5 signs your brand portfolio needs an architecture overhaul

1. You’ve rapidly acquired a collection of brands

Picture this: one day, you’re running a well-organised business, and the next, you’ve acquired an arsenal of new brands. It’s an exciting scenario – a dream scenario even! – but without care and attention ,what could be a well-oiled machine will resemble disorganised clutter.

An unstructured brand portfolio leads to customer confusion, diluted brand identity, inefficient resource allocation and internal confusion. Left unchecked, it can even hurt your reputation. The solution? Take control before the clutter controls you. A well-organised portfolio means clearer brand messaging, stronger customer loyalty, cost savings and ultimately – higher profits.

2. You’re expanding into a whole new industry

Venturing into a new market is like switching careers mid-life – it can work brilliantly, but only if done with intention. Take Virgin, for example. Richard Branson went from selling records to launching an airline (yes, really). That could’ve been a branding disaster, but he pulled it off by staying true to Virgin’s rebellious, customer-first, innovative DNA.

While there is no one size fits all, Branson did this by using a branded house approach. The Virgin name, logo, and overall character remained consistent, creating trust among customers – even when the product offering changed completely. If your business is making a bold leap, you need a structured brand strategy to ensure customers still recognise and trust you.

3. Your brands are eating each other alive

Ever introduced a new product only to realise it’s treading on an existing one? That’s gracefully known as brand cannibalisation – when brands within the same portfolio start competing with each other rather than working together.

Coca-Cola learned this the hard way when they launched Coke Zero. Customers were confused – was this a replacement for Diet Coke? What was the difference? Instead of scrapping one of them, Coca-Cola adjusted their messaging: Coke Zero was “real taste, zero sugar”, while Diet Coke had a different taste profile altogether. The result? Both products could thrive, targeting different audiences without stepping on each other’s toes.

If your brands are too similar, it might be time to differentiate, reposition or consolidate.

4. Your market has moved on – but your brand hasn’t

Markets evolve. Customers evolve. But has your brand kept up? If your once-loyal customers are drifting away, it might be because aspects of your portfolio no longer reflect their needs.

A prime example? Jaguar Land Rover (JLR). Recently, they restructured from Jaguar & Land Rover into four distinct brands: Jaguar, Range Rover, Defender, and Discovery. Why? Because Jaguar sales were struggling, and the growing demand for electric vehicles meant it was time for a shift. Some die-hard fans were furious, but the brand had to evolve to survive.

The lesson? If the market is changing and your portfolio isn’t, you’re in trouble. Adapt or risk becoming obsolete.

5. Your large brand portfolio is bleeding money

The bigger your portfolio, the bigger your expenses. Every brand in your ecosystem needs its own marketing, strategy, research and management – all of which can cost serious cash.

At some point, you have to ask: is every brand in your portfolio truly worth the investment? If not, it’s time to do some pruning. Underperforming brands should be discontinued, merged or repositioned to free up resources for the stronger ones.

Think of it like a garden –cutting away the dead leaves allows the healthiest plants to thrive. Procter and Gamble exhibited this between 2014 and 2016. P&G had 170 brands at this point but discontinued over 100 brands, keeping only 65 of its strongest and most profitable with a focus on its core categories. Even today they have significantly less brands, coming in at just under 80.