Behind Aditya Birlas Great Bussiness Strategy | Master Plan Behind Multiple Busssiness | Truestories

Behind Aditya Birlas Great Bussiness Strategy | Master Plan Behind Multiple Busssiness | Truestories

  June 06, 2022    Gundappa Humnabad

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 What are the  market strategies of Aditya Birla Group behind having multiple brands 

Yes I Will come to the question But I have one Interesting story to tell.

Long time ago my grandfather owned a sweet shop Baba Mithai in his village. The business was doing well and population was also moving towards sweets so he opened its another outlet in Near by  village. The  shops performed amazingly well for the coming 2 years and he was about to open a  third shop but an idea struck him. He thought if people pay 100 paisa for  it, maybe a few will pay 200 paisa for better quality and ambiance.. Moreover if he won't open it, someone else will. So he was about to open  the third shop but my father suggested that people  associate Baba Mithai with normal  price, so the new shop won't  attract the desired customers. He suggested the new shop to be named as Vikas Mithai. 

The  idea worked and my family opened many more shops by both brands. My  father is a Tactical businessman and years back he observed that the  people who use to buy at 100 paisa are now willing to spend higher around  150 paisa but not 200 paisa. Also there are always enough customers for 100 paisa sweets. So he used the same trick again and opened a new retail chain by the name Anand Mithai satisfying 150 paisa customers. Now we had 3 successful chain outlets. Years passed and I came into picture.  Well being the progeny of such visionary person I wanted to start  something targeting youth group who are more bent towards chocolates and  other desserts but occasionally like sweets too. So I suggested him to  open another retail chain by the name Luxurious Sweets.

1.) Well I am sure that you got the point. This whole scenario was based mostly on Target Audience.

Baba Mithai is nothing but Peter England serving Mainstream class.
Vikas Mithai is our Van Heusen, usually dealing in luxury clothing's in formals.
Anand Mithai is our Allen Solly trying to bridge the gap between former two.
Luxurious Sweets is our Louise Phillippe offering luxurious formals as well as casuals.

2.) The second reason could be Mergers and Acquisitions.

In  retail industry This different brand deals are  very common and markets have to deal with it. In the above analogy if I  didn't start any of the banner either I could create one of my own. if I have the capacity and cash  I will acquire the banners and continue under same name due  to its popularity and markets share. Though over time I can try to  finish it and establish my own name but at times it doesn't works.

3.) As I mentioned earlier If they won't, someone else will.

These (Aditya Birla's) brands will cannibalize each others business a little but in  whole they will add lot more market share and revenue to the company. If we had exactly competing brands  then also this strategy will be important as if I don't like KFC I'll move toward McDonald's. This can also happen if I get bored from one brand.