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. 

Berger Breathe Easy Safe24 : Stay Safe 24 Hours

Brand: Breathe Easy Safe24
Company: Berger Paints
Brand Analysis Count: 602

 The huge demand for any product that protects us from the COVID-19 virus has created an unprecedented demand for sanitizers and surface disinfectants. While surface disinfectants were existing in the market for quite some time, it was in the form of floor cleaners. The pandemic has created a new opportunity for this product as a tool to clean all surfaces which have a chance to be infected by the virus- that makes almost all surfaces.

Many brands have their own version of surface disinfectant sprays and encourage the customers to spray on every surface every time so that their banks keep on sprayed with money. In fact, in one of the ads, the character is spraying the disinfectant on the pages of the book he is reading. As I have mentioned in my previous posts, a lot of firms have entered the market of sanitizers and the like and paint companies are not left behind. Along with Asian Paints, the paint major Berger Paints also have entered the market with their own brand. 

Berger has extended one of their paint brand - Berger Silk Breathe Easy into this new product category. The main USP of Berger Silk Breathe Easy was the germ-killing feature and the company decided to extend the brand to the new category. The brand extension ( although not 100% technically) is done with some tweaking with the brand name. The surface disinfectant spray is branded as Breathe Easy Safe24 and is endorsed by the corporate brand - Berger. 

Three elements make this brand interesting. The first element is that this product is marketed in association with IIT Guwahati. Scientists from IIT Guwahati lead by Biman Mandal has created this product. What it does to the brand is that it builds tremendous authenticity to the claims. The product is one of the few instances in India where a consumer product is created in association with an academic institution. The second element that makes this brand interesting is the Unique Selling Proposition( USP). While the sanitizing products that exist in the market are based on alcohol which will easily get evaporated from the surface within a few minutes thus reducing the duration of the surface protection. It will get contaminated within no time. According to the media reports, this product has a nano-silver coating which stays active in the surface for a longer time thus offering extended protection. This is a very powerful differentiator for this brand. 

The third element is the presence of a brand ambassador- Kareena Kapoor for this new product. Kareena was also the brand ambassador for the paint products and the company is using her in the new initiative. 

Although the brand name Breathe Easy Safe24 seems a long brand name, it does convey the brand's promise in a no-nonsense fashion. One brand which may not be happy would be the Kerala based brand Pankajakastri Breathe Easy which is an ayurvedic formulation for breathing-related problems. 

The IIT association along with a powerful USP has made this brand a serious player in the market. The challenge is to expand the market for disinfectant sprays and also to expand the product's range to a volume delivering market like surface-cleaners. 

Brand Update : SugarFree launches chocolates under D'Lite brand

SugarFree, the market leader in the Rs 350 crore Indian artificial sweetener market has recently launched a brand extension much to the delight of calorie-conscious and diabetic patients in the form of dark chocolates. India which is considered to be the diabetic capital of the world is yet to see a boom in the artificial sweetener category and sweets made up of artificial sweeteners. This is largely due to lack of awareness and fear of risks in consuming such products. 

However slowly and steadily, the market is warming up to such alternatives to non-sugar delicacies. To take advantage of such potential, most of the confectionery brand has one or two variants in the sugar-free category. For example, Amul has one variant of sugar-free dark chocolate but is rarely available in offline stores.

Zydus Wellness, the owner of SugarFree is sensing such an opportunity and with a brand which has a strong generic name and market leadership, it would not be wise not to take advantage. The company has chosen to launch its range of dark chocolates under the sub-brand D'Lite. D'Lite is not a new brand, earlier, SugarFree had attempted to launch a range of beverages such as fruit punch under this brand name. 

In the new avatar, D'Lite will be initially a digital-focused brand with the product available in online stores such as Amazon, BigBasket etc. The sugar-free chocolates come in four variants - Dark Rich Cocoa, Dark Zesty Orange, Dark Hazelnut flavour with roasted almonds, and Dark Crispy Quinoa with roasted almonds. All these have 50% cocoa content. The sugar-substitute is maltitol. 

The brand is positioned as a premium healthy alternative for calorie-conscious consumers. Priced at Rs 99 for 40g, the brand is a premium offering. The packaging is excellent and reflects the premiumness of the range. The brand has a soft-launch and I think it is promoted initially through digital platforms. The brand is promoted with the hashtag #Twogood. 

