Indane: A Superbrand After 50 Years

Indane: A Superbrand After 50 Years

Expected Learning Outcomes

• Analyze the Indian LPG market and the nature of Indian domestic cooking gas market in the light of brands present, extent of competition and differentiation
• Examine how Indane has reinforced its brand equity through its product and market augmentation and differentiated marketing activities
• Understand the steps to be taken to make Indane brand even more customer-friendly and position it as one of the top Indian FMCG brands

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I. Indian LPG Market: An Overview

1. Describe the nature of cooking gas market in India.
2. List the players in Indian cooking gas market apart from Indane.
3. How is LPG produced and distributed to the customers? Analyze the relationship between the LPG brand and the consumer.
4. What are the possible Points of Differentiation for a LPG brand? In other words, what can be the platforms for differentiation for any LPG brand?
5. .........................

II. Brand Equity of Indane

1. What is a Superbrand? How do you think Indane became a superbrand over the last 50 years?
2. What are Indane’s brand values? How have they complemented and augmented over the last five decades?
3. Explain how Indane has increased the relevance of its brand through its brand values using the exhibit (The Ind(i)ane Story) cited in the base article.
4. .............

III. Sustaining and Improving Indane’s Brand Equity

1. What is brand equity? How do you rate Indane’s brand equity?
2. Indane is a government-owned and highly subsidized brand (at least for the domestic market), what should be done to increase its brand appeal?
3. .............

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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, 3^rd 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 14^th 2008 (accessed date: November 2^nd 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