Capitalizing on Geographic Distinctions in a Brand Portfolio Strategy
A global consumer products company restructured its existing “one-size-fits-all” brand portfolio to one that focuses on its largest areas of consumer growth in emerging geographies while preserving its market leadership in established consumer segments.
Overview:
A global consumer products company had a brand portfolio that failed to recognize the distinct differences in consumption behavior for their core offering between established consumer segments/geographies and consumer segments/geographies where they were seeking to source their future growth. Their existing brand portfolio approach had severely curtailed their ability to enter new geographies effectively and had frustrated the innovative spirit of their frontline regional management. In addition, they had increased the vulnerability of their flagship brands by discouraging the flexibility to compete with new entrants in their established geographies on a more nimble footing. As a result, they struggled with a high degree of waste in their marketing investments, a limited new offering pipeline, and slow overall growth rates in emerging geographies.
Our Approach:
We teamed with the company to develop a brand portfolio strategy that increased the flexibility with which they could build relevant brands and go-to-market strategies that reflected the market dynamics of their industry. We also demonstrated the opportunity costs associated with the continued deployment of the current brand portfolio model on the long-term growth prospects in both their established and emerging consumer segments/geographies. We established a “scenario-based flexibility” for the portfolio that positioned the company to protect its flagship brands while properly introducing new brand investments against long-term, high-priority consumer/geographic growth opportunities. The actions we identified resulted in a modest expansion to the portfolio with the client reallocating a portion of its resources and focus to its highest-opportunity consumer segments/geographic areas. This new focus maintained performance in established markets while dramatically accelerating their growth rate to significantly outpace that of the overall market.
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