Monday, August 14, 2006

A GOOD TIME FOR NEMOS

IIPM BEST B-SCHOOL
The question remains, are acquisitions of brands the panacea for the dilemma of stunted growth? Possibly yes, but Samarjit Singh, MD, Candid Marketing (it has clients like Cadbury, ITC Foods, Pepsi & HLL) cautions, “Acquisitions have to be strategically fitting, both in terms of brand and culture.” He blames culture mismatch for failure of HLL’s acquisition of Modern Foods. Moreover, acquisitions should not be without a definite, longterm strategic direction.

Irrespective of failures, the sharks of the Indian FMCG sector have tasted blood and taken the inorganic route with a vengeance. For the Nemos, on the other hand, the strategy should be quite simple – build a strong brand, raise the valuations and sell it off for a good price. The David vs Goliath fable was a fable, after all. A more realistic example to be emulated is that of Thums Up vs Coca Cola...

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