A presentation on the effective creation, deployment and management of brand assets in support of simultaneous top and bottom-line growth.

1. Presented
by
Muthoni
Kanyana
CEO
MK-­‐AFRICA
Brand
Por.olio
Strategy

2. -­‐
David
Aaker
“You
need
to
change
the
orienta0on
of
a
company
so
that
people
think
of
brands
as
assets.
Then
you
must
manage
your
por;olio
of
brand
assets.”

3. Ques0ons
You
May
Hear
from
Management
• Why
do
we
have
two
brands
serving
the
same
purpose
in
our
por5olio?
• How
should
we
use
our
budget
to
drive
brand
growth?
• We
need
to
consolidate
brands.
What
is
your
recommenda;on?
• What
is
the
ra;onale
for
how
you
have
allocated
your
marke;ng
budget?
• How
well
do
our
customers
understand
what
we
have
to
offer?

4. Brand
Por.olio
Strategy
The
effec=ve
crea=on,
deployment
and
management
of
brand
assets
in
support
of
simultaneous
top-­‐
and
boFom-­‐line
growth

5. Topics
•
About
MK-­‐Africa
• Brand
and
brand
porIolio
strategy
• Brand
architecture
vs.
brand
porIolio
strategy
•
An
approach
to
brand
porIolio
strategy
• Brand
porIolio
strategy
in
the
hotel
industry
• Leading
brand
porIolio
prac=ces
for
driving
growth
• Conclusion

6. A
Sustainability
Marke=ng
Firm

7. Who We Are

8. Topics
•
About
MK-­‐Africa
• Brand
and
brand
porIolio
strategy
• Brand
architecture
vs.
brand
porIolio
strategy
•
An
approach
to
brand
porIolio
strategy
• Brand
porIolio
strategy
case
study
• Leading
brand
porIolio
prac=ces
for
driving
growth
• Conclusion

9. hFps://www.youtube.com/watch?v=JKIAOZZritk
What
is
branding?

10. What
is
a
Brand
Por.olio
Strategy?
The
effec=ve
crea=on,
deployment
&
management
of
brand
assets
in
support
of
simultaneous
top
and
boFom-­‐line
growth
Maximum
PorIolio
Value
Access
to
new
markets
and
Consumers
Marke=ng
Investment
Efficiency
Strengthened
Customer
Rela=onships
Uncovered
Latent
Brand
Poten=al
Key
Benefits

11.
Relevance
of
a
Brand
PorIolio
Strategy
Brands
=e
a
company
to
its
customers
–
the
brand
strategy
must
inform
and
be
informed
by
the
business
strategy
Brand
strategy
is
business
strategy…
Business
Strategy
Professional
Experience
&
Execu=on
Research
Brand
&
Brand
Company
PorIolio
Strategy
Customer
Experience
Feedback,
percep=ons,
sa=sfac=on,
etc.

12. Why
is
Brand
PorIolio
Strategy
So
Challenging?
Generally,
no
single
group
is
reviewing
or
has
the
authority
to
manage
the
en=re
porIolio,
resul=ng
in
many
challenges
for
senior
execu=ves…
• Overlapping
brands
in
a
porIolio
offering
similar
products/services
targeted
to
the
same
customer
• Inefficient
alloca=on
of
brand-­‐building
resources
including
having
to
support
mul=ple
brands
across
mul=ple
countries
• Mergers
&
acquisi=ons
resul=ng
in
bloated
brand
porIolio
• No
clear
brand-­‐driven
growth
plaIorms
to
fuel
future
growth
• Internal
constructs,
poli=cs,
and
new
product
development
drive
porIolio
strategy
vs.
customer-­‐insights
and
strategic
growth
drivers
• Lack
of
porIolio
management
system

13. Topics
•
About
MK-­‐Africa
• Brand
and
brand
porIolio
strategy
• Brand
architecture
vs.
brand
porIolio
strategy
•
An
approach
to
brand
porIolio
strategy
• Brand
porIolio
strategy
in
the
hotel
industry
• Leading
brand
porIolio
prac=ces
for
driving
growth
• Conclusion

14. Brand
Architecture
vs.
Brand
Por.olio
Strategy
Brand
Architecture
Brand
Por.olio
Matrix
Addresses
how
a
company
can
Addresses
how
a
company
can
best
structure
and
communicate
use
its
brand(s)
to
achieve
top-­‐
its
por5olio
of
brands
and
boEom-­‐line
growth

