DSpace Collection:http://repository.kln.ac.lk/handle/123456789/183842024-03-29T10:49:15Z2024-03-29T10:49:15ZDeveloping a Market Leader Brand in Cable Market of Sri Lanka.Munasinghe, M.A.L.A.http://repository.kln.ac.lk/handle/123456789/184072017-12-06T10:05:01Z2017-01-01T00:00:00ZTitle: Developing a Market Leader Brand in Cable Market of Sri Lanka.
Authors: Munasinghe, M.A.L.A.
Abstract: Main competitor acquired by the market leader brand and acquired Company developed better than the acquiring company in cable market Sri Lanka. Both companies catered to the same market segments adopting different marketing strategies whilst People development and motivation delivered exceptionally well results for the acquired company. Presently both brands are house hold brands in the minds of consumers and are delivering customer expectations. Further Electrical consultants, Electrical engineers and Electricians are equally recommending both brands for their customers and institutions.
In 1999, ACL Cables was the market leader in the Cable industry in Sri Lanka and the main competitor was Kelani Cables. Both companies were public quoted companies and they supplied 70% of cable requirements in the country. When going through the total share capital of Kelani Cables, 67% of shares were owned by pacific Dunlop Cable Group (PDGC) of companies in Australia,08% shares were owned by DFCC Bank and 25% of shares have been traded among the share Holders in Sri Lanka. Pacific Dunlop Cable Group decided to discontinue the operation in Sri Lanka and based on the agreement between DFCC and PDGC, 67% shares were acquired by DFCC Bank which was owned by PDGC. The share capital of DFCC bank went up to 75%.
DFCC Bank wanted to sell out total shares and they got two offers, one from ACL cables and another offer from Hatton national Bank jointly with the management of Kelani Cables. After evaluating all the avenues and considering the future of Kelani Cables, finally DFCC decided to sell the total shares to ACL cables. With this decision, the market leader acquired its main competitor in the cable industry in Sri Lanka. DFCC Bank may have considered the future of Kelani Cables as they had 300 workers and the strength of the acquiring company before they took the decision. When acquiring Kelani Cables, turnover ratio was ACL: Kelani, 79%:21% after seventeen years of acquisition the turnover ratio became ACL: Kelani, 50%:50%.It is an important point to learn how the acquired company reached this level and what strategies and new methods were adopted by Kelani Cables to come to this junction.
Chairman Mr Upali Madanayake, Deputy Chairman Mr Suren Madanayake and board of Directors gave a high degree of autonomy to run Kelani Cables independently to get the maximum benefit to the group. This was considered as the most important strategic decision taken at the initial stage for visualizing the future of both companies. Today two strong brands are competing with each other for individual market shares and finally benefitting the group. The other important area was to keep strategic interdependence at a low level and they wanted to operate Kelani Cables independently. Both companies operated based on their own strategies. Mr Suren was well aware of cultural incompatibilities of both companies and he wanted to grow both companies their own way by adopting modern technology. Preservation approach was continued from acquisition to date as Kelani cables operated with a high degree of autonomy and independence.
ACL Cables and Kelani Cables had same product portfolio and they catered to the same market segments. Most important and difficult part was to manage two organizations without having conflicts with each other. Mr Suren always set guide lines for both marketing operations and everything did with the intention of growing both the companies. From 1999 to 2003 Mr Suren managed the company as Managing director of Kelani cables and with his busy schedule he couldn’t spend much time and finally Chairman, Mr Suren and board of directors decided to appoint Mr Hemantha Perera as the Managing Director (MD) of Kelani Cables. He managed the company from 2003 to 2010 and during the period many initiatives were taken place for the growth potential of the organization. This was a leadership turnaround of the company.
First thing he did was, brought the vision of the organization as “Market Leader in the Cable Industry” and subsequently changed the logo with strategic meaning and with blue and green colors. Even today this is depicted as one of the best logos in Sri Lanka. MD realized that with the union he cannot bring the company to the next level and step by step discontinued the union with so much of difficulties. Parallel a joint consultative committee (JCC) was formed and all workers problems were handled through JCC by giving immediate solutions for their day today problems .Un unionized environment immensely contributed to implement new systems and new things. New HR system introduced to the organization and new employee evaluation system introduced to measure annual performances beneficial way to the workers and to the company. Non-performers were weed out and right people placed to the right positions. Finally performance based increments were implemented at all levels of the organization. Discipline environment created everywhere in the organization, stern disciplinary actions were taken against the people who deviated from set rules. At the same time a considerable amount of money was spent for training and development of people and all company promotions were given based on the performances. This is the set of human resource turnaround took place in Kelani Cables in uplifting its corporate journey.
