Thursday, August 17, 2006

SHARK INSTINCTS


IIPM MANAGEMENT INSTITUTE
Acquiring the already established brands alleviates the big daddies from the trouble of launching and establishing new brands in a market. Global giants are also resorting to brand acquisitions to strengthen their foothold in India. A classic case is Heinz India Ltd., which is scrambling to beef up the brands it acquired from Glaxo. Complan, the flagship brand of Glaxo, was re-introduced with new flavours, and this summer, the company also relaunched Glucon-D & Nycil. Indian companies are responding as well, and in kind. Godrej Consumer Products Ltd. (GCPL) acquired 100% stake in Keyline brands (which has personal care brands like Cuticura, Erasmic, Nulon) in 2005. Adi Godrej, Chairman and Managing Director, GCPL said, “The acquisition of Keyline Brands has given us access to several geographies as well as some strong brands and trademarks.” Tata Tea acquired Czech brand Jemca in May this year. Its subsidiary, Tata Coffee has acquired Eight O’Clock Coffee Co. for $220 million in June 2006.

Certainly, acquiring brands helps in eliminating competition and expanding into new areas. States Satish Sohoni, COO, Food Additives Business, Tata Chemicals Ltd., “While marketing FMCG products, one has to keep in mind the regional unbranded players and that’s why constant re-launching is required to connect with the customer.” Their flagship brand, Tata Salt, was recently relaunched with a new look.

With re-launching or re-branding, the sharks are now certainly eating away at the markets, and it is likely that the unbranded Nemos will soon bid adieu to the shelves of your nearest grocery stores.

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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