27
Group 6 Akanksha Singh 0911004 Saurabh Chandra 0911047 Sumit Kumar 0911057 Arvind Choudhary 0911085 Bhawna Jain 0911301 Ganeshram K 0911309 Shikha Rawat 0911344 RELIANCE INDUSTRIES LIMITED EAST INDIA HOTELS

Brand extensions - RIL

Embed Size (px)

DESCRIPTION

 

Citation preview

Page 1: Brand extensions - RIL

Group 6Akanksha Singh 0911004 Saurabh Chandra 0911047Sumit Kumar 0911057 Arvind Choudhary 0911085Bhawna Jain 0911301 Ganeshram K 0911309Shikha Rawat 0911344

RELIANCE INDUSTRIES LIMITED

EAST INDIA HOTELS

Page 2: Brand extensions - RIL

b2b

b2c

Core CompetenciesFocus on capital intensive industries in which success turns on the ability to get around regulators & competitors

Time and cost effective completion of complex & advanced technology projects

Unmatchable ability to manage relations with the government

Page 3: Brand extensions - RIL

Brand Identity - RILRIL as a Product

RIL as Organization RIL as Person RIL as

Symbol

Largest polyester yarn and fibre producer in the world Among the top ten producers in the world in major petrochemical products Very strong backward integration

Positive effect on operating margins and interest costs and decreased the Company's exposure to cyclicality of markets & raw material prices.

Perceived as a B2B brand Jamnagar Brand

Reliance Industries Limited - A-Z of Petrochemical

Page 4: Brand extensions - RIL

Brand Identity - RILRIL as a Product

RIL as Organization RIL as Person RIL as

Symbol

Fortune Global 500 company Largest private sector company in India (3% of India’s GDP)An empire that other corporate houses aspire to becomeAggressive yet Patient! Shrewd Observer Opportunistic – Telecom in 1999, Retail in 2006

Reliance Industries Limited – Dynamic, World Trotting, Pukka Gujarati!

Page 5: Brand extensions - RIL

Brand Identity - RILRIL as a Product

RIL as Organization RIL as Person RIL as

Symbol

50 year old Male Westernizing Gujju Politician

Reliance Industries Limited – Dominant & Arrogant – a Road Roller!

Three faces of Ambani *1) Unique, Larger than life –

A Brand name2) A schemer, a first class liar &

has no values in life3) Napoleonic –

Has a more sophisticated political brain, a dreamer & visionary

* Source: Ambani & Sons by H. McDonald

Page 6: Brand extensions - RIL

Brand Identity - RILRIL as a Product

RIL as Organization RIL as Person RIL as

Symbol

Simple Font – “no nonsense, we mean business”Circle around the drop signifying “end-to-end petrochemical”

Or with its entry into Retail and other segments – “fluid brand with an ability to extend everywhere”

Reliance Industries Limited –Growth is Life

Page 7: Brand extensions - RIL

Reliance Retail Limited•Inception : 2006. Now, network of 660 stores.• Presence : 85 cities across 14 states. • In two formats: • Value - Reliance Fresh, Reliance Mart, Reliance Super• Specialty - Reliance Digital, Reliance Trends, Reliance Timeout, Reliance

Footprint, Reliance Wellness, Reliance Jewels

Page 8: Brand extensions - RIL

Brand Identity - RRLRRL as a Product

RRL as Organization

RRL as Person

RRL as Symbol

• First thing that comes to mind – Reliance Fresh and Reliance Mart • Value format: daily household needs• Reliance Fresh: a neighborhood concept• Reliance Mart: an all under one roof supermarket concept• Reliance Super: a mini-mart concept

• Specialty Format:• Reliance Digital: consumer durables & information technology concept• Reliance Trends: apparel & accessories concept• Reliance Wellness: health, wellness & beauty concept• Reliance Footprint: footwear concept• Reliance Jewels: jewellery concept• Reliance Time Out: books, music & entertainment concept• Reliance AutoZone: automotive products & services concept • Reliance Living: home ware, furniture, modular kitchens, furnishings

Reliance Retail Limited – Everything you need for a happy home at

Low cost, Value for Money

Page 9: Brand extensions - RIL

Brand Identity - RRLRRL as a Product

RRL as Organization

RRL as Person

RRL as Symbol

• Lot of muscle power – strong backing by the parent company• Rapid expansion• Entry with a bang • Strong back end operations including supply chain• Local orientation • Value for money

Reliance Retail Limited – Smart and Swift – zooming in and grabbing space for itself

Page 10: Brand extensions - RIL

Brand Identity - RRLRRL as a Product

RRL as Organization

RRL as Person

RRL as Symbol

• 30 - 35 year old• Female• Educated• Ensures all your needs are met.