Brand differentiation strategy was started and Kelani brand was differentiated as the safest brand in the category and effective marketing campaigns carried out in his period. The positioning of Kelani brand continue to be associated with safety at all times. Kelani brand visibility has been increased dramatically in the market and this has no doubt helped to increase consumer and dealer loyalty. New product development mechanism was brought to the system and many new products developed and marketed successfully. Service levels improved dramatically and continuous customer feed backs monitored to ensure Kelani service levels. A technical services department was created and free technical services made available for local and international customers on cable selection. Meanwhile, company identified that electrician plays a major role in influencing on cable brand selection and an electricians club was started with the objective of building up relationship between company and the Electricians .Presently more than 7000 electricians are benefited in various ways. In 2007 a “Kelani Saviya” CSR project was started with the assistance of the University of Peradeniya and 50 Electricians are accommodated annually by the University for a one year Program. This program continued for 10 years and extended for another five years by Present Director/CEO and the same program has been started at the University of Jaffna naming “Kelani Shakthi” by his direction. This is one of the remarkable initiatives took place for branding perspective.
In 2010, Mr Mahinda Saranapala was appointed as chief executive officer (CEO) of Kelani Cables and he maintained the same growth momentum with the team .He contributed a lot for implementing and maintaining 5S concept in the organization. He came with an engineering background and contributed a lot to development of the operation area. Many productivity improvements were done in many areas in the organization. He maintained the same discipline level what Mr Hemantha Perera initiated and practiced. Presently he serves in the capacity of Director/CEO of Kelani Cables. In brief, those initiatives strengthened the value chain of the company to deliver premium brand value proposition via differentiation.
Likewise, the event of ACL acquires Kelani Cables was not just a matter of acquisition but left a proven corporate lesson. Conclusively, this is one of the greatest success acquisitions in Sri Lanka. It is important for management students to learn how competitive advantage is created as a group to develop successful growth strategies through acquisitions. Out of different types of integrations, this can be treated as an example for “preservation approach” where high degree of autonomy and low level of interdependence. The overall content of its case story provides insights to navigate in finding answers on how transformational leadership practiced in an organization and how people motivation delivered exceptionally well results whilst it invites leaners to explore how acquired company grown better than the acquiring company during the last 17 year period.2017-01-01T00:00:00ZEvolvement of a Strategic Journey: A journey of a poultry company toward a vision of a food conglomerate.Rifkhan, A.H.R.M.http://repository.kln.ac.lk/handle/123456789/184062023-01-17T08:51:45Z2017-01-01T00:00:00ZTitle: Evolvement of a Strategic Journey: A journey of a poultry company toward a vision of a food conglomerate.
Authors: Rifkhan, A.H.R.M.
Abstract: A’saffa Food SAOG’s journey gives a simple answer to never ending chicken or egg dilemma while requires a detailed explanation to answer its transformation from a poultry company to a vision of a food conglomerate. If anyone is reading the latest news or the recent annual report of A’saffa Foods S.A.O.G(“A’saffa”, “the company”), a company quoted in Muscat Securities Market (MSM)in Oman may have difficulties in believing that the same company was struggling just before a decade to manage its poultry only business in the name of A’saffa poultry Farms S.A.O.G. Conversely, for a company analyst or a researcher who followed each foot step of the company for last ten years, listing A’saffa foods S.A.O.G as one of the fastest growing companies of Omanin the United Securities Survey 2015 by Oman Economic Review (OER)1 and considering as a business that is agile, have an ability to think and respond to setbacks swiftly, generate consistent returns to its shareholders and post good results consistently may not be that surprising. A’saffa’s this transformation can be termed as one of the fastest journey from poultry to food conglomerate using its own resources and capabilities. The reality of this journey of the company might appear as fiction. However, as we know sometimes truth is stranger than the fiction.
