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-

1

having become suitable for the product. A brand might have failed in previous years because the market would not have been suitable for it at that point of time. The very creation of a brand is influenced by the purpose or the goal of a brand. In order to make successful brand rejuvenation. could warrant a re-launch of the brand. facts and analysis. 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. The current market situation. Factors influencing Brand Rejuvenation The model suggests the various factors that influence the process of brand rejuvenation. The major decisions about a brand would dependent on why the brand was created. strategies. mission statements of the company along with the intents. we have to bringing in a synergy between the vision.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. 2 . Changed market conditions imply relaunching of a brand on the same positioning plank. The management plays a critical role in the success of the brand rejuvenation process. This may give us the cause of under taking brand rejuvenation.

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

Subhiksha. • Discounting works well in some product-categories. the price of branded groceries. The ability to do this stemmed from its relentless focus on value delivery rather than transactional relationships. reliable store that cared for the customer and ensures the best deals or lowest prices 4 . pharmacy products and mobiles. like groceries. food & groceries. i. but functional. the quality of groceries.Alternative Strategy for Subhiksha • Consumer looks for 4 core attributes in a store: its proximity. 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.. large-volume items. 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. stores during its re-launch • Its customer focused retailing format should emulate the neighbourhood kirana store model. Since these products are purchased every month. therefore should decide to focus on price. • 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.e. Brand Image and Identity The brand image that Subhiksha should aim at portraying was of a trustworthy. and the availability of products. with its innate convenience along with the added advantage of consistent and every day discounts and assurance of quality. It should focus on building long-term relationships with its customers by giving them a lifetime of value and savings. • The company should seek to provide a one stop shop for all daily shopping needs of a consumer and sells FMCG products. and set up a chain of small. Subhiksha uses a format that focuses on fast-moving. a reliable and trustworthy store that has the lowest prices.

Brand Strategy By opting for smaller outlets. Brand Positioning Discount retail chains like Subhiksha need to position themselves against the neighbourhood stores. To succeed. “Subhiksha plans Rs. easily accessible and one that offered great prices and savings.” Business Line Chennai. Vijay. 3 April 1998. 7 February 2001. Doctor. “Held to ransom by L&F. It should aim at being perceived as a trusted source of household needs. “The great Indian super bazaar. 5 .” The Pioneer. Subhiksha can increase its presence. “Competing on price is the new name of the game.” Economic Times. “Private labels give FMCG giants a run for their brands. 20 November 2003. The latter offer personalized service and have small scale operations.” Economic Times. Calcutta edition. “Someplace else.for them. Chandran. which will be their major competition. Jain. the discount chain needs to integrate backwards into the supply chain. Vikram. Thakur. 20 November 2003.150 crore expansion strategy. “Food retailing value addition to up growth. 20 August 2000. The aim will be that no one should be further than 2 km away from a Subhiksha outlet. Ritu. Vijayraghavan. “Good monsoon doesn’t mean more FMCG sales. BIBLIOGRAPHY Bhasker. Ajay. 2 February 2002. Mrinal Kanti.” The Telegraph. Kala. Dey.” The Asian Age. 17 June 2003. 21 February 2002. Malini. cut out middlemen and offer better prices to consumers. Nair. The target obviously will be the masses.” Financial Express. Rina.” Economic Times.

com www.chennaibest.com www.nic.com www.WEBLIOGRAPHY www.in www.com www.iimcal.agencyfaqs.business-standard.themanagementor.chennai.com www.tn.blonnet.com 6 .retailyatra.in www.ac.