preview

What Makes A Brand? Why Does Unilever Want Fewer Of Them?

Decent Essays

1. What is a brand? Why does Unilever want fewer of them?
According to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”. However, as Keller highlights, a brand is also “something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace”. Therefore, a brand is an identity created to differentiate itself from the competitors and to be remembered in consumer’s mind.
In 2000, Unilever decided to reduce 1,600 brands down to 400 and then select a small number of them to serve as “Masterbrands”. One of the reasons to have fewer brands is to decrease control issues. It is harder to manage so many brands, especially when each one has its own particularities. As Deighton pointed, Unilever’s brand portfolio had grown in a relatively laissez-faire manner. In other words, the company’s brands were created without large interference.
In addition, a large number of brands also results in a lack of a unified global identity. Many of Unilever’s product categories had checkered identities. As Deighton exemplified, the company used to produce ice cream under different brands among the globe, such as Wall in the U.K. and Asia, Kibon in Brazil, Ben & Jerry’s and Breyers in the United States, Langnese in Germany, and so forth. Each one had a

Get Access