Brand Management Strategies of Unilever: A Comprehensive Analysis

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Brand Management 1
Brand Management

Brand Management 2
Table of Contents
Introduction................................................................................................................................3
Determine understanding of how brand is managed and built...................................................4
Evaluate how brands are organized in portfolios and how brand hierarchies are built and
managed.....................................................................................................................................7
Evaluation how brand is leveraged/expanded over time internationally and domestically.....11
Evaluating different techniques used to measure and manage brand value.............................13
Conclusion................................................................................................................................16
References................................................................................................................................17

Brand Management 3
Introduction
Brand management can be defined as the planning and analysis of how the brand is perceived
in the market. For managing the brand in an appropriate manner, it is essential to building up
good relationship with the target market. Moreover, the tangible brand management is such
as product itself, look, its price as well as its packaging (Lake, 2018). On the other side,
intangible elements are those that are experienced with the customers and share it with the
brand like whether they liked their product or not. It is quite essential to managing the brand
to gain success in the competitive market.
This report aims to make understand the senior management team of company as how
effective brand management can be gained. For this report, Unilever, UK is selected for
analyzing the effective brand management in the company. The report analyses how Unilever
is building and managed over time. It demonstrates different strategies of portfolio
management, brand hierarchy, and brand equity management by taking into consideration
different theories and models. It also evaluates how brand is managed collaboratively both at
the domestic and global level.
Unilever is the consumer good company founded in the year 1929. It was headquartered in
London, UK, and Rotterdam, Netherland. It is the oldest multi-national company that has
expanded its products and services in approximate 190 countries. Unilever is considered as
Europe’s seventh most valuable company. Its main products are such as Beauty & personal
care, foods & refreshments and cleaning products (Unilever, 2018). In the year 2017, it owns
400 brands with a revenue of 53.7 billion euros and one billion euros sales of over 13 brands.
It earned revenue in the year 2018 that is € 50.982 billion. It employs 155,000 employees in
the current year 2019.

Brand Management 4
Determine understanding of how brand is managed and built
Branding can be defined as the process that is involved in developing a unique name as well
as product image in the minds of customers. The branding is established mainly through the
advertising the brand with the unique theme. The main aim of branding is to develop unique
presence in the customer's mind by attracting them and retaining for the long-term. In other
words, branding is termed as the name, slogan, sign, symbol, design, or different other
elements that make the specific company different from other company (Mumby, 2016). At
the same time, branding is not about targeting the specific market but it is about the sole that
provides the solution to the customers or fulfils their requirement that is not fulfilled by other
organizations. For presenting itself as the good brand it is quite essential for the company to
understand the customer requirement and offer the products accordingly.
Importance of branding as a marketing tool
Branding is an essential marketing tool that helps the business to attain the objectives of the
organization. It enables to align the plan by taking into consideration those objectives. Thus,
its work does not just count at the time of purchase but it also has to develop loyalty among
the customers so that they may retain for the longer time period with the same brand.
Moreover, branding helps in developing loyalty among the customers as well as loyal
employees. With the help of the brand, the people can believe and can be loyal to the same
brand for years. In addition, there are different branding tools such as audio branding, video
branding, visual branding, content marketing, brand activation, event branding, and word of
mouth (Todor, 2014). In terms of audio branding, it allows the company to analyze the sound
that is attached with the name of the brand. Video branding helps the company to enables the
brand to express its objectives in an appropriate manner. Visual branding includes logo
design, poster design or pamphlets that help the customers to easily identify the specific
brand. Content marketing is the major tool that is used by the brand to express its objectives

Brand Management 5
by providing good content on its website. Brand activation is considered as the live stalls at
different locations that enable the customers to make conversation with the customers
(Figurska and Matuska, 2013). It also includes live events. Another tool is event branding
where the events are conducted on different locations to promote the brand. Events include
such as concerts, festival, corporate events, seminars, plays, conferences as well as parties.
Word of mouth is another tool of branding where an individual speaks about the specific
brand to another individual.
Management of brand over time by using theories
Furthermore, brand is managed over time by most of the businesses in the market. In order to
manage the brand effectively, it requires maximum time as the company has to review the
whole market and take decisions if any changes are needed for brand growth. Thus, the brand
is managed successfully by applying certain theories that are described below:
Theory of brand loyalty
This theory helps the brand in managing successfully in the market. This theory explains the
psychology of customers with a particular brand. On the basis of this theory, it has been
determined that customer’s positive behavior depends upon three aspects such as brand
evaluation, emotional attachment, and behavioral aspect. With these aspects, the company
comes to know about the customers like and dislike of the product. If he/she likes the product
it shows positive aspect as they will buy the product and will not cross check the same
product from another brand.
Value-based brand theory
This theory explains value-based brands that build long-term customer value. The brand
success depends upon the value that is provided to the customers. According to this theory,
customer is the supreme gadget that can defeat the competitors. This theory thinks that the
“brand life blood is the customer’s nothing else than this”.

