Compañía Nacional de Chocolates
Optimizing a portfolio of 52 consumer product brands.
Compañía Nacional de Chocolates (CNCH), part of Grupo Nutresa, produces and sells bar chocolates and cocoas, milk products, chocolates in powder, sweets, cereals, nuts and pastries. The company had a portfolio of 52 product brands of which only 16 generated 82% of sales. Many of the brands competed in the same segment and had similar value propositions. Having grown by acquisition, there were many brands that fulfilled the same function in the portfolio. They needed to optimize the product bran portfolio to define positions, define line extensions and eliminate inefficient brands.
Marqas developed a detailed analysis of all the brands within each category. Based on the results, we recommended to organize each category around a mega-brand, in combination with umbrella brands and flanker brands, migrating the sales of thirteen inefficient brands. We determined which brands should be maintained, modified or eliminated. The brand portfolio was structured by distributing brands on a positioning axis that covered the different trends of the food market – from health and nutrition to enjoyment. The rationalization of the portfolio allowed CNCH to minimize the overlap of brands and prevent them from competing in the same category and at the same time maximize the coverage of market segments.