Chapter 6: Building a Brand Portfolio
6. Building a brand portfolio Hilding Anders’ business concept includes manufacturing and marketing beds, mattresses and associated products under own brands and private labels. The private labels in combination with the own brands, which maintains a mix of power brands and local brands, constitute the brand portfolio. A firm’s brand portfolio is a ‘resource base’, according to Varadarajan, DeFanti and Busch (2006), that in response to differences between markets could be composed of a number of local, national and global brands developed internally but also acquired by the firm in various country markets. The power brands are well-known brands that have expanded in international markets whereas local brands, also called local jewels, refer to the ones continually adapted to the local consumers and retailers (Hilding Anders, 2008a). Private labels are often denoted as retail-owned brands or store-brands (Staahl Gabrielsen and Sørgard, 2007). ‘A typical private label is Ikea, which always has been an important “leg” for the corporation,’ remarks Lars Haux (personal communication, 20 December 2006). Thus, there are two segments, the brand segment and the private label segment, with different dynamics and different stories. In the brand segment, products are normally developed, manufactured and sold under the manufacturer’s own label. In the private label segment, the products are specified by the customer, manufactured by an external producer and sold, for instance, by a furniture chain under its own brand. (Hilding Anders, 2004c: 10) By definition brand is: ‘all the expectations and associations evoked from experience with a...
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