I strongly feel that the market for such products has huge potential. The one factor that prevents growth is the negative feedback from a key influencer - doctors. Most of the doctors whom I talked to have expressed a negative opinion about the artificial sweeteners. Except for Stevia, all sugar substitutes carry some form of side-effects is usually what doctors say. It would take some persuasion from these marketers to change that influencer- narrative. However, for a consumer, these products are welcome alternatives to sugar and help keep check of sugar-cravings. 

Related Brand Story

SugarFree

Brand Update : Kent transforms to a multi-product brand

 Kent or rather Kent RO System is known for its RO based water purifiers but not anymore. From 2016 onwards, the brand has been on its way to becoming a consumer durable brand. Slowly and steadily, the brand has been launching products in the small appliances category leveraging on the success of its water purifier product range. Kent RO based water purifier was launched in 1999 challenging the UV based water purifier products which were ruling the market. Although expensive compared to UV based purifiers, RO based purifiers slowly gained acceptance due to its superior purifying ability and also backed by powerful promotions from the brand owners.

Now Kent has a number of product lines which are very diverse. The product line consists of water purifiers, vacuum cleaners, air purifiers, water softeners, kitchen appliances, security camera systems, and attendance systems. Kent brand is built on the positioning platform of purity. The founder of the company, Mr Mahesh Gupta calls the company's core as House of Purity. While the initial launches were in line with the " House of Purity" platform, later the firm began to launch unrelated extensions like a security camera and niche small appliances. 

Mr Mahesh Gupta in an interview talks about the logic of concentrating on niche product categories. One advantage of niche is that there is not much competition. The niche products also will help Kent to display its innovative side to the consumers. If the brand is able to come out with innovative products, it will enhance the brand image and thus help brand launch mainstream products in the future. 

As with all brand extensions, Kent also faces the problem of equity stretch. When a brand launches its extensions, the new products rely heavily on the parent brand's equity. Unrelated products create a lot of pressure on the core brand equity because there will be a disconnect between the core brand's positioning and the unrelated product's positioning. The solution is to identify a core brand positioning which allows for multiple brand extensions across diverse categories. For example, House of Purity positioning of Kent may not support a product like a mixer grinder of a camera security systems. 

Brand Update : Fogg extends to talcum powder

As for any successful brands, it has to happen to Fogg also- Brand Extension. Fogg has extended itself into talcum powder category. It is a surprise move since according to certain reports, talcum powder market in India, worth at Rs 1400 crore, is on a decline thanks to the growing reach of deodorants. How ever, this hasn't stopped Fogg from launching the talcum product under the brand Fogg Master. 

The launch ad carries the same setting of the Fogg deodorant ad featuring the retailers. The new product is positioned based on the perfume content. It is an interesting move especially when the category is declining. Maybe it is to get into the minds of existing talcum powder users who may move later into the deodorant category. 

Brand Update : Fair & Lovely extends to soap again !

It was to happen and it happened (again). Fair & Lovely extended itself to the soap category. The creator and the market leader of fairness cream category have put a brave new front into the highly competitive and cluttered soap market. Although F&L created the fairness cream category, it was Godrej Fair &Glow who first created a fairness soap product. It is often seen in the marketing world, that pioneers often find themselves missing opportunities in related categories. 

It is not the first time that F&L is launching a soap. The first launch was in 2015 and then somehow nothing happened with the product in the market. 

In late 2019, the brand relaunched the soap extension as if nothing happened in 2015.

In a marketing perspective, the soap variant takes a dig on the competitor Fair & Glow by creating parity on the 'glow" proposition. The soap is promising glowing skin and the fairness promise is there from the parent brand. The launch ad is in line with the overall F&L positioning.

The soap is priced in line with market and this can be considered a masstige brand which is a strategy where the product is aspirational but priced reasonably so that a larger segment of customers can afford to purchase. 

Through extending the F&L, brand HUL is trying two outcomes. Firstly it wants to leverage the existing equity of F&L in the soap category. Secondly, HUL wants to reinforce its supremacy in the soap category by covering the entire category and not leaving any gap for the competition to take advantage. 

Brand funda : Elasticity of Brand

Article Review : What Makes Brands Elastic? The Influence of Brand Concept and Styles of Thinking on Brand Extension Evaluation Journal of Marketing Vol. 74 (May 2010), 80–92 ( Link)

 In this very deeply research article the authors examine why some brands are more elastic than others. Here the authors describe elasticity as the ability of the brand to extend to other categories

• Research suggest that brand extension success depend very much on the extension fit.That is whether the extensions fit the perception of consumers about the parent brand.
• The more elastic the brand is when the brand is able to extend itself to distant categories.
• Early research suggest that the brand's elasticity is dependent on the parent brand's characteristics.If the brand is positioned on prestige, then it is more elastic and can be extended to multiple categories.
• Functionally positioned brands are less elastic 

This article tries to expand the existing research by saying that while brand's characteristics are important in determining its elasticity, the consumer's style of thinking is also very important determinant in the brand's elasticity. Consumer's thinking styles are classified into Holistic thinking style and Analytical thinking style.

