Brand Portfolio Strategy: What are the strategic options?

Branding helps establish a company's reputation and differentiate its products or services from those of its competitors. But which Portfolio Strategy is right for you?

Branded house: A branded house strategy is when a company uses a single brand name for all of its products or services. This strategy allows the company to build a strong corporate image and leverage the reputation and awareness of the brand to increase sales and market share.
House of brands: A house of brands strategy is when a company uses separate brand names for different products or services. This strategy allows the company to target specific customer segments and create distinct identities for each brand.
Endorsed brand: An endorsed brand strategy is when a company uses a well-established brand name to endorse a new product or service. This strategy allows the company to leverage the reputation and awareness of the well-established brand to increase sales and market share of the new product or service.
Multi-brand: A multi-brand strategy is when a company uses a combination of the above strategies to manage its brand portfolio. This strategy allows the company to use different brand names for different products or services, while also leveraging the reputation and awareness of a well-established brand to increase sales and market share.
Hybrid: A hybrid strategy is when a company combines elements of multiple strategies to create a unique approach to managing its brand portfolio. This can include elements of branded house, house of brands, endorsed brand, and multi-brand strategies.
Co-branding: A co-branding strategy is when a company partners with another brand to create a new product or service offering. This strategy allows the company to leverage the reputation and awareness of both brands to increase sales and market share.

Benefits, Risks & Best Use-Case Scenarios

Branded House

A branded house strategy is when a company uses a single brand name for all of its products or services. This strategy allows the company to build a strong corporate image and leverage the reputation and awareness of the brand to increase sales and market share. For example, Coca-Cola uses a branded house strategy, as all of its products are marketed under the Coca-Cola brand name.

Benefits:

A branded house strategy allows a company to establish a strong corporate image and reputation.
A single brand name can help to increase customer loyalty and awareness.
The company can leverage the reputation and awareness of the brand to increase sales and market share.
The company can create a consistent marketing message across all products or services.

Risks:

A branded house strategy can be risky if the company's products or services are not well-received by customers, as it can damage the reputation of the brand.
A single brand name can limit the company's ability to target specific customer segments.
The company may not be able to capitalize on the strengths of individual products or services.

Best Use Case Scenarios:

A branded house strategy is best used when a company has a strong, well-established brand name that is well-received by customers.
A branded house strategy is also appropriate when a company's products or services are closely related, such as a company that only sells soft drinks.

House of Brands

A house of brands strategy is when a company uses separate brand names for different products or services. This strategy allows the company to target specific customer segments and create distinct identities for each brand. For example, Procter & Gamble uses a house of brands strategy, as it markets products such as Pampers diapers, Tide detergent, and Crest toothpaste under different brand names.

Benefits:

A house of brands strategy allows a company to target specific customer segments and increase sales and market share.
A house of brands strategy can help a company to mitigate risk by continuing to rely on other brands or product lines for revenue if one brand or product line underperforms.
A house of brands strategy allows a company to create distinct identities for each brand, making it easier for customers to identify with the products or services they need.

Risks:

A house of brands strategy can be risky if the company is not able to create distinct identities for each brand, as it can lead to confusion among customers.
A house of brands strategy can be costly, as the company may need to invest in separate marketing and advertising campaigns for each brand.
A house of brands strategy can limit the company's ability to leverage the reputation and awareness of a well-established brand to increase sales and market share.

Best Use Case Scenarios:

A house of brands strategy is best used when a company has a diverse range of products or services that appeal to different customer segments.
A house of brands strategy is also appropriate when a company wants to mitigate risk by relying on multiple brands or product lines for revenue.

Endorsed Brand

An endorsed brand strategy is when a company uses the name or image of a well-known individual or organization to promote its products or services. This strategy allows the company to leverage the reputation and awareness of the endorser to increase sales and market share. For example, Nike uses an endorsed brand strategy, as it partners with athletes such as Michael Jordan and LeBron James to promote its products.

Benefits:

An endorsed brand strategy allows a company to leverage the reputation and awareness of a well-known individual or organization to increase sales and market share.
An endorsed brand strategy can help a company to increase customer loyalty and trust in its products or services.
An endorsed brand strategy can be a cost-effective way to promote a company's products or services.

