GROWING AND SUSTAINING

BRAND EQUITY
Module 5
 Brand Extensions – Advantages & Disadvantages
• Brand Extension is the use of an established brand name in new
product categories. This new category to which the brand is
extended can be related or unrelated to the existing product
categories. A renowned/successful brand helps an organization to
launch products in new categories more easily.
( For instance, Nike’s brand core product is shoes. But it is now extended
to sunglasses, soccer balls, basketballs, and golf equipments. An existing
brand that gives rise to a brand extension is referred to as parent brand.
If the customers of the new business have values and aspirations
synchronizing/matching those of the core business, and if these values
and aspirations are embodied in the brand, it is likely to be accepted by
customers in the new business).
• Extending a brand outside its core product category can be bene cial
in a sense that it helps evaluating product category opportunities,
identi es resource requirements, lowers risk, and measures brand’s
 Brand Extension Strategies

There are eight di erent strategies.

• 1. Similar product in a di erent form from the original
parent product - This is the strategy Snickers used to
create Snickers Ice Cream Bars.(oreo icreams,
sandwiches)
• 2. Distinctive avor/ingredient/component in the new item -
Hershey's chocolate milk uses this strategy. Consumers
purchase this product because they know the taste of
Hershey's chocolate.

• 3. Bene t/attribute/feature - Febreeze is known for smelling

good. Extending into the car air freshener category made
sense for this company.
• 4. Expertise - Honda is known for reliable engines, which made
Honda lawn mowers a good move for the company.

• 5. Companion products - Aunt Jemima launched a pancake syrup

to go with its pancake mix.
• 6. Vertical extensions - This strategy has the reputation
of going backwards. For example, Rice Krispies are used
to make Rice Krispies Treats. So Kellogg decided to
o er a ready-to-eat version of this snack.

