Supporting the Right Brands

Viewpoint by Michael Petromilli, Partner

Brands are like rabbits — they tend to multiply. And once a new brand is created, it tends to live on forever. The reasons are simple. New brands are exciting and tangible — and every new acquisition that a company makes comes with a slew of new brands. Conversely, eliminating brands is emotionally charged and seemingly disruptive. But an ever-growing brand portfolio can be confusing, diluting, and extremely expensive to support over the long term.

As an organization managing a portfolio of brands, you must have a means for regularly eliminating brands that have outgrown their usefulness and are diluting focus and economic value. This means making difficult decisions that will inevitably cause some degree of disruption both internally and externally. It has been shown time and time again that any brand can be effectively eliminated, divested, or migrated if a few key principles are followed. Companies that are diligent in trimming runaway portfolios will be able to complete more effectively through investment in a fewer number of larger, more relevant brands.