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. |