Analytical thinkers focus more on attributes and categories to draw inferences and judgements while holistic thinkers focus on broader connections ( contexts, relationships) between objects. According to the study, brands which have a positioning based on prestige usually have a abstract message which can be transported to multiple categories. Functional brands are at a disadvantage since the functional attributes cannot be moved effectively to distant categories.

The response by the analytical and holistic thinkers to the extension are also significant. Holistic thinkers are able to connect between parent brand and extensions while analytical thinkers will find it difficult to relate parent brand and extensions if they are functionally different.

The study finds that the brand's elasticity is jointly determined by the parent brand's positioning ( prestige vs funtional )  and consumer's style of thinking ( holistic vs analytical)

For prestige brands, analytical and holistic thinkers has similar  response to brand extensions while for functional brands, holistic thinkers had a favorable response towards extensions. The probable reasons can be that when evaluating extensions of functional brands, analytical thinkers focused on functional attributed and their similarities and often found dissimilarities.Another important finding is that prestige brands encouraged holistic thinking in both type of consumers. 

The study also suggest that brand can encourage holistic thinking in consumers through brand architecture. Sub-brands can be used to increase elasticity of functional brands for analytical thinkers.Brands can also bridge the gap for analytical thinkers by elaborate communication about the extension. Marketers has to match the message to the consumer's style of thinking which can make distant extensions receive favorable responses from analytical thinkers.

The article has lot of significance to marketing practice. While conventional marketing wisdom suggest the brands should not extend too far from parent brand, in practice, this may not be possible.The article gives direction for marketers endeavoring such extensions.It is important that marketers understand the consumer characteristics and its impact on the responses to extensions. Prestige brands are difficult to create but it has its advantages when it comes to brand extensions.

#1

Brand Update : Fastrack launches helmets

One of the most successful homegrown youth brand Fastrack announced its entry into Rs 400 crore organized helmet market recently. Fastrack has grown from a watch brand to an umbrella brand endorsing products from watches, eyewear, bags and accessories. 

image source : gaadi.in

Although I am not a big fan of brand extensions, I have to admit that Fastrack has been able to spot opportunities ( gaps) in the market where it can fit in without diluting its core positioning.

Helmet market is highly cluttered with lot of local brands and minimal differentiation. Although there are established players like Studds, the organized market constitutes only 20-25% of the total market. Since the designs and styles of helmets can be easily copied, differentiation becomes very difficult in this market. 

Many motorists also feel that helmet is a grudge purchase since they wear it out of compulsion . Hence focus of many commuters will be to spent less, get a helmet and carry on.
Fastrack has priced its range between Rs 1495 - Rs 3495 charging a premium. The pricing , in my opinion, is steep and make the product out of reach for many consumers. 

It is in this context that Fastrack's foray into this market becomes interesting. Fastrack definitely will have a headstart because of the brand's equity. But how it fares will depend on the freshness it will bring into the design and style aspect of the product . Since competitors will waste no time in copying the design the challenge will be to keep one step ahead of the others.

Brand Update : Dettol is also a Dishwash ??

Economic Times reports that Reckitt Benckiser has decided to extend the popular Dettol brand to Dishwash category. This will be one of the bizarre brand extensions I have seen in the last few years. Now we can see supermarkets having Dettol bathing Soap and also Dettol Dishwash  placed near to each other.  ( ET Report)

The reason behind the extension is simple. According to ET, the dishwash category is worth Rs 2000 crore and the category is dominated by HUL with its Vim brand. Reckitt is now pitching Dettol against the Vim brand. 

While Dettol is a brand which was able to leverage the brand's germ killing proposition to various categories like soap, handwash etc, it has not moved into toilets or kitchen. Now we are going to see this brand extending its reach to kitchen. According to the report, Dettol's entry into the dishwash will be using the sub-branding strategy - Dettol Kitchen . Dettol Kitchen will share the same positioning of germ killing and will be competing with Vim and Exo. The first product will be a Dishwashing Gel ( multi-purpose cleaner).

