Creating and sustaining a strong brand portfolio balance has become a brand portfolio objective for many firms beside more traditional objectives, such as synergy, leveraging, clarity and building generally strong brands (Aaker, 2004). This is true for any type of brand portfolios, be they in the soccer category, the entertainment category, and product or service brands. With increased focus on brand portfolio management, the issue of market signaling becomes a crucial skill for developing effective brand strategy. However, the brand portfolio signal must overcome the noise in the market to have a true impact on any target group. Consider the power and implication of the brand portfolio signal sent out by the Luxoticca group around their brand licensing process:
Luxoticca’s brand portfolio is one of the richest and most prestigious in the industry as its major global brands are backed by leading brands at a regional level and in particular niche markets. It has also an optimal balancing of house and license brands.
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