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Advertising Express Magazine:
Market Leaders vs. Market Followers
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The article analyzes the reasons why big brands are losing their market share. It also identifies the marketing strategies adopted by them to cope up with the current market scenario and to regain their market share. This study focuses on the leaders in various market segments and the strategies adopted by them to differentiate their brands and make their customers brand loyal. The article also discusses the the changing trends in various market segments.

 
 

Competition essentially means a fight and a monopolist enjoys a hold over the market and has control over the price and the customer. It is a tough and competitive scenario for the marketers today. If the companies are inefficient, the market forces would compel them to exit from the marketplace. Hence, competition means hard work. It is a constant struggle to outperform the rivals. Competition is consumer-friendly, but not market-friendly. Binaca is a brand that existed only in yesteryears. Binaca could not compete with the market competition and finally failed. The most remembered thing about Binaca is its conversion to Cibaca. Cibaca changed the brand name from Binaca to Cibaca when it was sold to another company. While Dabur bought Binaca, Colgate Palmolive bought Cibaca. Dabur has launched Binaca and now we have both Binaca and Cibaca in the market (though Binaca was toothpaste and Cibaca is currently being sold only as a toothbrush).

Kelvinator India refrigerators have led a yo-yo kind of life till now. There have been frequent changes of ownership, which also included an 18-month stint with the enemy, Whirlpool. Worldwide, the Electrolux brand owns Kelvinator. During the period from 1997-98, when Electrolux was just entering India, it did not have the capacity to hold on to the sales of Kelvinator. It had to sell it to Whirlpool to sustain sales. Whirlpool took advantage of the situation and milked the brand at that time. After the stipulated period of 18 months, Electrolux took the brand back into its fold. Since then, the brand has been contributing to a steady 65-70% of the company's revenues, a case of successful relaunch. Electrolux saved on a lot of costs it would have probably incurred had it launched a new brand.

 
 

Advertising Express Magazine, Market Leaders, Market Followers, Brand Loyalty, Japanese Companies, Brand Equity, Relationship Marketing, Indian Market, Mass Market, Marketing Strategies, Market Segments, Creative Strategies.