Can a soap brand share its name with a dishwash ?? Dettol seems to think that since the positioning is the same, it may not be a concern to the consumers. My take is that Dettol's entry into Kitchen will affect the premium image of Dettol.  I don't think that a brand which has dishwash gel or a toilet cleaner can retain its premiumness for its bathing soap brand-extension. Since Dettol has a very strong equity, erosion will be felt slowly. Secondly the message for a dishwash product would also talk about strong cleaning ability . So if Dettol is going to claim that it will remove the toughest of the dirt/stains, how would a consumer of Dettol soap perceive that message ? 

If Dettol can extend to Dishwash, can Vim extend to bathing soap ?? 

How about Pril Bodywash ??? 

Harpic Beauty Soap ??

I hope HUL will not react by launching Lifebuoy Dishwash gel. 

Brand Update : Santoor Extends to Baby Soaps ?

I stumbled upon a commercial for Santoor Baby soap in Facebook, thanks to the tip from Bhatnaturally. I was surprised to see this move from one of India's biggest soap brands - Santoor.
Watch the ad here : Santoor Baby 
A search in Google yielded no results. I assume that the ad is real and Santoor is now test marketing this brand extension in select markets. Since the ad features the South Indian actress Jyothika, Santoor is serious about the new launch.

Indian baby care market is huge with a size of  Rs 3000 crore expected to grow at a rate of 20% according to ASSOCHAM.The baby skin care market is valued at Rs 400 crore and toiletries valued at Rs 380 crore.
Johnson and Johnson has a huge stronghold in this market with a share of over 70% . Many brands like Sparsh from Marico and Babysoft from Wipro tried unsuccessfully to dethrone J&J . It is in this context that Santoor's move becomes relevant and interesting.
Santoor has been very consistent in its positioning. Santoor's core brand's positioning is " for a younger looking skin". The brand through all its campaign effectively reinforced this positioning and became India's second biggest soap brand.
Santoor Baby soap will be trying to leverage this equity . The problem is that Santoor is perceived to be a soap for adults. So when such a brand launches a baby soap, inevitably doubts arises with regard to the mildness of the soap. Wipro earlier tried the Baby Soft brand but couldn't succeed so it is now trying to extend its best brand's equity. The ad shows not an infant but a 2-4 year old kid. So the brand will be trying to target the segment which is slowly growing out of the Johnson and Johnson's baby soap. More over since the child is growing , mothers will not be much bothered about trying out a baby soap from Santoor's portfolio.

Brand Update : Axe Extends to Soaps

Axe deo , the market leader in the Rs 1000 crore Indian deo market has extended itself to soaps. In the typical Unilever style of experimenting with successful brands the current guinea pig brand is Axe. The rationale is very simple  a) The soap market is witnessing a growth while deo market is now full of competition

b) With Cinthol brand becoming unisex, there is a vacuum for a men's soap brand and Axe is the best fit for filling the gap.

c) The lure for incremental profits from an established brand.

Indian soap market is around Rs 6500 crore and the men's grooming market is around Rs 1500 crore ( Economic Times). The brand may be looking to become an umbrella brand endorsing multiple products across the men's grooming category. The big question is whether these extensions will make the original deo brand vulnerable ? 

I think so.

I wonder why Axe is being extended when there is so much competition in the deo market. Axe is now attacked both on positioning front as well as on product attributes front. The Axe positioning is aped by most of the deo brands to the point that everything is so predictable and boring. Now HUL is further diluting the brand by its extension into a different category. 

The new extension carries the same positioning as the Original Axe brand . Axe bathing bar has the tagline " Engineered for Guys ". The ad campaign follows the same theme as the Axe Deo brand.

Watch the ad here : Axe Deo

Priced at a premium of Rs 35, Axe expects the brand loyalists to be the early adopters for this brand. HUL will be leveraging on its huge distribution strength and its reach to make sure that Axe Bathing Bar is available across the markets. To be fair to this experiment, Axe globally also is extended to various categories like Body Wash, Talcum powder etc but none of the extensions has been as successful as the original product. The same will be the case in the case of Axe Soap also. 

Brand Update : Lux Extends to Deo

Lux, India's most famous personal care brand has extended itself to deo. The campaigns are on air featuring the extensions. The deo market in India is witnessing huge amount of brand activity with new brands being launched almost every month. According to Economic Times, the deo market is estimated to be around Rs 1300 crore and growing at 40%. 

