Abstract
MOMCO was a leading manufacturer and marketer of branded edible oils in India. In its product portfolio, Kurdola was PUFA (poly unsaturated fatty acid) based premium edible oil. It was established in the market as the best product for keeping the heart healthy, based on the findings of medical research. MOMCO’s had in its product portfolio “Healthy tasty blend”, a balanced blend of PUFA and MUFA (mono unsaturated fatty acid), which was positioned as economical product with considerably lower margins for MOMCO.
New medical research now established that a blend of PUFA and MUFA was better for heart than a pure PUFA product. Thus “Healthy tasty blend” was better than Kurdola for heart. This completely turned the core value proposition of Kurdola and its extensions. This could lead to serious brand dissonance for the loyal consumer base of Kurdola. The management had to take immediate action in the market as the current positioning and margin structures could lead to serious damage to the brand, cannibalization by low margin products which could drastically reduce the profitability of the company and jeopardize all other businesses.
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