
bottle,” said Alexander Lambrecht, vice president, Bud Light.
Bud Light MIXXTAIL is meant to be served over ice. Available in 8packs of 11.5 oz. recloseable aluminum bottles and single-serve 16
oz. and 25 oz. cans beginning Feb. 16.
Mixxtail Website
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Anheuser-Busch has announced they will launch new
tequila-flavored beer Oculto in spring, 2015.
Oculto is brewed with blue agave, then blended with
beer aged in tequila barrels. The launch is designed to
attract younger drinker demographic (those who have
just turned 21) that aren’t drinking hard liquor yet, along
with capturing some of the Mexican beer sales. Oculto
has no tequila in it.
The label feature a skull with the Oculto name etched
into it. The eyes will glow when the bottle is cold.
Oculto will be 6% ABV, and will be competing with
Heineken USA’s recently launched Desperados, another
tequila flavored offering.
New Product Development (NPD)
& Brand Strategy-- 2 Main Choices

Choice #2 -- Brand Leverage
Using existing brand platform (current owned
equities) to move into other opportunities

Brand Focus Strategy
• Line Extensions / Brand Stretching
• Parent brand is used to develop a new
product that targets a new market segment
• Category is currently served by parent
brand
 Brand Diversification Strategy
• Category Extensions
• Parent brand is used to extend to product
category different from the one currently
served by the parent

Has Become the Master of Brand Extensions
Mountain Dew
MTN DEW KICKSTART
MTN DEW AD 2015
Brand portfolio strategy – what is it?
The effective creation, deployment and
management of brand assets in support of
the organization’s business strategy and
marketing strategy
Brand Portfolio Strategy


Brand portfolio strategy
Specifies the structure of the company’s
offerings/brands and the scope, roles, and
interrelationships of those offerings/brands
Effective managers must create and ensure:
Synergy, leverage, and clarity within the
portfolio
Relevant, differentiated, and energized
brands
Profitable growth that is reliable and
sustainable
Two Major Brand Types
Affect Portfolio Decisions

Division / Product Brand (Autonomy)
 Individual divisions and/or products are given their
own identity and promise
 No
corporate brand is used in marketing or promotion
programs
• Competes on own merits and reputation

Masterbrand (Consistency)
 Divisions, biz lines, products are promoted by
leveraging brand strength of the parent
 Presents
a single, clear, and positive identity for all
businesses, products or services
• Brand “promise” applies to all sub-brands
Brand Portfolio Strategy –
No Single Best Answer
Consistency
GE Aircraft Engines
GE Commercial Finance
 GE Appliances
GE Healthcare
 GE Capital
 GE
GE Industrial
Lighting
 GE
GE Infrastructure
Medical Systems
 GE
GE Money
Plastics
 NBC
GE Electrical
Distribution and Control
Universal
 GE Power Systems
 GE Information Services
 GE Motors and Industrial Systems
 GE Transportation Systems
 NBC

Autonomy

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








Bounce
Bounty
Charmin
Braun
Cheer
Folgers
Tide
Crest
Prell
Pantene
Pringles
Zest
Pampers
Mr. Clean

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
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
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
Nyquil
Noxema
Always
Ariel
Cover Girl
Max Factor
Old Spice
Pert
Ivory
Crisco
Tampax
Febreeze
Pepto Bismal
Vicks
http://www.virgin.com/
Grow the Business!
The Search for “S.O.B.” Through Innovation,
NPD, Mergers, Acquisitions, Alliances…
…is Both a Blessing and a Curse
“Managers’ ability to
develop new products
and new brands, and also
to build their portfolios
through acquisitions, far
outstrips their ability to
coherently manage these
strategic assets”
This has consequences both internal and
external to the organization
Let’s look at some industries out of your
“comfort zone”
Unilever's 'Power Brands' strategy, was launched in 1999. As part
of this strategy, the huge arsenal of 1600 brands (6000+ SKUs)
was pared to comparatively more manageable number of 400 – our
“power brands” - more profitable and greater familiarity among
consumers. This strategy was vital to increase operational
efficiency, to concentrate on the promotional activities on the
profitable brands only and to encourage consumers to migrate from
smaller brands to the power brands (Unilever spokesperson 2013).
Vaseline Spray n' Go Ads (5)
Marriott’s Market Coverage
Marriott Hotel Brands
Price Point
Target Customer
Positioning
Ritz
Highest
High-end travelers
Ritz: Luxury (brand is
synonymous worldwide
with the finest in hotels)
Marriott/Renaissance
High
High-end prestigious
business travelers
Marriott: Full-service
(flagship brand)
Renaissance: Quality
(ambiance of a boutique)
Courtyard/SpringHill
Moderate
Business travelers and
sales reps looking for
good value and local
convenience
Courtyard: Business
travelers/salespeople
SpringHill: All suites
Residence
Medium
moderate
Extended-stay business
traveler (made to feel
more like home)
Residence: Extended
stay
TownePlace
Lower moderate
Business travelers looking
for good value
TownePlace Suites:
Affordable extended stay
Fairfield Inn
Low
Inexpensive, extended
family travel
Fairfield: Lower
moderate-price
http://hhonors1.hilton.com/en_US/hh/about/brands.do
It is important to keep in mind:
Your brand portfolio and architecture is NOT determined by
your organizational design or legal structure
Brand portfolio and architecture is ALL about seeing
the company through the eyes of your customers
There are 3 levels of utility a strong well-organized
brand portfolio provides your customers:
NAVIGATION -- Make the customer’s life simpler
REASSURANCE -- Make the customer feel confident
about his/her purchase decision
ENJOYMENT IN USE -- Enhance the customer’s
experience of using your product or service
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Characteristics of a Well-Managed
(Ideal?) Brand Portfolio

