Analysis of Unilever's Domestic and International Branding

Desklib provides solved assignments and past papers to help students succeed.

BRAND
MANAGEMENT
1

Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 CONCEPT AND IMPORTANCE OF BRANDING.............................................................3
P2 BRAND EQUITY AND KEY COMPONENTS OF BRANDING STRATEGY.................4
LO2..................................................................................................................................................5
P3 PORTFOLIO MANAGEMENT, BRAND EQUITY, AND BRAND HIERARCHY...........5
LO3..................................................................................................................................................9
EVALUATE HOW BRANDS ARE LEVERAGED /EXTENDED OVER TIME
DOMESTICALLY AND INTERNATIONALLY......................................................................9
HOW BRANDS ARE MANAGED COLLABORATIVELY AND IN PARTNERSHIP BOTH
AT A DOMESTIC AND GLOBAL LEVEL............................................................................11
LO4................................................................................................................................................12
EVALUATE TECHNIQUES FOR MEASURING AND MANAGING BRAND VALUE
OVER TIME..............................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
2

INTRODUCTION
A brand name is a very important element for any business, firm, organization or an institution.
It not only gives recognition to the business but also it differentiates it from other competitors in
the market (Neupane, 2015). The brand name gives the idea to the customers about the products
and services provided by that particular brand. With the help of brand name, along with the
recognition from the customers, a business gains trust and confidence of the customers. A brand
provides a business it's present and future goals and helps a businessman to achieve what he
wanted to achieve by establishing his business. In other words, a brand is an identification of the
maker or seller of a product which could be the name, symbol or sign or a combination of all of
these (Kotler and Armstrong, 1982). This report is going to take an example of Unilever, which
is British-Dutch transnational Company dealing in consumer goods. It will be focusing on
various aspects of brand management and several techniques through which brand management
can be done over time.
LO1
P1 CONCEPT AND IMPORTANCE OF BRANDING
One of the important terms in marketing relating to a brand is ‘brand management’. Brand
management refers to that process where certain plans and strategies are prepared to manage a
brand in the market. It includes plan and strategies relating to the price, packaging or
manufacturing if the product (Romeo and Dodds, 2015). It can also be said that brand
management is a process of understanding and fulfilling customer’s expectations with the
product and providing them with their desired products or services. As we all know, the market
is full of competition in different products and services provided by different sellers and
manufacturers in the market. In order to make a product stand out from these competitors, one
must have a strong marketing and branding strategy.
The strongest memories a person have are his visual memories. It is very important for a
company to leave its impression on the minds of its customers in the market (Graham and
Mudambi, 2016). The importance of marketing as a marketing tool is as follows:
3

 Customer loyalty: A good branding strategy is essential in order to touch and engage the
customers. Through brand management, a company gets a strong and loyal customer
base, which consequently helps the company to create a unique and remarkable brand
image to the customers.
 Generates increased revenues and Market share: An effective branding can increase
the revenue and market share of the company, consequently leading to an increase in an
organization's estimated growth (Lischka et al, 2018). With the help of this, a company
can also enter new geographical markets, expanding its operations and to reach out to
more customers.
 Helps to keep new competitors away: A good brand image helps a company to keep its
new competitors away from the market. As mentioned above, with the help of branding, a
company establishes a good relationship with the customers and increases customer
loyalty, thus, customers will not be attracted to new companies in the market as they will
believe the existing brand.
 Attract investors: Having a good customer base will help the company to attract
investors. None of the investors would be willing to invest in a company which is weaker
or does not have a good branding strategy (Lillekar, 2015). They will also strive to invest
in a business having a good brand image in the market and having a strong customer
base.
Branding has emerged as a marketing tool and helps organizations to get recognized by
different sectors in the economy. Apart from this, the strategies of branding are evolved and
changed in accordance with the change in the marketing situation and customer demands.
Successful bands are the result of a brilliant brand management system. A proper
understanding of customer’s needs and their wants and framing branding strategies
accordingly can help the business to generate more revenues by satisfying customers' needs.
Thus, branding has emerged as an essential business practice and is almost used by every
organization.
P2 BRAND EQUITY AND KEY COMPONENTS OF BRANDING STRATEGY
Brand equity is a term which is used in marketing to determine brand value. This value of a
brand is determined according to the experiences and perception of a customer concerning a
4

