Brand Modeling

Business models define revenue generation; brand models define growth trajectory

Brand modeling is charting a brand’s growth territory. Once a brand establishes its presence in the market, the challenge becomes to capture a larger market share (and to defend its current market share). In mature markets, like CPG or fashion or consumer tech, brands grow by expanding in other product categories. This expansion increases a brand’s hold on the market and fend off new market entrants by putting forward a full range of offerings. A full range of offerings — a brand portfolio — is a way for a brand to build multiple presence with different target audiences and competitive contexts and to differentiate its offerings.

There are six brand growth models.

Product brands. A brand equals one or several product lines. The entire portfolio has a high degree of freedom in management of individual brands, and individual brands operate independently from each other. There is little coordination in advertising, brand values, aesthetics or brand promise. The key focus here is commercial success of the overall portfolio. Example: LVMH

Umbrella brand. In this brand growth model, there is an overarching umbrella and a common name to a highly diversified product range. Umbrella is often provided by a founder. Examples are: Tesla and Amazon.