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. In spite of several
repeated attempts, it failed to succeed. But the
same company could succeed in flavoured tea
offerings.
HUL’s 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 USP used to be done in two
dimensions. One to differentiate our brand from
the 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
flavoured coffees. Thus, it ended up in failure.

3. Poor Timing of Launch of a Product
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 1980s, a milk based cool drink was
famous in the market, especially in South Indian
market, “SUN FUN”. It was offered in rose, pista
flavours. But due to poor acceptance towards milk
based soft drink, (Gold Spot, Campa-Cola were
dominating the market at that time) it failed in the
market. If it had been launched now, as Indians
are more health conscious, it could have
succeeded. Gold Spot’s positioning was inline
with the teenagers having fun and being modern “The Zing Thing!” OMISSION OF CULTURAL
DIMENSIONS
Omission of cultural dimensions while...
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