Case studies of brand strategies-India


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Case studies of brand strategies-India

  2. 2. In the case studies of branding strategies that abrand gets to choose from, I’ll take you on thejourney of the following branding strategies:A. Co-BrandsB. Line ExtensionC. Brand ExtensionD. Multi BrandsE. New Brands
  3. 3. Co-Branding occurs when two different brands belonging totwo entirely different parent brands collaborate. Here, moreoften than not, they’re not competitors to each other andbelong to two different product category.For example; When Coca Cola wanted to fight UnileversLipton range in the cold drinks space, it needed a partner.Coca Cola had no association with tea and it clearly needed apartner. That led to its partnership with Nestle, resulting inthe launch of Nestea. Nestea is created by Nestle andbenefits from the Nestle Brand name but is distributed byCoca Cola.However, in January 2012, it was announced that the jointventure between Coca Cola and Nestle would be phased outby the end of the year. Nestle retained the right to the Nesteabrand name, while Coca Cola continues to manufacture thesame drink under another brand.Other examples:A) Tablet and mobile phone handset makers Micromax’scollaboration with internet USB dongle brand TATA PHOTON+for its tablet FUNBOOK where you get free TATA PHOTON+dongles on purchase of a MICROMAX FUNBOOK
  4. 4. Line extension is one in which the brand adds toits existing product line by introducing newvariants to it and/or adding more features to itwith the same brand name.While this branding strategy practice givessomething new to already existing consumerbase of the brand; the new line extensions alsocan draw new consumers towards your brand.The only flip side is that there is danger ofcannibalization with the new product eating intothe sales of the previous one.A good example of cannibalization is that of thecoco cola. Years ago, coca cola introduced 200 mlbottles priced at Rs. 5. It sold like hot cakes butthen it ate into the profits and consumer base ofthe 300 ml bottles of coca cola. Ultimately, cocacola had to withdraw/stop the production of the200 ml bottle variants of the brand from themarket to save its 300 ml bottle variant.
  5. 5. Brand extension is where a brand ventures into a new product category with the samebrand name. Brands often adopt this strategy to leverage upon the well-developedimage of their brand name in some other product category. Here, unlike, lineextension, the new product is not a substitute for the earlier one. Examples:Reliance ‘s BIG brand has its presence in these product categories:- DTH service;private FM broadcasting; home videos; multiplex at al with the brand names BIG TV;BIG FM; BIG HOME VIDEO; BIG CINEMAS respectively. Similarly, Airtel, a cellularservice provider, made a brand extension in the form of venturing into DTH productcategory with the brand name AIRTEL TV. Paras Pharmaceuticals’, entered into personal-care product space with ‘Set Wet’;‘Zatak’ brands.
  6. 6. UNSUCCESSFUL BRAND EXTENSION SUCCESSFUL BRAND EXTENSIONEXAMPLE: EXAMPLE: Fastrack, a leading fashion brand in India, started with the product categories such as sunglasses. Then it extended itself into the product categories such as watches; bags; wallet and belts and proved to be be a roaring success there too.T-SERIES, a Super Cassettes Industries Limited(SCIL) venture, is a music company of India. Itwas one of the leading music companies ofIndia since the era of the 90s and continues tobe a big name in the industry.But when T-series, extended itself to the mobilehandsets product category, it was a totaldisaster. It could not garner enough interest andtrust as it enjoyed in the form of a musiccompany.
  7. 7. When the parent company/umbrella company has a number of products in a numberof categories, that would be called a case of multi-branding. Business giants likeProctor & Gamble; Unilever; Amway etc. have multiple brands to their credits.Multi branding helps a firm cater to the different segments of the consumer marketthrough its array of brands on offer. In this case, two brands of the same parentcompany in the same product category may seem to be a competitor to each otherbut that’s not the case as they target different consumer profiles/segments.
  8. 8. When the product category as wellthe product is new along with thebrand name also; it’s the case ofNEW BRANDS branding strategy ofa firm.For example; ZEE, primarily asatellite television channel, whendecided to venture into the DTHservice or pre-schooling educationsector, it opted to name its brandsin the respective categories as DISHTV and KIDZEE.