• 7. Same customer base - This strategy is used when a

marketer knows they have a product that could be
used by their current customers.
• I -phone buyers will buy air- pods
• 8. Designer image/status - Harley-Davidson found
success with this strategy through its clothing line.
• Apple: from personal computers into MP3 players.
• Callaway: from golf clubs into footwear, apparel and
golf accessories.
• Dyson: from vacuum cleaners into desk lamps.
• Starbucks: co ee-based beverages into energy drinks.
• Mailchimp: email marketing to Facebook ads.
• Coleman: from gas-powered lanterns to sleeping bags.
• Ferrari: from exotic sports cars to theme parks.
• Google: from search and extended into a hosted email
service.
• Fender from guitars and amps into earbuds.
• Cosmopolitan: from magazines into yogurt.
Instances where brand extension has been a success are-
• Wipro which was originally into computers has extended into
shampoo, powder, and soap.
Instances where brand extension has been a failure are-
• Rasna Ltd. - Is among the famous soft drink companies in India.
But when it tried to move away from its niche, it hasn’t had much
success. When it experimented with zzy fruit drink “Oranjolt”, the
brand bombed even before it could take o . Oranjolt was a fruit
drink in which carbonates were used as preservative. It didn’t
work out because it was out of synchronization with retail
practices. Oranjolt need to be refrigerated and it also faced
quality problems. It has a shelf life of three-four weeks, while
other soft- drinks assured life of ve months.
 Advantages of Brand Extension
Brand Extension has following advantages:
• It makes acceptance of new product easy.
• It increases brand image.
• The risk perceived by the customers reduces.
• The likelihood of gaining distribution and trial increases.
An established brand name increases consumer
interest and willingness to try new product having the
established brand name.
• The e ciency of promotional expenditure increases.
Advertising, selling and promotional costs are reduced.
There are economies of scale as advertising for core
brand and its extension reinforces each other.
• Cost of developing new brand is saved.
• Consumers can now seek for a variety.
• The expense of introductory and follow up marketing
programs is reduced.
• There are feedback bene ts to the parent brand and
the organization.
• The image of parent brand is enhanced.
• It revives the brand.
• It allows subsequent extension.
• Brand meaning is clari ed.
• It increases market coverage as it brings new
customers into brand franchise.
• Customers associate original/core brand to new
product, hence they also have quality associations.
Disadvantages of Brand Extension
• Brand extension in unrelated markets may lead to loss of
reliability if a brand name is extended too far. An
organization must research the product categories in which
the established brand name will work.
• There is a risk that the new product may generate
implications that damage the image of the core/original
brand.
• There are chances of less awareness and trial because the
management may not provide enough investment for the
introduction of new product assuming that the spin-o
e ects from the original brand name will compensate.
• If the brand extensions have no advantage over competitive
brands in the new category, then it will fail.
 Brand Revitalization
• Brand Revitalization, this is a strategy utilized to
improve products and services to meet the demands
and changes of the market. This is usually adopted
when the product has reached a stage of maturity in
its growth life cycle and the pro ts from it are falling.
• Revitalizing a brand requires either that lost sources
of brand equity are recaptured or that new sources
of brand equity are identi ed and established.
According to the customer-based brand equity
framework, two general approaches are possible:
• 1) Expand the depth and/or breadth of brand
awareness by improving brand recall and
recognition of consumers during purchase or
consumption settings; and
• 2) Improve the strength, favorability and uniqueness
of brand associations making up the brand image.
This latter approach may involve programs directed
at existing or new brand associations.
Step 1 in Revitalizing a Brand
• Before taking corrective actions, it is important to
understand the sources which add up to build a strand
of brand equity for the brand.
• There could be:
• Positive associations might be losing strength
• Negative associations may be linked to the brand
What to do in Revitalizing a Brand?
• a) Marketers might choose to stick to original
positioning (Back to Basics)
• At times marketing itself might be responsible for
depleting image in a failure to communicate the actual
brand promise. In this case, its time to get back to
basics and rerun.
• E.g. Harley Davidson: From running into bankruptcy
twice, to rerun the promise and create strong
campaigns.
b) Create a New Positioning Altogether
• Depending on the state of positive and negative
associations with the current brand promise, organizations
may choose to completely reposition the product for good.
• e.g. Pepsi initially introduced Mountain Dew in 1969 and
marketed it with the tagline “Yahoo Mountain Dew! It’ll
Tickle Your Innards.” However, even in the 1990s, the brand
was struggling to stand out.
• To turn the brand around, Mountain Dew updated the
packaging and launched ads extreme sports such as
bungee jumping, skydiving, and snowboarding while
consuming Mountain Dew. The brand slogan became “Do
the Dew.” Young soda drinkers connected with the brand
and its market share swelled up to become the 4th highest-
selling brand in terms of market share by 2005.
 Need of Brand Revitalization:
• A brand might need to revitalize itself because of one or more
of the following reasons:
• 1. Changes in consumer tastes and preferences
• Changing consumer preferences might make the current brand
positioning stale in the mind of consumers. They look for
brands that talk about their language and understand their
current needs.
• e.g. PepsiCo’s lays is one of the highest-selling potato chips in
India. However, as the consumers started turning their
preference towards healthier products, it opened up a
completely new category of healthy snacks. A new brand ‘Too
Yum’ capitalized on the opportunity roping in a celebrity
endorsement.
• 2. The emergence of new competitors
• New competitions pose fresh challenges. Brands may
have a bigger stronger core competency and existing
players will need to tweak their positioning and
communication.
• e.g. A indigenous car brand might need to tweak
positioning when a global competitor with stronger
competency enters the market. Maruti Suzuki might
need to change the positioning around safety when
Volvo enters the market.
• 3. The emergence of new technology
• Failing to evolve with technology is one of the most
common reasons why a brand might need
revitalization.
• e.g. Nokia failed to evolve with changing technology
and vanished for years before making a comeback with
fresh products with new technology. Other brands, like
Kodak, could never make an impactful comeback.
4. Any new development in the marketing environment
• In a changing market environment, new products might
take a completely new positioning with an existing
product and gradually expand base to capture a bigger
market share.
• e.g. Oneplus Smartphones were launched as a niche
segment product for the tech enthusiast. The product
was even made available only by invite in a closed
community.
• However, with time the brand has emerged as worthy
competition to mainstream smartphone brands.
 Reinforcing Brands
• Brand reinforcement, it is the creation of more brand
awareness, among both existing customers and new
ones.
• This process ensures that brand equity does not reduce
over an extended period.

• Almost every brand that has survived decades have

always made it a priority to reinforce their brand’s
equity.
 Brand Reinforcement
• To ensure e ective Brand Reinforcement,
brands need to improve:
• Product
• Services
• Associated Marketing
• Brand Reinforcement is done by:
• 1. Products That The Brand Represents
• Expanding the categories across which the brand
delivers the core bene t satisfying various needs.

