Linear Model for Brand Portfolio Optimization

Research purpose. The aim of the paper is to create a model that allows building an optimal brand portfolio, allowing an organisation to achieve its goals. The created model is based on the bivalent programming theory. A mathematical model of optimum brand portfolio is created based on linear programming with restricting conditions being the maximum acceptable risk level and budget. The basic types of resources and basic types of relations between brands are explained, which are part of the process of brand portfolio optimization. Design / Methodology / Approach. Knowledge and many years of experience of mainly economic disciplines were used for the selection of characteristics for brand portfolio specified in this article. Our assumptions were based mainly on project portfolio management, operational analysis and linear programming as well as tools and methods of graph theory. Findings. Brand portfolio management such as creating, planning, organising and then maintaining a successful brand is a costly and long-term process involving effective marketing strategies and decisions. The prerequisite for brand portfolio creation is deciding on the number and type of brands. A properly constructed brand portfolio is a prerequisite for achieving business goals. Originality / Value / Practical implications. Brand portfolio optimisation requires sufficient attention; however, rather than the selection of the highest number of brands, it should be based on compilation of a set, according to pre-defined priorities, which would provide the best possible means to meet the company’s goals for the current limitations. It should be implemented upon objective rules (in our case maximum allowable risk level and available budget). Frequent changes in the brand portfolio structure are not beneficial since they reduce the ability for the company to achieve its targets and represent excessive use of resources. In addition, qualitative brand characteristics have to be respected in the brand portfolio management, but this was not covered in our research.

Cara Pils, a brand despite itself

SynopsisCara Pils is the private label beer brand of Colruyt, the biggest supermarket retailer in Belgium. As a true private label brand, Cara Pils has never been advertised. In 2015, Colruyt undertook an initiative to reposition its numerous private label brands under two larger private label brands. Unexpectedly, customers were incensed by this initiative, came out in droves and took the matter to social media hoping to lament the demise of their beloved brand. This case study investigates the roots of this strong brand attachment and the consequences for its brand management.Research methodologyThis case is built on primary (one in-depth interview and two focus group) as well as secondary data sources (previous research and web information).Relevant courses and levelsThis case is designed to be used in a marketing management or brand strategy course for students that already followed an introduction to marketing course or for students at a master level.Theoretical basesThis case should provide the basis of discussions on the topics of brand management, private-label brands, repositioning strategy, brand portfolio management, brand architecture, brand equity, brand elements, brand nostalgia, and consumers’ relationships with brands.

Specialization and commonalization in multi-branded manufacturing corporations

Purpose The purpose of this paper is to identify areas and issues for management to consider in balancing specialization and commonalization in large manufacturing corporations with multiple brands from a strategic R&D and manufacturing point of view. Design/methodology/approach Three global manufacturing corporations from the automotive sector are used as a strategic sample composing three sequential clinical research projects. The data come from complementary data-gathering methods combining documents and interviews and workshops with top executives, project leaders, platform managers and product brand managers, thus enabling triangulation. Findings The study shows that managing manufacturing corporations with multiple brands is not just on a scale between full specialization and full commonalization but instead has its own logic of categorizations and portfolio formations. In order to develop the value of the brand portfolio, management must simultaneously embrace and address a number of highly integrated corporate values and highly differentiated brand company values. Research limitations/implications This study contributes primarily by relating economy of scale in relation to the need for differentiation of products and brands that have different values, customers and market positions. A model for balancing commonalization and specialization provides several opportunities for further research and development; however, generalizations are issue and context specific. Practical implications The critical issues in balancing how to deal with specialization and commonalization in a company with multiple brands are explored and summarized in a framework for the practitioner to use in analyzing a real situation. Originality/value Previous literature focuses on the maximization of synergies within one brand, missing the specific dynamics of large manufacturing corporations with many entities, such as individual products and brands. This paper adds knowledge regarding how to balance synergies from commonalization with important objectives to preserve the specialization and distinctiveness of each product brand.