1.A. What is a brand?
Defining a brand can be quite tricky. It is intangible, psychological but in the same time very rational. A brand is the added value of a product, in the eyes of the consumer. For example, 5 identical phones: 4 are from an unknown brand et the fifth one is an Apple. Everyone chooses the famous brand because it conveys a message: quality, innovation, technology, and social role. A brand is full of these messages, that enter the customer’s mind, and makes him do the right choice. But it takes time. Companies take years, sometimes decades to build a brand. Coca-Cola wasn’t born as famous as it is today. Little by little, by avoiding ...view middle of the document...
” As we studied it in class, a brand, no matter how it is famous, can suddenly disappear, like Kodak. It is the company’s duty to maintain the brand at the level of its competitor or try and do better but for that, you must invest, train your staff, forecast tendencies and so on. In a world evolving at a impressively high speed, mistakes can be done anymore and you always have to be a step in front of the others.
1.B. Why does Unilever to want fewer of them?
Let us set the context. First, Unilever is a huge group. 1600 brands. It costs money, research and time to manage all these brands. Plus, the more brands you have, the more you take to weaken your group through scandals, incidents, unhappy consumers, political decisions in the countries you’re set in. It can be difficult to manage 10 brands in a portfolio but 1200 becomes really tricky. Second, Unilever’s identity isn’t strong enough. Brands being managed in a decentralized way, into the same group, a same brand can have different names, products, and marketing campaign depending on the countries. It weakens Unilever. Why? We all know that Sprite, Fanta and so one belong to Coca Cola Company. But who can tell you all the brands owned by Unilever? And who can tell you that Wall’s ice cream in UK is the same as Algida in Italy and that they both own to Unilever. We you have a huge portfolio of brands, the goal is to strengthen the Group’s identity but here, the opposite is going on. That’s why Unilever wants fewer brands, passing from 1600 to 400.