Search results

1 – 2 of 2
To view the access options for this content please click here
Article

Kiran Mahasuar

The distribution channel in Indian Consumer Packaged Goods (CPG) ecosystem is both unique and unparalleled in terms of its reach, structure, and size. This paper aims to…

Abstract

Purpose

The distribution channel in Indian Consumer Packaged Goods (CPG) ecosystem is both unique and unparalleled in terms of its reach, structure, and size. This paper aims to give an emerging market perspective of the innovations in the distribution models of CPG industry through pertinent case studies.

Design/methodology/approach

This briefing is prepared by two independent writers who have critically evaluated the Indian CPG Distribution ecosystem and contextualized the case-studies with their perspectives.

Findings

Most of the text-books and academic literature are tailor-made for the distribution through organized retail. So, how do we tackle the complexities of the Distribution in an emerging market like India with a gargantuan proportion of sales in the unorganized retail sector? The paper is possibly the first attempt to give an emerging market perspective of the successful innovations in the distribution models of CPG industry through pertinent case studies and thereby serve as a learner’s primer in this area.

Practical implications

The paper provides impactful strategic insights and practical thinking derived from the innovative approaches of successful corporations.

Originality/value

The research paper is first of its kind documentation of innovation in CPG ecosystem of India and thus saves busy executives and researchers hours of reading time. The relevant information is presented in a succinct and easy to digest no-frills format.

Details

Strategic Direction, vol. 35 no. 1
Type: Research Article
ISSN: 0258-0543

Keywords

To view the access options for this content please click here
Article

Kiran Mahasuar

This paper aims to focus on the insights from the brand journey of Horlicks in India and evolution of the health food drinks (HFD) category.

Abstract

Purpose

This paper aims to focus on the insights from the brand journey of Horlicks in India and evolution of the health food drinks (HFD) category.

Design/methodology/approach

The paper explores the key reasons for the slowdown in the HFD category and the descent of brand Horlicks in India. It follows the strategic decisions and actions that Horlicks’ parent GlaxoSmithKline Consumer Healthcare took over its journey of close to 100 years. It also highlights the cardinal mistakes that it made in distribution networks, brand extensions, etc. and how these could have possibly eroded the brand equity of Horlicks.

Findings

Horlicks as a brand made many strategic errors. It frequently and needlessly fiddled with unrelated categories in contrast to its nutrition agenda. It unnecessarily spent on developing brand extensions in unhealthy categories that customers did not value or relate to. It was strategically blinded by the dominance in two geographies and continued to be under-invested in distribution networks in others. In addition, it took too long to read the writing on the wall in terms of growing consumer consciousness about the presence of sugar and fats in health foods. Even when clear signals were available of the impending slowdown the HFD category faced, despite being the market leader in the HFD segment, it showed limited urgency to foster an innovation to bolster the category.

Practical implications

Companies need to focus on a sharp business model and not try to be everything for everyone. Companies that gain valuable insight of what its customers value and design their business model to satisfy these requirements have higher chances of surviving through the weft and warp of time.

Originality/value

The paper considers the context of the highly dynamic fast-moving consumer goods (FMCG) industry in India. It is an industry where for some of the categories like HFD, the brand equity of the mother brand may or may not have a rub-off effect on brand extensions, or dominance in a particular geography may not translate to similar dominance in another geography owing to heterogeneity factor. In such a scenario, brands such as Horlicks, which do not have a consistent and coherent strategy, find it difficult to grow their market share or the category. It provides insights into the common pitfalls in brand development strategy and how it can be avoided.

Details

Strategic Direction, vol. 35 no. 7
Type: Research Article
ISSN: 0258-0543

Keywords

1 – 2 of 2