• E.g.
• Fortune: Primarily, an oil brand in India, expanded to
other food ingredients.
• Maggi: India’s highest-selling 2-minute noodle brand
from the house of Nestle ruling the country for decades
expanded to ketchup spices and even ready to eat food.
• Brand Reinforcement kicks o when this well-
established brand enters into new segments.
• The promise around the brand remains the same but
they now satis es more needs and expands the range
of core bene t o ered.
 How Brands Make Product Superior and Strong

• Brands bring unique associations with them. A

strong brand has strong associations. And many
times these associations are more abstract and
category agnostic.
• A classic example is Nivea. Nivea, which started
o a skin cream expanded to a wide range of
skincare and personal care products. The brand
also forayed into men’s beauty with their men’s
range. However, across all categories the brand
carried it’s attributed to being – Mild, Gentle and
Caring.
• In the long run, brands must keep moving forward in
the right direction and with new and compelling
o erings. A brand that fails to move forward and
reinforce itself starts losing recall, visibility, market
share and thereby fail. Eg. Polaroid.
• Brand Reinforcement also refers to holding a successful
positioning and make only tactical changes that may
be necessary to maintain the strategic thrust and
direction of the brand
 Brand Reinforcement Advantages and Disadvantages

Advantages
1) Enhances Pro tability:
• As the number of loyal customers increases, it’s safe to
say that revenue will also increase. Having a proper
brand reinforcement strategy can create a set of
customers that will consistently buy whatever it is
you’re selling.
2) Strategy:
• Having a brand reinforcement strategy helps you
prepare and avoid times when your product would go
through a decline. This helps the brand stay proactive
and also creates a contingency when there is a decline.
3) Improves Brand Equity:
• Brand reinforcement ensures that brand equity isn’t
lost or depreciates over time. It improves it and allows
for newer customers.
4) Competition:
• In competitive markets, brand reinforcement can go a
long way in ensuring you maintain a lead amongst
your competitors.
• Disadvantages
• Brand reinforcement has no disadvantage. It is simply a
strategy designed to keep the brand’s public image which is
nothing but bene cial to every aspect of the brand. But
undertaking a process like brand reinforcement will have its
di cult points and tasks that might have consequences if
not properly done or handled.
• 1. Cost:
• For a company to embark on a brand reinforcement process,
it has to prepare itself nancially. While it isn’t always cost-
intensive, it is serious enough to warrant attention to ensure
that it is done right and that cost was managed in any way
possible.
• 2) Change:
• A lot of people are not open to change as we all know,
so it won’t be a surprise when some people are
sceptical about the new process. These people may
include some employees, some customers, even
investors. Going ahead with the plans can lead to the
loss of some of these customers and investors and that
is never a good thing.
• 3) Confusion:
• In the process of Brand reinforcement, there might be
some changes to some physical representation of the
brand. As a result, there would be confusion depending
on how much change is made. For a while at least,
some people may mistake your product for that of a
new company.
 Similarities Between Brand Reinforcement and Brand
Revitalization
• While they are not the same, they both have similarities.
These similarities are highlighted below.
They are both utilize marketing strategies:
• Brand Reinforcement and Revitalization both make use
of marketing strategies like advertisements, improving
logos and other physical representation of the brand,
etc.
Both are required to grow customers:
• While brand reinforcement aims to grow the customers
of an already existing and thriving brand, brand
revitalization aims to grow that of a product that is not
making enough pro ts. In summary, both are there to
help the growth of customers.
Brand Equity:
• Brand equity is very important to both as it helps
both of them achieve their aims. This is because
brand equity helps in keeping customers and making
new ones.
Competition:
• They are both strategies to keep up or get ahead of
the competition. With the help of either of the two,
the brand can stay competitive.
Innovation:
• Both of these strategies promote innovation as they
require the brand to do something di erent. They
both push the company to either venture into
something di erent or better their current products
and services.
 Examples of Brand Reinforcement and Revitalization

• Every new iOS update or release of a new product is a reinforcement

strategy to ensure their customers always know that they are committed
to delivering top-quality products. This helps them constantly stay ahead
of their competition and also ensure that customers old, new, and even
people who don’t buy their products know of their latest products.
• Many established brands and companies take Apple’s approach to brand
reinforcement. Depending on their product or service, either a new set of
adverts or fresh packaging for the products.
 Co-branding
• Co-branding is a marketing strategy that utilizes multiple
brand names on a good or service as part of a strategic
alliance.
• Co-branding can boost the reputation of two or more
brands, depending on the strategy employed. There are four
distinct strategies including market penetration, global
brand, brand reinforcement, and brand extension strategy.
• For example, Citi AAdvantage cards that give you American Airline
miles when you spend money incentivizes both companies.
Factors a ecting Co- branding
• Companies should choose co-branding
partners very carefully.
• As much as a company can bene t from
a relationship with another brand, there
can also be risks.
 Co-Branding Strategies
• According to branding and marketing experts, there are
four distinct co-branding strategies:
• Market penetration strategy: A conservative strategy
that seeks to preserve the existing market share and
brand names of two partnered or merged rms.
• Global brand strategy: Seeks to serve all customers
with a single, existing global co-brand.
• Brand reinforcement strategy: Exempli ed by the use of
a new brand name.
• Brand extension strategy: The creation of a new co-
branded name to be used only in a new market.
 Bene ts of co-branding
• Co-branding can be bene cial to all parties involved,
including the consumers who purchase the products or
use the service. Here are a few of the most notable
bene ts of co-branding for companies:
• Increased customer base, including customers in
previously unreached demographics
• Increased sales
• Creation of better quality products
• Generation of a royalty income
• Increased customer loyalty
• Enhanced brand recognition
• Increased credibility and respectability when aligned
with the right partner or project
• Sharing of the nancial burden for marketing,
technology development and promotional events
• Revenue from mutually produced technology
• Sharing of risk across all partners
 Types Of Co-Branding
• Co-branding isn’t a one-size- ts-all process. Companies
get into di erent co-branding contracts depending
upon the industry they operate it, the type of o ering,
and the branding goals.
Ingredient Co-Branding
• Ingredient co-branding is when brands collaborate based on
compatible ingredients amongst them. The focus is to look
for a matching element, combine the brand personalities
and market the o ering as something that solves the
problem better.
• Example – Dell + Intel Co-brand
• Intel often gets into cobranding contracts with several
computer manufacturers to o er its expertise in CPUs. One
such contract is with Dell.
• Dell makes laptops that need fast processors
• Intel makes compact and fast processors that are used in
laptops
• Therefore, both their products are perfectly compatible and
match with the other.
National To Local Co-Branding
• National to local co-branding is when national brands
collaborate with local brands. The focus here is for the national
brand to reach a local audience and the local brand can reach
a national audience. Since both those customer bases are
extreme, the only way to reach them together is national to
local co-branding.
• Example – Local Businesses With Groupon
• A perfect example of national-to-local co-branding is local
businesses getting into a contract with websites like Groupon to
provide special o erings to the wider audience.
• • Visa co-branding credit cards with local retailers
• • Auto manufacturers with local dealerships
Composite Co-Branding
• Composite co-branding includes well-known and well-
established brands collaborating strategically to build a
stronger marketing plan. Composite co-branding focuses
more on value addition and retaining existing customers
instead of acquiring new ones.
• Example – BMW-Louis Vuitton Co-Brand
• BMW and Louis Vuitton collaborated to make an exclusive
range of travel companions for their i-8 model. The
collaboration was based on the personality and positioning
of both brands as:
• Innovative
• Luxurious
• Expensive
• Sleek
• Joint venture co-branding is another form of co-
branding de ned as two or more companies going for
a strategic alliance to present a product to the target
audience.
• British Airways and Citibank formed a partnership
o ering a credit card where the card owner will
automatically become a member of the British Airways
Executive club.
• Finally, there is multiple sponsors co-branding. This
form of co-branding involves two or more companies
working together to form a strategic alliance in
technology, promotions, sales, etc.
• Example:
 Co-Branding vs. Co-Marketing
• Co-branding and co-marketing are similar concepts in
that both involve partnerships between brands that
seek to strengthen their marketing e orts, but they
di er in how they are executed.
• Co-marketing aligns the marketing e orts of two
partners but does not result in the creation of a new
product or service.
• Co-branding, by design, is based on the creation of a
new product or service.
• A successful example of co-marketing is the marketing
of Indian Premier League (IPL) with youtube (World’s
most Popular video sharing website).
• HSBC has co-branded credit cards with Spencer’s and
Westside’s Retail.
• HDFC and Idea have launched various co-branded
credit cards.
 Co-Branding Examples
• Co-branding is all around you. Consider these examples:
• Taco Bell's Doritos Locos Tacos: Specialty food item co-
developed by Yum! Brands, Inc. and PepsiCo subsidiary
Frito-Lay, Inc.
• "Your favorite music, one tap away": An Uber and Pandora
Media collaboration that lets Uber riders create Pandora
playlists to use during trips
• Citi AAdvantage cards: Citi credit cards that earn American
Airlines miles with qualifying purchases
• Supermarket foods: Pillsbury baking mixes with Hershey's
chocolate; Kellogg's cereal with Smucker's Jif peanut butter
• Nike: A Nike Inc and Apple Inc partnership that has
connected activity tracking technology in athletic gear with
iPhone apps and the Apple Watch.
• A typical example of an International co branding
exercise is when Dell computers or HP computers
advertise with Intel (or you can count it the other way
around). Intel as a processor is known for its computing
power and hence is assumed to be far above the rest.
Naturally, when Dell claims that it has “Intel Inside” this
bene ts the brand tremendously.
celebrity endorsement
 Celebrity branding / Celebrity
endorsement
• Celebrity branding or celebrity endorsement is a form of
advertising campaign or marketing strategy which uses a
celebrity's fame or social status to promote a product,
brand or service, or to raise awareness about an issue.
• Marketers use celebrity endorsers in hopes
that the positive image of the celebrity
endorser will be passed on to the product's
or brand's image.
•  Non-pro t organizations also use
celebrities since a celebrity's frequent 
mass media coverage reaches a wider
audience, thus making celebrities an
e ective ingredient in fund raising.
 Bene ts of Celebrity
Endorsement
Build brand equity - To expand into
new markets
 Help people remember ads -
Celebrity endorsements can improve
ad recall
 Make people believe the product
contributes to superstar status
 Stand out
 Selecting a Celebrity for a Brand

• Brands are important assets to

companies
• Advertisers need to select
celebrities who represent the image
and promise of their brands.
• Not all celebrities t with all brands.
 The Risks of Celebrity
Endorsement
• Images change -  Celebrities make mistakes. And
when they do, they can a ect the brands they
endorse.
• Celebrities become overexposed - When a celebrity
works with so many companies, the celebrity’s
credibility may su er. People may feel that the
celebrity will endorse anything to make a buck.
• Celebrities can overshadow brands - Consumers may
focus on the celebrity, not the product. This is a
particular danger when celebrities endorse multiple
products at a time.
 Brand amnesia
• For old brands, as for old people, memory becomes an
increasing issue.
• When a brand forgets what it is supposed to stand for,
it runs into trouble. The most obvious case of brand
amnesia occurs when a venerable (respected), long-
standing brand tries to create a radical new identity,
such as when Coca-Cola tried to replace its original
formula with New Coke. The results were disastrous.
Lessons from New Coke
• Concentrate on the brand’s perception. In the words of
Jack Trout, author of Di erentiate or Die, ‘marketing is
a battle of perceptions, not products’.
• Don’t clone your rivals. In creating New Coke, Coca-
Cola was reversing its brand image to overlap with
that of Pepsi.
• The company has made similar mistakes both before
and after, launching Mr Pibb to rival Dr Pepper and
Fruitopia to compete with Snapple.
• Feel the love. According to Saatchi and Saatchi’s worldwide
chief executive o cer, Kevin Roberts, successful brands
don’t have ‘trademarks’. They have ‘lovemarks’ instead. In
building brand loyalty, companies are also creating an
emotional attachment that often has little to do with the
quality of the product.

