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What is rebranding?

Nestlé, one of the leading health and wellness companies in the world operated in India for over a century. The company sold milk and milk products, beverages, prepared dishes, and chocolates and confectioneries under Nestlé, Maggi, and Nescafé brands. In 2011, the company rebranded its milk and curd products as Nestlé a+ milk and Nestlé a+ dahi. Within days, the Gujarat Cooperative Milk Marketing Federation (GCMMF), which sold milk and milk products under the Amul brand, raised objection stating that it had launched products under ‘Amul A+’ brand, a few years ago, and Nestlé’s rebranding would confuse the consumers. Both the companies were in discussion to settle the matter.

Issues:

» The need and importance of rebranding
» The factors to be considered before rebranding
» Advantages and disadvantages of rebranding

Introduction
The Indian arm of the Switzerland-based nutrition, health and wellness company, Nestlé S.A. had a presence in India since 1912. It operated in the country as Nestlé India Limited (Nestlé India), and was incorporated in 1959, as a subsidiary of Nestlé S.A. Nestlé India manufactured and sold milk and milk products, beverages, prepared dishes, and chocolates and confectioneries. Under the Nestlé brand it sold condensed milk, milk powder, milk, ghee (clarified butter), curd, chocolates, and confectioneries. It sold coffee powder and tea powder under the Nescafé brand; and soups, noodles, pastas, and sauces under the Maggi brand…

Questions for Discussion:
1. What is rebranding? What are the pros and cons of rebranding?
2. How can companies benefit from rebranding?
3. How does rebranding affect buyer behavior? Explain.
4. What impact would the tussle with Amul have on Nestlé’s rebranded products?

 

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