Brand Management

MOHD HARISPM/2014/407

• 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

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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

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:

HUL: India’s Largest FMCG company:

HUL business model:

• 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:

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

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.

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

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

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.

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.

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 thePOWER BRANDS

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

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.

• 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:

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