Emami has migrated its blood and skin purifier brand Himani Lalima to newly acquired portfolio of Zandu. Now the OTC (over the counter) product is marketed as Zandu Lalima and is available in the market under its new brand positioning. Could the move be because of the brand equity that Zandu as a brand has acquired over the years and of course thanks to a popular Bollywood song that mentions the name of the brand? Has the wide consumer appeal of Zandu pushed Emami to make such a move? Pitch finds out from experts.
Brands are a company’s most essential assets. The face and the medium of communication between the company and its customers is not only marketing but name and packaging too. Home grown brands are now becoming complex and their portfolios are at a constant flux since the nature and quality of the products are now overlapping.
Professor Prriya Raj, Brand Management & Communications Expert, MICA says, “Since Emami has bought Zandu the first level of awareness among the customers is Emami and the second is Zandu. Zandu is into OTC and Ayurvedic products and these have a wide consumer appeal. Every company has a brand architecture and this architecture will clean up since Emami has now integrated Zandu with its Ayurvedic products.”
He also reckons that if the product has a good equity in volumes and has enough market then it is obviously not advisable to change the name of the brand but here the focus remains at Zandu as it has a greater mass appeal while Lalima does not have a large visibility. “By integrating both, Zandu will get the audience and Lalima will get a better shelf space,” he adds.
Raj also states that Zandu is an acquired brand and every company after acquisition has to categorise the product. Ayurvedic products are a new category. The brand architecture becomes easier and it is easier for the customers to order the product and easier for the dealers to describe and sell the product.
The brand Zandu fits well with the OTC Ayurvedic products that are being sold under the umbrella of Emami, as Zandu itself is an OTC Ayurvedic product brand.
On the brand equity of Zandu, Sharad Sarin, Professor Marketing, XLRI, too, feels that Zandu has been one of the oldest brands of the country and very well known in the Ayurvedic sector, therefore, the company that gets Zandu is basically trying to strengthen its brand structure.
He quotes an example and says, “For example, Tata sold Lakme to Hindustan Lever, Lakme is a very small brand according to Hindustan Lever but it did not change the name of Lakme because Lakme has strong brand equity in terms of premium and loyalty. Similarly Zandu is very famous, it has featured in the song ‘Munni Badnaam’ from Dabbangg, everyone knows that, it has a very wide consumer base across all strata of society and all age groups.”
Moreover, the Professor feels that for a brand to flourish it has to have a strong distribution muscle, Zandu stand alone gets a lot of self space, the company sees a selling power with Zandu and by acquiring and renaming the Himani Lalima to Zandu Lalima it is gaining and in turn selling more credibility.
Sarin says that behind every successful brand there is good product quality and service, therefore the answer to whether the impact will be profitable or not is both yes and no, it’s something that is known as ‘grade if’ in the marketing world.