Beauty Marketing: Creating A Win-Win Brand Portfolio
We wake up in the morning viewing the world through the lens of a consumer. But then we get to work and our focus changes to that of business manager. The blinders come on and our sights are set on our defined sectors and the scope of our business. One moment, we’re barraged with an overwhelming number of choices. A moment later, it’s your job to present your other “you” with more choices. Not quite a recipe for mutual gain.
Beauty is an incredibly crowded category. There are hundreds of competitors, hundreds of thousands of items. Add to this the new segments that continue to emerge – from natural and organic to fashion brands edging their way into cosmetics, nutri-cosmetics, at-home devices, ethnic-targeted brands, beauty for men, tweens, etc. Some choice is good. But piling on more and more is a recipe for complexity, confusion and frustration (both for consumers and inevitably for your business).
So, how can beauty marketers create win-win brand portfolios? Start by considering these indicators that provide an objective view of your brand evolution and future potential. In the absence of this, you really do lack the ability to enable optimal decision-making and take the right course of specific actions.
Consider your portfolio from the inter-related viewpoints of Business, Brand and Consumer.
• Does the portfolio fit with your business strategy and support strategic priorities?
• Does the marketplace value your participation (relative strength): is your name
relevant, are you providing customer benefit?
• Are you creating access to new beauty markets and customers?
• Implementation: do you have the resources to appropriately support; can you execute
with a high degree of success?
• Financial: does historical performance warrant?
• Do offerings build your brand value: do they fit with your story and positioning,
protect existing equities
• Are you creating desired new associations?
• Is there a clear relationship between new and existing brands?
• Does a new brand contribute to growing overall portfolio value?
• If offering fails, is it a major or minor setback for your brand?
• Does the brand address customer needs (today and tomorrow)?
• Is it a differentiated and superior value offering?
• Is it market-driven and customer-focused
While these are only some strategic indicators (financial indicators being the other benchmark), they’ll at least begin to help you take a holistic view of your portfolio and glean insights into relative performance of, and relative potential across, your brands.
Remember, more might not necessarily be better.