Even though Knorr has helped widen CPCs portfolio, the importance of the pillar brands "" Brown and Polson custard powder, Rex jelly crystals and Glucovita glucose powder "" cannot be understated. Put together, these brands still contribute nearly 60 per cent to CPCs turnover.
Yet given that CPCs mass media spends have to go towards building Knorr, theres very little left for the other brands on the portfolio. But CPC cannot afford to let these mature brands decay, especially since it requires cash to rebuild its portfolio. So what are its options for each of these brands?
Brown & Polson custard powder: With the advent of ice-creams and other new desserts, custard is today seen as fuddy-duddy. In 1996, CPC tried to position custard as an indulgent dessert with a new advertising campaign. It had no visible effect, with the brand still chugging along at a sluggish 2 per cent growth rate.
Today, CPC is doing the next best thing. At present, B&Ps traditional stronghold is in the north, where it commands close to 60 per cent share. The company is now extending distribution in those southern states, in which it is not present.
Also realising that the housewife now needs a stronger reason to buy custard, CPC is also running a promotion by offering a reusable container free with the brand. That has helped, claims the company, to prop up the flagging growth rate. In 1997, CPC decided to go back-to-the-basics with a new ad campaign that showed how a custard was prepared.
Glucovita: Up till the late eighties, this brand by itself was contributing a substantial 50 per cent to CPCs turnover. The urban market, where Glucovita is a distant second to Heinzs Glucon, is plateauing. The category has lost its relevance among urban consumers. On the one hand, it is buffeted by OTC products like Electral, which fill in the need for serious dehydration, and on the other hand, by soft-drinks, which are a lot more appealing for the sportsmen.
Glucovitas focus is now to pick up growth in the rural markets where the housewife still continues to stock glucose for her kids. CPCs objective is to leave the market development task to Heinz and aim to penetrate its strong markets (Kerala and Tamil Nadu, where it has a strong 30 per cent share and 15 per cent nationally.) At the same time, it is now planning to expand brand coverage over north and the west.
Rex jelly crystals: Like Brown and Polson custard, Rex jelly, too, is generic to its category. CPCs research shows that jelly as a category appeals to children. Its an impulse category, which the mother buys to appease the kid, explains Punoose. It never occurred to the management earlier that in its current product format, Rex took almost five hours to set. Now CPC is sourcing technology from its parent company to reduce the time to set (there are instant jellies available in other parts of the world), which is bound to open up new vistas for the brand.