Reliance Retail Limited – Mentally strong, Indian housewife

Page 11: Brand extensions - RIL

Brand Identity - RRLRRL as a Product

RRL as Organization

RRL as Person

RRL as Symbol

•All logos have a similar pattern• The names are written on a red back ground – Aggressive• The ‘Reliance’ name is prominent & the font and symbol are the same as RIL – To eliminate confusion & establish strong parent backing• The second name however truly depicts the category

eg, “Fresh” is in green font while “Jewels” is in golden font• Only print ads – Harping on great offers, low cost and value for money

Reliance Retail LimitedAapki Khushi, Hamari Khushi

Page 12: Brand extensions - RIL

Basis of Fit

RIL RRL

Original Product Class:

Petrochemicals

Extended Product Class:

Retail

Strategic Fit: Diversified portfolio – Risks hedged.

User Type:Not common. Extended

into B2C

Symbol:Gets them closer to “aam aadmi” brand

Skills (Project Management, Lobbying)Assets (Capital Base)

Complements – Petroleum Retail (Separate SBU. Not part of RRL)

Page 13: Brand extensions - RIL

RRL’s PlanSees opportunity of 2000-5000 storesChallenge: “Scaling to do it fast and to replicate as we scale”.• Intends to renew a rapid expansion drive to compete with street markets• First plans to expand in tier I and tier II cities, before entering tier III and

tier IV cities and towns. The plan for rural India is to begin with sourcing the produce before entering the front-end in retail.

• Currently buys from farms, fields, vegetable mandis and suppliers• Contract farming plan will be activated once the required scale is reached• Efficiencies of scale: price points as low as Rs. 99 in its apparel brands to

compete with street market prices• Top management – “Indians spend mostly on streets which is our main

competition. We intend to bring those shoppers to RRL”• True Baniya – Willingness to supply private labels to other retailers.To compete with the kirana stores

– Will start home deliveries of groceries – “As we keep going down the strata, our hypermarkets will keep getting

smaller,” (average kirana store is 175 sq. ft in size)

Retail, like its core businesses, is definitely a business where they can scale significantly and quickly.

Page 14: Brand extensions - RIL

Business Hotels Leisure Hotels Cruises 5 Star HotelsThe Oberoi, New Delhi

The Oberoi Amarvilas The Oberoi Vrinda

AgraThe Oberoi Rajvilas Chennai

The Oberoi, Mumbai

The Oberoi Udaivilas The Oberoi Philae

BhubaneshwarThe Oberoi Vanyavilas Gurgaon

The Oberoi, Bangalore

Wild Flower Hall, Shimla The Oberoi Zahra

JaipurThe Oberoi Cecil, Shimla Mumbai (2)

The Oberoi Grand, Kolkata

Mena House Oberoi UdaipurThe Oberoi Sahl Hasheesh Cochin

The Oberoi, Gurgaon

The Oberoi, BaliThe Oberoi, LombokThe Oberoi, MauritiusThe Oberoi, Medina

East India Hotels

Page 15: Brand extensions - RIL

Brand Identity - EIH

Luxury, sophistication and comfort – Aspirational Brand!Product scope:

Luxury Hotel => TajOberoi => Luxury Hotel!

Present in all areas of a luxurious experience On land, water & airAsia-pacific region & Africa

Country of origin: very closely associated with IndiaQuality/Value: Best in Asia-pacificAssociation with use: Business and pleasureUsers: Foreigners and upper classes, business (managers & upper echelons)Perfect blend of the region’s culture and the comfort of modern facilities

EIH as a Product

EIH as Organization EIH as Person EIH as Symbol

East India HotelsMaharaja Experience – Living like a King!

Page 16: Brand extensions - RIL

Brand Identity - EIHEIH as a Product

EIH as Organization EIH as Person EIH as Symbol

Family owned but professionally managed Specialized in hospitality Create an experience Personalized and warm service Trusted Courteous

East India HotelsAn epitome of service, luxury and efficiency!

Page 17: Brand extensions - RIL

Brand Identity - EIHEIH as a Product

EIH as Organization EIH as Person EIH as Symbol

Middle aged Male Foreign educated & modern Connection to Royal Family Elegant and sophisticated Believer in traditional Indian values

East India HotelsSecond generation Indian aristocrats

Page 18: Brand extensions - RIL

Brand Identity - EIHEIH as a Product

EIH as Organization EIH as Person EIH as Symbol

Very specific to hospitality - ‘Oberoi Hotels and Resorts’ Font is floral and artistic - reminds of old age aristocracy Sober color –elegance, subdued Either heritage or very modern architecture, nothing in between!

East India HotelsLuxury Redefined

Page 19: Brand extensions - RIL

Type of Brand & Ability to extend

DProduct

Formula

Knowhow

Interest

Philosophy

BFuel

Stations

CEPC

ELow cost Airlines

APetrochemicals

EIH Capital IntensiveHigh barriers to entryLong breakeven periodHigh returns

RRLCapital Intensive

Long breakeven periodDiversification Strategy

Page 20: Brand extensions - RIL

Perimeters of Brand Extension

Inner Core

Line Extension

Outer Core

Spontaneous Associations

Extension Zone

Latent Potential

No-go Area

Threat to Brand’s capital assets

Non-conventional energy sources

Oil and Gas Fields

Forward Integration like Fertilizers

RRL &

Hospitality

Page 21: Brand extensions - RIL

Brand Relationship

RIL

Branded House

Same Identity

RRL

House of Brands

Shadow Endorser

EIH

Page 22: Brand extensions - RIL

What PRS Oberoi saysThe hospitality business is very capital intensive. EIH has a growth strategy and it needs strong committed shareholders. RIL clearly satisfies these criteria. It is a long term investor and does not have any conflict of interest.

On EIH

What others sayEmotional InvestmentMukesh Ambani had approached the Oberois’ 3 years ago to buy the companyStrategic InvestmentAvenue to invest the excess cash (to the tune of $8 billion) of RIL; RIL to help fund EIH’s international expansion into US & UKWhite KnightRIL stake intended to thwart takeover attempts by ITCDark KnightIs it a replay of the L&T drama of early 1990s?

Tussles between the next generation of Oberois is evident; PRS Oberoi will not want the brand to be diluted after his lifetime

Strong external partner who can carry the flame after PRS Oberoi - RIL fills the gap

Nita Ambani will be appointed to the board; 3 – 5 years down the line, RIL may buy controlling stake in EIH

RIL will not change the Oberoi brand name, but be a shadow endorser

Page 23: Brand extensions - RIL

Why the RIL saga will continue

Almost all projects are focused/dependent on the growth of the country

RIL’s giant projects in urban development, distribution and retailing shows a belief that such schemes are beyond the capacity of the government

These sectoral developments are needed by the country, for generation of jobs and revenue

Page 24: Brand extensions - RIL

Thank You

Page 25: Brand extensions - RIL

Limitations of the frameworks

• Bases of Fit– Not able to apply to completely unrelated industry sectors

• Type of Brand & Ability to extend– Doesn’t discuss about the financial implications/viability– No clear distinction between the types of brand– Brand characteristics not analysed from end user POV

• Perimeters of Brand extensions– Doesn’t discuss about the financial implications/viability– No–go area not applicable for all brands– Brand characteristics not analysed from end user POV

Page 26: Brand extensions - RIL

The Detail in RetailHype & Interest of Retail in India

Is Big Retail making money?– Casualties: Shubhiksha, Vishal Retail, Indiabulls!– Spencers’ loss: Rs 300 crore in 2008-09. Is still losing Rs 12-13

crore a month. Downsizing (<1 million square feet now)– Shoppers Stop’s loss: Rs 64 crore in 2008-09– ABG’s More Chain (2007) hopes to become positive in 2012-13– Pantaloon highly leveraged (Rs 4,000 crore of debt)– Reliance Retail: loss of Rs 700 crore in 2008-09 & Rs 450 crore

in 2009-10.

Total Retail Market Organized Retail Market

2010 $400 billion 5-6% ($22 billion)2015 >$450 billion 15% ($67.5 billion)

Page 27: Brand extensions - RIL

RIL Vs ADAG

SilentCalculatingOpportunisticRuthlessBehind the scenes worker

Constant stream of cash from petrochemicals

Friends with both ruling & opposition parties

Businesses tied with India’s growth

Media savvyEmotional

PR guy

Cash stream from IPOs

Friendship with Amar Singh –Suspect in the eyes of others

Business success depends on taste of consumers