15. Brand
Architecture
vs.
Brand
Por.olio
Strategy

16. Brand
Architecture
Strategy
• Brand
Architecture,
describes
how
a
family
of
brands
relate
to
one
another
• There
are
essen=ally
3
architectural
naming
models
to
which
businesses
subscribe:
-­‐
Masterbrand,
Endorsed
Brand
&
Individual
Brand.
• Many
brand
architectures
are
complex,
requiring
diligence
in
streamlining
and
aFemp=ng
to
maintain
consistency
• Brand
architecture
is
a
cri=cal
component
of
brand
porIolio
strategy

17. Brand
Por.olio
Strategy

18. Cash
Cows
Low
Growth;
High
Market
Share
• Strong
compe==ve
businesses,
which
generate
cash
surplus
• Typically
have
a
strong
brand
recall
which
allows
the
company
to
charge
higher
prices
than
its
compe=tors.
• The
excess
cash
generated
could
be
deployed
by
the
company
for
dividends,
debt
repayments
&
driving
future
growth
in
other
segments
of
the
company
(i.e.
Ques=on
Marks
or
Stars)

19. Stars
High
Growth;
High
Market
Share
• Stars
have
a
high
market
share
in
a
fast-­‐growing
industry.
• However,
since
they
operate
in
a
fast
paced
industry,
they
require
huge
amounts
of
investment
to
sustain
their
market
leadership.
• The
inten=on
in
running
such
businesses
is
to
turn
them
into
cash
cows
should
they
sustain
their
market
leadership
for
a
long
=me,
especially
when
the
economy
slows
down,
if
not,
they
may
have
to
be
divested
(like
Dogs).

20. QuesDon
Marks
High
Growth;
Low
Market
Share
• Ques=on
Marks
are
businesses
which
hold
a
small
share
in
a
fast-­‐
growing
industry.
• The
future
performance
of
these
businesses
is
uncertain
and
companies
should
invest
very
carefully
in
Ques=on
Marks.
• If
their
performance
does
not
live
up
to
the
expecta=ons,
Ques=on
Marks
should
be
reclassified
as
Dogs
and
should
be
divested.

21. Dogs
Low
Growth;
Low
Market
Share
• These
are
businesses,
which
have
a
low
market
share
with
no
scope
for
growth.
• Because
these
businesses
do
not
hold
much
economic
promise,
organiza=ons
should
either
not
invest
in
them
or
sell
them
as
soon
as
possible.

22. Brand
Por.olio
Strategy
• Brand
porIolio
strategy
addresses
key
strategic
business
issues
and
decisions
rather
than
the
linkages
of
brands
within
the
• It
is
the
intersec=on
of
brand
and
business
strategy
• By
strategically
building,
leveraging,
and
protec=ng
the
company’s
brands,
the
brand
porIolio
strategy
op=mizes
the
value
of
the
en=re
porIolio
• It
is
not
sta=c
but
is
grounded
in
market
dynamics
and
can
change
drama=cally
over
=me

23.
Brand
Architecture
vs.
Brand
PorIolio
Strategy
Brand
architecture
provides
a
more
tac=cal
focus
while
brand
porIolio
strategy
provides
a
more
strategic
focus
BRAND
ARCHITECTURE
BRAND
PORTFOLIO
STRATEGY
Sample
QuesDon:
Sample
QuesDon:
• What
should
this
brand
be
called?
•
Is
this
not
only
the
right
brand,
but
Should
it
be
linked
to
the
master
the
right
category
in
which
to
grow
brand
or
not?
revenues
by
15%?
Primary
ObjecDve:
Primary
ObjecDve:
• Achieve
clarity
and
synergy
among
VS.
•
Maximize
porIolio
value
by
brand(s)
in
the
porIolio
strategically
growing,
leveraging,
and
protec=ng
brands
in
a
porIolio
Scope
of
AcDviDes:
Scope
of
AcDviDes:
• Customer
research
to
understand
•
Comprehensive
fact
base
(customer
exis=ng
equi=es
of
brands
and
brand
data
–
qual./quant.)
• Brand,
business,
and
customer
filters
•
PorIolio
mapping
to
iden=fy
op=mal
solu=on
• Business
case
development
• Naming
and
visual
iden=ty
system
.

