Loreal Case Study
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.
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.