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Loreal Case Study

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WHY BRAND FAIL?
Brands fail due to several reasons. It may be due
to the company’s offerings not relevant to current
market needs, poor communication, positioning,
etc.
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 USP/JND
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. Poor Packing

1. No USP/JND
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 (USP) or
Just Noticeable Difference (JND).
USP or JND help the brand to communicate
its unique attributes and differentiate itself from
the other rival brands in the market.
Lipton’s Noodles “Super Mum” in 1980s failed
in the market as its position didn’t clearly
differentiate itself from the Nestle’s “Maggi”. It
failed not only because of poor positioning strategy
against Maggi but also not able to convince the
consumers that it is a healthy alternative to Indian
meal – Rice and Rohti. How “Maggi” 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 Bhi – Health Bhi” to convince the growing
health conscious moms who wants to avoid junk
foods to be offered to their kids.

2. 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
flavours of coffee in South India....

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