Firms journeys towards growth come via many approaches such as using internal resources, acquiring competitors, integrating backward and forward or by using combination of one or more of these methods. However, in general the fastest method for a growth of a company is being always portrayed as via acquisition and the slowest is through using internal resources.Nevertheless, A’saffa’s transformation debunk this notion. The company’s journey toward growth started with an organic approach to overcome its initial struggle that threatened the company’s survival by revamping its internal resources. Subsequently, building on its own competences and expertise in poultry farm and production management system and swiftly moving towards very closely related further processed food and food production areasset an excellent example how a firm can grow to a conglomerate purely building on its own resources. The company possessed key ingredient of physical as well as human resources to support this organic growth. The physical resource was primarily its huge farm area with plenty of space for expansion and the human resource of the company included all the employees in general. However, the key resource was its senior management lead by the CEO and CFO whom under the guidance and support from the board members able to manage the ongoing changes in the company effectively and make the right decisions at the right place and time to keep the company growing.
A’saffa journey started when it was setup as the largest integrated poultry farm in Oman in the year 2001.Yet, when the operations were started in the year 2004 the journey did not look that pleasant, within just couple of years the company lost two third of (66%)2its shareholder’s wealth putting a great pressure on company’s performance and cash flows. Due to this initial struggle, the company had to first concentrate on revamping the business by introducing measures such as strict cost control, better resource optimization and optimal cash flow management. As soon as these measures indicated to give the desired results, company started focusing on improving its business via introducing new products and enhancing the productions by expanding the facilities. In the meantime, company also concentrated on the export market and started growing its presence in the gulf region. As the company kept on progressing using its own resources and capabilities the board of directors set a new vision for the company to become a conglomerate. Subsequently, to accommodate the journey toward a conglomerate, name of the company was changed from A’saffa Poultry to A’saffa food S.A.O.G and launched two new brands in the name of Khayrat and Taybat introducing new products and expanding the current products range. Moreover, the company moved backward and forward in its value chain to control most of its value chain, firstly by establishing further processed food plant and a logistic company, then leading the breeder farm joint project with other partners to ensure not to rely on outside supplies for the ‘hatching eggs’, main input of poultry business.
During this journey from the inception till date the company had to make several crucial timely decisions. The initial decision to optimize the cost of the company by making necessary layoffs in the middle management and taking the risk to go for a direct sourcing of raw materials in bulk was the first turning point of the company towards its successful journey. Then the board’s direction to move towards a food conglomerate to grow the company in line with the newly set Oman government’s strategies resulted in company’s second phase of growth and paved way for the authorities to consider A’saffa as a key strategic partner. In addition, the company’s courage to go for a further processed food plant building on the experiences it has gained so far on the chicken production plant and placing trust on its resources was an important step in the road towards company’s appetite to obtain more control over its business and take more responsibility. Finally, accepting to lead country’s food sustainability and security program was so important to the relationship with the government and to demonstrate a direct role in country’s economy. As this project is focused on the Gulf Corporation Council (GCC)3 it will also assist the company in spreading its wings to the GCC’s food sector.
Throughout the journey A’saffa has set many examples. Firstly, ithas shown the importance of internal capabilities for a company in every stage of a company’s growth including struggles and proven that a firm can build on its own resources to grow and become a conglomerate. Secondly, it has indicated that in the beginning stage of the company its always better to be lean with few decision makers doing most of the work and when company is in a struggling stage indicating early warning signs, the board of directors has a fiduciary duty to act swiftly to identify the key issues and address them head-on without much delay and damage to the shareholder’s wealth. Thirdly, it had shown that for a company to grow and become a leader in a market it has to assert some of the key control and management measures such as cost control, financial control with optimal cash flow management and managing the human resources. Finally, in order for a company to become successful in its business it has to keep on moving forward without getting stuck to the comfort zones taking calculated risks to grow in many angle such as launching new products, taking control of its business by moving backward and forward in its value chain while keeping a close eye on its internal and external environment and adjust the business to the changed environment. Moreover, it has signified that for conducting and growing business it is important to build relationship with key stakeholders such as the local authorities and government.2017-01-01T00:00:00ZSucceeding on the pillars of failure – Successful repositioning of two and three-wheeler automotive appearance (convenience range) category by Trade Mines.Srirajakulendra, A.P.I.http://repository.kln.ac.lk/handle/123456789/184052017-12-06T09:57:19Z2017-01-01T00:00:00ZTitle: Succeeding on the pillars of failure – Successful repositioning of two and three-wheeler automotive appearance (convenience range) category by Trade Mines.
