BRAND MANAGEMENT – ASSIGNMENT # 3

NATIONAL FOODS LIMITED: ‘RONAQ’S CASE’
Submitted by:
Warda Zarar & Jasera Arshad

2010

INSTITUTE

OF

BUSINESS ADMINISTRATION

Umbrella Branding: National was inscribed very prominently on the packet. Ronaq actually started eating up their own range of Spices which cater to a totally different market – instead they started using Recipe Masalas instead of the individual Spices to cook their food which result in a cannibalization of Nationals own traditional spices. Failed to capture the new market: Even though National aimed to capture the young 15-25 college going and professional women market. They had a confused advertising campaign with constant repetition of ‘Shan’ in the ad. but they failed to target them effectively. The promotions did nothing to sketch a clear and distinct image of Ronaq in the consumers mind except a vague restaurant jaisa taste which didn’t make much sense in the first place. . Thus it failed to differentiate ronaq as a separate brand category Promotion:  Promotions for Ronaq were not up to the mark either. it actually served to promote Shan more and in effect became a brand recall for Shan foods in the minds of the customer. giving customers the impression that Ronaq was simply a variant of National. National also started giving their own products free with Ronaq which also served to diminish Ronaq’s individual brand identity  Cannibalization: Instead of facilitating Ronaq to stand out as a separate brand Catergory. under the National Umbrella.ISSUE INDITIFICATION: We have identified the following critical issues with Ronaq that may have been the reason for its failure: Weak Positioning: Ronaq’s brand positioning theme by which they tried to differentiate form National was “Restaurant jaisa zaiqa” which in addition to being weak also confused the consumers as there is no particular taste associated with all restaurants.

Referring to the Flanking Strategy by Al-Ries: Flanking Strategy: If Your organization is 4-6 in the market. Focus on their core loyal customers – which included women above 35 who had been using the traditional National Masala’s and increase awareness in them about Recipe Masalas. abandon failures. 4. through their Ronaq brand. Even though National realized that that they too needed to cater to this emerging new market and launched their own recipe Masala Range. and caught National by surprise with it. 3. It is obvious that Shan launched an excellent Flanking attack on National with their Recipe Masala Range. Target an entirely different market segment like young working men – that instead of waiting for a perfect bride who would cook for them they can easily make tasty food for themselves by using Ronaq . Repositioning of Ronaq 2. 2. by that time Shan had been well established itself as a leader in that category. Categorize their products to position clearly i.ANALYSIS    Wrong Brand Ambassador: They used celebrity Shan in their TVC which actually helped increase brand recall for Shan instead of Ronaq Instead of coming up with a different USP. and you have the resources to pursue your flanking move. Since National Food is more associated with milder taste they should focus on Oriental Recipes – with a tinge of National Sauces – that way they can even promote their own Sauces and Spices with the Oriental Recipes 3. 6. Tactical surprise ought to be an important element of the plan.e. Flanking skill requires exceptional foresight. National tried to capture the ‘Spicy Masala Mix’ category that Shan was already a Champion of. A good flanking move must be made into an uncontested area. Alternatives: What could’ve been done? The alternatives that they had to choose amongst are: 1. The pursuit is as critical as the attack itself The success of a flanking attack often hinges on your ability to create and maintain a Separate category. Thai. To Sustain Ronaq by focusing more on a specific niche 5. Restaurant Jaisa Taste is very confusing – Instead they could explicitly mention Chinese. Reinforce success. there is no established market for the new product or service. 1. sewing up that market segment. Italian etc. The reason is that in a true flanking attack.

1.   . 3. Hence. closing it down would be a bad idea. and vice versa. coming up with a Range of Recipe Masala’s like ‘Barbeque Tonite Masala’ or ‘Arizona Masala’ with their certified Cooks endorsing the brand – which could revive it in a whole new way. They could also effectively cater to the Young Women market [15-25years]. and you have the resources to sustain a challenge to the leader.” There’s weakness in strength. What’s good strategy for the leader is bad Strategy for #2. Instead what they can do is:  Since Shan has already launched the Oriental Recipes. college going. what Ronaq could do is that they could focus on the famous Restaurants associated with their unique superior quality taste and start making alliances with them.   Applying the offensive attack. party loving thriving market by start engaging their customers more on a one-on-one basis with extensive BTL activities: Going to colleges for arranging Competitions like : ‘Who can cook like Barbeque Tonight the fastest?!’ etc. Launch the attack on as narrow a front as possible. Attacking Shan’s Spicy Taste and simultaneously Building upon their own Strength – ‘Milder taste’ launching oriental Chinese which can never be spicy and hence Shan cannot do that. if you can find it. National should have found a weakness in Shan’s strength – which was their Spicy Taste. What can be done now? Now that they’ve already spend 25 million on Ronaq. The main consideration is the strength of the leader’s position. they could relaunch Ronaq in this way. “Where absolute superiority is not attainable.DECISION: What should’ve been done? Referring to the Offensive Strategy as defined by Al Ries: Offensive Strategy: Your organization is # 2 or 3 in the market. “you must produce a relative one at the decisive point by making skilled used of what you have. Find a weakness in the leader’s strength and attack at that point. 2. with advertising campaign emphasizing the certified cooks and their association with those restaurants.” says Clausewitz.

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