Analysis of P&G's Brand Portfolio and Equity Management

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BRAND MANAGEMENT

Table of Contents
INTRODUCTION........................................................................................................................3
LO1........................................................................................................................................... 4
LO2........................................................................................................................................... 8
LO3......................................................................................................................................... 12
LO4......................................................................................................................................... 16
CONCLUSION.......................................................................................................................... 20
REFERENCES........................................................................................................................... 21
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LIST OF FIGURES
Figure 1: Brand Revitalization.................................................................................................5
Figure 2: P&G logo................................................................................................................... 8
Figure 3: P&G products............................................................................................................9
Figure 4: Gillette logo............................................................................................................ 12
Figure 5: Gillette line and brand extension...........................................................................13
Figure 6: Pantene logo...........................................................................................................16
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INTRODUCTION
The report analyzed the importance of brand for promoting the products and services of the
company. The procedure of managing and building a brand over time is demonstrated by
the report. Various theories, models, and concepts are used to evaluate the management of
the brand successfully by the business. The main components of successful brand
management strategy are examined in the report. The process of organizing brand
portfolios are discussed along with management of different brand hierarchies. The
management of brand works in partnership and collaboration both at the domestic and
global level. Different techniques which are used for leveraging and extending brands over
time are evaluated in the report. There are different types of techniques used by an
organization for measuring and managing brand value. The application of different
techniques helps in managing and developing a strong brand value of P&G over time.
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LO1
BRANDING AS A MARKETING TOOL AND KEY COMPONENT OF BRAND STRATEGY
The brand is a name provided to a product of the company which is used as a marketing tool
of the product. A brand is developed over the years of successfully providing a great
experience to the customers. A brand distinguishes the product of one company from
another and provides it a competitive advantage over its rivals in the market and industry
(Business Dictionary, 2019). Branding is the process of developing the positive image of the
products of the company in the minds of customers with the help of various symbols, logo,
name, designs, and unique image or through the combination of above (Wells, 2016).
Brand equity can be defined as the brand value produces due to the positive brand image
established by the company among the customers (Modicum, 2017). Following are some of
the importance of branding as a marketing tool of the company:
Increases business value
Branding helps in generating business revenue for the company by developing a positive
brand image of the products. It helps in producing future opportunities for companies by
leveraging the brand value.
Generate new customers
By building a positive brand image of the products in the industry among the customers, the
brand becomes popular which increase the number of customers. Due to the familiarity and
dependability of the existing brand, customers prefer the company's brand over its
competitors (Lake, 2018).
Increase employee loyalty and satisfaction
The employees of the company feel motivated and satisfied by working with a trusted band
which help them in feeling better about their job. A sense of belongingness is developed by
the employees which further help the company in promoting its products.
Advertising is supported by Branding
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Branding is an important component which supports advertising strategies of the company
which helps in promoting products of the company. The launch of any new product of the
company in the market can be achieved by branding which makes it easier to create an
appealing advertising strategy (Smithson, 2015).
Brand reinforcement is a process of maintaining a positive image alive among the existing
and new customers and involves all the activities of managing those customers who make a
repeated purchase of the brand along with attracting new customers. The brand
revitalization is a process which is adopted by the company when the product life cycle has
reached the maturity level and the profits derived by the product is started falling
drastically. It is an attempt by the company to bring the product back into the market
(Carter, 2015). It is a customer-centric approach and a very useful tool which assist the
company in continuous growth and profitability.
Figure 1: Brand Revitalization
APPLICATION OF VARIOUS THEORIES, MODELS, AND CONCEPTS USED FOR MANAGING
BRANDS ALONG WITH VALIDATING EXAMPLES I=WITHIN AN ORGANIZATIONAL CONTEXT
Brand image is the psychological component of the brand which describes the impression of
products of the company in the mind of their customers. The brand image is a process of
developing a brand identity over the years (Amor, 2018). The brand image can be
strengthened with the help of the CBBE model of Keller which is a brand equity pyramid.
CBBE model stands for customer-based brand equity model which has four steps.
1st Step: Brand Identity
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The first step of the CBBE model is known as the brand identity where the company makes
efforts to understand the position of the brand in the industry when compared to its
competitors. The image of the brand in the mind of customers is analyzed along with its
capacity to fulfill their needs and demands.
2nd Step: Brand Meaning
Brand meaning is the second step in the process of the CBBE model of Keller where the
meaning of the brand of the company is communicated to the audience. Performance and
imagery are the two pillars of brand meaning which help in answering the question ‘what
are you?’
3rd Step: Brand Response
The next step in the CBBE model of Keller is brand response where the responses of
customers are obtained by analysing the identification and meaning of the brand. The steps
help in answering the question ‘what about you?' which is achieved by examining the
judgments and feelings of the customers.
4th Step: Brand Resonance
It is the final brand building block of the CBBE model of Keller which help in answering the
question ‘what about you and me?’ This is the top of a pyramid which the most difficult step
to achieve but can be achieved with the help of customer relationship. The loyalty of
customers can be developed in this step along with approaching new customers of the
company. The retention rate of the customers can be increased with the help of this step in
the model of Keller. A healthy relationship with the customers assists the company in
building a brand image among new customers.
Brand extension is a marketing tool where the company extends its brand into a new
market, new territories, and among new customers. The new products can be introduced in
the market successfully by utilizing the brand name of the existing brand (Thorne, 2019).
