How can you optimize your brand portfolio with the brand portfolio matrix?

1 What is the brand portfolio matrix?

The brand portfolio matrix is a 2x2 grid that plots your brands according to their market attractiveness and brand strength. Market attractiveness is the potential size, growth, profitability, and competitiveness of the market that your brand operates in. Brand strength is the degree of awareness, loyalty, differentiation, and equity that your brand has among its target customers. By combining these two dimensions, you can classify your brands into four categories: stars, cash cows, question marks, and dogs.

2 How to use the brand portfolio matrix?

To use the brand portfolio matrix, you need to collect and analyze data on your brands and their markets. You can use various sources of information, such as market research, customer feedback, sales reports, financial statements, and competitor analysis. You can also use quantitative or qualitative criteria, such as market share, growth rate, margin, customer satisfaction, or brand awareness. Based on your data, you can assign a score or a rank to each of your brands for both market attractiveness and brand strength. Then, you can plot them on the matrix and label them accordingly.

3 What are the implications of the brand portfolio matrix?

The brand portfolio matrix can help you understand the current performance and potential of your brands, as well as the challenges and opportunities they face. Depending on which category your brands fall into, you can derive some implications for your brand strategy. Generally, stars are high-performing brands that have a strong position in an attractive market and require high investments to maintain or increase their market share; cash cows are established brands that have a strong position in a mature or declining market; question marks are emerging or struggling brands that have a weak position in an attractive market; and dogs are low-performing brands that have a weak position in an unattractive market. Your strategy for stars should be to invest in innovation, differentiation, and promotion to sustain their leadership and growth. For cash cows, maximize their cash flow and profitability by optimizing their costs, prices, and distribution. For question marks, evaluate their viability and potential, and decide whether to invest in them to improve their position or divest them to free up resources. For dogs, minimize their losses or exit the market as soon as possible.

4 How to optimize your brand portfolio with the brand portfolio matrix?

The brand portfolio matrix can help you optimize your brand portfolio by providing a clear and comprehensive overview of your brands and their markets. Through this matrix, you can identify gaps and overlaps in your portfolio, and adjust your brand offerings to better serve target segments and differentiate from competitors. Additionally, you can allocate resources and budget more effectively and efficiently, based on the performance and potential of your brands. Furthermore, you can monitor and measure the progress and impact of your brand strategy, making adjustments as needed to respond to changing market conditions and customer preferences.

5 What are the limitations of the brand portfolio matrix?

The brand portfolio matrix is a helpful tool, but it’s important to be aware of its limitations. It is based on a snapshot of your brands and their markets at a given point in time, and may not accurately reflect the dynamic and complex market environment or customer behavior. Additionally, the matrix is based on subjective and relative judgments of market attractiveness and brand strength, which can vary depending on the criteria, data, and perspective used. Furthermore, it is based on a simplified and generic classification of your brands, and may not capture all nuances and diversity of your brand portfolio and strategy. Therefore, you should use the brand portfolio matrix as a guide rather than a rule, and supplement it with other tools and methods to gain an in-depth understanding of your brand portfolio and its performance.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?