Nirala Sweets: Strong Brand, Getting Weak.

Nirala Logo

Nirala Sweets was only in sweets. Which made this brand an icon. If you want sweets for any occasion the best one is known as Nirala. They made the fortune out of their specialty, which allows them to set higher prices. And higher prices bring prestige with it! Brand had become strong!

It is one of the most brilliant company that played very well by differentiating them with high prices.

The strategy is great. Customers are willing to pay more for better product, they want some differentiation, a reason, to buy yours, not others. Nirala really mean sweets.

But wait a minute! What Nirala is doing now? Attacking on others territories?


Launching brands with their renowned brand Nirala? Do they think they will also be the best in other categories with the same brand name?

Kamil’s BONUS 1: Brand extension can only work when your competition is weak or non existence.

Nirala Sweets is ok until and unless its all competitors e.g Butt sweets and bakers is making the same mistake. Butt sweets is not leaving its base and not jumping into others markets to capture. (besides this Butt has some other strategic problem, we will discuss in another article).

But for how long? Will they forever keep on fighting with each other? Do they think there would be no specialist in near future, ever? Ok leave this, what about the perception and positioning about the brand?

Does that mean that if Nirala Sweets sells everything make their perception of quality or selling only sweets make their perception of quality that they are best and they know more about sweets than anything else?

“If you are defending your self from every where you’ll make your self weaken”
wrote Sun Tzu,The Art of War.

Nirala should consider it seriously! Nirala’s brand failures are in the front of us.

(Against) Beverages line: Nestle, Aquafina etc
(Against) Snacks line :Lay’s, Pringles, Other famous brand of Karachi in nimko category.
(Against) Dairy line: Haleeb, Milk Pak, Dalda etc.

With how many categories Nirala has been fighting?

Beverages (Bouncer), Snaks (Snipz), Milk (Nirala Doodh)

(Remember! we’re discussing Nirala brand is mentioning ‘Nirala’ brand name on its EACH brand. It’s means ‘Nirala’ brand is attacking and defending from everywhere and losing positioning)

So how many competitors does Nirala brand possesses in each category?

Lots of in Sweets + Lots of in Beverages + Lots of in Snacks + Lots of in Dairy

Do the math and you’ll know that how many attacks Nirala is facing from how many industries? Isn’t it good to get attacked and defended from one side? (other than from four sides?)

Move back to basics. Nirala stands for expensive sweets. Keep this positioning as it is. If necessary, Nirala has to launch a new category with another brand name!(New category could also be created to change your target market.

 

Kamil’s BONUS 2: If competitor is targeting older folks, you can target younger folks

By removing it’s name Nirala, or writing it in small type, develop another positioning for it’s new brand!
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(P.S: I transferred this article. So read the comments here http://www.squidoo.com/kamil/12778425-pick-your-side?utm_source=kamil&utm_medium=duel&utm_campaign=MAP )

 

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