Hindustan culls India portfolio to 30 brands

<p>NEW DELHI: Hindustan Lever, Unilever's operation in India, is </p><p>chopping its 110-brand portfolio by 73 per cent to allow it to focus </p><p>resources and build the remaining 30 into power brands. </p><p><BR><BR> </p><p>The move comes almost two years after the Anglo-Dutch group said it </p><p>would cull its portfolio of 1,600 brands to concentrate product </p><p>innovation and brand development dollars on 400 brands. </p><p><BR><BR> </p><p>The 400 brands were chosen on the strength of their consumer appeal and </p><p>prospects of sustained growth. </p><p><BR><BR> </p><p>Hindustan chairman M. S. Banga was part of the Unilever core group in </p><p>the UK, which spelled out details of Unilever's "Path to Growth" </p><p>programme to reduce its portfolio. As part of the initiative, Unilever </p><p>said it would invest £1 billion in additional marketing support </p><p>over five years on its power brands. </p><p><BR><BR> </p><p>A spokesperson for Hindustan said the culling process would not result </p><p>in the consumer goods company ditching any categories. </p><p><BR><BR> </p><p>The plan is to migrate consumers, not to kill brands, added the </p><p>spokesperson. </p><p><BR><BR> </p><p>As an example, Lowe Lintas India, one of Hindustan's agencies, said the </p><p>company encouraged consumers to move to its Pepsodent toothpaste brand </p><p>with the launch of a new variant, Pepsodent-G. Hindustan said the </p><p>variant contains ingredients to ensure gum health. </p><p><BR><BR> </p><p>Said Banga: "Historically, Hindustan acquired a number of brands, which </p><p>often targeted the same consumer segment. We will merge these brands </p><p>with some of the 30 power brands." Neither Hindustan nor its advertising </p><p>agencies would divulge which brands would be dropped. </p><p><BR><BR> </p><p>Rivals are speculating that the power brands would include international </p><p>names such as Lifebuoy, Lux, Liril, Dove, Pears, Close Up, Surf and </p><p>Ponds, while the local offering would include detergents such as Wheel, </p><p>Breeze soap, Taj Mahal and Three Roses teas, and Kissan ketchup and </p><p>jams,among others. A key worry for Hindustan's competitors is how the </p><p>company will develop its power brands through variants, line extensions, </p><p>and service elements. </p><p><BR><BR> </p><p>It is understood that Hindustan marketers have been talking to tea </p><p>shops, beauty salons, and ice cream parlours about possible alliances </p><p>with their brands. </p><p><BR><BR> </p><p>Competitors are also concerned that the brand rationalisation process </p><p>will release Hindustan's marketing expertise and funds for the company </p><p>to explore new categories for future development, such as water, health </p><p>care and confectionery. </p><p><BR><BR> </p><p>Hindustan has launched a promotion to migrate consumers of its tea </p><p>brands to Lipton Taaza tea. </p><p><BR><BR> </p><p>A hidden in-pack coupon entitles winners to pick up as much gold </p><p>jewelery as they can in 60 seconds at a selected store. </p><p><BR><BR> </p><p>With such a disproportionate level of spend, market sources doubt if </p><p>niche or challenger brand rivals will be able to take advantage of any </p><p>momentary weaknesses as India's consumer goods giant slowly changes </p><p>gears. </p><p><BR><BR> </p>