Q12) Explain the major brand strategy decisions?

https://economictimes.indiatimes.com/brand-story-lifebuoys-journey-that-is-in-the-
spotlight/articleshow/7765313.cms

A well planned brand strategy is vital for the growth for the business. To make a good branding
strategy the first thing is required is the company’s unique selling proposition, which makes its
product apart from the rest of the market. What is unique in the product? Why should the
consumer choose the product? These are the points required to make the strategic plan. Major
brand strategy decisions include brand positioning, brand name selection, brand sponsorship and
brand development.

Brand Positioning:

Brand Positioning refers to the placement of the brand in that part of the market where it will
have a favorable reception as compared to other brands. Lifebuoy would have to position in
products in minds of its target market in such a way that they could easily distinguish Lifebuoy’s
products from those of its competitors like Dettol or Safeguard. Lifebuoy could position its soaps
based on attributes, benefits, and beliefs and values.

Initially Lifebuoy positioned itself entirely based on its attributes of being a soap that is anti-
bacterial. This helped them to gain a lot of customers but attributes could easily be copied by
competitors. This is exactly what happened when Dettol came into the market with same
positioning strategy. At this time Lifebuoy positioned itself as not only being an anti-bacterial
soap but a soap that is also low-priced and hence, easily affordable. By doing so, they tried to
show their target market that by buying their soaps they could stay safe and also save money.
This was a way to position themselves on benefits. This approach was followed for their liquid
hand wash as well. They emphasized that it is their hand wash that allows 99.9% of germs to be
killed in just few seconds and also how convenient the packaging is. Other than positioning on
benefits and product attributes, Lifebuoy has tried to position itself based on beliefs and values
too in order to build more deep connection with its customers. For example, to parents especially
mothers, Lifebuoy is a product that keeps them healthy and safe. Lifebuoy’s slogan of ‘Healthy
Hoga Pakistan’ is also a part of their positioning strategy on the basis of beliefs and values to
show that they actually care for their customers.

Brand Name Selection:

A brand name could have a huge influence over the brand’s success. It is the name by which the
consumers actually remember the product. An attractive and catchy brand name could go a long
way and could actually become the reason for the company’s success.

According to Merriam-Webster’s dictionary, Lifebuoy means ‘a device that floats in water and
that keeps a person from drowning’. Hence, literally meaning the brand actually saves lives of
people by keeping full care of their hygiene needs and ensuring to keep its customers safe and
clean. This brand name and the meaning inside the name is very much in line with what its
product (soaps) does for people. Not only is this selected brand name easy to pronounce but is
also quite distinctive as neither it was ever heard in the market and was very unique. Another
desirable quality that Lifebuoy’s brand name has is that it is easily extendable. It does not portray
a specific product but just a term under which various products could come. When anyone as
customers hear the name ‘Lifebuoy’, it is not only soaps they will associate it with but also
shampoos, hand sanitizers etc. which would help the owners of Lifebuoy to enter any category
they may like in the future.

Brand Sponsorship:

Lifebuoy is a product of Unilever which come under their personal care category and was also
launched by Unilever. Hence, it is the manufacturer’s brand which was introduced at a national
level. For the sponsorship of its brand lifebuoy made the partnership with the Hero CPL
(Caribbean Premium League) T20. This partnership is mainly to contribute in the lifebuoys
commitment of improving hygiene habits in communities around the world to sponsor the brand
at a national and international level.

Brand Development:

Lifebuoy would have various options when developing brands. It could use line extensions,
brand extensions, multi-brands or new brands.

Line Extension

Line extension occurs when a company extends its existing products by introducing it in new
forms and different varieties. It is the production of variants of similar products in the same
category. These are the variants of the actual product. Unilever has applied this strategy over its
various products. If we took and an example of brand Lifebuoy from Unilever. Lifebuoy
extended its products in a way that Lifebuoy soap now comes in the form of liquid hand wash in
bottles of different sizes also they introduced the new variants for the Lifebuoy soap and liquid
hand wash like: regular, neem and anti-septic. Line extension aims to provide more variety and
capture more of the market within the given category.

Brand Extension

In Brand Extension, The Company usually moves its existing brand name into a new product
category with somehow modified product or totally with the new one. The Company uses the
strength of the established product to launch their new product in the different category. Unilever
has used this strategy with some of its products. Like Lifebuoy started from red brick soap and
gradually they extend their brand by introducing the new product categories for instance: Liquid
hand wash, Hand sanitizers and Shampoos.

Multi brands

In a given product category, company market different brands. To gain market share or to bring
variety in the market, a company offers a new products with different brand name in the same
category. Unilever has implied this strategy in several product categories. For instance Unilever
produces three brands of shampoos lifebuoy, sun silk and clear. Multi branding offers a way to
companies to establish different and unique features that are appealing to the customers of
different segments. For instance: Unilever’s many brands of soaps compete with one another on
supermarket shelves.

New Brands

A company introducing the new brands and might believe that the power of its existing brand is
waning. Or when a company enters in a new product category might create a new brand name.
Unilever has produced entirely new products completely with new category and new brand
name.