This thesis shows the importance of .strategic brand identity and strategic management of this identity through the product portfolio of the brand. and also the correspondence between them, with respect to create brand recognition and differentiation through brand specific design language, in a specific case by a qualitative case study approach. In this thesis, it is proposed a particular combination of both .Design Format Analysis. method of Anders Warell and heuristic method of Toni Matti Karjalainen on .Semantic Transformation in Design. to provide a heuristic method to identify how .Bang & Olufsen. seems to comprehend its strategic identity through its history and how the semiotic aspects of product design is used to promote it through strategic portfolio management (Warell 2001 and Karjalainen 2004). Although there are some main differences between these two approaches, Karjalainen and Warell indicate that the product portfolio of the brand needs to consist of products that, at least to a certain degree, incorporate common design elements and characteristics that embody brand specific meanings in order to support brand identity. The brand specific design language of B & O which is determined as .Flush Design Concept. is dynamic with a right balance between novelty and consistency by a long-term strategic brand communication through whole product portfolio considering both .internal design culture, design heritage of the company. and .the changing market.. The products of the company have strong identity and have a considerable impact on the visual recognition of B&O brand even though the company mostly prefers the .push. strategy in strategic design approach resulting from an innovative design approach and designing differentiating products instead of the .pull. strategy offered by a strong market-oriented approach. The semiotic aspects of .B&O typical Flush Design Concept. design style incorporate the core brand values such as .magical, inventiveness, originality, selectivity. and reinforce brand recognition and differentiation. The company manage to transmit intended messages to the target customers through the communicative qualities of brand-specific design language by .continuously renewal design based model of strategic change. (brand identity management) through .continuously renewal design driven innovation. product strategy.