particular brand (Pappu and Christodoulides, 2015). In other words, it can be said that brand
equity is an additional brand value which is attached by a customer to the brand, which is unique
and different from all other brands in the market. Brand awareness, Brand associations, Brand
loyalty, Perceived quality, and Brand preference are some components of Brand equity (Foroudi
et al, 2018). Following steps shall be followed to create strong and effective brand equity:
 Quality Products: In order to establish strong and effective brand equity, an
organization shall introduce quality products in the market. This could be achieved by
examining and understanding the needs and wants of the customers and by satisfying
their expectations accordingly (Wong, 2018). Unilever has a strong brand image in the
market as it deals with good quality products such as Lux, Rexona, etc.
 Examining recent trends and competitors: Proper research and determining of the
recent trends in the market will help an organization to produce its goods and service and
also it will help the business to understand the policies of the competitors in the market.
Unilever has evolved its strategies according to the changes in the recent trends and
developments in the market (Liu et al, 2015). It deals with a vast range of products
including beauty care products to personal care products as well.
 Establishing and managing brand image: After establishing a brand in the market, it is
very essential for a business to be consistent and to maintain the brand image in the
market. Unilever has a strong brand image in the market (Wong, 2018). It was
established in 1929 and until now has maintained its brand image and now have 400
brands producing huge revenues for the company.
 Customer feedback: As a customer is the king of the market, it very essential for all
businesses to take customers' feedback and improve the loopholes existing in the current
brand management strategy of the business in the market. Unilever has around 2.5 billion
customers using its products across the world. It had taken care of the feedback of the
customers and has worked upon the field where it was lacking.
5

LO2
P3 PORTFOLIO MANAGEMENT, BRAND EQUITY, AND BRAND
HIERARCHY
 PORTFOLIO MANAGEMENT
A brand portfolio refers to those entire brands that fall under the company and is under the
company's control. Unilever has a brand like Axe, Rexona, Lux, Lipton, Omo, etc. It has a strong
brand portfolio as it covers the needs and wants of all segments of people (Chandra, 2017). It
deals in products ranging from food products to personal care products. A brand portfolio can be
made using various models of the brand portfolio. These are:
 House of Brands: This model refers to that type of portfolio of a brand where the brands
falling under the same company has their own separate identity in the market. Unilever
follows house of brands model for its portfolio where its brand falls under the control of
Unilever, but have their own separate identity in the market.

 Branded House: This model refers to that model of the brand portfolio where a single
brand name is used for the entire products or services provided by the company. For
example, Apple, Dell, etc. follow this model of the brand portfolio.
6

 Combination Brand portfolio: This brand portfolio depicts the characteristics of both
branded house and house of brands (Stark, 2015). This model is generally used by the
company Microsoft, where it can penetrate into the new market without affecting the
parent company.
 BRAND EQUITY
As discussed earlier, brand equity is the term used to determine the value of a brand.
There are certain models to establish strong and effective brand equity. Keller’s model of
brand equity management provides for 4 steps to build brand equity:
 Identity: It refers to the process where the customer target groups are identified and
served according to their needs for a particular product or service. Unilever has
products varying from middle-class customers to high earning customers (San Martin
et al, 2018).
 Brand meaning: It has two building blocks namely, performance and imagery.
Performance defines as to what extent the products of the brand are meeting
customers' needs, while Imagery defines as to what extent the brand meets the
customers. Unilever products are available at affordable prices, and also are family
friendly (Keller et al, 2016).
7

 Brand response: Next step is to determine the response of the customer to the
products or services of the brand. Customers of Unilever find it as a family friendly
and cost-effective brand, which is easily accessible and available to rural areas as
well.
 Brand resonance: It is the most difficult yet most desired component to establish
strong brand equity. Unilever has been continuously striving towards attaining brand
resonance by developing a deep psychological bond with its customers.
Apart from these, theories like Brand Loyalty and branding theory can also be used for
the purpose of establishing strong and effective brand equity (Davcik and Sharma, 2015).
Some of the brand equity strategies within the portfolio of the company are as follows:
 Proper Differentiation: Proper differentiation of the product is the key element
of establishing and maintaining brand equity. It not only helps to create a long-
lasting impression in the customer's mind but also helps to be recognized easily in
the market. Unilever has differentiated its products in different ranges such as
beauty care, personal care, etc.
 Expanding continuously: In order to establish and maintain brand equity, a
company must ensure continuous expansion to reach out to more and more
number of customers. Currently, Unilever has expanded its business to 190
countries having around 2.5 billion customers across the globe.
 Brand Loyalty: Brand loyalty is another factor enhancing the brand equity of a
brand. Consistent management of the quality of the products will lead to increased
brand loyalty and not only will it help in retaining the current customers, but also
to attract new customers towards the brand as well (Ko et al, 2016).
 Effective Communication: Effective communication and implementation of the
branding strategies will also affect the brand equity of a company. An effective
communication strategy will help the company to engage more customers,
investors and professional existing in the market.
 BRAND HIERARCHY
8