Authors: Srirajakulendra, A.P.I.
Abstract: Trade Mines (pvt) Limited, acts as the sole agent for the import, distribution, promotions and sales of Waxpol automotive & industrial Lubricants, polishes and waxes in Sri Lanka. Incorporated in 2010, TM’s initial monthly sale was less than LKR one million a month, with a mere distribution network covering 68 sales outlets in metropolitan of Colombo. Waxpol is one of India’s regionally known niche players in the state of east & west Bengal, but has considerable presence in around 18 states including Delhi & Tamil Nadu. Waxpol has six product lines which include automotive and industrial lubricants, hydraulic fluids, grease, coolants, Automotive appearance and hardware & household. The entity was established in 1946 as a manufacturer of automotive polishes but have expanded their portfolio throughout the years. Members of leading car forums in India, regard Waxpol paste wax and polishes as the choice of hard core car detailers who prefer a reasonably priced product as against the pricier high quality imports.Waxpol is also known in India as a supplier of cheap synthetic lubricants for two and three wheelers, where the product is sourced from China but is badged in India. From 2011 to 2015 the total population of two & wheelers have had an exponential growth as per department of Motor Traffic Sri Lanka which hit almost 15% markin Sri Lanka in turn creating a boost in the demand for lubricants being used for two wheelers and three wheelers. As per the local regulator, there are 13 licensed lubricant importers to Sri Lanka (importing almost 15,900 Kilo Litres of lubricants in 2015 as per the Public Utilities Commission), where the highest volume and market leadership is being held by Chevron Lubricants (close to 26,000 Kilo Litres of lubricants) popularly known as Caltex. For some two and all three wheelers, the prices of oil become a key element especially if they are two stroke engines, as for each refuelling 2T oil should be used as an additive. Predominantly, for three wheelers this will be loose oil supplied by Lanka lubricants (owned by CEYPETCO), Lanka IOC or LAUGFS, but unbranded. Few years ago, Caltex tried to brand this market with Revtex range but it was not well picked up by the market.
In 2011 TM decides to enter this market via importing and supplying Waxpol synthetic engine oils for two wheelers and three wheelers. The primary decision behind this was to make use of a market space which was uncontested by any of the existing players with synthetic products. The product supplied by Waxpol was 10-15% increased than the conventional oil, but due to the synthetic oil having a dedicated pack, branding, technical specifications and being a product of India itself where over 90% of the two & three-wheeler engines are originated from the product started taking off in the shelves.From 2011, TM’s most successful range under the Waxpol umbrella was, the synthetic oil range for two and three wheelers. From a mere monthly turnover of LKR 200K a month within two years the revenues shot up to over LKR 10Mn a month. The sales teams predominantly focussed at the low-end service stations for two wheelers & three wheelers, by specifying that this is a synthetic oil but only a fraction of difference of the price. Even the colour of the oil was red in line with some of the high-quality performance oils, which further increased the acceptability of the oil and from at a fraction of price premium a branded seal packed product was made available to the two & three wheelers.Although it was a popular perception that two and three-wheeler owners are not very much concerned about the quality of the oil, the recent fragmentation of the market & the ATL advertising effort being put up by some of the new players in the industry, the interest for a proper branded lubricant was evident. Especially after the contamination issue of 90 octane petrol in 2011, many trishaw and two-wheeler owners became much cautious about the fuels and lubricants they use. The fact of being able to get a sealed pack, branded and above all it being a synthetic Waxpol two and three-wheeler oils gained immense popularity among the target users. The association of lubricant importers has been continuously pressurizing the government and their regulator the public utilities commission to regulate the non-conventional lubricant market as well. The collective argued on the fact that there should be control & regulation over the quality of the synthetic lubricants which are being used in the market. However, the small-time importers counter argued the fact mentioning that it was a more by the big players to further consolidate the synthetic oil market to further increase their profits. The petroleum minister Hon Chandima Weerakkody in a statement to the Daily Mirror,mentioned that the appeal from the collective of lubricant importers has been considered by him, and he will call for regulation of all conventional and synthetic oil importers. In view of the statement of the Hon minister, Trade Mines made a policy decision to appeal for an import license to the Department of Import Control under a copy to The Public utilities commission.
