In this article we have selected HUL to show how they have formulated the Brand

rationalization strategy to increase their dropping sales as this company os considered a

leader in FMCG. Hindusthan Unilever Limited (HUL) formerly HLL knows it cannot
create some brands and leave them unto themselves. The portfolio has to be closely
monitored.

HLL’s sales and profits have been slowing down during the years 2000 and 2001. HLL
the company with nearly 110 brands was naturally facing strong compulsions for taking a
re-look at its brand portfolio.

A lot of brands on which HLL had spent enormous amount of time, energy and money
were not contributing enough; there were little or no returns from many of them. It was in
this context that HLL attempted a substantial brand rationalization program. In the year
2001, HLL initiated a series of measures towards rationalizing its portfolio of brands.

Keeps 30 power brands plays down 80 others: In 2001, HLL initiated plans to prune its
brand portfolio – to almost one quarter of its size. HLL located around 30 brands to be
focused upon as the brands of the future. HLL called them Power Brands. The 30 power
brands shown contribute almost 75 percent of HLL’s turnover and profits. Of the 30
brands, 18 are international brands of parent company Unilever and the rest are India
grown. The future warfare is to be fought on the strength of these 30 power brands.

The list includes brands like Lifebuoy and Lux, which contributes 25 per cent to profits
as well as brands like Pears, which do not contribute much profit are assessed to become
star brands of the future. In the selection, HLL’s criteria were: brand’s current
performance, its competitive differentiation vis-à-vis the rest of the market and its future
potential.

Pears for instance, has less than five per cent of the toilet soaps market, but it has a
unique position that has been successfully extended to other reacted categories like face
wash. In emerging categories lime deodorants, HLL will be focusing on two brands,
Rexona and Axe. Rexona is the brand, which Lever uses internationally to build the
deodorant category. Axe, since its launch has been picking up well. Deodorants and face
wash are products of the future and brands like Pears and Rexona should become leaders
therein.

In the fabric wash market, there will be three distinct brands: Wheel Rin and Surf; Wheel
in the mass market, Rin at the top and Surf in the middle, with different benefits. Surf
occupies the stain removal platform while Rin assures whiteness.

HLL will out all its energy and resources behind the chosen 30 brands. To quote HLL,
We are going to ensure we put disproportionate assets behind these brands, whether it’s
advertising monies, or the quality of people working on the brands. We will grow them
into increasing opportunities of contact with the consumer by taking them into other
relevant product forms and into services. That’s the game plan.
HLL is not planning to totally vacate any product category it is presently in. Brands are
chosen all our categories, so we are not de-prioritizing any of our categories. The 30
brands also span all the key consumer segments.

The 80 odd Brands outside the chosen list to be handled differently:

The remaining 80 odd brands, which contribute about 25 per cent of HLL’s turnover, fall
under three categories; they will be given different treatments.

1. The regional jewels in this category of brands are exceptionally strong in certain
geographic areas; Hamam, for instance, gets about 60 per cent of its volumes from Tamil
Nadu. Where it has 30 per cent market share; HLL will keep such brands as purely
regional brands and support them in these areas.
2. Brands, which are both small and unprofitable. They will be discounted or sold off.
Example: two variants of close Up, Oxy Fresh and Renew, Revel washing powder and
Aim toothpaste.
3. Brands with overlapping positioning; the bulk are here; they also overlap in market
targeting with one of the power brands. Whenever you have the same benefits and same
price point, there is no advantage to carry two brands. So, what we should do is merge
those brands with some of the power brands. For instance, in toilet soap, HLL has
Breeze, a real winner, which is growing at 50 per cent plus per annum. There is no need
for another mass brand like Jai.
–

In this article we have selected HUL to show how they have formulated the Brand
rationalization strategy to increase their dropping sales as this company os considered a
leader in FMCG. Hindusthan Unilever Limited (HUL) formerly HLL knows it cannot
create some brands and leave them unto themselves. The portfolio has to be closely
monitored.

HLL’s sales and profits have been slowing down during the years 2000 and 2001. HLL
the company with nearly 110 brands was naturally facing strong compulsions for taking a
re-look at its brand portfolio.

A lot of brands on which HLL had spent enormous amount of time, energy and money
were not contributing enough; there were little or no returns from many of them. It was in
this context that HLL attempted a substantial brand rationalization program. In the year
2001, HLL initiated a series of measures towards rationalizing its portfolio of brands.

Keeps 30 power brands plays down 80 others: In 2001, HLL initiated plans to prune its
brand portfolio – to almost one quarter of its size. HLL located around 30 brands to be
focused upon as the brands of the future. HLL called them Power Brands. The 30 power
brands shown contribute almost 75 percent of HLL’s turnover and profits. Of the 30
brands, 18 are international brands of parent company Unilever and the rest are India
grown. The future warfare is to be fought on the strength of these 30 power brands.
The list includes brands like Lifebuoy and Lux, which contributes 25 per cent to profits
as well as brands like Pears, which do not contribute much profit are assessed to become
star brands of the future. In the selection, HLL’s criteria were: brand’s current
performance, its competitive differentiation vis-à-vis the rest of the market and its future
potential.

Pears for instance, has less than five per cent of the toilet soaps market, but it has a
unique position that has been successfully extended to other reacted categories like face
wash. In emerging categories lime deodorants, HLL will be focusing on two brands,
Rexona and Axe. Rexona is the brand, which Lever uses internationally to build the
deodorant category. Axe, since its launch has been picking up well. Deodorants and face
wash are products of the future and brands like Pears and Rexona should become leaders
therein.

