Unilever is debating whether to unify its Dove, Axe, and Lifebuoy lines under a single sustainability-focused umbrella brand. Executives believe this could improve operational efficiency but worry about confusing consumers who see each brand as unique. What should Unilever do to preserve brand equity while pursuing its sustainability strategy?

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BlackTom AI · Accepted Answer

The question presents a strategic branding dilemma: how can Unilever leverage a unified sustainability strategy without eroding the distinct equity of Dove, Axe, and Lifebuoy? Each option should be weighed on whether it preserves brand identities while signaling a common sustainability objective. 
Option 1: 'Focus on B2B partnerships instead of consumer messaging.' Focusing on B2B channels could improve supply-chain sustainability and cost efficiency, but it neglects the critical consumer-brand relationship and the equity built through consumer messaging. It would miss the opportunity to align end consumers with a shared purpose, which is essential for a sustainability umbrella strategy. This does not directly address preserving brand equity in the eyes of consumers. 
Option 2: 'Maintain distinct brand identities but communicate a shared sustainability mission.' This option aligns with preserving each brand’s existing equity—each brand remains recognizable to its target audience—while signaling a unifying corporate sustainability narrative. It leverages the strength of brand-specific appeals (e.g., Dove’s advocacy, Lifebuoy’s health messaging, Axe’s youthful positioning) and ties them to a common mission, reducing consumer confusion while delivering operational gains from a unified sustainability platform. This is the most balanced approach that protects brand equity while advancing the sustainability agenda. 
Option 3: 'Merge all sub-brands under one name to simplify branding.' A single umbrella name could undermine the unique consumer perceptions and loyalties built around each brand's distinct positioning. It risks diluting established brand equity, causing confusion for consumers who rely on brand-specific signals for quality, tone, and promise. This would likely erode the very equity Unilever wants to preserve. 
Option 4: 'Retire weaker brands to focus only on Dove’s established equity.' Removing Lifebuoy and Axe overlooks the value of diversification and the broader market reach across different consumer segments. It also reduces portfolio resilience and can be costly in terms of wasted sunk costs and potential backlash from brand loyalists. This approach discards potential synergies and sustainability storytelling across the portfolio. 
Option 5: 'Rebrand every product with identical packaging to reinforce unity.' Uniform packaging could visually signal unity but would erase distinctive brand identities and consumer recognition cues. Packaging convergence may harm brand recall, differentiability, and perceived relevance to each target segment, undermining the goal of preserving brand equity while pursuing sustainability. 
Overall, Option 2 best satisfies the dual objectives: keep each brand’s unique equity intact, while articulating a credible, shared sustainability mission that guides the entire portfolio. The other options either neglect consumer messaging, threaten brand differentiation, or reduce portfolio diversity, all of which risk weakening brand equity in the pursuit of sustainability gains.

FA25-BL-BUS-M370-11927 Marketing Final Exam- Requires Respondus LockDown Browser

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