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3 Key aspects to design the brand portfolio

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3 Key aspects to design the brand portfolio

Although we may think that each company has a clear portfolio strategy from the beginning and that each product line or each product of the mix plays a unique and key strategic role, the truth is that in most of them; the new product development process, Pipeline business strategies and brand strategy do not necessarily converse in a simple and attractive logic, in the eyes of the consumer Brazil Mobile Database. This process responds substantially to the organic change that organizations undergo; changes in its executives, views or adaptations to customers or consumers, changes in the layout of the main retailers, tactical views or quick reactions, can directly or indirectly affect changing the product mix or portfolio strategy, complicating the system and finally obstructing the consumer’s understanding of the products or the value proposition that they fulfill within the company’s global offer.

In order to understand how to “logically” order our brands / products in the eyes of the consumer, it is important to consider 3 key aspects; The stage of the brand-product life cycle, The shopper’s purchase motivation by category. the layout strategy of the channel. Understanding the life cycle stage of the brand-product Like the blind who are asked to describe an elephant just by touching a part of the body of the large animal, the perception of the executives of a company can be seen to a greater or lesser extent biased by the daily roots and knowledge acquired in the product to communicate, or simply by the focus of each area in the company. Let’s agree that if you work regularly between 8 to 12 hours a day talking about cookies, or any consumer good and you are already in the line of distinguishing the crunchiness of a cookie in more than 5 levels, it is most likely that you no longer see cookies as the consumer looking for something sweet to hang out at, to whom you are directing your branding efforts.

To try to abstract from such bias, it is important to ask a very simple ” Kotlerian” principle , what is the stage of the life cycle of my product? Are the cookies we are offering well known to the consumer? Are we going to communicate a new product for an already established market? Or is it a new product for a fledgling market? These types of questions will allow you to establish what the primary role of your portfolio strategy should be, since and let’s not forget, it must be logical in the eyes of the consumer and not, necessarily, in the eyes of the general manager who greets you with an impeccable smile. every morning. Therefore, what tipsShould they arouse your interest?, for example to know if it is a market or category that has not been developed in the depth of the mix (the competition or category has some variations of products horizontally, such as new brands for new users, but has not deepened in new flavors or more “sophisticated” variations in the mix), or the average consumer consumes the product with a very low frequency or knows very little about it (it may be a truly innovative product that satisfies a need that the user still not fully aware).

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If those were the case, the greatest impact of your portfolio strategy would be to educate the consumer, seeking to simplify in all media, that the order helps to find and understand the use of each product within the portfolio. Because I take it for granted that, even if you are 300% sure that the use is understood and that your cookie has five levels of crispness and the fifth is by far the most determined on the market Brother Cell Phone List, the consumer may not yet be even worried about the “crispness” or any other attribute that your company has taken years to develop. However, if the case were the opposite, and you had very knowledgeable consumers of the product, market and offer as in the case of cars, your strategy could probably work flawlessly with a good-better-best order., where if you play it correctly you can have growth with “positive cannibalizations”, that is, customers who for a price range were looking for the better solution and ended up buying the best alternative, since they immediately understood the value proposition, and felt that it was a purchase much smarter in the long run.

Well, the issue then, is to detect the state of the market you are focusing on in order to understand with some clarity what could sound good to consumers, making sense and being relevant, which brings us to the second point. The Shopper’s Purchase Motivation. Once the stage of life in which the market or category in which we are designing our brand portfolio is located is distinguished, it is important to know how the consumer currently buys in that category, or how they are not buying. Establishing a decision tree here is essential, in order to have some alternatives on a theoretical basis about how we think or believe that the consumer’s purchasing process is consciously or unconsciously taking place, with these annotations on paper and by hand, we can rush to corroborate or refute the hypothesis, for which we use a focus group, an online survey or a quantitative of “tome and loin”, whatever is necessary to affirm the stomach and that is according to the annual budget that we must take care of, such as iphone x in the micro. And why take a study only to refute or corroborate a hypothesis, we should not do an exploratory?

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This question is the focus of another discussion that I will try to give later, but it is worth agreeing on a point, the studies are never 100% conclusive, the interpretation of the executives and the focus or spectrum by which they were analyzed has a lot to do with it. We can find hundreds of cases in which strategies gave excellent results without testing an iota and also find hundreds of cases in which all possible tests were done and the result was equally successful. The fact is that once you paid attention to the consumer and affirmed the decision about how the hell they bought, order the portfolio in favor of that motivation, that is, if they are going to buy by strain, clearly and quickly distinguish each of the strains that you have at your disposal, if you buy by flavor, privilege the flavor in the packaging, that in simple terms, it is the first thing that the consumer sees in your product, without fear, always remember that the brand is NOT the logo and the logo should not always be the greatest.

The brand is everything and that everything is achieved by being consistent, making the consumer see the brand over time and not read it. The Canal layout strategy Once we have the strategy, which we know is based on being clear about the life cycle of the category to which our portfolio belongs, where we understand the main objective that it will have, be it educating the consumer, differentiating ourselves from the competition or promoting the value proposition, we also know how the consumer buys, so we design it in a simple to understand way, facilitating the purchase and even the decision time in the sales channel, we must align and enhance our strategy with impeccable execution, to which we must align with our distribution channel. In the case of consumer goods, this scenario would certainly be, and with a greater impact, retailers, and although in Chile at least they sell retail, we know that they are not necessarily retailers and certainly others, not very strategic, rather they are responsive and not always good at managing the assortment, especially one that is famous for its very good internal climate and good treatment of suppliers (to whom the hat falls …).

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In short, the important thing is to involve the retailer in the strategy, since if it goes well, it will be beneficial for both and even for the category. Here the work involves involving them in the process, since probably the retailer in question will have questioned how to make their spaces profitable and order the assortment of the mix, how long, deep and wide it should be in each category and how much it would cost to drink a strategy A or B, so parallel to the involvement must come a finished observation of the target consumer of said retailer and how this new order of your brand will benefit said shopper, probably and if the retailer manages its business well, the layout is organized with a logic similar to what would be the brand’s portfolio strategy, If so, the issue is simple since there is an alignment that will be confirmed, with your scathing comments and full of insights, which will make the retailer happy to have made such an intelligent decision, but if the case is adverse, God help you and good luck, the important thing is to involve him and to go at all times pointing out the positive of the change, and this is where I would like to stop, all these portfolio strategies are usually changes (unless you are launching a brand) in what you have to involve Many people so that the process is effectively a success and not an attempt that we want to keep under the rug, and if there is something that abounds in Chile, it is resistance to change, so the crusade in this work must be gradual, with time , dedicated, inclusive and remember that everyone in the organization; marketing, commercial,

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