A considerable time was involved in the decision-making process and subsequently after a period of over three months, the government responded that a license cannot be granted to Trade Mines for the import of synthetic oils. It is believed that the government has taken a policy decision to limit the number of licenses being issued to lubricant importers to further regulate and consolidate the market. With the government decision in play the BoD immediately decided to curb all imports of synthetic lubricant and greases from Waxpol. By the time the decision was made, Waxpol lubricants were contributing to almost 70% of the total turnover figure. The entity was relying heavily on the lubricant part of Waxpol, that it had lost interest on the primary set of products which were meant for automobile appearance enhancement. At the board meeting, immediately after the decision to withdraw the synthetic oil was taken in to consideration two key elements were being discussed by the Board. A) To have a bridging plan to recover the lost revenue due to the discontinued sale of synthetic oils in the portfolio and B)To consider the portfolio of product mix being mismatched between Sri Lanka and India.
After the BCG portfolio analysis, the management wanted to critically relook at the relative product positioning in the market in retrospect to the brand repositioning principles by Martin Lindstrom. However, the product being badged under the convenience range actually in Sri Lanka started to repel the consumers as they were unaware of Waxpol’ s proficiency in the hardcore wax and polish market. The full campaign which took flight under the slogan of “Painters trust Waxpol convenience” kind of backfired where the local consumers did not trust the convenience range to provide performance up to the hardcore level. Waxpol was continuously trying to pitch the product to professional auto painters and detailers pressing them to use the product, but the concept of “convenience” was driving this category away. The casual user did not want to risk using the product as it was positioned as a professional detailer’s material. They did not prefer to use a professional use product and then risk any unanticipated damages to their paintwork, and even the channel was not encouraging casual users to try it. The primary damage was done at the activation point itself. The management immediately noted that there has been a fatal flaw in the original positioning of the product category at the inception. Due to the confusion caused at the activation point the product was not taking off from the shelves. The positioning was decided to be immediately changed to the quadrant where appearance conscious clients who were beginners / casual users of the product. The tagline for AA convenience was changed from “painters trust Waxpol convenience” to “Waxpol- professional level detailing in minutes”. As accordingly the Waxpol convenience range was introduced to the modern trade channel and the advertising material was changed to reflect vehicle owners using the product in contrast to previous representations with professional painter characters. To better support the everyday user, the packs were equipped with a hand sprayer and the bottle shape was aligned to ensure it could fit in the door pockets of an average car, with a free distributed polishing mitt. The pack sizes were made smaller from the traditional 01 litre packs to 100ml & 250 ml packs, and the package branding and graphics were upgraded to suit the casual consumer. The trade channels were modified with new activations done at automotive consumable sales outlets, professional service stations, modern trade outlets, vehicle agent sales outlets and pop ups stores activated during exhibitions. Special interest was focused on increasing the online sales where proposals were made to Wow.lk, Mydeal.lk and Retailgenius.lk to promote the product online with a dedicated delivery service. By early 2016, AA convenience range obtained traction in the local market. More and more casual users were looking at purchasing Waxpol and the trade volumes have been showing a mom growth of around 2%. The smaller pack sizes jump started an entirely new SKU which occasionally had stock out situations due to the high demand. By end of 2016, the convenience category was performing a highly satisfactory level, recording a turnover representation of almost 35% out of the total category mix, signing one of the most successful repositioning conducted for the entire Waxpol range.2017-01-01T00:00:00ZGame of changing perception: Providing unmet need of “Casual sufferer”Punchibandara, M.M.T.http://repository.kln.ac.lk/handle/123456789/184042017-12-06T09:52:44Z2017-01-01T00:00:00ZTitle: Game of changing perception: Providing unmet need of “Casual sufferer”
Authors: Punchibandara, M.M.T.