The question as always is what can be logic behind HUL extending its iconic brand to deo. It is not that Lux is not extended before. The brand has soaps, shampoos, bodywash in the product-line. Globally this is the first time that the brand is extending to deodorants. 

HUL has been a pioneer in creating the deo category in India. The company holds its leadership position in the market with its iconic brand Axe. HUL also has its anti perspiration deo Sure and also Dove. So rather than investing on these brands why would HUL try to extend Lux into this category ? 

One of the reason can be to pre-empt competition by flooding the market with its own brands. Lux has a huge equity which will translate to trials and incremental sales. Further, the company is also wary about the launch of competing brands like Santoor, Nivea etc into this category. 

However, HUL is taking the risk of spreading the budgets too far on these extensions. After Axe, the company was not able to come out with another blockbuster deo brand. It pulled out Rexona and Sure was not able to replicate the success of Rexona ( during the initial years). Dove is also another brand which is extended to almost all imaginable personal care categories.

Lux as a brand will get more diluted  if HUL tries to milk its equity too much. None of its earlier extensions could replicate the success of the core brand. Rather than diluting, HUL could have launched new focused deo brands.

Brand Update : From Kajol & Croc To Kareena & Bear

Alpenliebe, the brand which redefined and rejuvenated the sugar candy market has come a long way since its launch in 1994. The brand recently launched another sub-brand 2Choco with huge promotional noise. The new eclair brand came into limelight because of the endorsement from Bollywood diva Kareena Kapoor.  The launch also marks the entry of Alpenliebe into th Eclair category.

Watch the ad here : 2 Choco

The alpha-numeric branding signifies that this eclair has two chocolate flavors ( source : website).

So what is now Alpenliebe ?

From a very simple caramel based sugar candy which was positioned on the basis of taste and irresistible lust for more, the brand is now , a candy ( three flavors), lollipop, flavor filled candy - Creamfillz and Mangofillz sub-brands and now an eclairs.

Infact the brand has become an Umbrella Brand endorsing different products in the same confectionery category . So when you ask for Alpenliebe from a shop, you may get any of these products !!

In my opinion, the brand owners needlessly extended this powerful brand for incremental sales benefit.According to reports, Alpenliebe alone was around Rs 160 crore and may be these franchises may help the brand show more worth but the core brand Alepenliebe will suffer because now the brand means many things.

Take the case of the new brand 2 Choco endorsed by Alpenliebe. What prevented Perfetti to launch 2choco as an independent brand ? If it could afford Kareena , then it would have enough money to build a powerful independent chocolate eclair brand. But it chose the easy way of making it endorsed by Alepenliebe which may have helped the new launch and trial but at the expense of making the brand architecture of Alpenliebe complex.

The positioning of the original Alpenliebe and the new Alpenliebe 2Choco are poles apart. 2Choco has the tagline " Love and Share " and Alpenliebe has " lalach Aaha Laplap " ( means some crap in Hindi). It has to be seen whether Kajol will continue endorsing the original Alpenliebe candy. Perfetti earlier launched a brand Chocoliebe in the eclair category but does not met with much success. Alpenliebe 2Choco is also a premium play since the brand is priced at Rs 1/- price point.

The launch ad for 2 Choco is amusing and I don't understand why Alpenliebe franchise is fixated about the combination of Bollywood Divas and animals. Earlier it was Kajol and Croc , then came Kajol and Apes and now it is Kareena with a polar bear.
I have a feeling that the Alpenliebe brand itself is getting confused interms of positioning and the reason is the large number of diverse product forms it endorses. The confusion is going to be more if the brand owners decides to extend it further.
Alpenliebe was a powerful brand and it is being weakened by the brand owners just for the sake of convenience.
Related brand
Alpenliebe

Brand Update : Cadbury Eclairs Moves Up the Value Chain

2011 was an eventful year for Cadbury's Eclairs. The year saw the brand trying to move up the value chain by launching a new variant Cadbury Rich Brownie Eclairs. The move is significant because the brand has done an upward line stretch since the new variant is priced at Rs 2/-.

Cadbury's Rich Brownie variant is a significant move in the Rs 950 crore candy market where the most popular price point is Rs 1/- and  50 paise. The marketers were reeling under margin pressure because of a rise in the input costs at one hand and the price sensitive consumers at the other end. The problem was aggravated by the price competition from Nestle and local brands. Cadbury's still hold market leadership in value terms in this market while losing out the volume leadership to Nestle.

2011 also saw some changes in the positioning of Cadbury's Eclairs. The brand which earlier had the positioning of Doob le Zara ( which meant- immerse in taste) changed the tagline to "Get Lost".

