Monday, May 25, 2009

Whoever said ‘when the going gets tough, the tough get going’ was not just a true genius at word play

but also one who had possibly seen-it-all happen to the so-considered ‘great brands’, from atop the citadel of capitalism... A ground reality check by Aditi Prasad

Swapan and Kanha are having a harrowing time these days. Exams are round the corner and to add to all their mugging-up stress is their mother’s unrelenting commitment to feed them wholesome meals, which she says would increase their memory (thank you mom… irrespective of all those leafy meals, the Berlin Wall still fell in 1989!). Their daily dose of the yummy Horlicks-flavored glass of milk, three times a day, is perhaps the only bright light in this gloom-filled examination period.

Unlike these strained teenagers, examination time (January-March) every year is a great time for health drink powders like Horlicks and Boost, Glaxo Smithkline’s (GSK) flagship health drink powders for kids. It is GSK’s peak sales period, following which demand slumps by about 10-12%, thanks to a near-halt in hot drinks by consumers in the ensuing summer months. And so begin the good times for kids and bad times for brands like Horlicks.

A couple of summers ago however marketers at GSK decided to challenge these bad times head on. They launched a cold-consumption campaign for Horlicks – first by teaming up with the launch of the successful movie Ice Age 2 in India and then by roping in the Taare Zameen Par child star Darsheel Safary and adding summer variants to their portfolio. The chilled drink positioning for Horlicks not just translated into red-hot national sales for Horlicks during the summer of 2008; but also gave the brand a chance to keep its visibility high throughout the year.

Here’s another story. In Y2K, McDonald’s globally began facing the worst time in its juicy-burger history and reported its first quarterly loss in 2002. The book Fast Food Nation had captured the imagination of America and sales slipped on the back of increased health consciousness. What did the global QSR chain do? It fought back! It launched healthy burgers (?!); removed super size options from its menu; re-cast its mascot Ronald in a new ‘fighting fit’ avatar; launched a global ‘I’m Lovin’ It’ campaign; went on a market development spree by opening 1,200 overseas restaurants in 2003 alone; launched extensions like McCafe and McTreat, and more. The important thing is that today McD’s is on top of the situation again!

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