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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-


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

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

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

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

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