Abstract: So many brands and companies are constantly reinvigorating their businesses and positioning them for growth. There is a constant need to innovate, reinvigorate, update, recalibrate, or just simply fend off the competition in an effort to better explain "why buy me." To move forward, companies and brands need to first take a look at their current brand positioning. But for a moment, even a brief moment, it would make sense to go back to the brand drawing board to answer the question, just what is brand positioning anyway? Brand positioning creates a specific place in the market for your brand and product offerings. It reaches a certain type of consumer or customer and delivers benefits that meet the needs of several key target groups and users. The actual approach of a company or brand's positioning in the marketplace depends on how it communicates the benefits and product attributes to consumers and users. As a result, the brand positioning of a company and/or product seeks to further distance itself from competitors based on a host of items, but most notably five key issues: Price, Quality, Product Attributes, Distribution, and Usage Occasions. As companies and brands today look at brand repositioning, they first have to ask what the reasons for repositioning the brand are. They can include declining sales, loss of consumer/user base, stagnant product benefits, or the competition, including issues such as increased technology and new features.
Abbott Laboratories S.C started business in Sri Lanka by the year of 2007. Though products were available in the country for more than three decades, but this was the first time Abbott global decided to operate as an affiliate in Sri Lanka. With a span of 29 products and 24 field staff Abbott was moving positively in the pharmaceutical market especially in the Gastro Intestinal (GI) segment. 2010 was a milestone year for Abbott Sri Lanka, Abbott global acquired Solvay pharmaceuticals, the Netherland pharmaceuticals company which added another 12 products to the basket which giving further strength to the established GI franchise to become stronger.Since three decades of presence in the market throughout various channels, Abbott was able to establish market equity with products like DIGENE, CREMAFFIN, BRUFEN, etc.
Digene, the biggest brand to the business (33% contribution) was declining from 2011onwards. Abbot took many initiatives with more emphasis on the ethical side but not able to gain strong hold in the antacid and anti- flatulence (Acid and Acidity problems) market. “Doctors Choice” the campaign laid to acquire the doctors and patient’s preference but entire 2012 product was not moved a single digit of market share instead of lost 2%. There was an impact of price increase which took place in 2010 which lead the brand to be “off the shelf” of many stocking doctors where Digene was generating good revenues from this category. There were some sales promotion activities conducted at both retailers and stocking doctors, was unable to capture the lost share from them. “Doctors choice” campaign was able to make some noise towards the doctor chambers but at the consumer front, it was not as expected.
2013 Q1 brand team decided to expand the positioning to larger target market while changing the positioning statement. The new positioning statement was “Doctors choice for Acidity and acidity related problems”. The positioning was expanding the large target market by reaching the ultimate desire of patients. This attempt was to tap the lifestyle issue of consumers who associate with acidity or other discomforts. The campaign was still focused on the therapeutic segment where materials and inputs were based on the “Doctors choice”. On one hand, this campaign gave some important communications to stake holders about the areas which was not discussed earlier by Digene and it made some space to expand his/her therapeutic diagnosis to a different level.
After extensive efforts on the new positioning, still the result was the same, unable to attend the expected out come after investing 12,000$ on all the campaigns and it brought the company to re-think it’s approaches towards customers and consumers.Home remedies are the first line use for medications for GI related issues and it represent the large market which is even unknown till today. In the positioning quadrant it represents “Casual but effective, Good for me” with “Conservative/ Mature”. Largely this category is dominated by Ayurvedicproducts largely no brand name. Kalla, Guli, Churrna, more dominant formats in this category and mostly prepared as household level. Some local Ayurvediccompanies have operating this segments in very low profile manner but there were no proper data been published on reputed source to quantify the size of the market.
