brand
TRANSCRIPT
Brand Extension is the use of an established brand name in new product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nike’s brand core product is shoes. But it is now extended to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. If the customers of the new business have values and aspirations synchronizing/matching those of the core business, and if these values and aspirations are embodied in the brand, it is likely to be accepted by customers in the new business.
Extending a brand outside its core product category can be beneficial in a sense that it helps evaluating product category opportunities, identifies resource requirements, lowers risk, and measures brand’s relevance and appeal.
Brand extension may be successful or unsuccessful. Instances where brand extension has been a success are-
Wipro which was originally into computers has extended into shampoo, powder, and soap.
Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate.
Instances where brand extension has been a failure are-
In case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It thought that taste was the only factor that consumer cared about. It was wrong. The time and money spent on research on new Coca Cola could not evaluate the deep emotional attachment to the original Coca- Cola.
Rasna Ltd. - Is among the famous soft drink companies in India. But when it tried to move away from its niche, it hasn’t had much success. When it experimented with fizzy fruit drink “Oranjolt”, the brand bombed even before it could take off. Oranjolt was a fruit drink in which carbonates were used as preservative. It didn’t work out because it was out of synchronization with retail practices. Oranjolt need to be refrigerated and it also faced quality problems. It has a shelf life of three-four weeks, while other soft- drinks assured life of five months.
Advantages of Brand Extension
Brand Extension has following advantages:
1. It makes acceptance of new product easy.
It increases brand image. The risk perceived by the customers reduces. The likelihood of gaining distribution and trial increases. An established brand
name increases consumer interest and willingness to try new product having the established brand name.
The efficiency of promotional expenditure increases. Advertising, selling and promotional costs are reduced. There are economies of scale as advertising for core brand and its extension reinforces each other.
Cost of developing new brand is saved. Consumers can now seek for a variety. There are packaging and labeling efficiencies. The expense of introductory and follow up marketing programs is reduced.
2. There are feedback benefits to the parent brand and the organization. The image of parent brand is enhanced. It revives the brand. It allows subsequent extension. Brand meaning is clarified. It increases market coverage as it brings new customers into brand franchise. Customers associate original/core brand to new product, hence they also have
quality associations.
Disadvantages of Brand Extension
Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. An organization must research the product categories in which the established brand name will work.
There is a risk that the new product may generate implications that damage the image of the core/original brand.
There are chances of less awareness and trial because the management may not provide enough investment for the introduction of new product assuming that the spin-off effects from the original brand name will compensate.
If the brand extensions have no advantage over competitive brands in the new category, then it will fail.
Introduction to Hindustan Unilever
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians.HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.
The Company has over 16,000 employees and has an annual turnover of around Rs.19, 401 crores (financial year 2010 - 2011). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €44 billion in 2011. Unilever has about 52% shareholding in HUL.
Unilever products touch the lives of over 2 billion people every day – whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.
A clear direction- Vision of HUL
The four pillars of our vision set out the long term direction for the company – where we want to go and how we are going to get there:
We work to create a better future every day We help people feel good, look good and get more out of life with brands and
services that are good for them and good for others. We will inspire people to take small everyday actions that can add up to a big
difference for the world. We will develop new ways of doing business with the aim of doubling the size of our
company while reducing our environmental impact.
We've always believed in the power of our brands to improve the quality of people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognise that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.
Introduction to P&G
In historical terms Procter & Gamble's relationship with India dates back to when Vicks Product Inc. India, a branch of Vicks Product Inc. USA established in 1951, was engaged in the manufacture (under loan license) and sale of what is today India's Number One Health Care brand - the famous range of VICKS products.
In 1964, a public limited company, Richardson Hindustan Limited (RHL) is formed which obtains an Industrial License to undertake manufacture of Menthol and de mentholised peppermint oil and VICKS range of products such as Vicks VapoRub, Vicks Cough Drops and Vicks Inhaler.
