The document discusses brand management strategies of Hindustan Unilever Limited (HUL). It explains that HUL aims to be the leader in every category through strong brands. In the 1990s, HUL diversified into food business and brought various food lines under five umbrella brands. In 2000-2001, HUL rationalized its brand portfolio and selected 30 "power brands" to focus on, while treating the remaining 80 brands differently based on their potential. HUL later reversed this power brand strategy and now focuses on entering new categories and growing new brands. The key lessons are to allocate resources efficiently, prevent cannibalization by merging brands, and leverage familiar names when entering new categories.

1. Brand
Management
MOHD HARIS
PM/2014/407

2. • A distinguishing symbol, mark, logo, name, word, sentence or a
combination of these items that companies use to distinguish
their product from others in the market..
• It is a major asset of the firm
• It carries the value promised to the customer
• Offers strategic leverage to the firm.
Introduction
BRAND

3. 3
Strategic Brand Management
• Strategic brand management involves the designing and implementation
of marketing programs and activities to build, measure, and manage
brand equity.
• The strategic brand management process is defined as involving four
main steps:
1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity

4. I. More consumers: lower priced offerings
with superior performance
II. More parts of the world: innovating
and expanding into new markets
III. More penetration: attracting new
customers into existing brand
franchises and broadening the product
use by the current customer
P&G strategy focus:
Big players: How they strategize
i) Brand Power: brand had to possess no.1
or no.2 position in its market.
ii) Brand Growth Potential: brand has to
display the potential for growth based on
either its appeal to current customers or
its ability to appeal to emerging
consumer needs.
iii) Brand Scale: brand has to be big and
profitable enough to justify the
investments that the company would
make in marketing, promotion and
technological innovation, even if it was
not a global brand.
HUL three-point criteria for
brand evaluation:

5. HUL: India’s Largest FMCG company:

6. HUL business model:

7. • HUL wants to be leader in every one of its
businesses
• Tackle on the strength of its strong brands
• In case of bathing soaps it had the objective
of becoming the market leader so it acted by
developing a number of strong brands in this
line covering different segments and price
points.
Aim of HUL-Be a leader in every chosen category through
strong brands:

8. HUL locates positioning opportunities:
If existing brands could go with a line extension and if not then assesses
the scope for a new brand.

9. Cautious in creating new brands:
• Creation of new brand should be done carefully
• New brand should be either superior to all existing offerings,
or, it should represent a totally new positioning
• HUL says – we consider what the new brand could offer
different from others(features & positioning) , how it’s not
another me too in the market.

10. HUL Hires Brands to
capture new opportunities:
• Towards the close of 1990s, HUL found the
germicide segment of soap market was
growing very fast, with RCI’s DETTOL leading
it.
• HUL did not have a suitable offering in this
segment but it sensed the real product gap
and lifebuoy was not able to be filling it. HUL
neither had the product in the pipe line and
nor time to research one, so it hired SAVLON
brand from J&J.
• Win- agreement for both the companies

11. Every brand must be viable
in its own right:
Every brand must cover its cost
and earn for the company
Starters in the investment phase
should become viable
Viability is assessed in a long term
perspective
For ex: Dove was assessed to be
profitable brand in 5 to 10 years

12. Brand strategy in diversification
context:
• 1990s HUL made a diversification
into the food business
• Decided to bring its various food
lines under five brands
• HUL’s strategy was to make these
brands work in the market, with
more and more products
entering the market under their
umbrella.

13. Umbrella brands spreading their
wings:
• Kissan was repositioned as a family brand for
the entire food business.
• In 1998 the five brands were put to work in
order to boost food segment contribution to
50% from the existing 37%.
• All the beverages brands in the market like
Taaza, 3 roses, Red Label, Taj Mahal etc. were
brought under the Brooke bond or Lipton
Umbrella.

14. Brand portfolio rationalization-2000
and 2001:
HUL’s sales and profits slowed down in 2000
and 2001 and it was found that the army of
nearly 110 brands was not working enough.
So a program for brand rationalization was
carried out, in year 2001.
Power Brands. Keep 30 power brands,
play down 80 others.
Its selected 30 brands to be focused upon for
the future. HUL called them as the
POWER BRANDS

15. The 80-odd brands outside the chosen list; treated
differently:
The remaining brands fall under three categories:
1. The ‘regional jewels’ this category had brands very strong
in their geographic area. HUL support them in local areas.
2. Brands which are both small and unprofitable-they will be
discontinued or sold off.
3. Brands with overlapping positioning – in it merger of the
weaker brand with the power brand.
Merged
to breeze

16. Strategy correction:
• In 2006-07 HUL reversed the pursuit of power brand strategy.
• Today its main focus is to enter new categories that can help to
develop business , new brands and grow and reap them.

20. • Resources to be added at that place where you can get maximum
output.
• Cannibalization can be prevented by merging two different brands
into one .
• Entering new categories with familiar names saves resources.
Learnings:

21. References :
• www.investopedia.com/terms/b/brand.asp
• www.hul.co.in
• https://www.scribd.com/doc/20876868/hindustan-unilever
• en.wikipedia.org/wiki/Hindustan_Unilever
• Pg no 434, Marketing Management, Global perspective
Indian context, 4th edition by V.S.Ramasawamy &
Namakumari