Glaxo Smithkline Healthcare Limited (GSK)identified this market as a lucrative business and penetrate with more “contemporary and vibrant” way while creating new market segment. ENO the revolutionary brand which changed the market dynamics of Antacid category while investing a large amount of money. “Professional and Scientific/Conservative and Mature segment represents 90% allopathic Antacid market where market is driven by majorly on prescription. Certain amount of OTC (over the counter) sales are happening but largely doctors recommendations are dominating this category. Gaviscon, the market leader in this segment continues to focus on doctors’ level and heavy promotions in scientific manner and thus being able to create the “Original” perception towards the brand. “Gaviscon Dual Action” created a great hype among the medical fraternity in the market which discuss about the functional value of the product to the doctors. There are some brands which operates in the lower section of the same quadrant serving more towards the price as a key driving factor. The market here is a very price sensitive and where great volumes are available. Especially stocking doctor segment where they dispense product which available in their clinic or dispensary. Brands like Belcid, Antiget, Maxajet etc., operates heavily in the segment which continuous fights for sales is observed.
Digene as a brand which is stuck in the middle of both Gaviscon and low priced brands. Brand needs to find clear destination how it moves in future. Michel Porter in his book called “Competitive Advantage: Creating and sustaining superior performance” mentioned that trying to "hedge your bets" by following more than one strategy. One of the most important reasons why this is wise advice is that the things you need to do to make each type of strategy work appeal to different types of people.
“By strengthening the scientific image and in-clinic relevance of DIGENE Gel, while initiating consumer centric initiatives in Tablets and Newer formats, DIGENE will retain its equity while revitalizing the image with contemporary audience and scale up to lead the antacid category”. Anurag concluded the meeting while endorsing that Digene would be reinforced to a new category of a target market to meet the unmet need of “the casual sufferer”. He also made clear instructions to support the entire value chain of Abbott to succeed the repositioning strategy (Minutes of the meeting- Abbott archives 2013)
Also visit insight of case study following revealed inputs could be concluded. Based on the theoretical aspect, Martin Lindstrom author of “Brand revitalization principles 2014” book revealed that four types of repositioning could take place based on the “Market “and “Product. At this scenario it is revealed that the product being kept unchanged and market changed (casual sufferer) where the product was not positioned earlier. Based on that, this case study revealed “market repositioning” principle where product was kept unchanged while taking the product to a novel market.
Case study also provides an example of evidence based on decision making, where decisions are being based on the real time data by both market and product level. Since it was found that brand becomes obsolete and no relevance to ethical level backed by continuous loss of market shareand therapy shift to newer formats leading the thinking process of repositioning the brand. It also considers the high brand equity in Digene and using the same existing quadrant of the positioning to leverage it towards the scientific approach. It is also reveals that company mitigated the risk by keeping one format in the ethical wing (Digene Gel) and transformed Digene tablets to fully consumerization where in case the failure company still has option of returning to ethical wing where product equity has been preserved. This revealed that “Strategic risk diversification” is an important criterion during the repositioning process.
Looking at the point of growth perspective of this brand, needs the clear understanding that how company project next 5 years’ lifespan of Digene. Moving one quadrant to another and doing revitalization have certain limitations as well. It’s a kind of a dilemma that company will face soon that the product with high brand equity and obsolete perception playing in different market will sustain in long run? As the perception towards Digene is simple and common among the consumers where one point even in the current positioning also will make the issues and brand needs to find other available revenue generating options to move forward. Managing life of the product in both physically and emotionally import to drag the lifespan. Though the differentiation makes on the product but it has limitation which unexpectedly downturn the business. Too much concentration on the brands, make short term changes to the brand, new market penetration need to be manage while sensing the anticipate consequences in future. “Obsolete you brand at right time”, great marketing Guru Theodore Levitt mentioned in his Marketing Myopia paper published in Harvard Business Review (1960). The Myopic cultures, Levitt postulated, would pave the way for a business to fail, due to the short-sighted mindset and illusion that a firm is in a so-called 'growth industry'. This belief leads to complacency and a loss of sight of what customers want. To continue growing, companies must ascertain and act on their customers’ needs and desires, not bank on the presumptive longevity of their products. In every case the reason growth is threatened, slowed or stopped is not because the market is saturated. It is because there has been a failure of management and practices. Future of Digene may not be the Digene. Too old, less manage the life cycle, decline perception on both stakeholders (doctors & consumers) and playing in low growth segment need to be considered by the management of Abbott. Still Abbott myopicon the brand name which may lead to greater consequences in coming years.2017-01-01T00:00:00Z