CBM CBM Brand Architecture & Portfolio Management 1 — Questions and Answers
Question 1: Which brand architecture model uses a single master brand to endorse all products (e.g., GE, FedEx)?
- Branded house (Correct answer)
- House of brands
- Hybrid architecture
- Sub-brand model
Correct answer: Branded house
A branded house leverages one master brand across all offerings to maximize brand equity transfer.
Question 2: In a 'house of brands' architecture, the parent company's name is typically:
- Hidden or minimized from consumers (Correct answer)
- Displayed prominently on all products
- Used as the primary sub-brand
- Required on packaging by law
Correct answer: Hidden or minimized from consumers
In a house of brands (e.g., P&G), individual brands stand alone and the parent is largely invisible to end consumers.
Question 3: Brand portfolio cannibalization occurs when:
- Two brands in the same portfolio compete for the same customer segment (Correct answer)
- A brand extends into an unrelated category
- A sub-brand outperforms the master brand
- A competitor copies the brand's positioning
Correct answer: Two brands in the same portfolio compete for the same customer segment
Cannibalization happens when portfolio brands target overlapping segments, reducing overall net sales.
Question 4: A 'flanker brand' is launched primarily to:
- Protect the core brand from price competition (Correct answer)
- Enter a premium market tier
- Replace an aging brand
- Extend into international markets
Correct answer: Protect the core brand from price competition
Flanker brands are positioned at different price points to defend market share without diluting the flagship brand.
Question 5: Which portfolio role describes a brand that generates the highest revenue and supports other brands financially?
- Cash cow / strategic pillar (Correct answer)
- Fighter brand
- Entry-level brand
- Prestige brand
Correct answer: Cash cow / strategic pillar
The strategic pillar or cash cow brand delivers core volume and margin that funds investment in other portfolio brands.
Question 6: Brand rationalization in portfolio management means:
- Eliminating underperforming or redundant brands (Correct answer)
- Adding new brands to fill segment gaps
- Renaming brands for consistency
- Increasing marketing spend on weak brands
Correct answer: Eliminating underperforming or redundant brands
Rationalization reduces portfolio complexity by retiring brands that duplicate positioning or drain resources.
CBM CBM Brand Architecture & Portfolio Management 1
Which brand architecture model uses a single master brand to endorse all products (e.g., GE, FedEx)?