Risks:

An endorsed brand strategy can be risky if the individual or organization that is endorsing the company's products or services has a negative reputation or becomes involved in a scandal.
An endorsed brand strategy can limit the company's ability to target specific customer segments if the endorser's appeal is not well-aligned with the company's target audience.

Best Use Case Scenarios:

An endorsed brand strategy is best used when a company's products or services are closely related to the endorser's area of expertise or interest.
An endorsed brand strategy is also appropriate when a company wants to increase customer loyalty and trust in its products or services.

Multi-Brand

A multi-brand strategy is when a company uses multiple brand names for different products or services within the same category or market. This strategy allows the company to target specific customer segments and create distinct identities for each brand. For example, Unilever uses a multi-brand strategy, as it markets products such as Dove soap, Lipton tea, and Hellmann's mayonnaise under different brand names.

Benefits:

A multi-brand strategy allows a company to target specific customer segments and increase sales and market share.
A multi-brand strategy can help a company to mitigate risk by continuing to rely on other brands or product lines for revenue if one brand or product line underperforms.
A multi-brand strategy allows a company to create distinct identities for each brand, making it easier for customers to identify with the products or services they need.

Risks:

A multi-brand strategy can be risky if the company is not able to create distinct identities for each brand, as it can lead to confusion among customers.
A multi-brand strategy can be costly, as the company may need to invest in separate marketing and advertising campaigns for each brand.
A multi-brand strategy can limit the company's ability to leverage the reputation and awareness of a well-established brand to increase sales and market share.

Best Use Case Scenarios:

A multi-brand strategy is best used when a company has a diverse range of products or services within the same category or market that appeal to different customer segments.
A multi-brand strategy is also appropriate when a company wants to mitigate risk by relying on multiple brands or product lines for revenue.

Hybrid

A hybrid brand strategy is when a company uses a combination of different brand portfolio strategies. This strategy allows the company to target specific customer segments and create distinct identities for each brand while also leveraging the reputation and awareness of a well-established brand to increase sales and market share. For example, Samsung uses a hybrid brand strategy, as it markets its consumer electronics products under the Samsung brand name, while also using separate brand names for its semiconductor and home appliance products.

A hybrid brand strategy allows a company to create distinct identities for each brand, while also leveraging the reputation and awareness of a well-established brand to increase sales and market share.
A hybrid brand strategy can help a company to mitigate risk by relying on multiple brands or product lines for revenue.

Risks:

A hybrid brand strategy can be risky if the company is not able to effectively balance the different brand portfolio strategies, as it can lead to confusion among customers.
A hybrid brand strategy can be costly, as the company may need to invest in separate marketing and advertising campaigns for each brand.
A hybrid brand strategy can be difficult to implement and manage, as the company needs to ensure that each brand portfolio strategy is aligned with the company's overall brand strategy.

Best Use Case Scenarios:

A hybrid brand strategy is best used when a company has a diverse range of products or services within the same category or market that appeal to different customer segments.
A hybrid brand strategy is also appropriate when a company wants to leverage the reputation and awareness of a well-established brand to increase sales and market share, while also targeting specific customer segments with distinct brand identities.

Co-Branding

Co-branding is a brand strategy in which two or more brands join together to create a new product or service. This strategy allows the companies to leverage the reputation and awareness of each other's brands to increase sales and market share. For example, Hershey's and Reese's have a co-branding strategy, as they jointly market Reese's Peanut Butter Cups, a chocolate candy filled with Reese's peanut butter.

Benefits:

Co-branding allows companies to leverage the reputation and awareness of each other's brands to increase sales and market share.
Co-branding allows companies to target new customer segments that may not have been reached through traditional marketing efforts.
Co-branding allows companies to create unique products or services that differentiate themselves from the competition.

Risks:

Co-branding can be risky if the brands are not well-aligned, as it can lead to confusion among customers or damage the reputation of one or both brands.
Co-branding can be costly, as the companies may need to invest in separate marketing and advertising campaigns for the new product or service.
Co-branding can limit the company's ability to leverage the reputation and awareness of a well-established brand if the other brand's reputation is negative.

Best Use Case Scenarios:

Co-branding is best used when two or more brands complement each other and can create a unique product or service that appeals to a specific customer segment.
Co-branding is also appropriate when companies want to increase sales and market share by leveraging the reputation and awareness of each other's brands.