Unit 4: Brand Portfolio Management
In this unit, we will elaborate on the strategies brand managers use to plan long-term brand success and market share domination. Brand portfolio management planning is fundamental to aligning internal and external marketing programs and activities with a brand's vision. Modeling tools such as the Boston Consulting Group Model (BCG) and the Product/Expansion Growth Matrix inform managerial actions related to integrating product, pricing, channel, and communication strategies.
Completing this unit should take you approximately 5 hours.
Upon successful completion of this unit, you will be able to:
- evaluate the BCG analysis of a brand portfolio;
- analyze brand stretching at a multi-tiered global company;
- evaluate brand architecture strategies;
- evaluate brand growth potential using the product/growth model; and
- analyze a value optimization study on a consumer brand.
4.1: Strategies in Managing Brand Portfolios
The Boston Consulting Group model is one of the most often used strategic planning tools; it is critical to brand management decision-making all over the world. It is considered a business-level planning tool. Created in 1964 by Bruce Henderson, the founder of a consulting firm called Boston Consulting Group, the BCG four quadrant planning model transformed business management with a growth share matrix schematic. This section will explain the construction of the BCG and how it is used in brand management to help grow a sustainable competitive advantage.
This chapter reading introduces you to the Boston Consulting Group model, an important strategic tool aligning SBU (strategic business units). Using your drawing and definitions of the BCG model, add descriptions to each of the four quadrants (star, dog, question mark, and cash cow). Then take real corporate brand examples and write in each quadrant why this is a star instead of a dog, a question mark instead of a star, and a dog instead of a question mark. Now that you understand how to apply the BCG model, you can apply the BCG model to a growth strategy called brand stretching. Brand stretching focuses primarily on the star and question mark quadrants in the BCG model and uses opportunistic modeling to reposition these into different quadrants. Referring back to your previous work with the BCG model, move the star to the cash cow quadrant and the question mark to either the star or dog quadrant. You may use the corporate brand from your earlier analysis or choose another corporate brand for this activity. Examples could include McDonald's' menu items or Apple products. Now explain reasons this SBU can be "stretched" into other quadrants as part of a growth strategy. Consider this, how can a star SBU develop into a cash cow, while a question mark SBU might develop into a dog or star?
Read this chapter and review the process of how a brand's architectural integrity is guided by its Product Portfolio Model. Now choose a brand that is over 100 years old. Examples include Coca-Cola, Kraft, and Mercedes Benz. For one of these brands, identify which aspects of this model were used to sustain core competencies.
4.2: Product Expansion/Growth Matrix
In this section, you will learn about the Product/Market Growth Matrix, a product-level planning tool used to create growth opportunities. It is a supportive tool to the BCG and PESTLE strategic models discussed in earlier units. Igor Ansoff created the Product/Growth matrix to identify and evaluate the relative attractiveness of growth strategies that leverage both existing products and markets versus new ones and the risk associated with each. This strategic planning model relies on sales and market share growth metrics to identify possible new products and market gaps.
Review the elements of the BCG quadrant diagram and examine how the star, dog, question mark, and cash cow are defined. This model is a business-based strategy, so review how it flows into the corporate models from this section on Brand Portfolio Management. To apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.
4.3: New Product Development Stages for Brand Expansion
Brand managers make decisions using planning tools. Numerous planning tools are used to grow brands; they all involve consumer loyalty and competitive advantage. This section will review a range of strategic planning tools and how each addresses critical brand goals to grow brand equity and dominate market share.
Brand managers rely on a subset of logistical strategies to strengthen a brand's competitive advantage. From a brand growth perspective, brand managers select one of three concentration strategies: Market Penetration, Market Development, and Product Development. Review the tactics of each of these concentration strategies along the metrics of brand management success: revenue, risk, and market share growth. To really get the crux of how to apply the concepts to real scenarios in brand management, complete the exercises in the boxes. Use your notebook to create 2-3 sentence answers to the challenge questions. You must refer back to key concepts in the resource and charts when included.
Unit 4 Study Resources
This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.
Watch this as you work through the unit and prepare to take the final exam.
- Unit 4 Review Slides File PDF document
You can also download the presentation slides so you can make notes.
We also recommend that you review this Study Guide before taking the Unit 4 Assessment.
Unit 4 Assessment
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.