In May 1967, RHL introduces CLEARASIL, then America's number one pimple cream. The Company also commences manufacture of Menthol from basic
stage leading to major foreign exchange savings. RHL pioneered mentha farming activities at its Agricultural Research Center at Bilaspur in Terai Region of Uttar Pradesh. Today India is the world's largest manufacturer and exporter of Menthol.
In 1979, RHL launches VICKS ACTION 500. It also commenced campus recruitment in this year and began recruitment from IIM campuses as Day I recruiters.
In 1984, RHL sets up an Ayurvedic Research Laboratory. This is in keeping with the Company's mission of delivering products of superior quality to address the common ailments of the people such as cough and colds.
In October 1985, after RHL becomes an affiliate of The Procter & Gamble Company, USA, a state-of-the-art manufacturing facility at Hyderabad for manufacture of the Vicks range of products is set up. This facility is unique in the sense that its workforce consists of a highly trained team of 40 women all experts at multiple tasks on the shop floor.
In 1989, Procter & Gamble India (after change in name from RHL) launches Whisper - the breakthrough technology sanitary napkin which will revolutionize the Indian feminine hygiene category.
In 1991, Procter & Gamble India launches Ariel detergent - another of P&G's global, breakthrough technology products. Also, in the same year the Mandideep (Bhopal) Factory starts its operations.
In 1992, The Procter & Gamble Company, US increases its stake in Procter & Gamble India to 51% and then to 65%.
In 1993, Procter & Gamble India divests the Detergents business to Procter & Gamble Home Products. In the same year, Procter & Gamble India starts marketing Old Spice Brand of products.
In 1996, Goa Honda Factory starts its operations, manufacturing Vicks Vaporub.
In 1998, Goa Kundiam Factory starts its operations, manufacturing Whisper pads.
In 1999 Procter & Gamble India Limited changed the name of the Company to Procter & Gamble Hygiene and Health Care Limited. In the same year Mediker Shampoo business is divested to Marico Industries.
In 2000, Procter & Gamble Hygiene and Health Care Limited introduced Whisper Ultra - a revolutionary and unique product in the history of menstrual products in India.
In August 2000, Procter & Gamble Hygiene and Health Care Limited launched Vicks Plus Medicated Lozenges, a product that provides medicinal relief from sore throat. The uniqueness of Vicks Plus Medicated Lozenges lies in its anti-bacterial ingredient CPC (Cetylpyridinium Chloride), which actually provides medicinal relief from a sore throat.
In August 2000, Vicks Action 500+ was relaunched in an attractive True Blue pack. The change from green to blue packaging brings Vicks Action 500 + in line with the new global packaging colours used for the Vicks range of products worldwide.
In April 2001, Procter & Gamble Hygiene and Health Care Limited reduced the prices of Whisper Ultra from Rs.80 to Rs.65 for a pack of ten, making it affordable to Indian consumers.
In May 2002, Whisper announced a unique knowledge sharing initiative for women – The Whisper Diary of Secrets. The Whisper Diary of Secrets is a full-color 48-page, booklet designed to provide the new age woman with information that she seeks on feminine hygiene, health and beauty.
In August 2002, Procter & Gamble Hygiene & Health Care Limited announced the launch of Whisper “Money Back” offer, which offers consumers a chance to experience Whisper’s superior performance, helping them forget the wetness; and if they are not satisfied, they get their money back.
In June 2002, Procter & Gamble Hygiene & Health Care Limited announced the launch of New Improved Vicks VapoRub – India’s Number One Cold Rub – that provides multi-symptom relief from the six symptoms of a child’s cold, namely – blocked nose, cough, body ache, headache, muscle-stiffness and breathing difficulty. The medicinal properties of New Improved Vicks VapoRub’s ingredients nilgiri (eucalyptus oil), pudina (menthol) and kapoor (camphor) provide faster, longer-lasting relief from these six symptoms of cold.