Brand extension helps the company in expanding sales opportunities for new as well as
existing products into new markets. Brand extension can be applied by the company at the
product maturity stage at the end of product lifecycle (Anzalone, 2019).
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Line extension is the process of expansion of the existing product line of the company by
offering a different variety of products to the customers. Line extension helps in adding
variety to the existing line of product with a motive of reaching a wide variety of existing
customers and increasing the customer base by approaching a new range of customers.
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LO2
INTRODUCTION
P&G stands for the Procter & Gamble Company is an American multinational company
which was founded by William Procter and James Gamble in the year 1837. The company
sells product range of various consumer goods which include the wide range of personal
health/consumer health and hygiene products along with a variety of segments in beauty
products including Grooming; Health Care; Fabric & Home Care; and Baby, Feminine &
Family Care. The company has headquarters at Cincinnati, Ohio, U.S.
Figure 2: P&G logo
ANALYZING DIFFERENT STRATEGIES OF PORTFOLIO MANAGEMENT, BRAND HIERARCHY,
AND EQUITY MANAGEMENT
Brand portfolio strategies are a very critical part of management which requires focused
decision making on the part of managers and leaders. Brand portfolio is an umbrella under
which different brands, services, and companies are operated. When different brands are
operated under separate trademarks and as an individual business entity, they are put
together under a brand portfolio (Robertson, 2019).
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Brand portfolio strategy of P&G
P&G follows a focused brand strategy which looks into a smaller number of consumer
brands which cull up to 100 brands from its extensive product portfolio. There are about 70-
80 key brands which are focused by P&G which have existing strong market shares and/or
fast growth prospects. Many multinational brands such as Gillette, Crest, toothpaste,
Pampers, Duracell, Ariel, Bold, Venus, Oral-N and many other familiar brands are owned by
P&G. In the year 2014, the 70 to 80 leading brand of P&G accounts for 90 percent of the
sales and profits. P&G reinvest the cash flow generated from these brands into their best
part of the portfolio which provide maximum benefits to the company. It helps the company
in getting a competitive advantage over its competitors in the industry (Riley, 2014).
BRAND MANAGEMENT HIERARCHY WITHIN P&G PORTFOLIO
Brand hierarchy is a useful tool for displaying various brands of the company by clearly
identifying the number and nature of common and distinctive brand elements of the
products. There mainly three types of brand management such as branded house model,
the house of brands model, and hybrid brand model (Carter, 2017).
Figure 3: P&G products
Source: Danziger, 2017
Branded house model
When the company advertises its products under a single brand name, this strategy is
known as the branded house model. Mono-brand portfolio model is another name given to
the branded house model of a company. The main advantage of this model is that the
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company can advertise all its products under the same brand name which takes place of the
company's name and the company is started recognizing by the customers with its brand
name (Dahl, 2016). P&G follows house of the brand model which is explained below:
House of brand model
When the company advertises its products under various brand names, this strategy is
known as the House of the brand model. Different subsets of brands are focused by the
company where the main or primary brand of the company gets little or no attention. A
large amount of investment is required by the company to advertise a number of brands
(Harr, 2018).
P&G House of Brand Model
Procter and Gamble follow House of Brand Model strategy where the company advertises
its products under various brands. Pantene, Duracell, Nespresso and Uncle Toby’s are some
of the brands under which the products are sold by the company. Many times, it becomes
difficult for the customers to identify different brands of the company. P&G has 10
categories based Global Business Units where the business leaders have provided full power
to make decisions for their respective businesses. This business unites includes baby care,
fabric care, hair care, home care, oral care, feminine care, skin care, personal care, family
care, and grooming. GBUs or Global Business Units are the responsible units for making
innovative strategies and marketing plans for the company which is helpful for developing
an overall brand strategy (P&G, 2019). Tide, Charmin, Bounty, Pampers, and Dawn are some
of the well-known sub-brands of P&G (Brown, 2016). The brands of P&G are advertised
separately by the company and have their own brand identities in the market.
BRAND EQUITY MANAGEMENT
P&G is a very well-known and famous brand of consumer products which is serving its
customers for more than 181 years. The company is attracting a large number of customers
with its wide variety of products and services under various brands. Brand equity is the extra
value added to the products of the company in the form of increasing revenues and sales.
This value is added due to the brand image created by the brands of the company by serving
its customers over the years. When the customer feels connected with the brand and makes
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a repeated purchase, the company is said to have achieved customer loyalty with the help
of brand equity. The reliability and trust of the customers for the brand is increased of the
company which makes it easier to manage different brands and their brand equity. P&G is
trying to make a stronger brand position of its various brands with the help of digitalization
(Roderick, 2017).
STRATEGIES USED FOR MANAGING THE EQUITY OF THE BRANDS
Brand equity can be developed and manage by the companies for increasing the overall
growth rate and profitability. Quality is the most important factor which attracts new
customers and retains existing customers. Quality products can be introduced in the market
for getting a positive reaction from the customers. A consistent brand image should be
established by the company along with a consistent brand messaging strategy. The
competitive analysis of the industry in which the brand is advertised should be studied
carefully in order to develop innovative brand strategies of the company (Rice, 2010). P&G
focuses on 70 to 80 top brands which make up over 90 percent of its profit and 90 percent
of its total sales.
CONCLUSION
The report described the brand management hierarchy of P&G which follows house of the
brand model. Further, brand equity management and different strategies used for the brand
equity management of P&G is analyzed in the report.
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