ABSTRACT
This chapter describes brand and category managers in assessing their portfolio and structure a set of alternative options for the development of their brand portfolios. There are a number of brand portfolio performance measures that translate from a firm's set of commercial objectives. They are financial return on assets, operating cash flow, brand marketing efficiency and brand marketing effectiveness. The scope for brand and category managers to influence the performance of a brand portfolio is not limitless. There are boundaries on their ability to exert influence. Brand and category managers face choices in positioning individual brands in a category as well as positioning the portfolio as a whole. They face making trade-offs between a brand's quality and a brand's price. A brand or category manager's scope of influence primarily falls into three categories: portfolio scope, intra-portfolio competition and brand portfolio positioning.
