Background Revitalizing a once-popular dormant brand can be a highly profitable strategy under the right circumstances.

Over time, brands build up awareness and name recognition among consumers. People connect emotionally with a brand that reminds them of a specific time, place or experience, and old brands often have a reputation of reliability that new brands cannot match. Bringing back a dormant brand that consumers already recognize and are loyal to can save a lot of money. These savings are in the development, marketing and advertising expenditures that are required to launch a new brand. Making use of pre-existing awareness can also increase a product’s success rate by helping to cut through the clutter of products in the media. A year after shortage of cash forced Subhiksha Trading Services Ltd to close its nationwide network of 1,600 supermarket stores and default on loans, vendor payments and staff salaries, the Chennai-based discount retailer is trying to get back on its feet. The seller of groceries, fruits, vegetables, medicines and mobile phones is planning to reopen a handful of outlets in Chennai. Subhiksha’s early success was due to its no frills model – it had read the external environment very well and identified deep discount business model which appealed to the middle and lower income strata families which went for the convenience of the location and the price as after all it was mostly the groceries that they bought. It also seemed to have operated on a very low back end and corporate overhead costs. So long, as Subhiksha focused on its core competency and operated with in a small geography the model worked. It was not geared to handle a fast pace of expansion primarily due to increase in costs and availability of funding. The increase in stores and personnel were affecting the financial controls. A classic case of not doing “Consolidation” before “Expansion” sealed its fate. Launching a new brand involves enormous costs. Cashing in on an old brand will save a good, if not substantial, amount of the initial costs. Secondly, it results in cost savings for the company in terms of not having to take up any "new brand" building efforts. Launching a new brand involves more cross-


The very creation of a brand is influenced by the purpose or the goal of a brand. The management plays a critical role in the success of the brand rejuvenation process. mission statements of the company along with the intents. could warrant a re-launch of the brand.functional co-ordination than any other stage in product development and accounts for more than 90 percent of the total cost of getting a product to market. A brand might have failed in previous years because the market would not have been suitable for it at that point of time. having become suitable for the product. Changed market conditions imply relaunching of a brand on the same positioning plank. we have to bringing in a synergy between the vision. The major decisions about a brand would dependent on why the brand was created. the basic idea of a brand or a product would be generated after the need is assessed. A brand audit may be necessary for certain brands in order to get the entire history and perception of a brand. facts and analysis. Factors influencing Brand Rejuvenation The model suggests the various factors that influence the process of brand rejuvenation. In order to make successful brand rejuvenation. The current market situation. This may give us the cause of under taking brand rejuvenation. strategies. 2 .

e. it prompts the company to change the perception in the minds of the consumers.. may be as it was seen before it lost its brand equity. i. If the cause for brand rejuvenation is the product itself. as it would like to be seen. the product has lost its appeal or usage. the stakeholders of the company now see the company. When the cause for brand rejuvenation is the customers. effort and expenditure. The ensuing goodwill allows goals to be achieved with less resistance.As a result of Brand Rejuvenation. This may simply require reminding consumers of the virtues of a brand that they have begun to take for granted. 3 . Bringing out new uses will also affect the consumers and thus change the brand image. and the market is not accepting the brand. The positioning may have to be changed on the whole. Relations between need and the method of brand rejuvenation The above model tries to relate the various factors that bring about the necessity of brand rejuvenation and the various methods available for brand rejuvenation. This can be done brand requires establishing more compelling points of difference. The product attributes have to be changed and the company may bring out newer uses of the product so that the product is relaunched in the market.

The ability to do this stemmed from its relentless focus on value delivery rather than transactional relationships. even a 10 per cent discount adds up to a sizable annual saving for the customer The branding strategy for this retail store should be low-cost and no-frills. the quality of groceries. Subhiksha.. Brand Image and Identity The brand image that Subhiksha should aim at portraying was of a trustworthy. and set up a chain of small. and the availability of products. Subhiksha uses a format that focuses on fast-moving. • The company should seek to provide a one stop shop for all daily shopping needs of a consumer and sells FMCG products. but functional. therefore should decide to focus on price.Alternative Strategy for Subhiksha • Consumer looks for 4 core attributes in a store: its proximity. a reliable and trustworthy store that has the lowest prices. • Subhiksha relaunch should be built on a unique business model with no frill stores in the neighborhood area offering 8%-10% discount on Maximum Retail Price (MRP) on all products sold throughout the year. reliable store that cared for the customer and ensures the best deals or lowest prices 4 . i. • Discounting works well in some product-categories. the price of branded groceries. food & groceries.e. pharmacy products and mobiles. like groceries. Since these products are purchased every month. The image of the store to be communicated through various media will that be of one who cared for its customers and ensures the best deals and savings. It should focus on building long-term relationships with its customers by giving them a lifetime of value and savings. stores during its re-launch • Its customer focused retailing format should emulate the neighbourhood kirana store model. with its innate convenience along with the added advantage of consistent and every day discounts and assurance of quality. large-volume items.

Ritu. “Someplace else. Vijayraghavan. 20 August 2000. “Good monsoon doesn’t mean more FMCG sales. which will be their major competition.” Business Line Chennai. Thakur. Mrinal Kanti. The aim will be that no one should be further than 2 km away from a Subhiksha outlet.” The Asian Age.” The Pioneer. 3 April 1998. 7 February 2001.” Financial Express. Chandran. Brand Strategy By opting for smaller outlets. Vikram. Ajay. Brand Positioning Discount retail chains like Subhiksha need to position themselves against the neighbourhood stores. Dey. cut out middlemen and offer better prices to consumers. BIBLIOGRAPHY Bhasker. “Food retailing value addition to up growth. Kala. The latter offer personalized service and have small scale operations.150 crore expansion strategy. 2 February 2002. Doctor. Vijay. easily accessible and one that offered great prices and savings. “Held to ransom by L&F. Calcutta edition. The target obviously will be the masses. “Private labels give FMCG giants a run for their brands.” Economic Times. Rina. “The great Indian super bazaar.” Economic Times. Nair.” The Telegraph. 21 February 2002. Jain. It should aim at being perceived as a trusted source of household needs.for them. 20 November 2003. “Subhiksha plans Rs. Subhiksha can increase its presence. To succeed. “Competing on price is the new name of the game. 5 . 17 June 2003. Malini. 20 November 2003. the discount chain needs to integrate backwards into the supply chain.” Economic Times.

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