In the fabric wash market, there will be three distinct brands: Wheel Rin and Surf; Wheel
in the mass market, Rin at the top and Surf in the middle, with different benefits. Surf
occupies the stain removal platform while Rin assures whiteness.

HLL will out all its energy and resources behind the chosen 30 brands. To quote HLL,
We are going to ensure we put disproportionate assets behind these brands, whether it’s
advertising monies, or the quality of people working on the brands. We will grow them
into increasing opportunities of contact with the consumer by taking them into other
relevant product forms and into services. That’s the game plan.

HLL is not planning to totally vacate any product category it is presently in. Brands are
chosen all our categories, so we are not de-prioritizing any of our categories. The 30
brands also span all the key consumer segments.

The 80 odd Brands outside the chosen list to be handled differently:

The remaining 80 odd brands, which contribute about 25 per cent of HLL’s turnover, fall
under three categories; they will be given different treatments.

1. The regional jewels in this category of brands are exceptionally strong in certain
geographic areas; Hamam, for instance, gets about 60 per cent of its volumes from Tamil
Nadu. Where it has 30 per cent market share; HLL will keep such brands as purely
regional brands and support them in these areas.
2. Brands, which are both small and unprofitable. They will be discounted or sold off.
Example: two variants of close Up, Oxy Fresh and Renew, Revel washing powder and
Aim toothpaste.
3. Brands with overlapping positioning; the bulk are here; they also overlap in market
targeting with one of the power brands. Whenever you have the same benefits and same
price point, there is no advantage to carry two brands. So, what we should do is merge
those brands with some of the power brands. For instance, in toilet soap, HLL has
Breeze, a real winner, which is growing at 50 per cent plus per annum. There is no need
for another mass brand like Jai.
–

more at http://www.citeman.com/3238-brand-portfolio-rationalization-of-
hul/#ixzz15ntmvxRw

more at http://www.citeman.com/3238-brand-portfolio-rationalization-of-
hul/#ixzz15ntmvxRw

Shakti: Economic development through

micro enterprise
Shakti was initiated to reach the massive un-served and under-served markets that cannot
be economically and effectively serviced through traditional methods. HUL identifies
underprivileged women in villages and these women are trained to become Shakti
Entrepreneurs (SEs) i.e. distributors of HUL products in villages to earn a sustainable
income through this business.

HUL invests resources in training these village women to become

entrepreneurs by helping them become confident and independent. They are also a source
of inspiration for the other women in the community. Hence, besides being a sale,
distribution and communication initiative, Shakti is a micro-enterprise initiative that
creates livelihoods and improves the standard of life. The Shakti initiative also enables
rural consumers to access world class products, thereby reducing the menace of spurious
products.

Today, it benefits business by significantly enhancing HUL's direct rural reach and
enabling communication of HUL's brands effectively in media-dark regions. The
products distributed through project Shakti are some of the country's most trusted brands
of consumer goods which are specifically relevant to rural consumers. From 17 SEs in 1
state in 2001 to more than 45,000 SEs in 2008, Shakti has indeed come a long way in
impacting lives in rural India.
HUL committed to enhance livelihoods
under Project Samruddhi
Hindustan Unilever Limited has embarked upon Project Samruddhi to create sustainable
villages in Dadra & Nagar Haveli.

The project is aimed at community upliftment through its social,

economic and environment-related activities in partnership with leading NGOs Aide et
Action and Vanarai.

HUL in partnership with Aide et Action has set up iLEAD centers for youth in Silvassa
offering vocational courses like tailoring, basic computers, electrical wiring etc. The
Centre will train 1080 youths in 3 years covering 72 villages of Silvassa. With the fourth
batch passing out this month nearly 399 youth covering more than 35 villages have
benefitted from the vocational training courses started in December last year. Of the total
pass outs 241 youth have either been employed in jobs or are self employed.

As of now 60% of the trained students have been successfully places in different
organizations like Hindalco, Biopac, Powerica, Alok Industries, ITW, Sterling, Bhilosa,
Reliance Global etc in and around Silvassa. Girls like Vimala Chatta who is only 2nd
standard dropout is today earning 3000 a month after doing tailoring course she is
working in Alok industries. Deepak Pargi After getting the knowledge of Photo shop, he
started his own Photo studio at Surangi, today his Monthly income is Rs 4500/- after
attending the training in ITES.

In order to gain entry into the Limca Book of Records, the students have come together to
stitch the largest shirt of India which measures 55 feet in height and 38 feet in width. The
shirt funded by HUL was unveiled on the occasion.

Apart from capability building, HUL in association with an NGO, Vanarai, has embarked
on a long-term project of water harvesting, which is aimed at increasing water availability
in the area.

The community has so far built about 157 Vanarai bunds since 2003 when the project
was started. This enabled the community to sow a second crop of vegetables, gram and
wheat, thereby increasing their annual incomes by approx Rs 35000 – Rs 40000.

The highlight of this programme is due to improved availability of water, the farmers are
able to grow second crop consisting of wheat, pulses, and seasonal vegetables.
Continuous Contour Trenches reduced the velocity of water and stops soil erosion. They
also reduced soil erosion, increasing moisture holding capacity of soil, increasing its
fertility as well as supporting water percolation and ground water recharge. Till date
about 14 wells and 17 bore wells have been recharged.

Apart from this, medical / health camps and pulse polio immunisation programme are
also conducted in the village. With the objective of improving animal health, animal
husbandry and to educate farmers on advance agricultural practices 'krishi melas' were
organized which received excellent response.