Linear Model for Brand Portfolio Optimization

Pavol Král, K. Janoskova, P. Durana
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Abstract

Abstract Research purpose. The aim of the paper is to create a model that allows building an optimal brand portfolio, allowing an organisation to achieve its goals. The created model is based on the bivalent programming theory. A mathematical model of optimum brand portfolio is created based on linear programming with restricting conditions being the maximum acceptable risk level and budget. The basic types of resources and basic types of relations between brands are explained, which are part of the process of brand portfolio optimization. Design / Methodology / Approach. Knowledge and many years of experience of mainly economic disciplines were used for the selection of characteristics for brand portfolio specified in this article. Our assumptions were based mainly on project portfolio management, operational analysis and linear programming as well as tools and methods of graph theory. Findings. Brand portfolio management such as creating, planning, organising and then maintaining a successful brand is a costly and long-term process involving effective marketing strategies and decisions. The prerequisite for brand portfolio creation is deciding on the number and type of brands. A properly constructed brand portfolio is a prerequisite for achieving business goals. Originality / Value / Practical implications. Brand portfolio optimisation requires sufficient attention; however, rather than the selection of the highest number of brands, it should be based on compilation of a set, according to pre-defined priorities, which would provide the best possible means to meet the company’s goals for the current limitations. It should be implemented upon objective rules (in our case maximum allowable risk level and available budget). Frequent changes in the brand portfolio structure are not beneficial since they reduce the ability for the company to achieve its targets and represent excessive use of resources. In addition, qualitative brand characteristics have to be respected in the brand portfolio management, but this was not covered in our research.
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品牌组合优化的线性模型
研究目的。本文的目的是创建一个模型,允许建立一个最佳的品牌组合,允许一个组织实现其目标。所建立的模型是基于二价规划理论的。基于线性规划,以最大可接受风险水平和预算为约束条件,建立了最优品牌组合的数学模型。解释了资源的基本类型和品牌之间关系的基本类型,这是品牌组合优化过程的一部分。设计/方法论/方法。在本文中指定的品牌组合特征的选择中,主要运用了经济学科的知识和多年的经验。我们的假设主要基于项目组合管理、操作分析和线性规划以及图论的工具和方法。发现。品牌组合管理,如创建,规划,组织,然后维持一个成功的品牌是一个昂贵的和长期的过程,涉及有效的营销策略和决策。品牌组合创建的前提是确定品牌的数量和类型。正确构建品牌组合是实现业务目标的先决条件。原创性/价值/实际意义。品牌组合优化需要足够的重视;然而,它不应该选择最多的品牌,而应该根据预先定义的优先级来编译一组,这将提供最好的手段来满足公司当前限制的目标。它应该根据客观规则来实现(在我们的例子中是最大允许风险水平和可用预算)。品牌组合结构的频繁变化是不利的,因为它们降低了公司实现其目标的能力,并且代表了资源的过度使用。此外,在品牌组合管理中必须尊重品牌的定性特征,但这在我们的研究中没有涉及。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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