a.agrawal21
New member
BM: CASE 1: HLL BRAND PORTFOLIO
HLL is rationalizing its brand portfolio which consists of 110 brands. It proposes to keep only 30 brands. The rest will be dropped, migrated or continue as regional brands. In short, HLL is defocusing as much as 73% of its brand portfolio. The question that is being asked is which 30 brands HLL has chosen to focus on. HLL wants to improve its financials by doing so. The ad spend will be concentrated on these 30 brands. The total ad spend can be curtailed also. HLL is following Unilever which brought down its brand portfolio to about 400 in the past three years. Some casualties are likely to be toothpaste variants like Close-up Renew, Close-up Oxyfresh, the rural brand Aim and washing powder Revel. The criteria for selection of the 30 brands are its current sale, the differentiation and the future potential.
Of the 30 brands chosen, 18 are international Unilever brands and the rest are indigenous. Brands like Lux and Lifebuoy are easy picks. Surf, Rin, Wheel, Sunsilk, clinic, Vim and Close-up are all unquestionably chosen. Pears has great potential. Deo sprays of Rexona also have great potential.
HLL has selected brand jewels – brands that are very strong in certain geographical areas. Hamam is strong, for instance, in Tamil Nadu and almost 60% national sale of Hamam is accounted from here. These brands will be nurtured as regional brands with emphasis on local advertising.
Another category of brands not chosen have positions and price points that overlap one of the chosen brands, e.g., tea business with brands like Brooke Bond and Tiger. Some customers from such brands are made to migrate to their chosen brands, e.g., Moti soap customers to Breeze. Some brands become old, e.g., Rin Shakti and Super 501.
Question:
Explore the possible drop in the brand image of HLL, while considering the merits of regionalization of brands. Will you, as a brand manager, resort to this exercise while affecting a squeeze on the number of brands of the organization to justify the brand ad spends?
HLL is rationalizing its brand portfolio which consists of 110 brands. It proposes to keep only 30 brands. The rest will be dropped, migrated or continue as regional brands. In short, HLL is defocusing as much as 73% of its brand portfolio. The question that is being asked is which 30 brands HLL has chosen to focus on. HLL wants to improve its financials by doing so. The ad spend will be concentrated on these 30 brands. The total ad spend can be curtailed also. HLL is following Unilever which brought down its brand portfolio to about 400 in the past three years. Some casualties are likely to be toothpaste variants like Close-up Renew, Close-up Oxyfresh, the rural brand Aim and washing powder Revel. The criteria for selection of the 30 brands are its current sale, the differentiation and the future potential.
Of the 30 brands chosen, 18 are international Unilever brands and the rest are indigenous. Brands like Lux and Lifebuoy are easy picks. Surf, Rin, Wheel, Sunsilk, clinic, Vim and Close-up are all unquestionably chosen. Pears has great potential. Deo sprays of Rexona also have great potential.
HLL has selected brand jewels – brands that are very strong in certain geographical areas. Hamam is strong, for instance, in Tamil Nadu and almost 60% national sale of Hamam is accounted from here. These brands will be nurtured as regional brands with emphasis on local advertising.
Another category of brands not chosen have positions and price points that overlap one of the chosen brands, e.g., tea business with brands like Brooke Bond and Tiger. Some customers from such brands are made to migrate to their chosen brands, e.g., Moti soap customers to Breeze. Some brands become old, e.g., Rin Shakti and Super 501.
Question:
Explore the possible drop in the brand image of HLL, while considering the merits of regionalization of brands. Will you, as a brand manager, resort to this exercise while affecting a squeeze on the number of brands of the organization to justify the brand ad spends?