We shall now take up one company, HUL (Hindustan Uni Lever Ltd) formerly HUL and see

how the complex task of brand management is actually handled. This company is taken for this
article as HUL is considered as one of the most successful in Brand Management.

Hindustan Unilever Ltd has a large brand portfolio consisting of nearly 110 bands. In every
product line, it has built a number of brands over a period of time. Quite a few brands have come
to its fold from the parent company i.e. Unilever in U.K. It has also acquired several ongoing
brands from the market. HUL also vigorously pursues Brand extension strategy. And
concurrently, HUL undertakes line pruning and brand restructuring and consolidation, based on
marketing compulsions. HUL is also playing the rejuvenation and re-launch game. With great
benefit the corporate-level endeavors at business expansion and diversification are also throwing
new challenges on the brand strategy front. HUL lends itself for a proper understanding of the
complexity of the brand management task. We shall examine how HUL handles the complex
demands in brand management.

Such an array of brands is the outcome of a conscious corporate strategy by HUL. As a

corporate, HUL wants to be a leader in every one of its businesses and the strategy is to fight on
the strength of the competitive advantage arising from the possession of strong brands. It is this
strategy that is getting reflected in the development of a multitude of strong brands. If we take
the business of bathing soaps, or Mome care products of HUL as an example, HUL has the
objective of being a national player (not a niche or a regional marketer) and the leader therein.

So, HUL opted for the strategy of developing quite a few strong brands in this line, and among
them they cover different market segments and price points. Dove, Lux, Liril, Rexona, Pears and
Lifebuoy are the outcome of such a well planned brand strategy implemented over time.
Lifebuoy is 100 years old and Liril 15 years old. In fact, HUL has about 10 brands of toilet soaps
each having good volume of sale to its credit . The point is that decisions on brand portfolio are a
fundamental expression of the company’s objectives and strategy governing a given business.

HUL Locates Positioning Opportunities - HUL methodically goes about the task of developing a
Brand portfolio across a product category. It first identifies the various positioning opportunities
across benefits, target groups and price points. Existing brads are mapped across these
positioning opportunities, and gaps for possible new offers are explored. The company then
estimates the likely volumes for each of the possible opportunity and the financial viability and
sustainability of the propositions in the long term. If some of these gaps look promising, HUL
goes ahead with the plans. HUL also examines the existing set of brands with the company, the
product technologies available, the benefits that can be provided and other considerations that
have a bearing on the company’s long term interests in the business. Finally, if the company
decides to go in for the new offer, a decision has to be taken as to whether new brands should be
created or extensions if existing brands should be preferred or ongoing brands from the market
acquired. HUL hires brands to capture new opportunities:

HUL also have a great studies in launching or sometimes re-launching of their few brands. HUL
knew that launching and developing a new brand would take a lot of time and resources . HUL
did not have the product formula either to enter any segment. Savlon brand to compete with
Dettol lotion HUL entered into an agreement with Johnson and Johnson ( J&J ) for the use of
Savlon brand name and the product formula, and launched the Savlon antiseptic soap. HUL very
deftly managed successfully new brand launch and merged as a challenger to Dettol soap. J&J
secures a good royalty from HUL for lending the brand. It is a potentially win-win arrangement
for both companies.