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Product portfolio management launched by HLL

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Product portfolio management launched by HLL

Hindustan Lever Limited is undergoing a major exercise for enhanced product portfolio management. At present, HLL has 110 brands on its price-list. As part of the exercise, the company has decided to focus its attention and resources on only 30 brands. The brands have been decided on the basis of absolute size, brand strength and uniqueness, competitive positioning and growth potential.

Currently, the 30 brands account for 75 per cent of HLL's FMCG business. Even as the company is not willing to give names of the 30 brands, it ensures that they cover all key categories and segments that the company operates in. Market observers believe they would include brands like Lux, Lifebuoy, Rin, Wheel, Surf, Kissan Annapurna (atta and salt) and Fair & Lovely to name some.

The company plans to make these power brands grow by realigning total brand management resources through market appropriation, people resources and innovation resources behind these brands, ensure that they grow by making them cross categories and add value to these brands wherever appropriate.

In terms of cross categories, the company does not rule out the option of having Fair & Lovely soap, Lux range of cosmetics and Lifebuoy talcum powder. For the remaining brands, the company has planned a series of initiatives which include migration to the power brands.

The company would also look at sustaining volume and profitability of these brands with minimum and cost effective support. As a last option the company would look at disposal of the brands.

The company has also shortlisted five growth engines for entry. They include water, confectionery, consumer health care, direct to home consumption and new paradigm to enter rural markets.


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