This paper argues that brand portfolio management is an inevitable discipline in marketing and has to be applied in the business practice. It presents the current literature about this topic, beginning with the general branding theories, covering basics and first approaches to brand portfolio management, and also takes the international focus on brand portfolio management. It shows a case-study of the fast moving consumer goods producer Unilever. Its “Path to Growth” strategy, where Unilever went through the biggest restructuring efforts in its history, is presented and analysed. The Unilever “Path to Growth” strategy, was a five year restructuring plan launched in 1999, in which Unilever sold an disinvested many established and smaller brands, cut substantial amounts of costs, laid off thousands of employees and restructured their brand portfolio considerably. The weaknesses and the benefits of “Path to Growth” are shown, and also brand portfolio management in general is described in this context. The Unilever case is analysed in detail. The motivations for brand portfolio management in general, and the specific restructuring campaign are shown and explained. Financial and qualitative analysis is taken. The outcome of the restructurings is evaluated and conclusions are taken. Recommendations for further studies are made and an outlook is given.
Table of Contents
1 Abstract
2 Introduction
2.1 Aims and Objectives
2.2 Limitations
3 Literature Review
3.1 Branding
3.2 Brand Equity
3.3 Brand Portfolio Management
3.3.1 Brand Portfolio
3.3.2 Product-defining Roles
3.3.3 Portfolio Roles
3.3.4 Brand Scope
3.3.5 Portfolio Structure
3.3.6 Brand Portfolio Objectives
3.3.7 International Brand Portfolio Management
4 Market Analysis
4.1 Research Methodologies
4.2 Unilever-Case
4.2.1 Marketing Analysis of Unilever
4.2.2 Why did they do it?
4.2.3 How did they do it?
4.2.4 Were they successful?
4.2.5 Financial Analysis
4.2.6 Qualitative Analysis
4.3 Observation of Market Performers
5 Findings, Recommendations and Conclusion
5.1 Findings for main aims
5.1.1 Does the application of brand portfolio management in a company improve the financial performance?
5.1.2 Does the introduction of brand portfolio management in a company simplify the brand architecture from the perspective of different stakeholders?
5.2 Findings for objectives
5.2.1 International fast moving consumer goods companies focus their brands on international markets
5.2.2 Small or unfitting brands got sold or disinvested
5.2.3 Brand portfolios were reshaped and restructured
5.2.4 Brand portfolio structure was clearer after campaigns
5.2.5 Restructuring programs caused high one time costs
5.2.6 Restructuring programs saved revolving annually costs
5.2.7 Restructuring programs did not meet their financial objectives
5.3 Reliability, validity and generalisability of the findings
5.4 Recommendation
5.4.1 Academic
5.4.2 Managerial
5.5 Conclusion
6 References
Research Goal and Objectives
The primary aim of this work is to examine the practical application of brand management theory, specifically focusing on how international consumer goods companies manage their brand portfolios. The central research concern is to evaluate whether the implementation of brand portfolio management leads to measurable improvements in financial performance and simplifies brand architecture for various stakeholders, using Unilever's "Path to Growth" strategy as a primary case study.
- Application of brand management theory in real-world business practice.
- Analysis of the "Path to Growth" restructuring strategy at Unilever.
- Assessment of brand portfolio composition, deletion, and strategic restructuring.
- Evaluation of financial and qualitative outcomes of portfolio management.
- Comparison with other market performers like Procter & Gamble and Kraft Foods.
Excerpt from the Book
3.3 Brand Portfolio Management
Brand Portfolio Management is highly prevailing in theory and practice. Unfortunately, the literature about this very specific topic is not as deep as with branding or brand equity topics. Aaker, who is a highly recognised author in marketing and branding, said in his 2004 book “Brand Portfolio Strategy” that “this book will be the first to explicitly define the scope and structure of brand portfolio strategy” (Aaker, 2004, pg. XIV). However, the topic is very attractive for big multinational companies who have many different brands to be managed. The reasons why it is such an actual topic are diverse, but one of the main is brand proliferation. The amount of brands from 1991 to 2001 in US Grocery stores have tripled from 15,000 to 45,000. Companies can not handle widely and deeply segmented markets with only a few big brands (Wise and Pearce, 2005).
The target should be to get a balanced portfolio which has brands performing different tasks. Aaker describes it with his metaphor of an American Football Team where the different players play different roles. The management job is to put the brands in the right context and the right position in the portfolio. “One of the coach´s jobs is to place each player in the right position” (Aaker, 2004, pg 10). The different aspects of brand portfolio management are discussed in the following sections.
Summary of Chapters
Abstract: Provides an overview of the paper's scope, focusing on the theoretical underpinnings of brand portfolio management and the detailed case study of Unilever's "Path to Growth" restructuring.
Introduction: Outlines the significance of brand management as a strategic priority and defines the central research aims regarding financial performance and brand architecture simplification.
Literature Review: Explores fundamental branding theories, the definition and measurement of brand equity, and the specialized discipline of brand portfolio management, including portfolio roles and structures.
Market Analysis: Details the research methodology, provides a strategic SWOT analysis of Unilever, and evaluates the company's "Path to Growth" campaign through financial and qualitative metrics, while observing market peers.
Findings, Recommendations and Conclusion: Summarizes the key insights derived from the case studies, assesses the validity of the findings, provides academic and managerial recommendations, and presents a final outlook.
References: Lists the academic, professional, and secondary data sources utilized throughout the dissertation.
Keywords
Brand Portfolio Management, Branding, Brand Equity, Unilever, Path to Growth, Restructuring, Brand Strategy, Market Analysis, Financial Performance, Brand Architecture, Consumer Goods, Synergy, Brand Deletion, Strategic Management, Globalisation.
Frequently Asked Questions
What is the core focus of this dissertation?
The work examines the application of brand portfolio management within large multinational consumer goods companies, using Unilever's "Path to Growth" strategy as a central case study.
What are the primary themes covered in the paper?
The paper covers branding theories, brand equity, portfolio roles (such as strategic brands and cash cows), restructuring processes, and the challenges of managing brands on an international scale.
What is the primary research goal?
The main objective is to determine if applying brand portfolio management improves a company's financial performance and whether it simplifies the brand architecture for its various stakeholders.
Which research methods are employed?
The dissertation utilizes a longitudinal case study approach, relying on secondary data such as financial figures, company reports, and existing literature, analyzed through an interpretivist philosophy.
What does the main body analyze?
The main body provides a detailed breakdown of Unilever’s 1999–2007 restructuring, exploring the "why" and "how" behind its brand consolidation, and contrasts this with the experiences of competitors like Procter & Gamble.
Which keywords best characterize this work?
Key terms include Brand Portfolio Management, Brand Equity, Unilever, Restructuring, Market Analysis, and Brand Architecture.
How does the author define a "Brand Portfolio"?
The author defines a brand portfolio as a collection of work and resources managed as a group to maximize total business value, emphasizing the need for centralized steering.
What conclusion does the author reach regarding the "Path to Growth" strategy?
While the strategy failed to meet its specific financial targets, the author concludes it was successful in achieving clarity in the brand structure and improving operational efficiency, though it left the company more focused and potentially more vulnerable to single-brand shocks.
- Citar trabajo
- Diplom Kaufmann (FH), B.A. (hons) Frank Piotraschke (Autor), 2007, Brand Portfolio Management. Basic principles and recent trends, Múnich, GRIN Verlag, https://www.grin.com/document/85592
