Brand Portfolio effectiveness and Brand Reputation – Unilever

The forward moving corporation

Abraham Maslow states, "You will either step forward into growth or you will step back into safety." Consider the corporate brand Unilever, which will be the center of attention today.

Unilever is a corporate brand with over 400 product brands – (having home-care, beauty, wellness, and food brands). Now, for this brand to reach the right target audience for each brand, differentiate brands from one another, rationalise brands that aren't performing well, and bring product clarity, it would need a sure strategy moving forward. Wouldn't you agree?

The former CEO of Unilever said: "we cannot choose between growth and sustainability; we must choose both," and he was right. Unilevers' rich heritage, outstanding brand values, and their varied products, helped them gain consumer loyalty, increased brand awareness, and created brand recognition.

Unilever's many products (Domestos, Vaseline, and more) are product brands, and they manage all these products effectively with a brand portfolio.

Over the last few years, Unilever has sold some brands and rationalised its portfolio - as they have a clear strategy to "focus on businesses with high returns" (Just Food, 2013).

Klopper and North (2011:271) "propose two conclusions for elements of a brand portfolio strategy":

1. Defined roles: Unilever extensively researches new brand offerings and their markets; because of this, each brand is clearly defined and has specific roles.

2. Moreover, they always "maintain a holistic viewpoint and brand scope". All their products must be sustainable. This approach helps them quickly rationalise or remove a brand that doesn't add value - thus bringing clarity to consumers and employees.

Benefits of brand portfolio

Furthermore, five benefits of a brand portfolio exist for Unilever to be successful ( Klopper & North, 2011:272). These are:

1. "Cohesiveness across all brands" helps them identify which brands need attention.

(Employees at Unilever lab)

2. It's brand assets - It understands that to be effective, it needs to leverage the right brands, and it does this well because it relies heavily on research.

3. Unilever understands that markets constantly change, and so do people - so it continuously adapts to its consumers' choices bringing new products or altering current brands. The brand is, therefore, great at maintaining relevance.

4. Moreover, its ability to connect emotionally with its consumers through its brands allows it to differentiate itself using" branded differentiators and energizers."

5. Lastly, "this brand leaves no room for confusion and creates cohesiveness in the brand portfolio."

Let's talk reputation

Cravens et al. (2010) share several elements influencing corporate reputation. For Unilever, these are:

1. Its multiple product brands which have connected with consumers deeply.

2. Its aim to "make sustainable living commonplace" influences its reputation positively - making it a brand with a “great environmental relationship”.

3. The company does extensive research using "science, tech, and consumer insight" (Unilever, 2023).

Although so much more influences it. I have mentioned three.

For Unilever, it hasn't always been smooth sailing.

(Treatment of employees Unilever)

According to Walsh et al. (2010), there are "five factors that can determine a customer’s perception of an organisation." Which are,

1. Treatment of employees – In 2019, Unilever employees stated that they were shot with rubber bullets for peacefully practicing their rights in Durban (ethical consumer, 2023). Additionally, the Kenyan plantation workers stated that they were being abused sexually at the plantation sites in Kenya, and Unilever did not step in immediately to help stop this (Omondi, 2023). This bad media influenced consumer perception negatively.

2. Nonetheless, Unilever treats its employees well; according to a survey done in 2022, "82 % of office employees say Unilever cares" (Unilever, 2023). Although it fails in many aspects regarding "its failure to help Kenyan plantation workers." Some still see the organisation as a good employer.

3. Unilever is financially stable due to its many successful product brands worldwide, used daily by millions of people, and is therefore reliable.

4. Most of its products are quality. The products speak for themselves, and that's how it is with many of its products.

5. It "invests large amounts of money for climate, nature, and waste reduction projects (Unilever, 2023)." This positively influences consumer perception.

Now let's talk transparency

Unilever knows that transparency is everything. Unilever's president said: "They are committed to transparency and to build trust in Unilever and their brands."

The brand will share the ingredients of its beauty products on "a digital platform for consumers to view " (AFP- Relaxnews, 2019).

Ethical practices

According to research, "Unilever received the worst rating" for animal testing policy; it looks like they aren't as animal friendly as they claim to be. Unilever still does animal testing on certain products in countries that require it to be done (Ethical Consumer, 2019).

"A cause worth fighting for." Watch till the end to hear Unilevers' employee!

(Unilever invests and hopes for a brighter future through Sustainability)

Here are some tips for it to build and maintain its reputation : (Klopper & North, 2023)

Firstly, as a corporate brand, it must continuously offer a unique value proposition  (do market research), manage negative press effectively, apologise for mistakes publicly, remain authentic, and maintain relevance (by satisfying new consumer needs and identifying gaps in the market). Lastly, "manage each brand well in its varied countries".