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Common Brand Problems

Overcoming Common Brand Problems- 25


Overcoming Common Brand Problems

Our countdown of the 40 Most Common Brand Problems rolls on…

Common Brand Problem Number 25: No central control of the brand portfolio (so that each brand team is free to apply the best differentiating features of one brand to each of the others in the portfolio)

Analysis: Certain attributes, features, and benefits should be off-limits to certain brands within your portfolio. When the business is organized and run by product category or channel of trade (as opposed to brand), there is more pressure to apply the best ideas to all brands regardless of each brand’s positioning or intended point of difference. If the business is organized by brand and most people understand brand concepts, this is less likely to happen.

Key Point: Procter & Gamble offers several different brands of detergent, but each has a distinct point of difference. One might make clothes whiter, one might work best in cold water, one might take out tough stains, one might be gentle on the clothes, one might be hypo-allergenic, etc. Procter & Gamble manages by brand, understanding that points of difference are central to a brand’s success, whereas in a company organized around product development, or run by engineers, people might feel more pressured to ascribe the best features to all their products.

A highly placed brand management group needs the authority to ensure that brand teams, product development teams, business units, divisions and subsidiaries don’t blur the lines between your organization’s brands because of a “silo” or short-term approach to the business.

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1 Comment

Marketrman on February 17th, 2007 said

P&G definitely understands brand management. However, some companies just don’t get it. For example, Arm & Hammer has practically diluted its brand by promoting it as a multi-use product such as detergent, tooth paste and deoderant.

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