24. Topics
•
About
MK-­‐Africa
• Brand
and
brand
porIolio
strategy
• Brand
architecture
vs.
brand
porIolio
strategy
•
An
approach
to
brand
porIolio
strategy
• Brand
porIolio
strategy
in
the
hotel
industry
• Leading
brand
porIolio
prac=ces
for
driving
growth
• Conclusion

25. An Approach to Brand Portfolio Strategy
Take a long-term, holistic approach to managing your portfolio of
brands
Stage 1 Stage 2 Stage 3
Renovation & Identification of Optimization
Rationalization Growth Opportunities
• Focus and clarify portfolio • Expand brand and business • Maintain brand relevance
to ensure efficient allocation frame of reference
• Manage portfolio roles to
of resources • Leverage brand(s)into new combat market pressures,
• Determine scope, roles and markets or customer e.g., consumer bifurcation
relationships of brands in segments • Build branded differentiators
the portfolio (brand • Make strategic brand or energizers to maintain
architecture) acquisitions brand-built margins
Ongoing
Management System
• Determine appropriate organizational structure to manage brands as a portfolio
• Develop metrics system to track brand and business performance across the portfolio
• Other operationalization issues, e.g., channel, sales force, pricing?

26. An Approach to Brand Portfolio Strategy
The following questions begin the brand portfolio strategy process
! What is the optimal number of brands in a specific Optimal
Number?
portfolio?
! What is the scope of each brand within the portfolio? Scope?
! What are the roles and responsibilities for each brand Roles/
Responsibilities? (silver Bullet)
within the portfolio?
! How do brand linkages affect equity of other brands in Equity
Transfer?
the portfolio? (brand architecture)
! How should acquired brands be integrated into the Acquisitions?
portfolio?
! What is the strategic roadmap for the portfolio to facilitate Strategic
Roadmap?
future growth?

27. Case
Analysis
Dove:
Evolu=on
of
a
brand

28. What
is
Dove?
• A
cleansing
brand
in
the
health
and
beauty
sector
owned
by
UNILEVER
• Unilever,
a
leading
global
manufacturer
of
packaged
consumer
goods,
operates
in
the
food,
home
and
personal
care
categories

29. UNILEVER
Por.olio

30. UNILEVER
CompeDtors
(Annual
revenue
of
$69
billion)
(Annual
revenue
of
$68
billion)
(Annual
revenue
of
$34
billion)

31. In
February
2000
Unilever
embarked
on
a
five-­‐year
strategic
ini=a=ve
called
“Path
to
Growth.”
An
important
part
of
this
ini=a=ve
was
a
plan
to
winnow
its
more
than
1,600
brands
down
to
400.

32. Why
the
need
for
fewer
brands?
• Global
decentraliza=on
brought
problems
of
control.
• Lack
of
a
unified
global
iden=ty.
• A
small
number
of
brands
would
be
selected
as
“Masterbrands”
and
there
would
be
a
global
brand
unit
for
each
Masterbrand.

33. 1957
Launched
in
the
market
1
970’s
Popularity
increased
as
milder
soap
2
000
Campaign
for
real
beauty
2
002
Self-­‐esteem
project
1995
Extension
of
Dove’s
range
of
products
Evolu=on
of
brand
“Dove”

34. 1957:
The
‘QuesDon
Mark’
Phase
• The
1957
launch
adver=sing
campaign
for
Dove
was
created
by
the
Ogilvy
and
Mather
adver=sing
agency.
• The
message
was,
“Dove
soap
doesn’t
dry
your
skin
because
it’s
one-­‐quarter
“cleansing
cream.”
hFps://www.youtube.com/
watch?v=6sU8g0b1vDY

35. 1970s:
The
‘QuesDon
Mark’
Phase
The
term
“cleansing
cream”
was
replaced
with
“moisturizing
cream”—but
Dove
stayed
with
the
claim
not
to
dry
skin,
and
with
the
refusal
to
call
itself
a
soap,
for
over
40
years

36. 1995:
The
‘QuesDon
Mark’
Phase
• Brand
extension:
from
1995
to
2000,
Dove
extended
its
range
of
products.
• It
also
ventured
into
men’s
products.

37. The
Star
Phase:
Campaign
for
Real
Beauty
• In
2000,
Dove’s
global
brand
director
led
a
worldwide
inves=ga=on
into
women’s
responses
to
the
iconography
of
the
beauty
industry.
• Unilever
went
to
3,000
women
in
10
countries
and
explored
some
of
the
hypotheses
generated
by
the
psychologists.
• Among
the
findings
was
the
fact
that
only
2%
of
respondents
worldwide
chose
to
describe
themselves
as
beau=ful.

38. The
Star
Phase:
Campaign
for
Real
Beauty
• “Young,
white,
blonde
and
thin”
were
the
almost
universal
characteris=cs
of
women
portrayed
in
adver=sing
and
packaging
• For
many
women
these
were
unaFainable
standards,
and
far
from
feeling
inspired,
they
felt
taunted.