Brand Management 6
This theory helps in managing the brand successfully in the market at the recent time.
Key components of a brand strategy for managing brand equity
Unilever brand strategy is to gain a sustainable living for the people. In order to fulfill its
vision, it has invested in long-term strategy and this brand also focus on providing growth to
the stakeholders. Unilever adopts different components of a brand strategy to manage brand
equity it is as follows:
Target Audience
This is the key element of Unilever in managing brand equity in an appropriate manner. With
the help of target audience, Unilever gets to know about the customers' likes and dislikes and
offer the products to the customers according to their choice.
Brand promise
It is another component of Unilever that denotes the messages given to the customers about
their purchase of a product from their brand.
Brand perception
It also makes perception about its own brand by looking at the past, present as well as the
future. The brand perception is done through surveying the customers as what they think
about Unilever and are they aware of the brand.
Brand positioning
It is another major component of Unilever that helps in managing the brand equity of the
company. Brand positioning can be defined as the position that is on the customer's mind.
For example, Unilever is one of the best brands that satisfy its customers by providing local
and regional varieties of products (Unilever, 2015). It has managed its brand equity
everywhere and it is trusted around 140 million around people each day.

Brand Management 7
Evaluate how brands are organized in portfolios and how brand hierarchies are built
and managed
Portfolio Management Strategy
Portfolio management is the process by which decisions are made in terms of investment mix
as well as policies and balancing risk against performance. It is all about analyzing strength,
weaknesses, opportunities, and threats. In terms of Unilever portfolio management, it has
made Unilever leader in all the fields in which the brand operates. It takes into consideration
generic strategy which is described as below:
The generic strategy of Unilever is helpful in building up a competitive advantage by
satisfying the customer needs as well as their taste preferences. In the model of Porter generic
strategy is adopted in order to make sure that competitiveness of an organization is significant
to have business growth. By adopting a generic strategy, it addresses directly the needs of the
market as well as it maintains the competitive advantage globally. It uses generic strategy to
match the needs of the business. In terms of generic strategy, Porter’s model Unilever adopts
differentiation strategy for the competitive advantage. Porter’s generic strategy main focus is
on features or characteristics that are helpful in making the Unilever product different from
the competitors (Panmore, 2018). For example, Dove is produced as personal care product by
Unilever that fulfil the soap requirement of customers that is soft, not harsh or make skin dry.
With the help of this strategy, the customers are attracted towards the newly designed
products. This strategy supports global sustainability as well as increase strength in the life of
customers. This strategy is specifically depending upon differentiation strategy.
On the other hand, its intensive strategy includes market penetration, product development,
diversification, and market development. In terms of market penetration, Unilever applies it
as its primary strategy. Here, there is an increase in the volume of sales to enhance revenue as
well as continuing in the growth of business. In terms of product development, Unilever uses

Brand Management 8
this intensive strategy as the secondary strategy for the growth of business (Panmore, 2018).
This strategy is applied by introducing new products that fulfill customer needs. In terms of
diversification strategy, Unilever supports intensive growth strategy that focuses on
developing new business in the new market. In terms of market development, generic
strategy Unilever uses this strategy by entering into new market as well as other market
segments.
Brand Hierarchies of Unilever
Brand hierarchy is the process of summarizing the strategy of branding by showing the
number as well as nature of common as well as different elements of brand. It is quite
essential to managing the brand hierarchy of the company to remove the confusion of
customers towards the product the company is offering (Unilever, 2018). Brand hierarchy can
be termed as the realization by which brand can realize that the product can be branded in
different way. Moreover, brand strategy or brand hierarchy is significant to manage in order
to have success in present as well as future perspectives. In terms of Unilever it manages its
brand hierarchy by fulfilling the demands of the customers to the great extent. It uses brand
hierarchy theory in order to manage the brand hierarchy in an appropriate manner. It is as
follows:
Maslow Hierarchy Theory

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Source: (Kaur, 2013)
This theory is developed by Abraham Maslow that is the specialist in human behavioural
psychology. This theory explains the basic human needs. There are five elements included in
this hierarchy theory such as physiological needs, safety needs, social needs, esteem need,
and self-actualization. This theory is adopted by Unilever to fulfill the needs of customers as
well as employees. In terms of physiological needs, it includes food, shelter, sleep, this are
the major that are required by all the individuals to sustain in life (Kaur, 2013). Safety needs
include security at work as well as secure health and financially secure. Unilever provides
security for the employees whoever working within the organization. Social needs include
social connections in friends and employees and good relationship among employees and
employer in the organization.
In Unileve, there isa good relationship among the employees and employer as employer
engages employees in taking up any decisions regarding different task. Esteem needs include
self- respect, confidence as well as a sense of self-attainment (Ian, 2017). The last element is
self-actualization where the individual knows its own potential or capabilities. Unilever
provides the employees the chance to show their capabilities by taking their opinion in

