Parle Agro has re-entered the carbonated fizz drinks market with the launch of Café Cuba, a fizzy drink with a coffee flavor. The launch of new categories has become a trend and helps invigorate a jaded brand. Category building can be tricky for a brand that already has an identity in the market. A report by Nielsen reveals that 50 per cent of the buyers, globally, are willing to switch to a new brand if a new product category is offered to them.

“With café Cuba, this new category will not only strengthen our market share but also increase the carbonated beverage market pie, leading to more flavor options for consumers,” says Nadia Chauhan, Joint Managing Director and Chief Marketing Officer, Parle Agro. The product marks the re-entry of Parle Agro into the Carbonated Soft Drink segment after nearly two decades.

A new category can prove to be profitable. While market development and ramp-up costs can be high and results will take long, eventually it can translate to high ROI. Once established, the category-dominant brand is likely to have a high and profitable market share. Due to these advantages, brands over the years have been struggling to create something new every now and then.

Ford did the same as it launched an “urban SUV” called EcoSport. Its a compact SUV that delivers the features of a SUV at the convenient price of a hatchback. “The SUV market is a separate entity altogether. The cars were huge and expensive. So, catering to the need of owning a SUV that can be used more for personal use inspired Ford to launch an ‘urban SUV’ that is sporty and also appeals to the younger generation,” says auto expert, Murad Ali Baig.

A brand should not enter a category where it can lose its salience. The message that needs to be sent across should be clear and concise so that the customers know the need for that category to be created. With creativity and research going hand-in-hand, brands are leaving no opportunities to become leaders across all the categories.

By Gunjan Verma