What are the key factors for developing a successful brand portfolio for a car company?

1 Brand architecture

Brand architecture is the way a car company organizes and relates its brands to each other. It defines the roles, relationships, and hierarchies of the brands within the portfolio. There are different types of brand architecture, such as house of brands, branded house, endorsed brands, and sub-brands. Each type has its advantages and disadvantages, depending on the company's objectives, target markets, and brand equity. A car company should choose a brand architecture that aligns with its vision, mission, and values, and that allows it to leverage its strengths and minimize its weaknesses.

4 Brand portfolio management

Brand portfolio management is the coordination and integration of the activities and resources related to each brand in the portfolio. It involves setting the goals, roles, and responsibilities for each brand, as well as establishing the guidelines and standards for brand identity, communication, and experience. A car company should manage its brand portfolio effectively to ensure that each brand contributes to the overall success of the company, that there is no conflict or confusion among the brands, and that there is synergy and alignment among the brands. A good brand portfolio management helps a car company to enhance its reputation, efficiency, and innovation.

5 Brand portfolio extension

Brand portfolio extension is the introduction of new brands or sub-brands to the portfolio, or the expansion of existing brands to new markets or categories. It is a way of leveraging the existing brand equity, reputation, and customer base of a car company, as well as exploring new opportunities and increasing its market presence. A car company should consider a brand portfolio extension when it has a clear vision, a strong competitive advantage, a loyal customer base, and a favorable market situation. A successful brand portfolio extension helps a car company to diversify its offerings, to attract new customers, and to grow its business.

6 Brand portfolio pruning

Brand portfolio pruning is the elimination or reduction of brands or sub-brands from the portfolio, or the consolidation of existing brands into fewer or larger ones. It is a way of simplifying the portfolio, eliminating the underperforming or irrelevant brands, and focusing on the core and profitable ones. A car company should consider a brand portfolio pruning when it faces a decline in sales, profitability, or market share, when it has too many or overlapping brands, or when it wants to reposition or restructure its business. A well-executed brand portfolio pruning helps a car company to improve its efficiency, profitability, and clarity.

7 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?