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

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

companies

QUICK TEST

• 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

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.

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

There will always be pressure from senior executives to retain brands for

sentimental or historical reasons.

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

• 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

• 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

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