Fits the company’s future vision and objectives
Prioritizes markets and key segments
Efficiently covers priority segments
Prunes/retires those brands that do not fit or perform
Fills gaps through new or extended brands and
acquisitions
Less Than Optimal
Portfolio Management
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Too many brands in too many segments
Too many brands in relation to consumer needs,
retailer space and company ability to promote
Duplication and overlap
Gaps in priority market segments
Inefficiencies in operations and supply chain
Diffused, inefficient and ineffective resource
allocation
Questions You Often Hear from Management
Why do we have two
brands serving the same
purpose in our portfolio?
How well do our
customers
understand what
we have to offer?
How should we allocate
our budget to drive
brand growth?
We need to consolidate brands.
What is your recommendation?
Can you help us
“make sense” of our
brand portfolio?
The right
question?
Not quite the
right
question
Can you help us
develop a brand
portfolio “that makes
sense”
4 Brand Portfolio Pitfalls


Brand bloat / proliferation – letting internal biases and
NPD drive brand portfolio decisions
Missed opportunities – under-leveraging brands in a
portfolio and missing marketing efficiencies
 failing to create clarity, synergy and leverage across the portfolio


Disconnect to business – not linking brand portfolio
strategy to business goals and objectives
Logo and naming guidelines are “endgame” –
assume brand portfolio strategy is complete when logo
treatments and naming conventions are set
Making sense of brand bloat
The Old Intel
CORPORATE LEVEL
PRODUCT LEVEL
SERVICE LEVEL
Intel Brand Architecture – Market Initiatives
Master Brand
Branded
Platforms
Processor
Brands
Unbranded
Product Bundles
G915 Express
Chipset
Classic Series
Desktop Board
Chipsets &
Motherboards
Products
Intel®PXA250 Application Processor
Intel® Communications Infrastructure Processors
Low Power IA
Intel® XScale™ processor
 Intel’s
New Brand Strategy Delivers Clarity &
Consistency
Establish clear, distinctively positioned master brand
Focused brand position and personality definition to
govern all customer touch points
Implement brand architecture for consistency and
clarity in branding and communication
Build stronger emotional connection with all
audiences
Intel Masterbrand
 Strategic
rationale
 Aligns with how people buy technology
look to source brands 1st when
purchasing complex products
Customers
 Elevates focus to – “Intel vs. competition”
Instead
of product vs. product vs. products….
 Leverages a strong master brand
Establishing
value of a solutions platform
• Requires a strong master brand in the lead
Shared culture for employees
Ford Motor Company will make history the night of Nov.
1 with a television commercial to be shown in virtually
every country around the world.
The global commercial, to be carried on every major
global and pan-regional network, showcases Ford
Motor Company's seven product brands – Ford, Lincoln,
Mercury, Mazda, Jaguar, Aston Martin and Volvo.
It is the first time all seven Ford Motor Company brands
have been shown together on a broadcast commercial,
and the first time any corporation has run a
simultaneous advertising campaign around the world.
The two-minute ad highlights the cultural diversity of
Ford Motor Company customers around the world. In
the United States, the ad will be carried at 9 p.m. EST
on 38 different television networks.
A New Entrant
into the U.S. SUV Market
(2014)
First Launched Frankfurt Auto Show 2011
Maserati Kubang
Introducing the Maserati Kubang
Value Creation &
Value Capture
WHAT IMPACT
DO WE HAVE?
HOW SHOULD
WE DO IT?
CUSTOMER &
STAKEHOLDER
EXPERIENCE
PRODUCTS,
SERVICES, &
ACTIVITIES
Your Organization
Marketplace
Perceptions –
What Customers
Think & Feel
BUSINESS
STRATEGY
WHAT SHOULD
WE DO?
Business Model,
Competitive
Advantage &
Value Creation
July 2014
Consider This Extension From….?
Website
An Interesting Source of Business?
Wesbite
A New Source of Business?
 What does Michelin do well?
 What makes them special?
 What are the boundaries
beyond which P&G will not
venture?
Michelin Lifestyle
 What does P&G do well?
 What makes them special?
 What are the boundaries
beyond which P&G will not
venture?
Mr Clean Retro 1950s Ad
Mr. Clean 1958
Mr Clean 1986 – Is it Wet?
http://www.youtube.com/watch?v=j6lRCJPb3-0&NR=1
Mr Clean Magic Eraser
http://www.youtube.com/watch?v=cNLsLBI5yug
http://www.youtube.com/watch?v=wbiofcuTZBo
http://www.youtube.com/watch?v=j6lRCJPb3-0&NR=1

