 ASSET

 BENEFITS OF BRAND – what a Branding is?

 BUYING A BRAND
 Brand Acquisition- L’Oreal -modiface
 Mega Merger –Citigroup, Daimler Chrysler
 ASSESEMENT OF BRAND PORTFOLIO
 P&G
 Uniliver
 Nestle
Beverages Nescafe, Cold, Classic, Sunrise,Nestea, Cappuccino,
Iced Tea
Breakfast Cereals Nesplus, Multigrain fillows( Choco Burs) Multigrain (
Kokos caramel), Multigrain fillows( Strawberry)
Nuttyhoney

Chocolates and Netle Festive creation, Kit kat Desert, Much,

Confectionary Alpino,etc
Mil Products & Nestle a + Grekyo Yougurt Strawberry, Mango,
Nutrition pineapple
Nestle a+ Nourish Dahi , Probiotic Dahi
Prepared Dishes & Maggi Nutritious sweetcorn Noodles, 2 min Noodles,
Cooking Aids masala sauce, Chicken Noodle, Oats Noodles, Coconut
Milkpowder,etc

Vending & Food Beverage System

Service Food & Service products
Culinary
Finer segmentation –unique positioning
 Insufficient Differentiation –Cannibalization
 Inefficiency- Shaing product Platform
 Volkswagon – Beetle and Audi TT
 LowerMarket power
 Management complexity
 Deletea brand – What about the Sales and
customer?
 Brand Merger
 Study 1 in 8 delivers Market share – Mars – Treets
& MM
 Brand Rationalization hurts
 Conduct a Brand Portfolio Audit
 Determine the Optimal Brand Portfolio
 Corporate Portfolio Approach
 How many brands should we retain and how many should
we delete ?
 Unilever- 1600-1200
 What is the role of our corporate brand?
 Electrolux – Master brand
 Which brands are core to our company?
 P&G -12
 Does our portfolio contain any potentially global brands?
 Unilever -40 as core global brands
 Should our company exit any category wherein all our
brands are poorly positioned ?
 Need based segmentation Approach
 Examines the number and types of needs-based
segments that exist within each individual
category in which the firm operates.
 How many distinct brand can we support in this
category ?
 Which segments should the company cover with its
brands?
 Which brand should we match against which segment ?
 Which brands should we merge?

 Need based Segmentation Approach- for brands

that compete in the same category?
 Corporate Portfolio approach – for companies
with complex brand portfolio- hundreds of brand
across catagories
 NON CORE BRANDS
SELL
Stopping all Expenditure – Increase profit in
MILK short run

Migrate Loyal customers- Issue coupon or

DELIST samples for the more adjacent surviving brand

Both have strong brand franchises- gradual

MERGE brand migration by subbranding or dual
Brand Transfer or branding
Brand Migration Philips whirlpool – dropped whirlpool
IBM & Lotus Software
 Migrate useful characteristics of deleting
brands:
 One or two characteristics do well under
surviving brand
 Some attribute augment the value preposition
 Replace the defunct brand with the survivor in
that locality where deleted brand was sold.
Benefits of Merging:
1. Substantial Savings – greater economies of scale
2. Streamlined product line
3. Better inventory optimisation
 Consumer Durable Product company
 More than 100 Acquisition – Large BP
 1998 – examined BR – over 70 Brands
 Every country one of its brand – among top 3 but
never the same brand across borders
 Fragmented Marketing efforts could not achieve
economies of scale.
 Brand Portfolio’s complexity :
 Was it a manufacturing company that just let
retailers and others build brands, or was it a branding
company?
 Brand Rationalisaiton – Fewer but stronger brands
 Corporate Name – Electrolux- Masterbrand
 Food service Equipment category:
 Swedish Kroner (SEK) – food service equipment
 Buyers – Professionals – kitchens in hospitals,
restaurants, airports and cafeterias.
 Brand Acquisitions across Europe – 15 Brands
Decentralized business – small size & Weak coverage
 Molteni in France
 Senking in Germany
 Cryptopeerless in UK
 Nordton in Italy
 Zanussi – Pan Europe

 Electrolux losing money – operating loss 1.3 % Food service

equipment
 Brand Rationalisation – Food service equipment-
central in BP
 Segment : - Product and Price specification
Low , Medium and High
 Brands targeted one of the above: Good,
better or best
 Positioned: Across three price bands
 Segmented further by customer profile
Two Problems with the above segmentation:
1. Customer typed did not predict customer
needs .
2. Each customer sought the best solution
4 distinct segments
 Performance specialization segment
- Price index of 100
 Basic solution, fast return on investment segment
– Price index of 25
 Gastronomy Partnership Segment
- Price index of 50-75
 Prestige Gourmet Segment
- Price index of 200-300
 Forgone the 2nd Segment, Targeted other 3
 Total – 15 Brands:
 3 Brands Identified to cater to the 3 segments
 2 Brands ( Juno and Therma) had strength
converted into the subbrands of Electrolux
 10 Brands Deleted
3 segments needed only 3 European Brands
 Electrolux
 Zanussi
 Molteni
5 layer Brand Pyramid to examine each
Brand’s:
 Personality, Values, Rewards, Functional benefits
and Features
 Centralised Brand Management
 International Marketing and communication
tool
 Need based segment- fewer and appropriate
products
 Increased Economies of scale
 Operating income increased by almost 10 %.
 Declining Revenues -1997-1999
 Analysis:
 1600 Brands worldwide – 1200 contributed only 8 %
 400 Core brands –generated 75% of the revenues
“ Path to Growth” 5 year Programme Objective
 Delete 1200 Brands
 Stress 400 core brands
 Devleoped the process for identifying 400
core Brands:
 Set the Criteria
1. Brand Scale
2. Brand Power
3. Brand growth potential
 Established Iterative Process
 Regional team to propose candidates for inclusion
and negotiate with corporate center
 Findings:
 Different Brand name in Different Geographies
occupied similar positioning and innovation
 400 Occupied 200 Distinct Position
 Only 200 Core Brands – 40 Global
Strategy for 400 Core Brands :
 Reallocation of resources from 1200 brands
to 400 core brands
 Cost reduction – closing factories, Workforce
reduced – 330,000
 Systematic search of Growth opportunities
for core brands
Strategy for 1200 Brands:
1. Sell the Brand
2. Milk the Brand
3. Delist the Brand
4. Migrate the Brand – Surf & Radion = Surf
with Sun fresh