The move backfired and Thums Up is still India’s largest selling cola drink. Despite MNCs and big national brands, the staying power of local flavours continues, says Savreen Gadhoke
Bombay, March 15, 1959: Seven semi-illiterate women with a borrowed capital of Rs.80 assemble at a vacant terrace to start their entrepreneurial journey in an endeavour to support their livelihoods. The sales of their product touched Rs.6,196 in the first year itself and in no time the number of workers (only women, fondly called ‘sisters’) catapulted into hundreds and thousands of sisters coming together and joining hands. In 1968, the company opened its first branch outside Mumbai in Gujarat and also added new products to its portfolio. Today, the same company has its annual sales exceeding Rs.3.5 billion with over 80 branches all over India and 45,000 women employees. The product is Lijjat Papad (yes! the same one with a toothy rabbit as its ambassador) started by Shri Mahila Griha Udyog. Lijjat Papad is perhaps the best instance of a regional brand successfully going national. In its 50-year long journey, Lijjat Papad has set precedence for countless regional brands to fulfill their dreams of going pan-India (and even overseas). But what does it take for a regional brand to spread its wings and fly in national – or even global skies?
“Basically,” says Neeta Wali, Director, Brand Talk, “it is the theory of 4Ps only that has to be extended wisely and smartly when a regional brand plans to roll out its offering nationally.” Here, the most important is, of course, the product itself. What products are on offer and are they enough to satisfy or meet the demands of a national audience? Although Lijjat Papad started its business with a single product offering (papad), it subsequently added new stuff to its portfolio like masalas, flour and bakery products. As net income grew, the sisters diversified into other areas like matches, agarbattis and leather products as well. Besides, Shri Mahila Griha Udyog also started producing a detergent powder by the name of Sasa, which became an instant hit. Although papad by itself did appeal to a national audience; but it was also the diversification and addition of new product offerings that added economies of scale to the business, which eventually allowed it to catapult into a strong national brand to reckon with.
Pricing too has played an important role in the journey of regional brands charting a national roadmap. A classic example of a price-warrior has been Nirma, launched by a small time chemist at the Gujarat Government’s Department of Mining and Geology, Karsanbhai Patel in 1969. Priced at a lowly Rs.3 per kg, Nirma gave HLL (now HUL) many sleepless nights, giving tough competition to Surf priced at Rs.15 per kg. Nirma was established as a home-grown regional player with a unique consumer proposition and a special focus on rural as well as low-income groups. “Knowing your target audience is very essential. Even when you roll out nationally, your customer does not change. So, your pricing should be such that it appeals to a pan-India audience,” says Anand Ramanathan, Advisory Service Manager, KPMG. Even when Nirma spread its wings across the country, it maintained its consumer proposition and continued to focus on its target audience only.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM Related Links
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Detail of all IIPM branches
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)
Bombay, March 15, 1959: Seven semi-illiterate women with a borrowed capital of Rs.80 assemble at a vacant terrace to start their entrepreneurial journey in an endeavour to support their livelihoods. The sales of their product touched Rs.6,196 in the first year itself and in no time the number of workers (only women, fondly called ‘sisters’) catapulted into hundreds and thousands of sisters coming together and joining hands. In 1968, the company opened its first branch outside Mumbai in Gujarat and also added new products to its portfolio. Today, the same company has its annual sales exceeding Rs.3.5 billion with over 80 branches all over India and 45,000 women employees. The product is Lijjat Papad (yes! the same one with a toothy rabbit as its ambassador) started by Shri Mahila Griha Udyog. Lijjat Papad is perhaps the best instance of a regional brand successfully going national. In its 50-year long journey, Lijjat Papad has set precedence for countless regional brands to fulfill their dreams of going pan-India (and even overseas). But what does it take for a regional brand to spread its wings and fly in national – or even global skies?
“Basically,” says Neeta Wali, Director, Brand Talk, “it is the theory of 4Ps only that has to be extended wisely and smartly when a regional brand plans to roll out its offering nationally.” Here, the most important is, of course, the product itself. What products are on offer and are they enough to satisfy or meet the demands of a national audience? Although Lijjat Papad started its business with a single product offering (papad), it subsequently added new stuff to its portfolio like masalas, flour and bakery products. As net income grew, the sisters diversified into other areas like matches, agarbattis and leather products as well. Besides, Shri Mahila Griha Udyog also started producing a detergent powder by the name of Sasa, which became an instant hit. Although papad by itself did appeal to a national audience; but it was also the diversification and addition of new product offerings that added economies of scale to the business, which eventually allowed it to catapult into a strong national brand to reckon with.
Pricing too has played an important role in the journey of regional brands charting a national roadmap. A classic example of a price-warrior has been Nirma, launched by a small time chemist at the Gujarat Government’s Department of Mining and Geology, Karsanbhai Patel in 1969. Priced at a lowly Rs.3 per kg, Nirma gave HLL (now HUL) many sleepless nights, giving tough competition to Surf priced at Rs.15 per kg. Nirma was established as a home-grown regional player with a unique consumer proposition and a special focus on rural as well as low-income groups. “Knowing your target audience is very essential. Even when you roll out nationally, your customer does not change. So, your pricing should be such that it appeals to a pan-India audience,” says Anand Ramanathan, Advisory Service Manager, KPMG. Even when Nirma spread its wings across the country, it maintained its consumer proposition and continued to focus on its target audience only.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM enters into media education
IIPM makes record 10,000 placements in five years
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here
Pioneer Exposes the fraud called Mahesh Sharma and Mahesh Peri of Career 360 and Barbel Schwertfeger of mba-channel.com
IIPM Related Links
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Detail of all IIPM branches
IIPM - Admission Procedure
IIPM, GURGAON
IIPM 3-year full-time Integrated (MBA BBA) Programme
IIPM 2-year full time Programme (leading to the award of the MBA degree from IMI)
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