Unilever's Brand Portfolio Strategy: A Comprehensive Analysis

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

BRAND MANAGEMENT
UNILEVER

Table of Contents
INTRODUCTION........................................................................................................................3
LO1........................................................................................................................................... 4
LO2......................................................................................................................................... 10
LO3......................................................................................................................................... 14
LO4......................................................................................................................................... 18
CONCLUSION.......................................................................................................................... 21
REFERENCES........................................................................................................................... 22
1

LIST OF FIGURES
Figure 1: Keller's Brand Equity Model.....................................................................................5
Figure 2: Brand Reinforcement............................................................................................... 8
Figure 3: Brand Revitalization.................................................................................................8
Figure 4: Line Extension of TRESemmé.................................................................................14
Figure 5: Brand Extension of TRESemmé..............................................................................15
2

INTRODUCTION
The report evaluated the process of managing and building a brand value over the period by
the business entity. The relevance and significance of branding for the growth and success
of the business entity are analyzed in the report. The definition of a brand is explained in the
report by providing relevant examples. The techniques which can be adopted for
maintaining a successful branding strategy is examined in the report for gaining growth and
success in the market. The hierarchy management and brand portfolio of the business
enterprise are explained in detail. Different hierarchies for the brand and equity
management along with the management of the brand portfolio is analyzed in the report.
Further, various methods for extending and leveraging the brand in a particular time period
is discussed in the report. The management of brand collaboratively at different levels by
using different techniques are evaluated effectively by the report.
3

LO1
INTRODUCTION
The brand is the tool which helps the business enterprise in promoting its products and
services into the market by making them memorable in the minds of the customers
(Business Dictionary, 2019). The components of the brand include logo, image, sign,
symbols, or a combination of these. The examples of the brand include eBay, iPod, Jacuzzi,
etc.
ELEMENTS OF BRAND
Brand positioning is the manner in which the brand is placed in the market along with
defining the market segments. For example, Virginia Slims is positioned in the market and
targeted at women.
Brand image is the image of the product of the company in the minds of its customers
which is developed over the years. For example, Rolls Royce has a brand image of luxury car
making company.
Brand personality is the personal and emotional qualities which are attached to the brand
in the market. For example, youthfulness is attached to the Pepsi brand of cold drinks
among the customers.
Brand equity
Brand equity is the tangible value of the brand in term of finance which can be calculated
with the help of market share and revenue. For example, the brand equity of Apple is
considered as a premium because of its quality products.
Importance of brand equity
Customer loyalty is a factor where customers of the company make repeated purchases for
it. For example, due to the brand equity of Unilever, the company earned brand loyalty
where consumer sticks to the brand.
4

Competitive advantage is gained when consumers of the brand are ready to pay high prices
for the quality of products.
Negotiating Power is achieved due to the brand equity of the company in the market. For
example, when a company has high bargaining power with its distributors, vendors, and
manufacturers.
Keller’s Brand Equity Model
The customer-based brand equity model is Keller's Brand Equity Model which lays emphasis
on strengthening the brand position in the market. Keller's Brand Equity Model has the
following steps:
Figure 1: Keller's Brand Equity Model
Level 1 Brand Identity
Brand awareness is formed by the company by understanding the current position of the
brand in the market. Specifications of products and services of the business entity are
communicated in the market to the consumers.
Level 2 Brand Meaning
The meaning of the brand is understood in the second step by understanding two main
blocks of brand meaning that are imagery and performance. For example, Patagonia which
5

is a quality equipment and clothing company which uses recycled materials for
manufacture.
Level 3 Brand Response
The third step help in understanding the judgments of consumers by knowing its
creditability, quality, consideration, and superiority. The response for the brand can be
understood by knowing the feeling and emotions of the consumer or the brand.
Level 4 Brand Resonance
At last, a deep relationship is built by the company for the brand in the market with the
assistance of behavioral loyalty, attitudinal attachment, sense of community, and active
engagement.
Steps of building a successful brand
 Conduct market research for analyzing target customers and their needs along with
comparing own brand with the competitors. For example, survey, online research,
etc.
 Choose a brand name which deliver the purpose of the brand and which provide a
suitable message about the company to customers. For example, Snapchat, Head &
Shoulders, etc.
 Emotional connection is created for building a non-verbal communication with the
brand. For example, using red color for urgency and danger, green for the
environment, blues for water, etc.
 Consistent communications with the customer by advertisements, public relations,
and signage.
Role of the marketing department in creating brand equity
Optimum Impression Ltd. can use marketing communication as its base idea for creating
brand equity in the marketing department. For example, radio, magazines, newspaper, TV,
direct approach, etc. can be used by the marketing department. The marketing department
of Optimum Impression Ltd. can conduct campaigns for marketing the products of the
company. The brand can be managed and defined successfully with the help of the
6

