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HLL begins rationalising and phasing out bands

25-April-2001
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HLL begins rationalising and phasing out bands

Hindustan Lever has begun the process of rationalising and phasing out brands in its product portfolio. The brands have been decided on the basis of absolute size, brand strength and uniqueness, competitive positioning and growth potential.

HLL plans to grow these ‘power brands’ by concentrating brand management resources through market appropriation, people resources and the innovation resources behind these brands. This is part of the company’s plan to concentrate resources on 30-35 top brands out its existing portfolio of 110 brands.

In beverages, in particular tea, the company will migrate brands like Top Star, Red Dust and Super Dust under the 3Roses umbrella, while others like Lipton Tiger ( a pre-mix tea) is being phased out. The company will focus on four brands in the long term, namely brand Red Label, Lipton Taaza, Taj Mahal and 3Roses. It has 10 brands now.

The company will also phase out small units packs (paisa packets) in tea brands where it is not considered viable. In tea, while the overall marked has declined by 7 per cent, HLL has faced a degrowth of 13.9 per cent.

In oral care, the company will concentrate on Pepsodent and Close-Up which have recently been relaunched. Aim will eventually be phased out.

Currently, the top 30 brands account for 75 per cent of HLL’s FMCG business. The brands have been decided on the basis of absolute size, brand strength and uniqueness, competitive positioning and growth potential.

The company plans to grow these ‘power brands’ by concentrating brand management resources through market appropriation, people resources and the innovation resources behind these brands.

The ORG-Marg figures for April-December `00, show that Lux toilet soap has a 13.4 per cent market share and Lifebuoy has a 12.6 per cent share in the toilet soaps category. In detergent cakes, Rin Supreme has a 16.6 per cent market share.

Close-Up has an 18.6 per cent market share, with Pepsodent at 11.5 per cent in the toothpaste market for April-December `00. In soaps the company will concentrate at making a few brands like Hamam.

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