39. • In
the
search
for
an
alterna=ve
view
of
the
goal
of
personal
care,
Unilever
tapped
two
experts:
Nancy
Etcoff,
a
Harvard
University
psychiatrist
and
author
of
the
book,
Survival
of
the
Prexest
and
Suzy
Orbach
a
psycho-­‐
therapist
and
author
of
the
book,
Fat
is
a
Feminist
Issue.
• Unilever
also
hired
photographer
John
Rankin
Waddell,
an
Avant-­‐guarde
fashion
photographer
well-­‐known
for
using
ordinary
people
in
supermodel
contexts
and
for
books
of
nudes
featuring
plain-­‐looking
models.
The
Star
Phase:
Campaign
for
Real
Beauty

40. Campaign
for
Real
Beauty
hFps://www.youtube.com/watch?v=XpaOjMXyJGk

41. Campaign
for
Real
Beauty
• Most
viewed
and
3rd
most
shared
commercial
of
all
=me
-­‐
viewed
more
than
114
million
=mes
&
uploaded
in
25
languages
to
33
of
the
brand's
YouTube
Channels
• The
12-­‐year
old
campaign
has
won
a
plethora
of
ad
awards
and
sales
have
jumped
to
$4
billion
today
from
$2.5
billion
in
its
inaugural
year.
• In
September
2006,
Landor
Associates
iden=fied
Dove
as
one
of
10
brands
with
the
greatest
percentage
gain
in
brand
health
and
business
value
in
the
past
three
years.
It
computed
that
the
brand
had
grown
by
$1.2
billion.

42. Unilever
BCG
Matrix

43. Topics
•
About
MK-­‐Africa
• Brand
and
brand
porIolio
strategy
• Brand
architecture
vs.
brand
porIolio
strategy
•
An
approach
to
brand
porIolio
strategy
• Leading
brand
porIolio
prac=ces
for
driving
growth
• Conclusion

44. Leading
brand
por.olio
pracDces
for
driving
growth
Three
considera=ons
for
driving
growth
through
brand
porIolio
strategy:
1. Set
a
clear
customer
focus
ü Understand
customer
profitability,
iden=fy
customer
targets,
and
evaluate
how
well
each
brand
in
the
porIolio
meets
customers
needs
ü A
more
comprehensive
understanding
of
drivers
of
customer
choice
enables
marketers
to
beFer
structure
the
porIolio

45. Leading
brand
por.olio
pracDces
for
driving
growth
2. Op=mize
the
brand
porIolio
ü The
goal
is
to
drive
growth
and
generate
marke=ng
efficiencies
ü Decisions
o{en
require
tough
calls
and
must
be
guided
by
detailed
analysis
of
customer
targets,
brand
performance
and
impact
on
business
results
3. Organize
for
success
ü Most
companies
fail
to
op=mally
manage
their
brand
porIolios
ü Senior
execu=ves
must
ins=tute
the
organiza=onal
structures,
processes,
and
metrics
that
foster
long-­‐term
brand-­‐building

46. Topics
•
About
MK-­‐Africa
• Brand
and
brand
porIolio
strategy
• Brand
architecture
vs.
brand
porIolio
strategy
•
An
approach
to
brand
porIolio
strategy
• Leading
brand
porIolio
prac=ces
for
driving
growth
• Conclusion

47. ParDng
Thoughts…
Some
key
success
factors
regarding
the
development
&
implementa=on
of
a
winning
porIolio
strategy:
• A
brand
porIolio
strategy
should
logically
flow
from,
and
lend
support
to,
the
broader
business
strategy
• As
a
rule,
a
porIolio
of
fewer,
bigger
and
beFer
brands
is
preferred
over
a
broader
porIolio
of
regional
and
niche
brands
• A
brand
porIolio
strategy
must
provide
clarity
on
the
scope,
role
and
interrela=onship
for
all
brands
within
the
porIolio
• Brand
porIolio
strategy
should
dictate
the
level
and
mix
of
investment
and
communica=on
priori=es
across
the
porIolio
• It
is
impera=ve
to
have
an
organiza=onal
structure
that
is
empowered
to
manage
the
brands
and
is
aligned
with
the
right
talent
and
processes
• A
measurement
system
needs
to
be
establish
to
gauge
and
guide
success
of
the
brand
porIolio

48. How
to
unify
&
scale
sustainability
across
brand
por.olio
People
.
Planet
.
Profits

49. Unique Positive Contribution (UPC)

50. Asante Sana