In the world of branding and marketing, a brand portfolio refers to the collection of brands owned and managed by a company or an individual. It is different from design strategies portfolio. It encompasses the various products, services, or business entities associated with distinct brand identities. A well-structured brand portfolio enables companies to target different market segments, diversify their offerings, and create a strong brand presence. To illustrate its significance in modern business, we will discuss different types and models of brand portfolios, as well as provide six examples.
Different types of Brand Portfolio
Corporate Brand Portfolio Model
This model involves a central corporate brand that serves as the umbrella for various sub-brands. The corporate brand itself may not be as visible to consumers as its sub-brands, but it represents the company’s values and reputation. The sub-brands, on the other hand, operate independently with their own distinct identities and target markets. An example of this model is Procter & Gamble (P&G), which owns sub-brands like Pampers, Gillette, and Tide.
House of Brands Portfolio Model
In this model, each brand within the portfolio operates autonomously with its own unique identity and positioning. Consumers may not be aware of the connection between the brands and the parent company. The House of Brands model allows for specialized branding strategies tailored to each product or service. A prime example is Unilever, which owns brands like Dove, Lipton, and Ben & Jerry’s.
Endorsed Brand Portfolio Model
Under this model, the corporate brand provides endorsement or support to individual sub-brands. While the sub-brands have their own identities, they leverage the credibility and reputation of the corporate brand. This approach adds a layer of trust to the sub-brands, particularly in new or unfamiliar markets. A prominent example of this model is Marriott International, which owns sub-brands like Marriott Hotels, Sheraton, and Ritz-Carlton.
Branded House Portfolio Model
Also known as the monolithic model, this approach features a dominant corporate brand that is prominently displayed across all products and services. The sub-brands are clearly associated with the corporate brand, sharing a consistent look and feel. This model reinforces brand recognition and brand loyalty across the entire portfolio. Adobe is an excellent example of the Branded House model, with products like Adobe Photoshop, Adobe Illustrator, and Adobe Premiere Pro.
Hybrid Portfolio Model
As the name suggests, the Hybrid Portfolio model combines elements of different portfolio models to suit the specific needs of the company. This approach is flexible and allows companies to tailor their branding strategies based on the nature of their offerings and target markets. General Electric (GE) is an example of a company that adopts a Hybrid Portfolio model with its various business divisions operating under distinct brand identities.
Individual Brand Portfolio Model
In this model, each brand functions as an individual entity with minimal association to the parent company. Each brand maintains its own unique identity, with little or no evidence of a connection to other brands within the portfolio. This approach is commonly found in the luxury goods industry, where each luxury brand operates independently. An example is LVMH (Moët Hennessy Louis Vuitton), which owns luxury brands like Louis Vuitton, Moët & Chandon, and Dior.
A brand portfolio is a strategic collection of brands owned by a company, each with its distinct identity and positioning. It is also common for people to ask for a portfolio when they hire a design strategist or any other freelancer. It allows companies to diversify their offerings, target different market segments, and build a strong brand presence. The choice of portfolio model depends on the company’s objectives, the relationship between the corporate brand and sub-brands, and the desired level of autonomy for each brand. Understanding the different types of brand portfolio models and studying successful examples can provide valuable insights for companies aiming to establish and grow their brand presence in a competitive market.