Leadership & perspective

Chief Marketing Officer · Canada

2026-09-22 edition

Claire Dunmere

Judge mobile growth after the joining offer has ended.

The journal · Portfolio judgement

A cheaper brand portfolio can leave the customer with a more expensive choice

Combining mobile brands may simplify the company's communication account while obscuring a meaningful difference in commitment. The case for keeping a brand must explain that difference and the cost of examining it.

When two brands are combined, the saving is often easier to describe than the customer choice that may disappear. One calendar replaces two. Fewer assets need to be produced. Media money can support a single name. Those are legitimate advantages, and a marketing leader should not dismiss them merely because a smaller brand has a history. My argument is narrower: the decision should begin with the commercial relationship each proposition makes intelligible. If that relationship differs materially, the company must explain how the combined brand will preserve the choice before treating communication savings as the whole case.

This is particularly relevant when a prepaid mobile proposition sits beside a different arrangement. The distinction can concern replenishment, commitment or how a person wants to manage expenditure. It need not map neatly to income, age or any other demographic category. Assuming that it does can make research less useful before the first question is asked. I want to understand the preference in the customer's terms, then examine whether it remains available and understandable after the proposed change. A brand name matters only insofar as it helps or obstructs that decision.

Begin with the relationship being combined

In one fictional portfolio review, Veldoran estimated C$900,000 in annual communication savings from combining two brands. I understood why finance wanted the proposal examined seriously. The smaller proposition consumed time and money that could be used elsewhere. The question was not whether a separate identity had a cost. It plainly did. The question was whether the proposed combined account described the two commercial relationships clearly enough for customers to recognise the choice that had brought them to the smaller proposition in the first place.

I asked the team to describe the intended customer decision without using either brand name. That exercise removed some of the emotional attachment and exposed a more useful disagreement. One account assumed the customer wanted a simple route into a continuing arrangement. The other placed more weight on control over replenishment and commitment. Neither preference was inherently more sophisticated. Neither entitled the company to infer a person's financial circumstances. The portfolio decision needed to address both, including whether one name could explain the alternatives without making one feel like an exception or an afterthought.

There is a reasonable counterargument: commercial terms can remain different under one brand, so a separate name may be unnecessary. I agree that this is possible. The burden is to demonstrate how the proposed account will work, not assume that every distinction requires its own identity. A clear combined proposition may be preferable to a costly portfolio of overlapping names. Equally, putting two sets of terms behind one visual system does not establish that customers understand the distinction. The work lies in examining the actual choice and the explanation that accompanies it.

Research earns a question, not a forecast

We spoke with sixty selected participants. Thirty-seven emphasised control over replenishment and commitment, while twenty-three placed greater weight on other features. I did not use those responses to predict the percentage of customers who would leave after a combination. The participants were selected for a particular inquiry, and an expressed preference is not a later behaviour. What the conversations did establish was that the portfolio paper needed to take a substantive distinction seriously. It could no longer describe the smaller proposition as merely a different presentation of the same relationship.

The language used in the recommendation mattered. Saying that research had proved customers would reject the change would have inflated the evidence. Saying that the work offered no value because it did not forecast churn would have discarded a useful observation. I described the decision that remained open and the alternatives worth examining. This gave finance something more concrete to challenge than a broad defence of brand equity. It also required my team to explain what further work could change our view, rather than asking for more research without an endpoint.

The following period produced three alternative proposition accounts, reviewed with twenty-four further selected participants. Two blurred the replenishment distinction; one preserved it more clearly. Again, that was a finding about the explanation under review. It did not establish that one option would retain more lines or generate a superior return. The practical benefit was a better-defined commercial discussion. The business could examine an actual combined account and its remaining weaknesses instead of debating whether customers liked one familiar name more than another in the abstract.

Price the option to wait

I recommended a six-month extension of the separate proposition at C$340,000 in additional communication authority. This was a cost, and I wanted it stated as such. It bought time to examine the alternatives while preserving the existing distinction. It did not prove that separate branding was permanently superior. The CEO's challenge was useful: if I could not name the next decision and its date, the extension risked becoming an indefinite subsidy for an unresolved argument. The board accepted the bounded proposal because the question, expenditure and return point were explicit.

A temporary extension should also have a credible possibility of ending. Marketing teams can become attached to the work they produce, especially when the research reveals subtleties that a simpler proposal ignores. Yet every additional distinction consumes resources. At some point the company may decide that a combined account is sufficiently clear, that the remaining risk is acceptable or that the separate proposition no longer merits its cost. I would rather make that judgement openly than design an evaluation whose only possible conclusion is to preserve the brand that sponsored it.

The board's role is to examine the strategic choice and the resources committed to it. Directors need not choose the name, colours or wording. They can ask whether management has identified the relationship being changed, considered credible alternatives and distinguished observed preference from predicted behaviour. They can also question whether the proposed saving is annual, immediate, recurring or dependent on other changes. A portfolio paper becomes more useful when both the saving and the cost of delay have a period attached, instead of placing unlike numbers beside each other for rhetorical effect.

For a leadership account, this decision is worth describing because it lacks a convenient victory line. I chose to spend money while investigating a simplification that could still prove worthwhile. The research sharpened the choice without settling every consequence. The extension preserved an option at a known cost. That is a recognisable executive decision: neither the cheapest immediate plan nor the most elaborate customer story should win automatically. The better recommendation explains what the company is choosing, what it is paying to learn and when the argument must return to a decision.