Brand Management 10
different decision making. This helps the organization to get innovative ideas from different
employees and apply the best idea in the practical use.
Brand equity
Brand equity can be described as the brand’s value as well as it can term as the name, symbol
that is helpful in identifying the particular brand easily by the customers. In terms of
Unilever, it has become successful in attaining a long-term relationship with the customers all
around the world. It is one of the third largest companies of consumer goods that has
maintained its value among the customers. The brand equity of Unilever is best as it provides
the people with a variety of products that makes the customer’s satisfied. Unilever main
reason of having the best brand equity is the deep knowledge of the product in terms of all the
cultures (Unilever, 2017). In addition, it has good suppliers who help the company to be the
most fast delivered consumer goods globally.
Along with this, there are certain theories that are adopted by Unilever for having effective
brand equity. It is described as below:
Keller’s brand equity model
This model is called as the customer based brand equity model (CBBE). This model is
following the simple concept as to build strong brand it is necessary for the company to shape
itself as the way the customers thinks regarding buying the products and services. According
to this model, it is quite significant for the company to build good experience of customers
purchasing product from particular brand. Unilever adopted this model to maintain strong
brand equity among the customers in the market (Cho et al., 2015). It consists of four steps
brand identity, meaning of brand, response, and relationship. These four steps of Keller’s
model help the Unilever to have effective brand equity and manage it in an appropriate
manner.

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Source: (Cho et al., 2015)
Evaluation how brand is leveraged/expanded over time internationally and domestically
In this recent era, it is quite essential for the company to expand its business within the
domestic market as well as international market. This helps the company to make the
customers aware of the brand domestically as well as internationally. Moreover, it helps the
company to remain sustainable in the market. Most of the organizations are expanding their
business in other countries so that they make a unique place in the heart of customers. In
regard to Unilever, it is one of the most reputed consumer goods companies that had
expanded its business in 190 countries. First, it originated in Europe and then expanded its
business to USA there it introduced its two factories. It can also be located in parts of Asia,
North America, as well as Middle East and South America (Unilever, 2018). Unilever
portfolio is quite impressive that has comprises of 11 brands that earn sales of more than 1
billion dollars each. In order to earn more revenue its expand its business in China that has
high populations which is quite beneficial for Unilever revenue. In contrast to this, at the time
of company facing issues like 1930’s great depression that time also it was focusing at
expanding its business in other country. The company made good efforts in the research and
development. From the year 1950 to 1980 it focused on new products, new technology, as
well as global markets and continuing expansion of its business to the worldwide. It became

Brand Management 12
the global corporation by the year 1980. It keeps focus on its portfolio even it eliminated
some of its brand and focused on the brand that provides higher profit for the company.
In addition, it serves its products across the whole world domestically and internationally. For
instance, recently Unilever has planned to invest $120 mln for the expansion in the country
Pakistan. There is an increase in the demand for consumer goods in Pakistan. So, it planned
to invest four factories in Pakistan in the next two years. This is the commitment of Unilever
to grow the business in Pakistan. On the basis of survey it has been depicted that in Pakistan
Unilever business is counted as the best performing business unit. The company based on UK
named Unilever Overseas holding that is the shareholder in Unilever Pakistan Limited
invested €400 million amount in Pakistan. This was the first and last direct investment in the
whole Pakistan recent history (Unilever, 2018). In Pakistan, Unilever food was also recorded
in earning highest sales among other consumer goods company such as Nestle, and Engro
Foods in the previous four years. This depicts great expansion of Unilever in the market.
At the same time, in order to remain sustainable in the market, Unilever has take into
consideration three missions such as improving health and well-being, reducing
environmental impact, and improving livelihoods of the people. These were the main goals
that are set by the organization to remain sustainable wherever it expands its business.
In terms of domestic expansion, Unilever is being the most profit earned company among
other consumer goods in UK. Thus, Unilever faced economic down turn in domestic market
as there was 6% decrease in turnover in the year 2009. For overcoming this declines it re-
establish growth in that particular region. It acquires Sara Lee personal care product brand. In
recent time, it announced food operations in Italy but this food is not its core business it also
focuses on its other different resources to have high growth potential.
At the same time, Unilever has adopted different techniques or strategies to take advantage as
well as expanding its brand internationally and domestically. It is described as given below: