2. Topic: Select 5 brands from Indian
market which entered into decline
stage and then were repositioned in
the market for extending their
product life cycle
3. Nokia
• Nokia corporation is a Finland based MNC, Headquarter- Espoo, Finland.
• It started as a pulp, rubber and cable manufacturer company.
• Entered in India 1995, launched few models due to lesser demand and innovation
• Its first model 2110 was capable of sending and receiving sms, then competed with market
leader Motorola as in the introductory stage.
• Nokia 3310 and 3315 were the beginning of the growth stage. It also consist of launching and
sales of E-Series phones.
• Nokia was a great maturity stage that consist of a slider phone with Wi-Fi, radio, MP3 player,
Bluetooth and video recorder (the release of N-Series phones) . This allows Nokia to stay at the
top of the mobile device competitions.
• In the decline stage IPhone (in 2007) took over as the top mobile product sold. It has no luck in
maintaining their customers and resulted in a decline of over 10% in their shares.
• To extend the life cycles the Nokia is taking a stab at feature phones now and again launched
Nokia’s 3110, 6600, 7610 with new features in the market. Now it is still running because of
their rubber roots.
4. Royal Enfield
• Royal Enfield was a brand name under which The Enfield Cycle Company
Limited of Redditch, Worcestershire sold motorcycles, bicycles, lawnmowers and stationary
engines which they had manufactured. Founded at 1901.
• In 1955 Redditch company and Madras Motors become partners and formed Enfield India,
which is currently based in Chennai. The present day Royal Enfield Company is a subsidiary of
the Indian automobile stalwart Eicher Motors Ltd.
• The use of the brand name Royal Enfield was licensed by the Crown in 1890.
• In 1949 it was first introduced in Indian Market and was mostly used by Indian Army (growth
stage).
• When Siddartha Lal took over Eicher Motors they had 15 businesses. The sale of motor cycle
was in a decline stage. Mr Lal decided to divest in 13 businesses and build just two of those
businesses: Motorcycles and trucks.
• Royal Enfield Bullet was selling just 25,000 bikes when he took over.
• Just through pure innovation, Lal managed to make the Bullet a desirable motorbike to ride
once again. The company solved most of the problems especially in the case of quality,
performance, warranty, etc. and repositioned the brand in customer minds.
• It now sells more than 500,000 motorcycles every year and 60,000 motorbikes are being
exported to the rest of the world.
5. Maggie
• Maggie is a brand of instant Noodle made by Nestle India Ltd. It was found by the
Maggi family in Switzerland in the 19th century.
• Nestle introduced Maggi for the first time in India in the year 1982. With the launch of
Maggi noodles, NIL created an entirely new food category - instant noodles - in the
Indian packaged food market.
• Because of its first-mover advantage, NIL successfully grew & managed to retain its
leadership in the instant noodles category Full-Scale Launch of New Products.
• During the 1990s, the sales of Maggi noodles declined, due to growing popularity of
Top Ramen , another instant noodles product.
• In order to reposition and improve sales , NIL changed the formulation of Maggi
noodles in 1997. However, this proved to be a mistake, as consumers did not like the
taste of the new noodles. In March 1999, NIL reintroduced the old formulation of the
noodles, after which the sales revived.
• In 2003 Hindustan Lever Ltd was all set to take on Nestle's bestselling Maggi 2- minute
noodles by launching a new category of liquid snacks under its food brand, Knorr
Annapurna. Due to quality and health issue it face a decline. Now also the company
hardly trying to reposition the brand by using various strategies.
6. Lifebuoy
• Introduced by Lever Brothers in 1895 in England.
• 1963 the lifebuoy was most popular body soap in India (growth & maturity).
• Enjoyed Monopoly. Advertising efforts are limited, Introduction of new models.
• Decline - By 1996, market share fell to 45%, by 1999, Income level increased, consumer
preferred to but expensive soap. By 2001, market share fell to 40 % and later 0n 30.65% ,
low pricing results perception that lifebuoy is only for poor people and those who belong to
the lower middle class not by urban people.
• Brand Repositioning (since 2002) to extend life cycle of the brand, it adopted a strategy of
brand rejuvenation, Backed by High Advertisements Budgets, it injected new products
targeting higher segment of Indian market and gradual shift towards personal care products.
7. KFC
• Kentucky Fried Chicken, popularly known as KFC, is a fast food restaurant chain,
headquartered in Louisville, Kentucky, the United States, KFC is the world’s second largest
restaurant chain after McDonald’s.
• KFC was the first foreign fast food restaurant chain to enter India in 1990s after the Indian
government implemented the economic liberalization policy. The first KFC outlet in India was
opened in Bangalore in June 1995 (introduction).
• Fast food restaurants have gained popularity in India (growth stage) because of their
customized menus that suit the taste buds of the citizens.
• When KFC first entered the Indian market, there were a lot of protests. The reason why KFC
did not gain popularity is because of anti-KFC movements that accused KFC of using illegally
high amounts of monosodium glutamate, which are harmful to health. Also, they claimed
that KFC sold food that was cooked and fried in pork fat. Given all these accusations against
KFC, the fast food restaurant did not reap sufficient revenue to continue its operations in
India (decline). As a result, KFC had to abandon the Indian market.
• Once the Indian market cooled down, KFC returned to the country in 1999 and set up an
outlet in Bangalore (re-entry). Until 2004, KFC only operated one outlet in India and try to
reposition the brand in customers mind. As the sole outlet started making money, KFC
expanded its operations throughout India and today, KFC outlets can be found in a number of
cities.