• Do the right market research. Despite the thousands of

taste tests Coca-Cola carried out on its new formula, it
failed to conduct adequate research into the public
perception of the original brand.
 Brand ego
• Brands sometimes develop a tendency for over-
estimating their own importance, and their own
capability.
• This is evident when a brand believes it can support a
market single-handedly, as Polaroid did with the
instant photography market.
• It is also apparent when a brand enters a new market
for which it is clearly ill-suited, such as Harley Davidson
trying to sell perfume.
 Brand megalomania
• Egotism can lead to megalomania. When this happens,
brands want to take over the world by expanding into
every product category imaginable. Some, such as
Virgin, get away with it. Most lesser brands, however,
do not.
 Brand deception
• Some brands see the whole marketing process as an
act of covering up the reality of their product. In
extreme cases, the trend towards brand ction can
lead to downright lies.
• For example, in an attempt to promote the lm A
Knight’s Tale one Sony marketing executive invented a
critic, and a suitable quote, to put onto the promotional
poster. In an age where markets are increasingly
connected, via the Internet and other technologies,
consumers can no longer be deceived.
• Activia yogurt - Dannon stated that its yogurt had
nutritional bene ts other yogurts didn't. They had to
pay $45 million in a class action settlement.
• Splenda - Ads say it is made from sugar; but, that is not
the case. It is made of highly-processed chemical
compounds.
 Brand fatigue
• “A lessening in one’s response… typically as a result of
overexposure…”
• Brand fatigue is when your audience has heard/seen so
much from you that they actually ignore your
advertisements (which is bad). In fact, even if they do see/
hear the advertisements, they’ve already cut you o and
your message is useless. On top of that, your money is just
being thrown away too.
• Some companies get bored with their own brands. You can
see this happening to products which have been on the
shelves for many years, collecting dust. When brand fatigue
sets in creativity su ers, and so do sales.
 Brand paranoia
• This is the opposite of brand ego and is most likely to
occur when a brand faces increased competition.
• Typical symptoms include: a tendency to le lawsuits
against rival companies, a willingness to reinvent the
brand every six months, and a longing to imitate
competitors.
 Brand irrelevance
• When a market radically evolves, the brands
associated with it risk becoming irrelevant and
obsolete.
• Eg: Type writer, CD in movies
Idea failure
 McDonald’s Arch Deluxe
• As well as the McLibel Trial (covered in Chapter 5),
McDonald’s has also experienced a number of more
conventional marketing problems in recent years. Most of
these problems have been new products that have failed to
inspire consumers. McLean Deluxe (an attempt to cater for
the healthconscious customer) and McSoup are two
obvious examples, but it was with the Arch Deluxe burger
that McDonald’s experienced its most embarrassing op.
• Marketed as the ‘Burger with the Grown-up Taste’, the idea
was to have a burger which wasn’t associated with children.
Indeed, the advertising campaign for the Arch Deluxe
rammed the message home with various images of kids
shunning the ‘sophisticated’ product
 Lessons from Arch Deluxe
• Go for what you know. Part of McDonald’s brand identity is simplicity.
Another part is its child-friendly approach. A ‘sophisticated’ burger
designed to exclude children was therefore destined to mis re.
• Avoid customer confusion. ‘McDonald’s is not cognitive, it is re exive,
’ says Dave Miller in the November 2001 Brand Week article. ‘We
treasure not having to think about it. It just “is”.’ By extending its
range with products such as the Arch Deluxe, Bratwursts, McTacos
and McMussels, McDonald’s was creating a need to think.
• Be skeptical of research. Market research has its place when
carefully conducted, but it should never be taken as gospel truth.
Kellogg’s Cereal Mates
• The idea was simple. Cereal Mates were small boxes of
Kellogg’s cereal packed with a container of milk and a
plastic spoon. The advantage of the product was
equally straightforward. Namely, convenience. An
increase in working hours in the United States,
combined with the rise in fast-food chains, led Kellogg’s
to believe that there was a demand for an ‘all-in-one’
breakfast product.
• To maximize Cereal Mates’ chances of success, the line
included the four most powerful Kellogg’s brands in the
US – namely Corn Flakes, Frosted Flakes (Frosties), Fruit
Loops, and Mini Wheats.
• However, despite Kellogg’s best e orts, the Cereal
Mates brand proved a major op, and in 1999, the year
Kellogg’s rival General Mills took over as the United
States’ number one cereal maker, the product was
pulled from the shelves. The reasons why Cereal Mates
failed to win over consumers are various, and have
been dissected by various journalists and marketing
professionals.
• Lessons from Kellogg’s Cereal Mates
• Consumers don’t like warm milk on their cereal.
• Don’t mix your messages. On the one hand, Cereal Mates was
an ‘eat anywhere’ product. On the other, Kellogg’s was
implying it needed to be stored in a refrigerator.
• Sell the brand in the right place. Cereal Mates was, essentially,
a cereal rather than a milk product. Consumers would have
therefore expected to see it on the shelves next to the other
cereal products.