In July 2002, Procter & Gamble announced the launch of Vicks Action500+ Night tablets, a specially designed cold medicine that gives consumers multi-symptom relief from bothersome cold symptoms like headache and breathing difficulty, hence allowing restful sleep at night.
In October 2002, India’s number one cough and cold brand – Vicks – celebrated its 50th Year in India and launched Dual Golden Jubilee Offers to reward Indian consumers for 50 Years of trust and loyalty. The first was a Free Vicks Inhaler worth Rs. 25 with every purchase of a 50gm Vicks VapoRub Jar (free gift worth 40% of the price of Vicks VapoRub), and the second was a 30gm Vicks VapoRub Jar at the current price of a 25gm jar, providing 20% Vicks VapoRub Free.
In October 2003, Procter & Gamble Hygiene & Healthcare Ltd. launched New Vicks Formula 44 Cough Syrup which uniquely provides safe, effective and long lasting relief for up to eight hours from tough persistent coughs due to colds, as compared to four-hour relief provided by a single dose of most popular cough syrup brands.
In May 2004, Procter & Gamble Hygiene & Healthcare Ltd. we commenced test marketing an economically priced and competitively superior performing, WHISPER Choice pads in the southern states of Karnataka, Tamil Nadu, Andhra Pradesh and Kerala. At an affordable introductory price of Rs.26 for ten pads, WHISPER Choice
provides three distinct benefits: 1) superior protection vs. other pads in its price range; 2) With its unique dri-weave top sheet it provides one tenth the wetness of ordinary (non woven) top sheet pads and 3) double adhesive coverage to ensure that the pad stays in place much better than ordinary pads.
We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.
Brand Extension Analysis
Brand Hierarchy:
The visual organizing principles for the company’s products, services, and brands. A brand hierarchy is a means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firm’s products, revealing the explicit ordering of brand elements.
HUL Brands hierarchy
Food Brands
3 Roses
Knoor
Annapurna
Kwality wall's
Brooke Bond Taaza
Lipton
Modern
Broke Bond Taj Mahal
Red Label
Bru
Kissan
Personal Care Brands
Aviance
Axe
Breeze
Clear
Clinic Plus
Closeup
Dove
Fair & Lovely
Hamam
LEVER Ayush Therapy
Personal Care Brands
Lakme
Lifebuoy
Liril 2000
Lux
Pears
Pepsodent
Pond's
Rexona Soap
Sunsilk
Vaseline
Home Care Brands
Active Wheel
Rin
Cif
Sunlight
Comfort
Surf Excel
Domex
Vim
Food Care Brand from HUL:
3 Ros
es
Brook Bond 3 roses3 Roses Mild Sharp3 Roses Natural Care3 Roses Topstar
Knoor
Classic SoupChinees SoupIndian SoupIndian Meal Maker RangeChinees Meal RangeSoupy Noodel Range
Annapurna
Annapurna Iodised Powder Salt Annapurna Crystal Salt Annapurna Zinda DilCaptain CookAnnapurna Farm Fresh Annapurna Multi Grain Atta
Kwality
Walls
Kwality Wall's Cornetto Kwality Wall's Feast Kwality Wall's Paddle Pop Kwality Wall's Selection Bro
oke Bon
d Taa
za
Taaza LeafTaaza Dust
Lipton
Lipton Yellow LableLipton Clear Green TeaLipton Darjeeling Tea
Home Care Brand from HUL:
Red Labl
e
Red Lable Red Lable DustRed Label Natural Care Red Label Special
