Indane: A Superbrand After 50 Years
Synopsis
This case flyer offers an overview of the domestic LPG in India. It examines the LPG brand, Indane which has reinforced its brand equity over the last 50 years through its product and market augmentation and differentiated marketing activities. It further connects these concepts to identify and establish and reinforce Indane brand credentials through consistent marketing programs.
Prerequisite Conceptual Understanding (PCU)/Before the Classroom Discussion
This case flyer presupposes an understanding of the concepts of how to best manage brands over time by reinforcing and revitalizing brand equity. The students should have a basic understanding of the Indian LPG market, nature of Indian domestic cooking gas market in the light of brands present, extent of competition and differentiation. Accordingly, the participants were asked to read/watch the following chapter, articles/videos to help them better connect the concepts:
- • Kevin Lane Keller, et.al., “Managing Brands Over Time”, Strategic Brand Management, 3rd Edition, Pearson Education Inc., 2011 – To understand how to manage brands over time
- • Harish Bijoor, “What is a super-brand?”, http://brandthinker.blogspot.in/2008/08/what-is-superbrand.html, August 14th 2008 (accessed date: November 2nd 2015)
- • Indian Oil Corporation Limited, 50 Years of Indane Film, https://www.youtube.com/watch?v=vI6r8LdqJXk-
- • Indian Oil Corporation Limited, Indian Oil Milestones Film, https://www.youtube.com/watch?v=Sd9r2MzXlAI
Case Positioning and Setting
This case flyer can be used for the following:
- • In MBA Program: This case flyer can be used in Marketing Management or Brand Management courses to discuss how to best manage brands over time by reinforcing and revitalizing brand equity
- • In MDPs/EDPs: This case flyer can also be used in Management and Executive Development Programs to demonstrate how marketers must actively manage brand equity over time
Case Flyer Analysis and Classroom Discussion
Preamble to this Caseflyer Analysis
This caseflyer provides an opportunity to learn how LPG brand, Indane has reinforced its brand equity over the last 50 years through its marketing activities [Exhibit (TN)-I]. Through its product and market augmentation and differentiated marketing activities Indane was successful in managing its brand equity over time..........
I. Indian LPG Market – An Overview
The purpose of the first segment/section of this case flyer is to let the students/participants understand the nature of Indian domestic cooking gas market. An attempt was made to let the participants understand the players (brands), the extent of competition, the distribution chain and the extent of differentiation in the LPG market scenario in India.
1. Describe the nature of cooking gas market in India.
The nature of the Indian LPG market is captured by the following characteristics:
• Indian LPG market is largely government controlled and captive in nature, with negligible private sector participation
• Highly regulated market with negligible competition either from private players or within the existing and government controlled players (like HP Gas, Bharat Gas and Indane Gas)
• Heavy subsidy on domestic LPG by the government created a barrier for private players in the LPG market
• Highly distribution-led business i.e., the critical success factor for an LPG market is, making the product available to the ultimate consumer. Therefore, ‘reach’ becomes an important factor which is carried out by the local gas agencies and the logistics play an important role
• Although it is B2C business, the direct connect between the actual service provider (for instance, Indane, HP or Bharat Gas) and the ultimate consumer would be largely through the local gas agencies/local LPG providers
• LPG business is largely convenience and access-driven than brand-driven
• It is a commodity-driven approach rather than brand-driven approach
• Buying LPG is not an induced-decision but intuitive-decision (i.e., marketing does not induce a consumer and there is no specific relevance to a brand in LPG market)
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Exhibits
Exhibit (TN)-I: Classroom Discussion Dashboard
Exhibit(TN)-II: Leading Indian LPG Market Players
Exhibit (TN)-III: LPG Distribution Chain in India
Exhibit (TN)-IV: LPG Brand Differentiation Factors
Exhibit (TN)-V: LPG Process Cycle
Exhibit (TN)-VI: Indane’s Critical Success Factors
Exhibit (TN)-VII: Indane’s Brand Equity through its Product, Service Marketing, Brand Fortifying and Brand Leveraging
Exhibit (TN)-VIII: Superbrands Hierarchy
Exhibit (TN)-IX: Indane’s Brand Values
Exhibit (TN)-X: Indane’s Superbrands Hierarchy
Exhibit (TN)-XI: Performance Indicators of Indane