2. MEMO
Switch to a brand based management system
Brands have a dedicated budget and managerial
team
"Brand Man's" objective would be to ensure that
his brand becomes a winner

4. The surprising truth is that most
brands don't make money for
companies

5. QUICK TEST

6. • A comprehensive examination to assess the health of the brand,
uncover its sources of equity and suggest ways to improve and
leverage that equity.
Brand Audit Sheet

7. From company point of view
• Organizations can help profits by deleting loss making brands.
• Despite the fact that overall revenue may fall all the while, brand erasure will give
a jolt for an extra reason.
• Incur hidden costs because multibrand strategies experience the ill effects of
diseconomies of scale.
• Those hidden costs decline when organizations lessen the quantity of brands they
offer.
• Resources can be liberated to improve their remaining brands and more alluring
to clients.
• Subsequently, killing brands might some of the time be the most ideal route for
organizations to serve both clients and shareholders.

8. But brands do not die a natural death if companies stop investing in
them
Repercussions: Antagonize loyal customers
Studies shows that most attempts in brand deletion fails

9. There will always be pressure from senior
executives to retain brands for sentimental or
historical reasons.

10. Pruning the portfolio
• The Portfolio Approach:
The company choses to keep only those brands that conform to
certain parameters
• The Segment Approach:
Companies identify the brands they need in order to cater all the
customer segments in the market

11. • The CEO often appoints a committee of senior executive and co.
• Directors to up these parameters.
• These parameters are based on the specific nature of their industries.
• e.g. General Electrics (only retain No. 1 & 2 brands in the segment,
rest they discard)
• Approach by Unilever-
• Brand Power
• Brand growth potential
• Brand Scale
Portfolio Approach

12. • Re-segment market and identify brands that are needed to cater new
segments
• Based on consumer needs rather than price or product features
• Allows them to prune portfolio and take on rivals more effectively
Segmentation Approach

13. THANK YOU