Explanation:

A brand portfolio is known as the leading brand of a company that covers all other brands or companies operated by a company. A large company uses various brand names to introduce products and services to fulfill the requirements of different market segments. Each brand of the company has its entity and is operated differently as compared to its parent company.

The company uses a brand portfolio for marketing purposes and to help in boosting the sales of their other brand’s products. Using a brand portfolio, a company declares that the child brand of the company also follows the principles of the parent brand.

Moreover, it also helps in removing the confusion of customers about the origin of a brand. If a customer trusts the products of one brand of the company and has good experience with it, then there are more chances that he will also trust the products of other brands of the company. To take advantage of that, companies introduce all their brands under the name of one umbrella brand.