The Effects of Brand Portfolio Management on Brand Choice Behaviour

Double Jeopardy (DJ) says brands with lower market share have far fewer buyers, and these buyers are slightly less loyal (Sharp, 2010). The Dirichlet Model has generally been used to analyse brand buying behaviour for individual brands to reveal levels of brand loyalty and switching. The long and varied pursuit of such analysis led to empirical generalizations such as the Double Jeopardy (DJ) pattern, which can be seen in brand performance metrics (BPM) like repeat buying, SCR and sole brand loyalty. These BPMs are typically viewed at an individual brand level, but this research takes the analysis a step further by analysing BPMs for corporate brand portfolios (all the brands owned by a particular company within a product category) to explore how the common strategy of having several brands within a company portfolio affects core BPMs both within and between company portfolios. The main finding from this initial research on DJ effects is that it is a useful framework for analysing corporate level portfolio performance. The main new finding is that there are indications of raised sharing of customers within portfolios compared to between portfolios.