Watch the ad here : Get Lost 
Cadbury's launched the Rich variant with the positioning of Chocolate Fountain. The brand adapted this from the earlier campaigns of Cadbury's Dairy Milk Eclairs' Chocolate Bomb ads. Instead of the heads exploding as bombs, in the Rich variant's ads, the heads explodes into fountains.

Watch the ad here : Cadbury's Rich Eclairs

Since the brand is priced high, the target market for this variant is older customers- the teens and youngsters.

While the new variant is banking on the chocolate fountain, the original Cadbury's Eclairs is experimenting with the " Lost in Taste " proposition. The creative brains finally came up with the tagline " Get Lost". For the first time , a brand is telling the customers to " Get Lost ".  May be the creative guys told the client  to " Get Lost " and client mistook it for the tagline and approved it !
The new tagline is far below the average creative standards for the reason that another brand from the same company i.e 5 Star is having the same positioning. It is common sense that it is not advisable for two brands from the same company to have same positioning. Positioning has to be unique and should not be shared unless it is a branded house. The entire campaign has a negative tone coupled with the tagline which itself is negative.
According to newsreports, the Rich Brownie variant wants to create a space for itself in the market which will convince the customer to pay higher price for the new variant.
Although nobody will have any doubts regarding the quality of these products, the campaigns for these two variants does not match the brand's real worth. Cadbury's have always known for its breakthrough campaigns. The recent ads for Silk, Shots , CDM all were of high quality creative executions. However, the ads for the eclairs does not match the standards of its siblings. What difference is there between the Chocolate Bomb and Chocolate Fountain  ? What difference is there between 5 Star and Get Lost campaigns ? Rather these come across as lazy cut-copy works.

Related Brand
Cadbury Eclairs

Brand Update : Horlicks Extends to Breakfast Segment

In pursuit of the stated objective of making Horlicks a megabrand, GSK announced the launch of Horlicks Oats. According to ET, packaged, ready-to-cook oats market is worth around Rs 200 crore and growing at 25% . Horlicks expects to leverage its equity in the new product category also.

From healthy malt drink, Horlicks has come a long way. Now  the brand has become so big and diversified, there is no point in criticizing these extension. ( one can only pray for its survival).

Regarding the brand extension towards oats, the existing health based brand association of Horlicks will be a huge advantage . According to academic researches, consumers evaluate brand extension on the basis of these parameters - 

Brand loyalty towards parent brand

Confidence of consumers about the competence of parent brand in the new category

Perceived quality 

Positive brand associations 

Perceived fit between parent brand and the extensions

Attitude of consumers towards the brand.

For Horlicks, because of its rich heritage and product performance, it scores well in most of the above parameters. Hence the chances of consumer trial will be high compared to any new brand.Brand dilution will happen for sure since the brand is trying to leverage its expertise in too many categories. 

There are also chances of the oats to be viewed as a Kid's product since Horlicks in India traditionally targeted kids. This kid's association may prevent many adults to switch to the brand. However Horlicks will be addressing this issue in the launch ad. My feeling is that Horlicks oats will be targeting the family as a unit rather than adults.

Related Brand

Horlicks becomes megabrand

Brand Update : Havells Ventures into Small Appliances

Havells brand which made everyone look up with its clutter-breaking  " Shock Laga " ad has diversified into small appliances. Indian small appliances market is worth around Rs 5000 crore with premium segment contributing around Rs 1000 crore ( Source : Business Standard)

Havells is now running its commercials announcing the launch of the domestic appliances. By the theme of the ads, it is assumed that the foray is targeting the premium segment. Indian domestic appliances market is highly fragmented and intensely competitive. Brands like Philips, Bajaj  etc dominates the market. There are also local brands which have powerful equity in certain product-lines. Havells have already marked its presence in fans and water heater product categories.

Havells would be hoping that it can leverage the equity of its electrical products into the new product range. This time also , there is no specific brand value or USP that Havells is trying to project although subtly the ads try to position the brand as futuristic or technologically superior. In some ads, Havells is displaying the tagline " Future Ready " implying the futuristic technology that its product has. Having said that , the ads are able to convey the premiumness of the brand quite effectively.

I still see the absence of a corporate tagline for Havells as one of its major branding mistake. Since the brand is trying to be an umbrella brand endorsing products across categories, it is important to create a positioning platform for the corporate brand. Hope that the brand will get serious about its parent brand's positioning.

Related brand
Havells- Shock Laga Kya