Navigates Appr to Portfolio Mgmt

Brand Portfolio Strategy DevelopmentOur Approach

Brand Portfolio Strategy – Navigate Consulting Confidential & Proprietary


Navigate Consulting’s Brand Building Process

Analyzing Market Reactions

Designing Marketing / Branding Strategies

Planning Marketing Programs

Organizing, Implementing, and Controlling Branding Efforts

Analyzing Market Opportunities

Business Strategy


CUSTOMERDecision Decision

Decision Decision

DecisionDecision

Never forget your brand is among the least of the concerns the consumer has on any given day


Decision

They use a many criteria to judge your brand versus its’ peersHence optimizing your brand portfolio to best fit their needs is critical


Brand Portfolio DevelopmentHow we go about it and what are the key criteria we

consider in the process

Every project begins with a Preliminary discussion of issues to beaddressed in this engagement

• What are the current permissions of the master brand? What changes need to be made to extendpermissions into new channels / market segments / offering types / customer segments / etc.?

• What is the appropriate relationship between the master brand and key sub-brands?

• What current sub-brands are positively contributing equity to the master brand? What sub-brands are

currently underperforming?

• Should the client explore other branding models? What other models may be more appropriate goingforward?

• Are there opportunities to simplify the current brand portfolio? If so, which brands might beconsolidated? or even Eliminated?


E.G.


The key criteria we consider in the process


= Brand Value

Vo

lum

e

Price

Decision

1) We want to facilitate the acquisition of new customers (volume) and allow our clients to charge a premium


= Brand Value

Time

Cu

sto

me

rs

Re

tain

edDecision

2) We want to increase loyalty by lengthening the expected revenue life of a customer


3) We want to have the ability to credibly expand the company’sproduct / service portfolio

= Brand Value

Brand BBrand A

E1

E2

E2

Product Extensions Cross Sell

Decision

Vo

lum

eC

ust

om

ers

Reta

ined

3) Have the ability to credibly expand the company’sproduct / service portfolio Brand B

E1

Brand A

E2

Product Extensions

= Brand Value

E2

Cross Sell

Strong Brands…

1) Facilitate the acquisition of new customers(volume) and allow companies to charge apremium

Price

2) Increase loyalty by lengthening the expectedrevenue life of a customer

Time


Recap – Three Core Objectives


Why are these three objectives so important?

Because our goal is to invest in the fewest number of strong brands that willcontribute to every phase of customer acquisition and retention

Objectives are agreed upon, now it’s time to begin the planning process


1) Decision Modeling identifies the relationship between marketing measures and financial performance

Awareness

Associations

Preference

The Hierarchical Decision Model

Consideration

Decision

Usage

Satisfaction

Loyalty

Advocacy

Areas of Brand Investment

Return on Brand Investment

CommunicationsTracking

ImageTracking

PenetrationTracking

LoyaltyTracking

MarketPerformance

Recall

Favorability

Awareness

Associations

Preference

Consideration

Purchase

Usage

Satisfaction

Loyalty

Advocacy

Revenue

Profit

2) We examine all facets of the master brand and key sub-brands’baseline performance along the hierarchical purchase model


Components of the HierarchicalDecision Model


Brand Filter Analysis

Preliminary Portfolio Analysis

Gaps Overlaps

$Investments

Preliminary Portfolio Review

Organizing Principle

Brand

Types

A

B C

D

Long-Term Portfolio Selection

Organizing Principle

Brand

Types

A

b c

D

e

Z

3) We then apply our proprietary 4 Step process to achieve the optimum portfolio development


Scenario Planning

1 2

3 4

5 6

7 8

+

Financial Modeling

Conversion Rate

by Segment (%)

Usage by

Segment (#)Incremental

Awareness (%)Consideration (%)

f (x) x = -

Avg. Rev. per

Client by Segment

(US$)

Incremental

Segment

Revenue (US$)

Flight Risk by

Segment (#)

Current Usage by

Segment (#)

= x = +

Base Plan

Segment Revenue

(US$)

Revenue Growth

by Segment (US$)

=Profit Margins by

Segment

Incremental Profit

by Segment

=x ;segment s

Segment

Roll-UpIncremental Profit

=Marketing

Investment

- Incremental Profit

Net of Marketing

Investment

=

Scenario Planning Financial Modeling

4) Our planning moves to consideration of possible scenarios in conjunction with a rigorous financial modeling component…

The brand portfolio has been resigned, now the creative teams weave their magic and bring it to life through the design process



They identify the most appropriate touch-points to engage and excite the consumer


Case Study – Tourism Australia – A new identify for the 2010’sThe touch point wheel


Unique patterns - that can only be Australian


An library of iconic images that convey the Australian “difference” in marketing material


Bringing the elements together


In harmony conveying a seamless Australian identity

A Quick Recap of Our Process and OutputsAverage Project length 4-6 months Including creative development for revised portfolio products


Core TeamReview

Brand CouncilFormation

ExecutiveInterviews

Existing

Research

Review

Brand CouncilSession

Brand Filter Analysis

Gaps

Preliminary Portfolio Analysis

$

Overlaps Investments


Core TeamReview

Preliminary Portfolio ReviewOrganizing Principle

BrandTypes

A

B C

D

Alt. PortfolioScenarios & Plan

Development


Core TeamReview

Long-Term Portfolio SelectionOrganizing Principle

A

b c

D

e

Z

TransitionPlan

Development


Core TeamReview

Stage 1 Stage 2 Stage 3 Stage 4

Stage 5Final Stage

BrandTypes

Documents

Navigates Appr to Portfolio Mgmt