• Be the best in at least one thing. As a cereal product Cereal
Mates failed because there were tastier and equally healthy
alternatives. As a convenience product it failed because
breakfast bars proved to be a faster, more exible option.
• Don’t price too high. Consumers did not expect to pay as much
as they did for a four ounce box of cereal.
 Top brands
• Amul Products
• Amul is the undisputed king of the FMCG industry in India with
a rich portfolio of marquee brands in its eld of presence.
• It has various range of products like Butter, milk, milk-based
drinks, cheese, curd, buttermilk, chocolates, ice creams,
chocolates (including dark chocolates) etc.
• It’s one of the largest brands in terms of size and has the
highest annual turnover in the industry i.e. more than Rs. 38,
000 crore.
• One of the major competitors to Amul is Mother Dairy. Both of
these brands are cooperative and not corporate entities with
one of the largest bases of milk growers. Both brands have
changed the face of the dairy sector of India and transformed
the lives of millions of small milk producers.
• It is also the largest milk buyer in the country, with the highest
penetration of Indian households.
• USPs
• Low pricing
• Good quality
• Convenient packing
• Easy availability across India
• Innovative advertising with the lowest cost in the
industry. (Amul girl is now a household name with
its current issues based cartoons splashed all
newspapers and hoardings across key roads of
cities)
• E cient and largest supply chain
 Marico’s Brands – Parachute and Sa ola
Parachute Oil
• Historically, the coconut oil is consumed in South India with
Kerala being the largest consumer. This oil is crushed from raw
coconuts from the trees and converted into pure oil at homes.
• Harsh Mariwala was the rst to spot the opportunity in a large
unbranded marked of loose raw oil, dominated by the informal
sector. He converted the commodity business into a reputed
brand and gradually gained a major share of branded oil
segment. The market share of Marico (which produce and market
parachute oil brand) consistently hovered around 50% and
Parachute had been the leader of the market.
• Parachute brand had since been successfully
extended to various coconut-based products such
as advanced skin cream. Hair cream etc.
• Marico success mantra is to focus on marketing
and promotion e orts and the expansion of
distribution network backed by neighbourhood
Kirana stores and organised retail chains. The
impact of COVID-19 is shifting consumer buying
preferences online which has led Marico to change
its marketing strategy to omnichannel selling.
Sa ola
• Sa ola re ned cooking oil with its health-based
appeal and innovation that attracted consumers in the
premium health-conscious segment, with its focus on
heart health and related ailments. Sa ola brand has
since been extended to various health-based products
including ready to eat oats, soups and others.
• Marico, which produces both these brands is having
the largest distribution network across India backed by
e ective advertisement campaigns and right
messaging to target consumers.
• Essentially, USP of both brands is the same which these
brands continue to capitalise and expand market share.
• Parle biscuits, with a ordability and mass consumer
appeal, is India’s most successful brand story.
Unforgettable picture of little sweet child licking his
ngers on its packaging leaves a unique mark on our
mind. This is one child who refused to grow and seems to
be an immortal child.
• The price point of Rs 5 per pack (now Rs 6) was an
innovation which it’s competitors have no choice but to
follow.
Raymond Fabrics
• Raymond fabrics particularly, trousers and suit
pieces are reigning bridegroom favourite marriage
dress and brides family preferred marriage gift to
relatives.
• The brand has a strong chain of retail stores across
India backed by e ective advertising campaigns,
target messaging and quickly adaptable to ever-
changing consumers tastes.
• There is hardly any competition to Raymond and it
will continue to gain market share with continuing
investment in retail stores.
Limca and Thumbs Up
• Thumbs up, Limca and Gold Spot were the best brands
of their time were acquired by Coca Cola decades back.
• These most popular brands could not be downgraded
to the background by Coca Cola own brands as Indian
consumers had developed the taste of these drinks,
which was based on what Indians like to drink across
all age universe.
• Thumps Up and Limca continues to rule cola and
lemon avoured segments and a story of successful
brands.
Haldiram and Others
• Haldiram, Bikanewala produces the most delicious
snacks and packaged food items. They are the market
leader in this high growth segment. North Indian ethnic
snacks, food and sweets are their unique selling
proposition like Samosas, Chats, Rasgulla, and more.
• Ghasitaram was also a famous and brand of Mumbai in
the same category but over a period lost its customer
base due to family disputes and other reasons.
• Strong distribution network and retail outlets are the
strength of these brands. These outlets have large
scale presence in Delhi, Nagpur and other major cities.
• Some other strong and successful Indian brands
include Dabur, ITC FMCG products, FabIndia, and more.
• Brands like Paytm, Flipkart, Zomato, Swiggy,
MakeMyTrip, OYO, Byjus, and more are establishing
themselves as strong brands for the long term.
• https://www.onlinegk.com/news-and-tips/top-brands-
in-india-2020
Thank you