Over emphasizing brand extension – Does it help?

January 11, 2013

“Nilgiris” is quite a big shop. When I happened to visit there, I saw one boy asking her mother to buy some noodles. After hearing their conversation, I felt that the boy might be a noodles lover, which prompted her mother to search all the available brands along with him.

In that shop, there might be around 30-35 brands of noodles, including the reputed “Horlicks” brand labeled as “Foodles.” Unlike other brands of noodles, this “Foodles” brand comes in different colors and tastes. And when the boy’s mother notices the “Horlicks Foodles,” she picks it up immediately. Though she is fully aware that noodles are junk food, she still goes ahead in buying them, just for the sake of the brand.

It is really praiseworthy to make a note of the person who brought forth this brand concept and even should be a genius to make use of this concept to successfully sell the products.

Now let’s get back to our story. To her mother’s utter surprise, the tensed boy immediately tells her mother not to buy “Foodles” and reiterates his stand that he is averse to “Horlicks” and hence she should only purchase the “Maggi” brand of noodles. He simply puts a Maggi packet in the bag and moves on to the “Chocolate” section.

Isn’t this surprising? Horlicks must have done all the hard work, including conducting some good market surveys to understand the customers’ psychology, investing money in bringing about an attractive pack, and ultimately offering the brand an attractive price.

However, within a second, this boy smashed all the efforts of the company that went into branding and positioning the product. When the company emphasizes so much brand extension, do they expect this reverse swing? Definitely one needs to have a thought on this!


About the Author

S.Jaya Prakash, an entrepreneur based in Chennai, runs a premium subscription-based service that provides business news, tenders, data, and analysis pertaining to Engineering, Procurement, and Construction Business in India.


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