“We need to look for new opportunities to
allow us to grow. That isn’t limited to things
within our current business model.”
• Bruce Brown, Chief Technology Officer, P&G 2009

We need to find things we’re really good at
and find partners for the things we’re not
good at”
• Bruce Brown, Chief Technology Officer P&G 2009

December 2008 acquired assets of Carnett’s Car Wash
in Atlanta

Car wash industry -- attractive opportunity
 Fragmented market
 100,000
car washes -- no dominant national player
 Aging baby boomers reluctant to wash their own cars
 Water-strapped communities pushing for conservation
 Franchise model
• Mitigates capital requirements
Leveraging the “Magic Triad”

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Franchise model
Customer experience
Branding muscle
Prefers to build new facilities vs. convert existing
facility
 Generates consistency
 Fit with business model
 Optimized by location and site design

We are truly focusing on the consumer
experience. We’re making sure that not only
our footprint, but our procedures and
operation are all designed around the
consumer experience, probably to a level that
has not been seen before in the industry. It’s
something we’re taking into account and
making sure it is a part of every single detail”
• Bruce Arnett Jr. (2009)
About Us Mr Clean Club Shine Services Promotions Mr Clean Cares Gift Cards Locations Franchising
AutoSPA
•Every 10th wash free! A free Signature Shine Wash - our best full service wash when you
purchase any nine Mr. Clean car washes
•On your birthday, a complimentary Gold Shine exterior wash within +/- 7 days of your
birthday
•Exclusive email offers and discounts available
Membership is free!
A convenient and rewarding way to get the shine you seek. We track your visits for you as a Mr.
&
D&G Fragrance
http://www.youtube.com/watch?v=X1nfgcTUg7s
D&G Fall 2008 Ready-to-Wear Milan Women's Fashion Week
http://www.youtube.com/watch?v=q2ScOYUV1Rc
D&G – The One
http://www.youtube.com/watch?v=HMWofLZ6gH8&NR=1
 What does McDonalds do well?
 What makes them special?
 What are the boundaries beyond
which McDonalds will not venture?
Product
Breakthrough
Substantial
Incremental
Process
Strategy
Product
Incremental
Strategy
Big Mac
Franchisee
regulations of
quality,
consistency
?
Value
meals
Hamburger
University
Serve
Breakfast
Green milkshakes
St. Patrick’s Day
New
french fry cooker
Boston Market
acquisition
Breakthrough
Substantial
Process
Beds & Burgers
Beds & Burgers

4 star hotel – Golden Arch
 2 sites in Switzerland
 Zurich
& Lully
 Relied on McDonald’s core competencies
Franchising
Real estate management

Controlled (quiet) failure (3 year venture)
 Real estate investment not a significant loss
The
2 properties are now managed by Rezidor
SAS Hospitality under the Park Inn brand
Rules of Thumb For Brand Cateogry Diversification
(The McKinsey Way)


Understand Your Brand’s “Parameters of Relevance”
 Brand’s Basic Value Proposition -- Personality and
promise (2 Ps) – brand essence
The McKinsey Approach -- Understand Customer
Reaction to Extension Opportunities (several steps here):
 Have managers evaluate/list all expansion
opportunities (even wacky ones!)
 Ask respondents/customers to answer to 2 key
questions
“Would it be appropriate for this brand to offer a
product/service in this other area”
• degree of appropriateness
 “Would you expect the brand to perform better, same as, or
worse than currently available brands”
• relative performance

