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9 steps to create a brand portfolio strategy

brand portfolio strategy

Brand portfolio strategy is a marketing strategy that emphasizes promoting the name of the parent brand while simultaneously advertising a range of goods and services.

This marketing approach is very different from traditional branding and marketing campaigns that focus on promoting one product at a time, Most brands that use this strategy have strong brand equity that they may use to boost competing brands.

The majority of well-known brand companies often use brand portfolio strategy, A successful parent brand name that serves as the foundation for all subsequent branding endeavors is a critical component of this strategy.

Therefore, we will learn about the mechanism of creating a brand portfolio strategy, according to the experiences of tech village.

What is a brand portfolio strategy

A brand portfolio strategy involves managing a collection of brands owned by a single company in a way that maximizes overall market impact and value. It includes decisions about which brands to develop, maintain, or retire, as well as how to position and differentiate them in the market.

The goal is to cater to various customer segments, prevent cannibalization, and achieve synergy among the brands while leveraging the parent company’s resources and capabilities.

Design your branding identity now

How do you create a brand portfolio strategy?

According to tech village, creating a brand portfolio strategy involves several steps:

1- Assessment of Current Portfolio: Begin by analyzing your existing brands. Evaluate their market performance, customer perceptions, and their role within the company’s overall goals.

2- Define Goals: Clearly outline your objectives for the brand portfolio strategy. Are you looking to expand into new markets, capture a wider range of customer segments, or streamline your offerings?

3- Segmentation: Identify different customer segments and their specific needs. This helps in deciding which brands should target each segment and whether there are any gaps in the market that your portfolio could address.

4- Positioning: Determine the unique positioning for each brand portfolio strategy. This involves defining the key attributes, values, and benefits associated with each brand.

5- Brand Roles: Decide on the roles of each brand. This could include flagship brands that represent the company, niche brands targeting specific segments, and even value or premium brands.

6- Resource Allocation: Allocate resources such as marketing budgets, research and development, and distribution channels based on the potential of each brand to contribute to the company’s overall success.

7- Synergy and Cannibalization: Assess how the brand portfolio strategy interact. Look for opportunities to create synergy, where the success of one brand enhances the performance of another, while minimizing cannibalization, where one brand’s success comes at the expense of another.

8- Portfolio Management: Regularly monitor the performance of each brand and adjust your strategy as needed. This might involve retiring underperforming brands, refreshing branding for relevance, or introducing new brands to capitalize on emerging trends.

9- Communication Strategy: Develop a communication plan to effectively convey the value and differentiation of each brand portfolio strategy to its target audience.

Read also: Brand Identity Packaging.

The important of brand portfolio

A well-managed brand portfolio strategy offers several important benefits to a company:

1- Market Segmentation: A brand portfolio strategy allows a company to cater to different customer segments with diverse needs and preferences. This enables the company to capture a broader range of consumers and increase market share.

2- Risk Management: By diversifying its offerings across multiple brands, a company reduces the risk associated with relying too heavily on a single brand. If one brand faces challenges or changes in market conditions, the impact on the overall business is minimized.

3- Competitive Advantage: A strong brand portfolio strategy allows a company to occupy multiple positions in the market, making it difficult for competitors to replicate its comprehensive reach and offerings.

4- Resource Optimization: brand portfolio strategy can share resources such as distribution channels, marketing campaigns, and research and development efforts, leading to cost savings and more efficient resource allocation.

Read also: Incorporation Of Company Branding And Seo.

5- Synergy and Cross-Selling: Brands within a portfolio can support and reinforce each other, leading to cross-selling opportunities and increased customer loyalty. Customers who are loyal to one brand may be more inclined to try another brand from the same company.

6- Innovation: A diversity brand portfolio strategy can serve as a platform for innovation and experimentation. New ideas and product concepts can be introduced under different brands, allowing the company to explore and test the market’s response.

7- Brand Equity Building: Each successful brand in the portfolio contributes to the overall reputation and credibility of the company. Strong brand equity enhances customer trust and loyalty.

8- Market Coverage: With a variety of brands, a company can cover different price points, quality levels, and product categories, ensuring that it addresses a wide spectrum of consumer needs.

Here’s: How To Brand Plastic.

What makes a strong brand portfolio?

The brand portfolio strategy depends on the reputation, popularity and loyalty of an already known product, to launch a new product.

In order to achieve the success of this strategy, there must be a logical link between the original product, which relies on its reputation, and the new product, especially in the common characteristics or features that the consumer can identify and identify quickly and clearly.

The success of the brand portfolio strategy allows the company to diversify its offering, increase its market share and gain an additional competitive advantage over its competitors that do not provide similar services or products. In this strategy, the brand acts as an effective and inexpensive marketing tool for the proposed product.

But on the other hand, if the relationship of the new product to the old product is weak without clear associations, or the association is negative, this can produce adverse effects known as brand misleading or diluting, which can do great damage to the original product.

Design your branding identity now


A brand portfolio strategy is a business that uses the same brand identity and name for different items in the same area or related theme. The brand portfolio strategy is a great approach for companies trying to expand into new markets to increase their sales potential.

Brand portfolio strategy helps companies reach a wider audience and reduce the costs of building brand equity and recognition for new products. To ensure continued success, it is essential to implement the proper plan.


What is the goal of the brand portfolio strategy?

The primary goal of a brand portfolio strategy is to optimize the overall value and impact of a company's collection of brands. This involves achieving a harmonious balance between various brands to maximize their individual and collective contributions to the company's success.

How do you create a brand portfolio strategy?

Creating a strong brand portfolio strategy within the competitive market is not easy and also requires good study and taking some steps such as studying the market and identifying the target audience.

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