Parle Agro has launched a " new brand " Grappo Fizz . Grappo Fizz is a sparkling grape drink similar to the successful Appy Fizz.
Grappo Fizz is launched as a cousin of Appy Fizz. Appy Fizz had created a successful
niche for itself among the young consumers. The drink has a unique taste, look and also interesting positioning as a Cool Drink.Parle Agro is trying to replicate the success of Appy with the new grape drink.
I have a little confusion in the branding of Grappo Fizz. Should Grappo be considered as a brand extension or is it a new brand.
Theoretically , brand extension is where the company uses an existing brand name for new products. But Grappo Fizz is a new brand name which has significant association with Appy Fizz. Both these brands share a common term Fizz in their brand names.
Another similar case occured when Perfetti launched a brand called ChocoLiebe which has the same association with Alpenliebe.
Technically Grappo Fizz should be considered as a new brand . Then it become a unique case where two brands share common brand elements like packaging and even positioning. I would consider this as a new brand for theoretical purpose. For all practical purpose, Grappo is an extension of Appy. ( confusing isnt it?)
Marketing is more of a historical subject describing the past actions of marketers.So when the marketers devise new strategies, marketing academicians find it difficult to explain those with existing terms,concepts and jargons. Hence we come out with new jargons to explain the new practices. I would invent a new jargon - Association Extension to describe brands which are launched with significant associations with an existing brands.
Coming back to Grappo Fizz, the company considers this brand as an extension of Appy Fizz. In an interview with Business Standard , the CMO describes this brand as a product extension of Appy Fizz (
Read Here)
Grappo Fizz is trying to create another niche like its cousin. Grape is a neglected flavor in the Indian market. There are virtually no grape based drink in India except for some 100% fruit juice brands. Grappo is trying to fill in such a gap.
Like Apple drink, Grapes may not become a mainstay beverage but it will be a welcome option for those users who would like to have something different. I have observed that people tend to like grape juices, but seldom this flavor is marketed.
Grappo shares every branding element with its cousin . The packaging is the same , the nature of the drink is the same and the positioning is also the same.
Watch the launch commercial here :
Grappo FizzLike Appy Fizz,Grappo also has a personality. The brand has a interesting CV which you can see in the packaging. He is a ex- call center employee who has lost his job because of recession. Grappo is a rap lover and loves rhyming.
The brand is targeting the same segment which Appy Fizz is targeting - The Youth.
Grappo shares the same positioning of Appy . Now the brands come together in ads and the tagline is " Two cool drinks to hang out with ".
I am a person who fears brand extension. So the same fear appears when I see both Appy and Grappo sharing a common positioning platform.
A few question arises in my mind.
I love Appy Fizz, so the fear is whether Grappo dilutes the positioning of Appy Fizz ?
Why should Grappo share the same tagline as Appy ? Will they always be together in ads ? If so then what is the differentiation of Appy ?
My personal opinion is that Grappo sharing the positioning will dilute the equity of Appy. When two brands say that they are cool, the question arises who is the coolest ?
My apprehension was deepened when I saw another campaign where Grappo outsmarted Appy . So is Grappo more cooler than Appy ?
Since the tagline is " Two cool drinks to hang out with " , has Appy lost is individuality ? Will we ever see an ad featuring Appy alone ?
Is there a chance of more drinks coming like Orange Fizz, Guava Fizz with the same positioning ?
Alries and Jack Trout always argues against extensions. Their argument was that by extension, the brand will lose its unique position in the mind of the consumer. It is true also. There was only one cool drink - Appy Fizz. Now there is two.. So Appy Fizz definitely is going to get affected interm of positioning.
In the company perspective, it makes sense to put these brands together because the cost of building a new brand is huge. Grappo could easily ride on the popularity of Appy. Since these brands are niche without much competition, the consumers will stay with these drinks switching between Appy and Grappo. Marketing costs will come down because one ad will sell both.
On a branding perspective, I would have loved the brand Grappo if it had an individual positioning. Appy Fizz should be the ultimate cool drink and no other brand even if it is the cousin should be allowed to take that mind space.
So which is the cool drink to hang out with ?
Related Brand
Appy Fizz