Brand Management

Brand Portfolio Express Strategy: Basic Strategies for Seamless and Holistic Brand Acquisition Management

Article Details

Pub. Date	:	Dec, 2021
Product Name	:	The IUP Journal of Brand Management
Product Type	:	Article
Product Code	:	IJBRM31221
Author Name	:	Henrik Uggla*
Availability	:	YES
Subject/Domain	:	Marketing
Download Format	:	PDF Format
No. of Pages	:	5

Price

Download

Abstract

Companies increasingly accelerate business growth through brand acquisitions. The paper introduces the acronym BASIC for improved brand acquisition management. Basically, brand portfolio orientation, awareness sensitivity, separation of brand and business cash flows and creative brand architecture can contribute to a more integrated and seamless brand acquisition strategy. Anchored empirical highlights from LEGO toys, ASSA ABLOY lockers and Dometic outdoor moving and outdoor lifestyle equipment illuminate some of the theoretical and conceptual ideas revolving around the BASIC model of brand acquisitions.

Introduction

Brand Portfolio Orientation
There must be a brand portfolio orientation for every brand acquisition in the sense that the acquired brand is contextualized beforehand into a given brand structure in terms of branded house or house of brands or excluded from the dominating structure because of its relative brand strength and brand equity in a given market. For example, when Jaguar was bought by Indian Industrial Group TATA Motor, a decision was made not only to keep the iconic Great Britain ultra-premium car brand, but to invest further in the brand heritage and mythological brand identity of this unique brand because of its established brand credibility and brand equity. A brand portfolio orientation must always strive to maximize market coverage and minimize market cannibalization (Keller, 2014).

Awareness Sensitivity Beyond traditional brand portfolio alignment factors such as relative positioning of the brands, level of relatedness, cost and revenue synergies and multiple brands acquired (Wiles et al., 2012) the brand acquisition strategy must have an intelligent, subtle and sensitive awareness evaluation being able to filter strategic brand awareness from tactic brand awareness. If and when the brands acquired have strategic domestic or global brand awareness, they should be kept and conserved, especially if they facilitate reach into new marketplaces.