Brands portfolios and competitive advantage: an empirical study

Purpose - The paper seeks to contribute to the understanding of brand portfolio management by examining the brand portfolio strategies of four leading cosmetics companies. The research focuses on two questions: what reasons lead companies to develop, or not, a brand portfolio strategy, and how brand portfolio management can create a higher and stronger level of competitive advantage that is harder to grasp and imitate. Design/methodology/approach - The paper utilises an exploratory approach by means of case studies. Data were collected from the following companies: L'Oreal, Clarins, Estee Lauder and Wella. The research involved in-depth interviews with 33 company directors. Findings - The research results show that an aggregation of brands is not in and of itself a brand portfolio. The juxtaposition of brands is one of the elements, but not the sole element, necessary for the development of a brand portfolio, which is a combination of a brand ensemble and key factors born out of organisational savoir-faire. Research limitations/implications - The results validate the existence of a link between brand portfolios and competitive advantage, a link based on the existence of four key factors identified in the research. Practical implications - A model is proposed to assist managers in better understanding and controlling brand regrouping, because the research illustrates the benefits for a company that executes well-coordinated brand management. Originality/value - This research fits into the complex context of strategic/marketing relationships and broadens the field of brand analysis, notably its strategic dimension. The contribution of this research is to show how a brand portfolio can create a stronger and higher level of competitive advantage, which is more difficult to copy.