Is there a continuous stream of new branded products and brand extensions?
Gillette (Indian Shaving’s parent) had conceptualised Mach III even before Sensor Excel was launched in India. It spent over three years and around $700 million in its development, and it’s clear that the Mach III and other new products including shaving accessories will form the next wave of the company’s product launches in India. How sustainable is the brand premium under recession and/or heavy competition? Take BPL, which with advertising and sales promotion, has held its ground despite aggressive competition and a brief industry downturn against the likes of Akai, Aiwa, Panasonic, Sony and Thomson. And Hindustan Lever can use the financial strength it has built up to use freebie-based sales promotions for its soaps, detergents and dental creams with minimum cost and maximum return. How strong is the brand’s pricing power? A brand’s pricing power is a function of its perceived utility, quality, and the level of competition. Despite stiff competition in the cooking oil market, Maric
