How lighthouse brands drive sustainability transformations in organizations
11/26/2025
The Yin and Yang of Brand Portfolios
Martin Fassnacht, Florian Platzek, Anna-Karina Schmitz, Emily Waltermann - November 26, 2025
How can consumer goods companies become more sustainable—credibly, consistently, and without facing accusations of greenwashing during gradual transitions? The answer lies in the interplay between conventional brands and conscientious “lighthouse brands” within the portfolio. While conventional brands secure revenue and stability, the smaller sustainable brands act as pioneers. They allow for the testing of new compositions, packaging solutions, and business practices, generating insights that can later be scaled across the entire brand portfolio—without jeopardizing the company’s economic foundations.
Sustainability as a balancing act
For large consumer goods companies, conventional and conscientious brands are not an either-or choice. Relying solely on conventional brands is no longer viable, yet introducing unfamiliar, innovative brands on their own entails considerable risks.
Here, the combination of both brand types allows for true balance: Conventional brands form the economic backbone of the company, backed by decades of customer trust and steady sales. Conscientious lighthouse brands inject momentum. They challenge established norms, introduce responsible alternatives, and set new standards for the future. Their learnings can pave the way for sustainable shifts across entire portfolios, turning the dynamic between conventional and conscientious brands into a kind of corporate yin and yang.
What accelerates or slows down the transition
Established legacy brands typically enjoy loyal customer bases, but they are not immune to social change. Several forces accelerate sustainable transformations: rising demand for environmentally friendly products, new regulations, growing societal expectations, and the intrinsic motivation of employees. At the same time, companies face hurdles such as higher material costs, internal resistance, or consumer concerns about the performance of sustainable alternatives.
Conscientious lighthouse brands help overcome these barriers. They disprove outdated assumptions, experiment on a smaller scale, and bring sustainability to life for mainstream consumers.
Why it matters for society
Within companies and society at large, the need for sustainability is no longer up for debate. Only if major corporations embed sustainability comprehensively can they meaningfully contribute to global climate goals, including the objectives of the Paris Agreement. Conscientious lighthouse brands do more than signal intent: they establish new internal standards, encourage sustainable consumption, and create impact far beyond business performance. Sustainability is becoming a core element of modern brand management, and lighthouse brands are the gateway to successful transformation, without exposing companies to excessive financial or reputational risks.
Tips for practitioners
- Create innovation platforms. Use smaller conscientious brands as controlled test environments for new technologies and product ideas, without endangering the company’s financial stability.
- Scale what works. Transfer successful concepts from lighthouse brands step by step into conventional brands to strengthen your company’s sustainability transformation in a credible way.
- Shape cultural change. Treat sustainability as a fundamental part of brand and corporate identity, not merely as a CSR label.
Literature reference
- Platzek, F., Schmitz, A. K., Fassnacht, M., & Waltermann, E. (2025): The Yin and Yang of brand portfolio transformations: how conscientious “lighthouse brands” drive sustainability in organisations, in: Journal of Brand Management 32, 400-417. https://doi.org/10.1057/s41262-025-00393-0
Co-authors of the study
Dr. Florian Platzek
Florian Platzek works as a Sales Manager at Procter & Gamble and is a former doctoral researcher at the Henkel Center for Consumer Goods (HCCG) at WHU. His dissertation explored sustainability transformations within brands and companies, the dynamics of brand portfolios, and the role of pioneering brands.
Assistant Professor Anna-Karina Schmitz
Anna-Karina Schmitz is Assistant Professor of Marketing and Director of both the Henkel Center for Consumer Goods (HCCG) and the Sustainability Management Center at WHU. Her research focuses on how strategic pricing, portfolio differentiation, and behavioral insights shape consumer perceptions of value and help companies build competitive advantages.
Professor Martin Fassnacht
Martin Fassnacht is Chair of Strategy and Marketing at WHU – Otto Beisheim School of Management in Düsseldorf and Chair of the Advisory Board at the Henkel Center for Consumer Goods (HCCG). He also advises B2C and B2B companies on strategic issues. The Frankfurter Allgemeine Zeitung has named him one of Germany’s 100 most influential economists four years in a row.
Emily Waltermann
Emily Waltermann is a Research Associate and doctoral candidate at the Henkel Center for Consumer Goods (HCCG) at WHU. Her work examines sustainability transformations from a psychological perspective, including consumer perceptions, behavior, and interventions that promote sustainable decision-making.
