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Vision
19(1) 6568
2015 MDI
SAGE Publications
sagepub.in/home.nav
DOI: 10.1177/0972262914568057
http://vision.sagepub.com
Sreeram Sivaramakrishnan1
Vineet Hansaria2
Product portfolio decisions are some of the most challenging decisions that a brand manager or a marketing team
will have to encounter. And so far, it seems like MOMCO
has been reacting to external events rather than proactively
taking the initiative. Figure 1 presents a graphical timeline
along with major events. Generally, a market leader is the
one who takes proactive decisions to maintain its preeminent position in the market.
The sunflower oil threat was ever present. However,
MOMCO did not take this head-on until pushed against
the wall due to competitive pressures and regulatory
changes.
The margin for Kardi oil (KO) is not explicitly mentioned in the case, though margins for KOCO (40 per cent)
and KORBO (30 per cent) are mentioned. The margin
1School
2School
Corresponding author:
Sreeram Sivaramakrishnan, School of Business Management, NMIMS.
E-mail: sreeram.s@nmims.edu
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66
Vision 19(1)
19992000
200001
200102
200203
200304
200405
200506
200607
200708
200809
200910
201011
201112
400
400
500
400
600
800
950
1000
1200
1000
1100
1175
350
500
500
400
600
800
950
1000
1200
2000
2250
2575
7425
7075
1000
1150
1400
1575
1575
5500
5000
Source: Authors.
Year
19992000
200001
200102
200203
200304
200405
200506
200607
200708
200809
200910
201011
201112
Yummy Blend
(KOCO)
Healthy Tasty
Blend (KORBO)
Heart patients
and family
People who
want a healthy
heart
Good for
heart/Prevention
Heart Specialist
Source: Authors.
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Advantages
Disadvantages
C
ontinues with existing product mix with only changes in
formulation. Lesser marketing effort.
Majority of existing, loyal Kurdola customers would continue
and pay premium.
Brand can be relaunched as Kurdola Premium/Kurdola Heart.
Brand extensions do not need to be changed. They would
remain Kurdola Yummy and Kurdola Healthy and Tasty.
Communication could be focussed upon improved Kurdola
with better technology and better health effect. If the price
remains the same that could be communicated as well.
Makes a clean break from the past
Protects the image of the company
If increasing customers check the composition this would
be a wiser choice.
New product communication could be done and a premium
could be charged.
Share of only 7% of sales (Table 1) and 10% (Table 4) of
contribution, the Kurdola brand has already lost significance
in the company.
Makes a clean break from the past.
Protects the image of the company
Saves on marketing and product development effort in
Option B.
Retains the product in the portfolio
No new product development cost
R
etains the product in the portfolio
No new marketing or product development cost
Retains existing Kurdola customers
M
ajority of existing, loyal Kurdola customers
may defect
Some level of alienation inevitable
Marketing and product development effort
and cost.
Brand extensions may also require a rethink
All existing, loyal Kurdola customers may defect
Brand extensions may also require a rethink
Could be construed as an admission of guilt
Brand equity build around healthy products would
be lost.
M
ajority of existing, loyal Kurdola customers may
defect
Marketing effort and cost
People might shift to competition and also might
consider it a breach of trust over a period of time
Other products might also suffer
High risk of exposurecompetition may certainly
give high publicity to the 2012 findings.
May seriously impact products and perhaps even
existence of the company
Source: Authors.
Kurdola
Yummy
Healthy Tasty
(KO) Blend (KOCO) Blend (KORBO) Total
180
225
180
270
360
428
450
540
450
495
529
158
225
Source: Authors.
400
460
560
630
630
1650
1500
180
225
180
270
360
428
450
540
850
955
1,089
2,438
2,355
Year
Kurdola (KO)
19992000
200001
200102
200203
200304
200405
200506
200607
200708
200809
200910
201011
201112
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
52.9%
51.8%
48.6%
6.5%
9.6%
Source: Authors.
Downloaded from vis.sagepub.com at UNIV CALIFORNIA SAN DIEGO on December 30, 2015
Yummy
Healthy Tasty
Blend (KOCO) Blend (KORBO)
47.1%
48.2%
51.4%
25.8%
26.8%
67.7%
63.7%
68
Vision 19(1)
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