Brand Update : Nestle Munch Extends to Breakfast Cereals

 In an interesting move, Nestle has extended its chocolate wafer brand Munch into breakfast cereals. The Nestle Munch breakfast cereals were launched in June 2023. Theoretically, this move is brand extension into unrelated categories. While the breakfast cereals from Munch retain the chocolate flavour and the crispy nature of wafers, it is a big jump from wafers to cereals. 

Indian breakfast cereal market is huge with a market size of approximately $4.5 billion ( Rs 380 Bn) and growing very fast owing to the consumer preference for quick and convenient food options. Munch launched in 1999 had a good run in the Indian market and along with Kit-kat has a significant market share in the Indian chocolate wafer market.

The brand is running a series of campaigns for the launch.

The brand extension is positioned on the crunchiness and taste attributes it has derived from the parent product. The brand focuses on youngsters rather than kids in their campaigns. The parent brand Munch Wafers has been focusing on taste and quick energy as its positioning attributes. One of the major pain points for consumers of breakfast cereals is the taste vs healthiness. This brand extension is for those consumers who consider taste as their most important decision-making criterion. One should also not forget the kids as a major influencer in the purchase process. 

GilletteLabs : Shaving Made Sensational

 Brand : Gillettelabs

Company : P&G

Brand Analysis Count: #624

Gillette has launched a new brand - GilletteLabs in India this year (2024). The new brand is from the R&D wing of Gillette from which the brand shares the name. The new launch also reinforces the innovation culture of the company and the effort it takes to bring new ideas to an otherwise dull product like a shaving razor. 

GilletteLabs is touted as the most technologically advanced shaving razor with FlexDisc technology which, the brand claims, will give the best shave ever. I should say that the brand has put in lot of thinking behind the product features. The brand comes with a metallic handle and a magnetic stand for holding the razor handle. The handle also has a FlexDisc which ensures maximum skin contact. The most important marketing bait is the lifetime warranty for the handle. The brand says it is the first to offer such a warranty - with of course lot of conditions such as it defines lifetime as 10 years. 

The razor blade comes with an exfoliating bar which the brand claims removes dirt before the blade passes through the skin- so much for a plain razor blade isn't it. 

All these don't come cheap. The shaving kit ( one razor and handle) costs around Rs 1400. And we know that Gillette makes money not from the shaving handle but from the subsequent razor purchases. The GilletteLabs razor costs around Rs 750 for all the bells and whistles. 

I wonder why Gillette chose the brand name "GilletteLabs" for a product rather than the likes of Mach or Fusion. In my opinion, the company could have used Gillette Labs as an umbrella brand and used a separate brand name for the product. 

One should appreciate the focus of the company in constantly innovating in this category even though many things are marketing elements, the brand has been able to give great products to the customers and cement the leadership position of the brand in this segment.  These launches make it difficult for challenger brands to build brand equity big enough to challenge Gillette and the premium it commands.