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Also in the face of all this, arises the dangerous situation whereby companies are merrily raising their axe to cut down on their brand portfolio. Unilever is reducing its brand portfolio from the current 1600 to 400 so-called ‘superbrands’ and its competitor, P&G, is increasingly focussing on its fourteen top brands out of the approximately 300! And while there may arise confusion whether deletion of brands is a healthy exercise, Professor Nirmalya Kumar, Harvard Business School conceded that, “... deletion of brands is neither straightforward, nor well-understood!” Indeed, there is no denying that killing of unprofitable brands becomes imperative, yet, there has to be clarity of vision while doing so.
So the learning remains – kill your brands if you have to... but make sure your consumers don’t mourn... Or else, it’s your company for which they’ll mourn next!
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Source : IIPM Editorial, 2007
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative