Do proactive and reactive causes to delete a brand impact deletion success? The role of brand orientation

Abstract

One critical decision concerning a firm´s brand portfolio management is brand deletion (BD). Although many organizations have recently undertaken drastic BD programs and pruned their brand portfolios, the literature on this topic remains extremely scarce and fragmented. Our work focuses on studying the impact of BD causes –previously classified as proactive versus reactive– on BD success. How the firm’s brand orientation affects the incidence of proactive versus reactive deletions is also explored. Implicitly, we suggest that brand orientation exerts a positive indirect effect on BD success through increased successful BDs due to proactive causes. We test our research proposal on a sample comprising 155 cases of BD. Findings indicate that brand orientation contributes to BD success through the proactive adoption of BDs focused on taking advantage of brand opportunities, such as searching for a better strategic fit or avoiding opportunity costs. Moreover, brand orientation prevents deletions by reactive or problematic causes, deletions which, after all, do not generate success. In sum, brand oriented firms seek to prevent rather than fix any problems derived from maintaining inadequate brands in their portfolio.