marketing department. It can use outside vendors and agencies for marketing such as print
vendors, ad agencies, PR agencies, etc.
7

MAIN BODY
A successful strategy for strengthening brand equity
Providing quality products and services in the market as per the preferences of the
customers can help in strengthening brand equity in the market. For example, Apple,
Colgate, Nestle, etc.
Building loyalty of customers is another strategy for strengthening brand equity in the
market. For example, Apple has created strong brand equity by gaining the loyalty of
customers (Vickery, 2017).
A successful strategy for brand extension
The brad can be extended successfully with the help of measuring brand equity in the
market. The core competencies of the brand can be leveraged over time by identifying and
reducing the negative effects of the brand in the market (Sutton, 2016). Further, market
research can be conducted for analyzing market potential for the brand. For example,
Armani has extended into a lifestyle company by recognizing the potential growth of
business in the market (Harvey, 2018).
A successful strategy for reinforcing brand
The equity of the brand is reinforced by communicating the meaning of brand continuously
to the customers along with satisfying customer with its advantages. For example, Mountain
dew reinforces its brand by targeting the younger section of the market along with new
taste and technology.
Figure 2: Brand Reinforcement
8

A brand can also be reinforced by giving meaning to the brand and making it symbolic in the
minds of customers. For example, Google.
A successful strategy for revitalizing the brand
The process of revitalizing starts when the brand reaches a maturity level in its life cycle and
this strategy is used for bringing it back to life. This can be done by either strengthening the
brand or expanding the brand in the market. For example, Wipro has expanded its brand for
revitalizing the brand and Head & Shoulder has strengthened its brand position in the
market.
Figure 3: Brand Revitalization
CONCLUSION
Marketing and branding
Marketing Branding
Marketing activities are carried on for
promoting sell and purchase of goods and
services in the market.
Branding practices are done for providing a
brand name to the products for making
them recognizable in the market.
It follows a push strategy. It follows pull strategy.
It helps in creating needs for products. It helps in maintaining relationships with
customers.
For example, use advertisements on TV,
magazines, the use of billboards, etc.
For example, ‘swoosh' used by Nike, ‘apple'
used by Apple computers, etc.
9

Importance of branding as a marketing tool
Branding trust for getting quality products and services form the company for the
customers.
Branding helps in motivating the employees for working harder for the business entity to
complete its vision and mission. It generates revenue for the company along with
supporting other marketing activities (Bruce, 2016). For example, Branding can help the
company in illustrating the message of the brand in the minds of the customers which help
in marketing the brand.
10

LO2
INTRODUCTION
Unilever is a multinational public limited company which provides food and beverages to its
consumers all over the world. It has headquarters at London, United Kingdom, Netherlands,
and Rotterdam. It was founded in the year 1929 by William Lever, 1st Viscount Leverhulme,
James Darcy Lever, Samuel van den Bergh, Georg Schicht, and Ringrose.
Introduction of brand portfolio strategy
The strategy which lays emphasis on creating a roof for all the brands of the company is
known as a brand portfolio strategy. The main purpose of making this strategy is to manage
various brand lines of the company in a proper way. For example, PepsiCo which has brands
such as Frito Lay, Quaker, and Tropicana (Robertson, 2019).
Unilever has the brand portfolio strategy where the company is making efforts for
broadening its portfolio in the market. Kate Somerville Skincare, Dermalogica, Murad, and
REN Skincare are the new brands purchased by Unilever. The focus of brand portfolio
strategy of Unilever is to create growth and value for the business. Trendy products and
brands are brought within the combat of the company in order to gain a competitive market
position. More market opportunities are utilized by Unilever with its brand portfolio
strategy.
Importance of brand portfolio strategy
11