A cocktail of opportunity (why a recession is not the time to trim brand portfolios)
Article type: Abstracts From: Strategic Direction, Volume 28, Issue 1
Ambler T. Admap, 2011, Vol. 46 No. 7, Start page: 18, No. of pages: 2 Afghanistan
Argues that an economic crisis and recession is not the time to trim brand portfolios, but to expand them, to take advantage of changing consumer behaviors. Focuses on the spirits sector of the UK beverage industry to describe the re-invention of Plymouth gin as a premium product. Explains that each brand in a portfolio should be positioned to take on competitor brands in such a way as to maximize the brand equity of the whole. Illustrates these points with particular reference to the way that Diageo’s Popov vodka brand made no money but strengthened the position of its stablemate product, Smirnoff. Concludes that, in a recession, every large company should take the opportunity to revise the brand and portfolio positioning statements to ensure equities are maximized. Warns that brand overlaps create brand cannibalization which is good news only for the competition, since gaps will be exposed and should prompt acquisitions, which are both cheaper and more feeble in a recession. ISSN:0001-8295 Article type: Viewpoint Reference: 40AP327
Keywords: Brand management, Competitive strategy, Marketing management, Marketing models, Marketing philosophy, Marketing planning,Marketing strategy, Marketing theory, Organizations, Sales campaigns, Spirits,Strategic marketing, United Kingdom