Brand hierarchy refers to the process of grouping and arranging the brands of an
organization within its portfolio.
Unilever has a proper differentiation of the products and it also follows the strategies of
clarifying the offerings of products to the customers (Wijaya, 2015). It has offered several ranges
of products in the market including cleaning agents, personal care products, beauty care
products, and foods and beverages. It deals with around 400 brands which maintain a separate
brand image in the market.
LO3
EVALUATE HOW BRANDS ARE LEVERAGED /EXTENDED OVER TIME
DOMESTICALLY AND INTERNATIONALLY
In this part the discussion regarding how brands are extended after a certain period of time
domestically and globally in Unilever Company
Brand extension approaches and strategies
Brand leveraging strategies are used in to give power to an existing brand name to support a
company’s entry into a new but related product category. The brand management strategies and
9

approaches support the promotion of new products with less cost and efforts (Heding, et.al,
2015). Since the market is already aware of the brand the new products will reach out fasters to
the customers
There are many brand extension approaches and strategies used to extend the brand domestically
and internationally which helps in leveraging the brand after a certain period of time and that
result in generating more profit for the company.
Product line extension
When a new product is added to an existing product line and it targets the existing market by
using the current name is called product line extension this approach is very useful in leveraging
the brand (Kapferer, 2012). Line extension helps in adding variety to the existing product which
results in a diverse range of customers and also maintains the brand reputation in the market.
Unilever represents its product line with lifebuoy brand as it provides different color and flavor
products in its existing product line (Unilever, 2019)
Multi-brand
This strategy involves having more than one brand competing in the same market this approach
is beneficial in different brand positioning in the market and reduce opportunities for the
competitors to enter the market (Kapferer, 2012). Unilever is representing multiple brands in its
company to expand its market domestically and internationally like a dove, lifebuoy, Knorr,
Lipton, etc (Unilever, 2019)
Brand extension
This involves a technique of offering new products with different nature and category under the
existing brand name. This strategy works if a new product has some relationship to the brand's
existing product category and perceived area of expertise (Kapferer, 2012). Unilever Company is
providing life buy soup, sanitizer and lifebuoy hand wash under the same brand category
lifebuoy
New brand
10

A new brand may occur when the company is expanding its offerings by developing a new
product line that they have not offered before. Unilever Company always focuses on establishing
a new brand for expansion of the brand domestically and internationally (Rosenbaum, 2015).
Extension of brand distinction
There are many products which are highlighted for their benefits, for example, Dove product is
highlighted for providing glowing skin for the women. Now it is extended many products like its
shampoo, body wash, and deodorant. The brand extension of the dove for the new products is
getting a lot of success in the market (Rosenbaum, 2015).
HOW BRANDS ARE MANAGED COLLABORATIVELY AND IN PARTNERSHIP
BOTH AT A DOMESTIC AND GLOBAL LEVEL
The management of brands is necessary for collaboration and good partnership with the
stakeholders of the company. The Unilever Company has a partnership with a wide range of
public, non- governmental and private stakeholders. They work with governments, NGO’s and
other stakeholders to drive change which is good for society and good for business. The
company is working with its partners in their supply chain to create innovative products and
packaging.
Collaboration and partnership with the suppliers
The Unilever Company is adopting an approach of the partner to win to build long term
relationships with its supplier partners in order to create good brand image domestically and
globally. They are focusing on creating brand values by providing quality products and services
(Unilever, 2019)
Collaboration and partnership with the consumers
The Unilever Company believes in customer delight ness and for this purpose, the company is
providing the qualitative brand with its offering of solid service and quality product. the
company focuses on innovation and providing a wide range of innovative brand products in the
market with the help of its suppliers and consumers.
Collaboration and partnership with government
11

The Unilever Company is receiving great support of the government which supports
international business and the company is also providing great annual turnover to the
government. The immense support from the government helps in determining policies,
regulations for the business.
The company is focusing on continuous and steady gross margin improvement in its brands to
achieve long term and sustainable growth in the market. The suppliers of the company are giving
their 70% contribution to bringing innovative products in the market. the collaboration with the
company's supplier emphasize on the delivery of the sustainable sourcing and that results in
creating good brand image among customers, consumers, and the market or the industry. The
company is also developing sustainable programmes for society to manage the branding of a
company's product and achieving popularity among customers.
LO4
EVALUATE TECHNIQUES FOR MEASURING AND MANAGING BRAND VALUE
OVER TIME
In this part, the techniques used for measuring and managing brand value will get discussed and
how these techniques are applicable for creating a strong and enduring brand will get described.
Unilever is a successful company in terms of managing the value of its brands among the
customers. The company is providing 400 brands and leading great success in the market. the
company is managing its brand value through good collaboration with its suppliers, consumers,
government, NGO’s and other stakeholders.
Brand value refers to the importance and value of a particular product and services created in the
customer’s mind. it represents how a brand values among customers. It creates an image or
reputation of the brand in the mindset of the consumers so that whenever they make purchases
they can easily recognize it. There are some techniques used in measuring and managing brand
value as follows:
Brand awareness
12