How can I get more growth from my existing resources?
Most marketers agree that their goal is to maximize total portfolio share, but try to achieve it by maximizing the share of each individual brand or product.
The truth is that all brands should contribute to growth, but by not identifying an optimal role for each brand in a portfolio, you ignore significant potential advantage; the prevailing belief being:
“If I can only get all my brands to grow at the rate of my high-performing brands, my total share will increase.”
Unfortunately this is contrary to principles of systems design that say to optimize a system, you must sub-optimize its parts. Your highest performing brands may not be growing despite your low performers, but because of them.
Are You Managing Your Brands Strategically?
To paraphrase the strategy of one of the most successful university chess teams at the Pan-Am Tournament, attempting to win every game is contrary to winning the most games. Are you playing checkers or chess with your brand portfolio?
In most cases, brands don’t behave as discrete actors, but as part of a system of switching behavior. The concept of “repertoire category behavior,” popularized by the late Andrew Ehrenberg, states that the lack of effective differentiation in mature markets results in hyper-substitution and constraints on share growth.
If you are in a repertoire category, you’re likely spending money for your brands to compete against one another.
Behavioral Science-Based Brand Portfolio Management
ARCHITECT™ is a systems-based portfolio management approach that leverages advanced behavioral analytics to optimize the roles and goals of each brand within its purchase repertoire, reducing inefficiency and increasing overall growth at current resource levels.
With ARCHITECT™ as an organizational blueprint, all of your brands work as a team against the competition, fully exercising the efficiencies of a portfolio-based competitive advantage.