CASE STUDY PRESENTATION by- AMY FRANCIS- HARIHARAN RAMANATHAN- JUSTINE THOMACHAN- NITHYA U- SANTOSH PADMANABAN

FROM AN AGGREGATE TO A BRAND NETWORK:

A STUDY OF THE BRAND PORTFOLIO AT

BRAND PORTFOLIO

A brand portfolio is simply the collection of brands under a company’s control. Small businesses with just one shop may have only a single brand, but large and multinational corporations may have dozens of distinct brands in their portfolios. In some cases, a business may present the same product or line under different brands in different markets; each of these brands is a component of the company’s brand portfolio.

Advantages of using a Brand Portfolio

o Better utilization of resourceso Lessen confusion o Higher efficiency

• Brand Relationships within portfoliosSingle brand name across the entire

organizationA primary brand to endorse sub brandsA house of brands to encompass individual

brands

• Purpose of Study:-to understand brand portfolio management by examining the brand portfolio strategies of world leading company, L'Oreal.

• Research questionsWhat reasons lead L'Oreal to develop a brand

portfolio strategy?How can brand portfolio management create a

higher and stronger level of competitive advantage for this company?

RESEARCH METHODOLOGY

• Exploratory approach: Case Study

• Field of cosmetic products

- Strong Brand Presence&

- Extremely developed multi-brand policies

• Product category study –L’Oreal

Why L'Oreal?

• Successful within markets• Leader not only because of:1. Sales Turnover2. Growth3. Financial Results• But also : Exceptional longevity of

performance• Created -1907• Current employees ≤ 61,000 worldwide

MD Jean Paula, asserts:

VECTORS for development:

• 15.6% world market share

• Company is

- Regularly accessible & communicative

• Their brands

- Linked to research & development capacity

DATA COLLECTION PROCEDURES

• Non-directive key-informant interviews

• Key informant: One who holds – privileged & reliable information

• INTERVIEWED:

• Executives

• Managers

• Used public information to collect data from:

1. Strategic level

2. Intermediate level

3. Operational level

• Semi-structured interviews- Open questions• Tape recorded & transcribe:- 15 different interviews- Length: 60 – 105 minutes

ANALYSIS & CODING METHODS

• Analysed

• Coded

• Summarised

• Identified

• Read Transcripts for : identifying themes, clusters or patterns

• Synthesis card

• Terminology list

• Independent researcher

• Intercoder's reliability :89%

Brand portfolio adoption

Three phases Brand aggregationBrand rationalizationBrand formalization

Brand aggregation

• To respond to segmentation and needs of existing brand

To be present in different distribution circuits

To give rise to internal emulation(SBU set up)

Brand rationalization

• Optimize profitability

• Preferences for globalization

• R&D

Brand formalization

• Defining strategic axes for long term growth

• Organize brands as complementary brands

• Dealing with complexity

Key competences

• Brand radicalization

Brand network arbitration

Brand expansion matrix

Brand radicalization

Maximum differentiation of adding targets (Distribution,needs,price)

Integration of very original brands

Brand network arbitration

• Differentiating brands Mature brands(Established stars) Highly profitable brands(Rising stars) International/Potentially

international(Potential stars)• Managing all divisions(hair care, skin

care,make-up,hair color)• Balancing funds between brands

Brand expansion matrix

• A model for development based on Consumer segment Product category Distribution network and countriesAttribution to innovationGlobalization and new capture markets

Interpretative Model

Discussion and Perspectives

3 Considerations• Creation and implementation of brand

portfolio happens one after the other– Path depend– Company’s history influences the future o– Strong evolutionist character of l’Oreal

• Internal Competencies – Difficult for the competitor to replicate– Causal ambiguity – Performance difference

between companies– Complex– Specific to the company– Tactic

• Development of co-specialized asset – A brand ensemble– A model of internal organization based on specific

competences

Conclusion

• What reasons lead L’oreal to develop a brand portfolio strategy?

• How can brand – portfolio management create a higher and stronger level of competitive advantage for this company?