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 management plays a critical role in the success of the brand rejuvenation process. 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.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 . having become suitable for the product. In order to make successful brand rejuvenation. Changed market conditions imply relaunching of a brand on the same positioning plank. could warrant a re-launch of the brand. we have to bringing in a synergy between the vision. The very creation of a brand is influenced by the purpose or the goal of a brand. strategies. The current market situation. 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. Factors influencing Brand Rejuvenation The model suggests the various factors that influence the process of brand rejuvenation. mission statements of the company along with the intents. The major decisions about a brand would dependent on why the brand was created.

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. 3 . the product has lost its appeal or usage. i. the stakeholders of the company now see the company. Bringing out new uses will also affect the consumers and thus change the brand image. 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. If the cause for brand rejuvenation is the product itself. as it would like to be seen. 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. it prompts the company to change the perception in the minds of the consumers. effort and expenditure. and the market is not accepting the brand.e. When the cause for brand rejuvenation is the customers.As a result of Brand Rejuvenation. may be as it was seen before it lost its brand equity. The positioning may have to be changed on the whole.

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

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