Exploiting the Potential for Brand Leverage at Ralph
Lauren: Category Diversification:
% of Respondents
Category
Clothing
Home Furnishings
Hotels
Electronics
Restaurants
Print Media
Travel Services
TV Channels
PCs
Movie Theaters
Financial Services
Real Estate
Cars and Trucks
Car Rentals
Insurance
Telephone
Airlines
Electric Service
Appropriateness
Competitive Position
99
60
51
43
38
37
36
34
29
25
25
24
23
23
22
21
20
20
57
22
9
10
16
12
12
5
5
7
4
5
6
6
5
4
5
3
10 Paths To Successful Brand Extensions
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Shift the form: Starbucks Frappuccino, Snickers Ice Cream Bars,
Black & Decker Role Play Tool Toys, Clorox Bleach Pen, Dial Hand
Wash.
Transfer a component: Crayola soap paints (creative color),
Entenmann’s “Fresh Baked” Candles, Dr. Scholl’s shoes, Ghirardelli
Brownie Mix.
Transfer a benefit: Arm & Hammer Car Litter Deodorizer, Mr. Clean
Magic Eraser, Ziplock Food Containers, Weight Watchers Ice Cream
Bars.
Leverage an expertise: Food Network cookware, Honda lawnmowers,
Gold’s Gym 7-in-1 Body Building system, Mayo Clinic Diet, Reebok
Sports Club.
Companion products: Coleman Sleeping bags, Coppertone
Sunglasses, Harley Davidson Apparel, Mr. Coffee Premium Coffee,
Steinway Furniture Polish, Weber Seasonings.
Leverage the customer base: Trix Yogurt, Smith & Wesson Tactical
Police Mountain Bikes, Sesame Street Toys, Barbie Scooter, Adidas
Watches, Fisher-Price Diapers.
10 Paths To Successful Brand Extensions
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Leverage a lifestyle: Biggest Loser Kitchen Scale, Coach
Fragrance, Cover Girl Sunglasses, Discovery Kids Telescope, ESPN
Restaurants, Esquire Furniture, Porsche Kitchen Appliances, Rolling
Stone Restaurant.
Leverage a celebrity expertise: Jack LaLanne’s Power Juicer, Jack
Welch Management Institute, Jan Fonda Workout DVD, Martha
Stewart Bedding, Ralph Lauren Paints, Wolfgang Puck Frozen
Pizza.
Leverage a celebrity lifestyle: Cindy Crawford Jewelry, Donald
Trump Signature Collection Apparel, Eddie Bauer Baby Stroller,
Jessica Simpson Luggage, Kelly Ripa Shoes, Lakers Bottled Water,
George Foreman Grill.
Change the game by changing a brand image: Old Spice High
Endurance Deodorant, V8 V-Fusion Vegetable and Fruit Juice, Zagat
Health Survey Doctor’s Ratings,
“Marketplace” Advantages of Brand Leverage

Facilitates New Product Acceptance
Reduce consumer risk
Increase probability of distribution and trial
Increase marketing communications
efficiencies
Reduce costs of introductory and follow-up
marketing programs
Avoid cost of developing new brand
Packaging and labeling efficiencies
Permits consumer variety seeking
Sony Viao
“Strategic” Advantages of Brand Leverage

Feedback/Benefits to Brand and Company
 Clarify brand meaning (avoid marketing myopia)
 Enhance parent brand name
 Spillover effect to brand name
 Revitalize the brand
 Permits subsequent extensions
….
Enhancing Brand Identity
Through Successful Extensions
Extension
Products
New Brand
Meaning
Brand
Original Product
Weight Watchers
Fitness centers
Low-calorie foods Weight loss and
maintenance
Sunkist
Oranges
Vitamins, juices
Crayola
Crayons
Markers, paints,
Colorful crafts
pens, pencils, clay for kids
Aunt Jemima
Pancake mixes
Syrups, frozen
waffles
Xerox
Copiers
Office Equipment Digital Document
Digital Documents Company
Nike
Running Shoes
Apparel Sports
Equipment
Good health
Breakfast foods
Fitness &
Performance
Disadvantages of Brand Extensions
Confuse/frustrate consumers
Retailer resistance
Failure can hurt parent brand
Can succeed but diminish identification
with any one category
Can succeed but hurt image of parent
brand
Forgo opportunity to develop new brand
Ford Global
Brand Portfolio and Architecture:
2 Key Decisions

1. What should “be in” the portfolio?
 What to keep?
 Invest
more?
 What to discard?
 What transition to retire?
 What to combine?
 What to reposition?
 What to add?
 Achieving
the Ideal Brand Portfolio
Brand Portfolio Assessment and Renewal Tool

•
2. How should the firm “organize” the portfolio
 Brand
architecture
 Brand hierarchy
 Brand leverage

Brand Extension Checklist
 Does the parent brand have strong/appropriate equity
to transfer to the extension?
 Is extension consistent with brand vision and essence?
(internal)
 Is extension a logical fit that makes sense to target
market? The “permission” issue (external)
 Will it create strong competitive positioning in new
category?
 Can it avoid creating negative associations in new
category?
 What implications will extension have on parent brand
equity?
 Will it offer additional extension opportunities?

Dove Beauty -- Women
Dove Beauty -- Men


Axe Spray
Axe Billions