Bru
Bru Roast and Ground Bru Instant Bru Ice cappuccino Bru hot cappuccino
Kissan
Kissan Jam Kissan Squashes Kissan Tomato Ketchup Kissan Squeezo Ketchup Kissan Jam Squeeze Mango Kissan Jam Squeeze Pineapple Kissan Jam Squeeze Strawberry
Active
Wheel
Active Wheel Blue Bar Active Wheel Lemon & Orange Active Wheel Lemon & Jasmine Active Wheel Green Bar
Rin
Rin Bar Rin Powder Rin Jasmine Powder Rin Matic
Cif
Cif pack BlueCif Pack Yellow
Sunlight
l
Sunlight 1kg Sunlight Sachet
Comfo
rt
Comfort Lilly Fresh Comfort Blue
Surf Exc
el
Surf Excel Quick Wash Detergent Powder Surf Excel Blue Detergent Powder Surf Excel Detergent Bar Surf Excel Gentle WashSurf Excel Matic Top Load Surf Excel Quick Wash Detergent Powder
Vim
Vim Plastic Coated Bar Vim Anti-Bactria Bar with Plastic Coat Vim Ultra Powder Vim PopularVim Drop Active Gel Lemon Vim Drop Active Gel Lime Vim Drop Active Gel Orange Vim Drop Active Gel Pouch
Domex
Domex Toilet Cleaner - Blue Domex Toilet Cleaner - Pine Blast Domex Toilet Cleaner – Lemon Explosion Domex Toilet Cleaner – Pink PowerDomex Disinfectant Floor Cleaner Domex Phenolic Domex Atlantic Toilet Block Domex Citrus Toilet Block
Lifebuo
y
Lifebuoy Core Soaps RangeLifebuoy Handwash RangeLifebuoy SkinGuardLifebuoy ClearSkin
Breeze
Lemon TwistRose MallikaSandal SparshRajni Gandha
Liril 200
0
Liril 2000 soap
Personal Care Brand from HUL:
Aviance
Aviance Presitige RangeAviance SkinCare RangeAviance Haircare RangeAviance Colour Range
Lakme
Lakme Sun ExpertLakme Fruit Blast face WashLakme Fruit Moistur Lakme Perfect RadianceLakme nine to fiveLakme RangeLakme Bridal Sutra Range
Axe
Axe Instinct Axe DarkTemptationAxe Pulse Axe Denim Axe Click Axe Touch Axe DimensionAxe Summer
Clear
Clear Active CareClear Hair fall defenseClear Radiant BlackClear Ice CoolClear Soft GlossClinic All Clear Active CareClinic All Clear Hair Fall DefenseClinic All Clear Ice Cool
Lux
Lux Strawberry & CreamLux Peach & CreamLux Purple Lotus & CreamLux International
Clinic
Plus
Clinic Plus Strong and Long Health ShampooClinic Plus Strong and Long Natural ShampooClinic Plus Strong and Long Anti Dandruff Shampoo
Pears
Pears Pure & GentlePears Germ ShieldPears Oil Clear
Closeup
Closeup RedCloseup Lemon MintCloseup MentholCloseup Milk CalciumCloseup Fire & Ice
Pepsodent
Pepsodent Germicheck+Pepsodent WhiteningPepsodent 2in1Pepsodent Center FreshPepsodent Gum CarePepsodent SensitivePepsodent Kids
Rexona
Rexona: With coconut & olive oilsRexona: With coconut & almond oils
Hama
m
Hamam Sampoorna SnaanHamam Scrub BathHamam Abhyanga Snaan Sun
silk
Soft & SmoothThick & LongDamaged RepairHair Fall SolutionStunning Black ShineAnti Dandruff
Vaseline
Vaseline Total MoistureVaseline Aloe Cool and FreshVaseline Healthy WhiteVaseline Lip CareVaseline White Petroleum Jelly IP
LEVER Ayush
Ayush PacksDov
e
Dove Bathing rangeDove Hair Care rangeDove Deodorants Range
Pond's
Pond's Age MiraclePond's Flawless WhitePond's Perfect ResultsPond's White Beauty
Fair &
Lovely
Fair & Lovely MultivitaminFair & Lovely Ayurvedic BalanceFair & Lovely AntimarksFair & Lovely Menz activeFair & Lovely Winter Fairness Cream
