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Scott Davis
Davis
PROPHET
“Brands are fiendishly co
elusive, slippery, half rea
things. When CEOs try to
brands their brains h
ndishly complicated,
, half real-half virtual
EOs try to think about
brains hurt.”
- Jeremy Bullmore, WPP
PROPHET
“The way the team plays as a
determines its success. You
the greatest bunch of individ
the world, but if they don’t p
the club won’t be worth a dim
plays as a whole
ess. You may have
of individual stars in
y don’t play together,
orth a dime.”
- Babe Ruth
PROPHET
“You need to change the orie
company so that people thin
as assets. Then you must ma
portfolio of brand as
e the orientation of a
ople think of brands
must manage your
brand assets.”
- David Aaker
PROPHET
Questions You May Hear from Mana
n, deployment and
nd assets in support of
and bottom-line growth
Topics
About Prophet
Brand and brand portfolio strategy
Brand architecture vs. brand portfolio strategy
An approach to brand portfolio strategy
TITLE — Slide 7
io strategy
industry
r driving growth
TITLE — Slide 8
Proprietary and confidential property of Prophet. Do not distribute.
Prophet’s Brand Portfolio Strategy Experie
TITLE — Slide 9
egy Experience
About Prophet
Brand and brand portfolio strategy
Brand architecture vs. brand portfolio strategy
An approach to brand portfolio strategy
TITLE — Slide 10
io strategy
industry
r driving growth
What is a Brand?
?
Brand
TITLE — Slide 11
?
?
?
Proprietary and confidential property of Prophet. Do not distribute.
Setting the Context
x An Ad x x
x A Spokesperson
x x A Product
TITLE — Slide 12
A Logox x A Jingle
x x A Symbol
x
A Product x x A Slogan
x x A Name
x
A brand is…
… all of the
promisesand
organization wants its market to feel
about its product and servic
A brand is
asset
an
It is a property with a m
value that should be ma
TITLE — Slide 13
perceptions an
ket to feel and believe
and service offerings
asset
y with a measurable
ould be maximized
TITLE — Slide 14
ctive creation, deployment and
upport of simultaneous top-
tfolio Value
Strengthened Uncovered
Customer Latent Brand
Relationships Potential
Business
Strategy
Professional
Experience &
Research
Company Portfolio Strategy
TITLE — Slide 15
y Critical to Your Success?
mers – the brand strategy
he business strategy
esources
business strategy…
Execution
Brand & Brand
Customer
Experience
TITLE — Slide 16
y So Challenging?
About Prophet
Brand and brand portfolio strategy
Brand architecture vs. brand portfolio strategy
An approach to brand portfolio strategy
TITLE — Slide 17
io strategy
industry
r driving growth
TITLE — Slide 18
ortfolio Strategy
mponent of brand portfolio
Consider
Brand A Expanding
Brand E
Brand F
Segment 1 Segment 2 Segment 3 Segment 4
Master
Brand
Subbrand
Co-Brand
Starbucks
Product Barista ® commitment
to origins ™ ™
Partner
Ingredient
®®
Venti Tazoberry™
Differentiator
TITLE — Slide 19
mplex, requiring diligence in
aintain consistency
Foodservice Other
Luxury Develop or
Acquire
Premium
Reposition
Mid-priced
Quality/Price Point
Merge to Gain
Value Better
Investment
Segment 1 Segment 2
Customer Segment
TITLE — Slide 20
s key strategic business issues
ages of brands within the
Expand into
New
Segments
Segment 3 Segment 4
Customer Segment
Brand Architecture
Luxury
Premium
Mid-priced
Value
TITLE — Slide 21
ortfolio Strategy
Scope of Activities:
Customer research to understand
existing equities of brands
Brand, business, and customer filters
to identify optimal solution
Naming and visual identity system
TITLE — Slide 22
ortfolio Strategy
What It Is
TITLE — Slide 23
ng, and protecting portfolio
ptimizes the value of the entire
What It Is Not
It is grounded in market
dynamics
It can change dramatically
over time
Proprietary and confidential property of Prophet. Do not distribute.
