Brand Portfolio Optimization

Every product in a company’s portfolio plays a certain role: some products attract customers, some generate marginal revenue, and some support a company’s image. With time, some products stop being profitable and have to be reconsidered. Identifying such products is the main goal of brand portfolio optimization.

What Is a Brand Portfolio?

A brand portfolio includes all products and services manufactured and provided by a company. It is affected by target audience demands, business model features, technologies, and competencies of the staff.

Regular brand portfolio analysis helps improve a company’s short- and long-term economic performance. In the course of such analysis branding specialists focus on two parameters:

- Potential. This parameter indicates a product’s prospects and depends on market capacity and life cycle, demand stability, distribution channels, and the probability of success. Each element is assigned its own value and weight depending on its importance for the company.

- Supply strength. This parameter shows whether a product is profitable and includes its earning power, competitive advantages, and sales patterns. To avoid brand dilution, a product should also be in line with the company’s strategy.

Brand portfolio analysis can be based on the data collected from open sources or on the opinions of a branding specialist. The latter approach might lead to lower accuracy levels but is still sufficient at certain stages. More detailed data can be provided by industry experts.