Product development, from software to beer or condiments, is easier than ever before. This accessibility, however, has intensified competition, making naming, trademarking, marketing, and positioning increasingly complex and differentiation more challenging.

In this reality, the concept of developing a portfolio becomes all the more important. It’s more than just a collection of products; a product portfolio must be balanced, diversified, and strategic, so it can be consistent, build loyalty, and also lay the groundwork for innovation, acquisition, or growth. 

Step 1: Finding the Common Thread

The first step in defining a portfolio is understanding the thing that puts the parts together. Identifying a common throughline that both explains how your portfolio is different but doesn’t hinder future growth. 

Here’s an example: we worked with Cincinnati Beverage Company to develop a beer portfolio for their array of owned and yet-to-be-developed brands. Their portfolio consisted of Cincinnati Classics like Christian Moerlein, Hudepohl, Little Kings, Burger, and many others they had the trademarks to. At first glance, one could say “That’s easy, the throughline is old beer brands.” While true on the surface, that doesn’t position the portfolio for future growth. In many ways, a positioning solely focused on the past would pigeonhole the entire portfolio into nostalgia. 

Our answer was dubbing their beverage portfolio one of “Timeless and Irresistible Brands.” Timeless here checks that nostalgic box, and Irresistible leaves the portfolio open to explore all opportunities, so long as the character of the brands they’re developing is rich.

Step 2: Define Who Each Product is For, and Address the (Future) Outages

The next step is to get into the weeds of each individual brand. 

Define who each brand is for, and then address any outages you see (if any). That’s the easiest first step to innovation, or acquisition. Back to our Cincinnati Beverage Example. Our initial brands served markets for premium German styles (Moerlein), nostalgic novelty (Little Kings), and light domestics (Hudy Delight). What was clearly missing was the IPAs, and trendier craft styles of the previous decade. Those didn’t fit into any of our existing brands, so Cincinnati Beverage Company’s answer was to acquire Taft’s Brewing Company, who had been making great craft beers with a persona that checked both of our “timeless” and “irresistible” criteria.

Step 3: Create Unique Identities, but Remember the Common Thread.

Anyone can make logos or packaging. The skill in this exercise is a strategic design system that explores the unique qualities of each product, while still staying true to the essence of the broader portfolio.

This enables all of the pieces to fit together nicely when they need to be presented together. When effective, a myriad of characters and identities can flow seamlessly between one another, creating exciting opportunities in everything from exterior signage to environmental activations.

Build, But With Intention.

The moral of the story is that in a world where products are endlessly iterated and developed, the winners in this space will make sense of all they’re selling. They’ll also be able to adapt to a world in constant flux. A well-executed portfolio strategy will help businesses optimize offerings, and pave the way for exciting new ideas. 

Enjoy building.

Need help making sense of a mix of products and services? Contact us today and let’s get started.