Topics
About Prophet
Brand and brand portfolio strategy
Brand architecture vs. brand portfolio strategy
An approach to brand portfolio strategy
TITLE — Slide 24
io strategy
industry
r driving growth
Corporate/Center/Region
BU BU BU
Internal Organization
External Marketplace
CompetitorsCompetitorsCompetitorsCompetitors
Channels
Customer
Customer Segment 2 Customer Customer
Segment 3
Segment 1 Segment 4
TITLE — Slide 25
wth by optimizing brand assets to
ognizing internal challenges
Competitors
Customer
Segment 5
+
with marketing/offers Footprint Expansion
New luxury and value
creating opportunities Line Extensions
at the top/bottom with a
vacuum in the middle Enhanced Merchandising
Channel partners
becoming competitors Pricing
Etc.
TITLE — Slide 26
re often insufficient to meet
Cutting
=
t Expansion Time
Bottom-line
Growth
andising
Margins
Time
of resources
Leverage brand(s) int
Determine scope, roles and markets or customer
relationships of brands in segments
TITLE — Slide 27
Strategy
ch to managing your portfolio of
Stage 2 Stage 3
dentification of Optimization
Opportunities
Expand brand and business
Maintain brand relevance
rame of reference
Manage portfolio roles to
s in a specific Optimal
Number?
Equity
other brands inTransfer?
Acquisitions?
nto the
Strategic
portfolio to facilitate
Roadmap?
Rationalize a Portfolio
Growth
Opportunities
Differentiate
TITLE — Slide 29
Strategy
rategy to drive growth in many
unities
Create Platform for Growth
TITLE — Slide 30
anies, UBS consolidated its
ources and to drive growth
TITLE — Slide 31
d distinct businesses under the
x equities, optimize marketing
growth
Cohesive, Clear, and
aligned on vision
Source: Prophet,
Brand Portfolio Strategy By: David A. Aaker
TITLE — Slide 32
brand, Westin revolutionized
the in-room experience to
Consumer Electronics
Televisions, VCRS
Dutch
Equity Transfer
Time
Change in Core DNA
Post-Partnership DNA
Youth-oriented
High performance
Cutting-edge
TITLE — Slide 33
ate a platform for growth, each
from relationship
ership DNA
Shoes
Phil Knight
Athletic Performance
Core DNA
Creates a new
platform for growth
Innovator and expansion
Tech-savvy
About Prophet
Brand and brand portfolio strategy
Brand architecture vs. brand portfolio strategy
An approach to brand portfolio strategy
TITLE — Slide 34
io strategy
industry
r driving growth
Source: Prophet
TITLE — Slide 35
Hotel Industry
Premium
High Quality
Price/Value Tiers
Mid-Price
Economy
Extended Stay
Hotel
Usage Occasion
Source: Prophet
TITLE — Slide 36
portfolio across multiple price points
Time Share
Occasion
Inconsistency
Source: Prophet
TITLE — Slide 37
National Group & Vacation, Surf & Friends & Local Basic
Business Getaway Vacation Deal Family Business Deal
$$$$$$
$$$$$
$$$$
$$$
$$
$$
About Prophet
Brand and brand portfolio strategy
Brand architecture vs. brand portfolio strategy
An approach to brand portfolio strategy
TITLE — Slide 38
io strategy
industry
r driving growth
TITLE — Slide 39
es for Driving Growth
se share of purchases
Source: Prophet
TITLE — Slide 40
e Share of Purchases
mer insight across brands and
he roles of its brands
in the
ss the
sistent
Art
vities to
nergies
tages
Science
Target: Business/Corporate
travelers, high rental frequency
About Prophet
Brand and brand portfolio strategy
Brand architecture vs. brand portfolio strategy
An approach to brand portfolio strategy
TITLE — Slide 45
io strategy
industry
r driving growth
1. Brand
Letting
proliferation
internal biases,
– constructs, and
new product development drive brand portfolio
2. Missed
Under-leveraging
opportunitiesbrands
– in a
portfolio, and missed potential marketing effici
failing to create clarity, synergy and leverage a
portfolio
3. Disconnect
Not linking
to business
brand portfolio
– strategy
to business goals and objectives, and failing to
with specific metrics
4. Stopping
Assuming
at logo
brand
and naming guideline
portfolio strategy is complete when logo treatm
naming conventions are determined
5. Assuming
Assuming
executive
organizational
alignment –
buy-in to the strategy at both the corporate an
level
constructs, and
e brand portfolio decisions
marketing efficiencies, by
y and leverage across the
olio strategy
es, and failing to track success
TITLE — Slide 47
e Your Strategy
success factors regarding the
of a “winning” portfolio strategy
Scott Davis
Senior Partner
(312) 879-1930
sdavis@prophet.com
www.prophet.com
ions?
phet.com
et.com