Question

Topic: Student Questions

Extension Or New Product

Posted by Anonymous on 25 Points
How should Dalda (vanaspati Brand) make foray into cooking oil segment ? By Extension or by New Product
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RESPONSES

  • Posted by jairaj_jatar on Accepted
    The vanaspati brand Dalda has a clear positioning and a significant franchise. And, it has this for many decades. the new product (cooking oil) must, I repeat must, utilise this legacy and harness it for gaining a big share of the new market. In my mind, the weight of legacy clearly pushes me to launch it as an extension.

    Over time, and with successes under its belt, there is a possibility of spinning the cooking oil as an independent brand.

    In the mean time, whilst utilising existing legacy, there is a major threat to the original Dalda vanaspati brand in case the oil product does not provide value as expected by customers. Are you prepared for this loss of prestige (and, perhaps market share) for Dalda vanaspati?

    As a previous respondent said, "It really isn't simple to decide"!!!

    Best wishes,

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