P&G Brand hierarchy
P & G
Hygiene & Health Care
Oral Care
Oral B
Feminine care
Whisper
Health Care
Vicks
Home Product
Fabric Care
Ariel
Tide
Hair care
Pantene Pro V
Head & Shoulders
Rejoice
Baby Care
Pamper
Gillette
Razors
Fusion
Mach 3
Mach 3 turbo
Sensitive
Shave Gel and Foam
Fusion Hydra
Gel
Series Gel
Series Foam
Foamy
Skin Care
Face Wash
Ariel
Ariel Front-O-MatAriel 2 FragrancesAriel OxybluAriel AntiBacAriel 2in1Ariel Ultramatic
Tide
Tide DetergentTide Dirt MagnetsTide Jasmine & RoseTide Nimbu & ChandanTide Blue Tide PlusTide Bar
Panten
e
ShampooHair Fall ControlSmooth & SilkyNourished ShinePantene prov-V rangeConditionerHair Fall ControlSmooth & SilkyNourished Shine
Oral B
Oral-B CrossActionOral-B CrossAction Pro-Health Superior Clean ToothbrushOral-B All-Rounder Gum-ProtectLearnOral-B All-Rounder Delicate WhiteLearnOral-B All Rounder 123 Clean ToothbrushLearnOral-B Advantage SensitiveLearnOral-B Advantage Plus
Vicks
Vicks VapoRubVicks InhalerVicks Formula 44Vicks Cough DropsVicks Action 500+
Whispe
r
Whisper Maxi RegularWhisper Maxi XL WingsWhisper Ultra with WingsWhisper Ultra XL WingsWhisper Choice
Brands:
Head & Shoulder
Head & Shoulders Smooth & SilkyHead & Shoulders Refreshing MentholHead & Shoulders Clean and BalancedHead & Shoulders Silky BlackHead & Shoulders Naturally CleanHead & Shoulders Nourishing Aloe Vera
Pampers
Pampers Fresh & Dry
Rejoice
Rejoice RichRejoice Silky CleanRejoice Complete
Gillette Raz
or
FusionMach 3Mach 3 turbo Sensitive
Gillette Sha
ve Gel
& Foa
m
Fusion Hydra GelSeries GelSeries FoamFoamy
Skin Car
e
Face Wash
Comparative Analysis of HUL & P&G Brand Extension:
BCG Matrix of HUL
HUL’s BCG Matrix
KnoorBrook Bond
BrueKissan
Clinic PlusPears
VaselineActive-Wheel
LakemeKwality Walls
LUX
Red LableBreezLipton
LirilCif
Sunlight
Annapurna Close upPonds Fair & LovelyDomex Life BuoyVim Pepsodent
AXE SunsilkClear RinDove Surf excel
3 RosesModernAvianceHamamRaxonaComfort
P&G’s BCG GrideVicksArielTide
Gillette Oral B
Pamper
WhisperPantene
Head & Shoulder
Rejoice
Brands with competitive advantage:
HUL P&GClose UpLifebuoy
PepsodentRin
Surf ExcelKnoor
VicksArielTide
Gillette
There are some brand in both group which have the competitive position in market in HUL Close Up, Lifebuoy, Pepsodent, Rin, Surf Excel & Knoor has the unique position in FMCG market.
In P&G Vicks, Ariel, Tide & Gillette has the unique position in market for health care product Vicks has the very strong position in Indian market.
In Premium segment of men shaving product Gillette has the 88% market share because of it’s innovation in the products.
Currently HUL is playing the major role in brand extension HUL Have the 38 brand and in this brand it has 168 different products in India only. Among 38 brand 5 brand have the strong position in market.
Comparatively HUL, P&G have the 10 brand in India under various categories in India. In this 10 brand it has the 54 different products. Among 10 brands in India 4 have the deep roots in market that shows the effectiveness of the brand. This scenario shows the HUL has the broad grid of brand & product.
