[Sometimes I get asked to write stuff and feel the marketing strategy equivalent of those famous protest signs that read ‘I can’t believe I still have to protest this shit’…]
Nearly 20 years ago, global M&A sprees combined with massive product innovation required the likes of Unilever and Nestlé to carefully assess their portfolios as well as scrutinise any arguments for the creation of new brands.
In February 2000, Unilever famously embarked on a global programme to reduce its number of brands from 1600 to 400 in five years. Coining the term ‘power brands’, Unilever shifted budgets from smaller, local, regional or niche brands to brands like Dove and Persil. It also leveraged the ice-cream Heartbrand to connect local heritage brands (Walls in the UK, Algida in Italy, Langnese in Germany, for example) and act as a platform for international powerhouses (Magnum, Cornetto, Solero, for example) across more than 40 countries.
Telecoms quickly followed suit and we experienced a shift from a world where even an audience-specific mobile tariff would have its own brand to largely monolithic portfolios across the entire sector. Today, you would struggle to point out a non-endorsed sub-brand for one of the major telecom brands.
FMCG companies may not be monolithic, but all the major players increased the prominence of their corporate brand endorsement over the last decade. Nowadays, most of the revenue of Unilever and P&G is estimated to come from a combined group of about 30 brands.
It’s ironic, then, that many of the consultancies behind those famous portfolio efficiency projects are holding increasingly proliferated brand portfolios that are straining not just marketing budgets and internal resources, but the amount of attention they can command in the market. Continue reading