Loreal Case Study

Brands fall due to several reasons. It may be due to the company’s offerings not relevant to current market needs. Poor communication, positioning, Some of the important reasons are discussed below which could guide the young budding brand managers to learn from the mistakes committed by the market players earlier. 1.

No USPS/JNI 2. Irrelevant Product Concepts 3. Poor Timing of Launch of a Product 4. Omission of Cultural Dimensions 5. Benefits of The Brand Not Communicated Clearly 6.

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Poor Packing The foremost thing a brand manager would think before launching a brand would be its positioning strategy. It is the one which helps the brand to occupy the mind space of the consumers by using the brand’s unique Selling Proposition (USPS) or Just Noticeable Difference NOD). USPS or JNI help the brand to communicate its unique attributes and differentiate itself from the other rival brands in the market. Lepton’s Noodles “Super Mum” in 1 sass failed in the market as its position didn’t clearly differentiate Itself from the Nestles “Magi”.

It failed not only because of poor positioning strategy against Magi but also not able to convince the consumers that it is a healthy alternative to Indian meal – Rice and Roots.

How “Magi” could succeed? Simple its communication positioned the brand clearly. Positioning – “2 minutes Noodles” I. E. , It can be prepared In Just 2 minutes and as a good, evening-snack for the children, which contains proteins and calcium As time went on, its positioning changed as “Taste Bi – Health Bi” to convince the growing health conscious moms who wants to avoid Junk foods to be offered to their kids.

Irrelevant Product concepts Irrelevant product concepts are also one of the key reasons for failure of new brands in the market place.

Brooke Bond, a major player in beverages market in India, attempted to launch different labors of coffee in South India. In spite of several repeated attempts, it failed to succeed. But the same company could succeed in flavored tea offerings. HI-Ills Surf Excel 2005 campaign focused on the core issue – the water’, which is relevant to the market. The campaign’s positioning of brand was “Save 2 buckets of water at every wash”.

It clearly compares how there would be less foam while washing clothes in Surf Excel compared to other brands and thus would be in need of less water to rinse the clothes Thus positioning using USPS used to be done in two dimensions. One to differentiate our brand from he competing rivals and two clearly states the benefits of using our brand in the place of others. This will lead to brand preference in the market. This was not in the case of Brooke Bond’s flavored coffees. Thus, it ended up in failure.

A movie is also a brand which needs proper timing of launch.

If a movie is released during the Examinations, its chances for making box – office collection would be low. Say for instance, a movie released during the school or university examinations shall not do well in the box office, a movie released at the time of cricket or football world cup and so on. This is Just an example to understand the importance of timing of launch of a brand, be it a newly launched brand’s positioning or repositioning of an already existing brand. During sass, a milk based cool drink was famous in the market, especially in South Indian market, “SUN FUN”.