Fabric Care Brand Comparison:
HUL P&GRin
Product range: • Rin Bar • Rin Powder • Rin Jasmine Powder • Rin Matic
5.10% market growth per year.
TideProduct range: • Tide Detergent • Tide Dirt Magnets• Tide Jasmine & Rose• Tide Nimbu & Chandan• Tide Blue • Tide Plus• Tide Bar
8% market growth per year.Surf Excel
Product range: • Surf Excel Quick Wash Detergent
Powder • Surf Excel Blue Detergent Powder • Surf Excel Detergent Bar • Surf Excel Gentle Wash• Surf Excel Matic Top Load • Surf Excel Quick Wash Detergent
Powder
13.03% market growth per year.
ArielProduct range: • Ariel Front-O-Mat • Ariel 2 Fragrances• Ariel Oxyblu• Ariel AntiBac• Ariel 2in1• Ariel Ultramatic
7-8% market growth per year.
WheelProduct rang:• Active Wheel Blue Bar • Active Wheel Lemon & Orange • Active Wheel Lemon & Jasmine • Active Wheel Green Bar
ComfortProduct rang:• Comfort Lilly Fresh • Comfort Blue
SunlightProduct rang:• Sunlight 1kg • Sunlight Sachet
Hair Care Brand Comparison:
HUL() P&G(Holds expected 25% of market Share)Clear
Product range: • Clear Active Care • Clear Hair fall defense• Clear Radiant Black• Clear Ice Cool• Clear Soft Gloss• Clinic All Clear Active Care• Clinic All Clear Hair Fall Defense• Clinic All Clear Ice Cool
PanteneProduct range: Conditioner+Shampoo• Hair Fall Control• Smooth & Silky• Nourished Shine• Pantene prov-V range
LuxProduct range: • Lux Strawberry & Cream • Lux Peach & Cream• Lux Purple Lotus & Cream• Lux International
Head & SholderProduct range: • Head & Shoulders Smooth & Silky• Head & Shoulders Refreshing
Menthol• Head & Shoulders Clean and
Balanced• Head & Shoulders Silky Black• Head & Shoulders Naturally Clean• Head & Shoulders Nourishing Aloe
Vera
Clinic PlusProduct rang:• Clinic Plus Strong and Long Health • Clinic Plus Strong and Long Natural • Clinic Plus Strong and Long Anti
Dandruff
RejoiceProduct range:• Rejoice Rich• Rejoice Silky Clean• Rejoice Complete
DoveProduct rang:• Dove hair care range
Clinic PlusProduct rang:• Soft & Smooth • Thick & Long• Damaged Repair• Hair Fall Solution• Stunning Black Shine• Anti Dandruff
Successful branding check list:
1. Does the parent brand have strong equity?
A: HUL: Yes, HUL have the very strong brand equity in India HUL is ranked in 100 most trusted brand in world.
P&G: Yes, P&G have the strong brand equity of $28 Billion. 2. Is there sufficient equity transfer to the extension?
A: Yes HUL as well as P&G had transferred the sufficient brand equity to every extension of the brand.
3. Is extension consistent with brand vision and essence?
A: Yes both HUL & P&G have the same vision and essence in their brand extensions.
4. Is it a logical fit that will make sense to target market(s)?
A: Yes in every extended brand product is logically fit with their use and the core product with extra benefits and advantage.
5. Will it create strong competitive positioning in new category?
A: Yes in every brand extension main reason is to defend or cover the market.
6. Will it avoid creating negative associations in new category?
A: Yes in some brand extention it shows that it has some negative image on the customers mind.
7. Will extension have necessary of parity and points of difference?8. How can marketing program enhance extension equity?9. Do the organizational skills and resources required to develop extension exist
or can they be obtained?10. How should extension feedback effects to the parent brand best be
managed?