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Aspirational Brands

An aspirational brand is a brand which not only defines the product. It also defines the person who owns buys and uses that brand. For consumers in Europe or the USA, Rolex, Harley Davidson, Moët & Chandon and BMW are probably aspirational brands. Nescafé,Walmart and Ford may have many loyal customers but they are aspirational brands which define the owner.For consumer in india

Power Brands

Power brands include those brands which have the maximum pulling power and growth potential. These brands become the pampered child and beget all the attention in terms of promotion and advertising. All the other underperformers are left to languish, to be ultimately phased out. The logic is simple, focus your resource and attention to the few in hand and ?get rid of the brands that are going nowhere and draining funds from the brands with high potential.


Low technology market

Most of the FMCG companies are operating in a low technology market. This makes the entry barrier quite low. This also results in low product differentiation. Thus product innovation doesn?t offer that kind of opportunity to strengthen the hold over the market.


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most of the small players banking on the factor of low pricing to gain foothold over the market, bigger players have little hope of adopting this strategy due to higher overheads. On the contrary smaller players have an edge over the biggies and have been in fact using this very ploy to grab their market share e.g. the onslaught of the Nirmas on the Levers in the 80?s with a low cost business model.


On this front too, the giants are losing out. Availability can be ensured through a cost effective wholesale channel. With the smaller players looking at a smaller market, it doesn?t cost much to create an effective distribution system. Also lower overheads offer a greater freedom on the pricing arena. This enables them to push the product more forcefully by offering higher margins to the trade.

Localized media option

With the fragmentation of the media, more options are available to target the local Market. These options are being used by the smaller players to create local brand awareness at a cheaper cost. Once the critical mass is achieved, these players can spread their focus to a wider area.

Increase in competition spawned rampant promotion Shift to promotion from theme advertisements was the most cost effective way to lure the customers, loyal to the other popular brand. This also made the products more prices competitive. However for the established players this was a costly game adding to the strain of the already decreasing margins. These tactics also resulted in thinning


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brand loyalties. With the slow growth in the FMCG sector there is a kind of zero- sum game: any gain by the competitor is at the other?s expense. Thus cost and competition acts as drivers.

The fragmented media, the high advertising cost and competitive pressures from regional branded players, leave little options for the larger player but to leverage its scale. This is crucial in a crowded market where 3000 advertisements are seen on television every month and where the number of SKUs stocked by retailers has gone up by about 40% in last three years.

The benefits of rationalizing the portfolio are two-fold: one, it enables a company to refocus the marketing budget into brands where the money invested yields a greater value. And two, you save in terms of the opportunity cost when the sales and promotional efforts are withdrawn from weaker brands.


Focus on the few: Brands are identified based on the criteria such as absolute size, brand equity, brand relevance, competitive strength and potential for growth and full support in form of financial and human resources. Thus optimization of resources is of paramount importance.

Extend the brand to include new products: If the growth of the core brand is ensured, it becomes viable for extension. More of the other products and even services can be introduced whose line of application enjoys a synergy with the positioning sustained by the core brand. The concept is akin to that of umbrella branding. E.g. extension of Lifebuoy to talcum and that of Fair& Lovely skin creams in soaps.


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Migrate potentials: If the non-power brand is of significant size and has the core proposition of a power brand, migrate it into the power brand. E.g. Coco Care into Nihar.

Exit from lackluster brands: Brands with no future will be gradually phased out. Business which is not aligned with the core portfolio and which would require greater investment may be hived off. E.g. Non-FMCG business may be hived off by FMCG groups.

Cult Brands: - A cult brand will have loyal customers,they all form a

group(people having same interests).cult branders aren't just selling a product or a service; they are selling the opportunity to fulfil their customers' passions, dreams, and aspirations.


An identity that communicates beyond the product, so that you can leverage that name to other things, and it has some of the same meaning.

Customers value some of the most powerful brands in the world primarily for their "cultural value": They provide imaginative resources that people use to build their identities.

"The most powerful brands are those that are able to traverse disruptive cultural shifts. Many brands falter when disruptions hit. The most impressive brands are those that are able to use disruptions as a platform to enhance the delivery of cultural value."


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