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Final Report - Model Solution

Tiktauli De Corps has grown rapidly since 2012 following a house of brands strategy with different brands targeting various customer segments. This included B2B Fulfillment for bulk orders, TDC for hip hop/EDM apparel, Fieldgear for sportswear, and Koolho for affordable fashion. The house of brands strategy led to a 64.7% profit increase 2015-2017 by diversifying risk across brands. However, it requires different branding strategies and risks cannibalization. A branded house strategy leverages a strong parent brand but risks damage from any single product failure. Going forward, TDC plans to follow a blended strategy giving each brand comparable value to the parent brand for long-term success.

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Nagaraj Babu
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265 views2 pages

Final Report - Model Solution

Tiktauli De Corps has grown rapidly since 2012 following a house of brands strategy with different brands targeting various customer segments. This included B2B Fulfillment for bulk orders, TDC for hip hop/EDM apparel, Fieldgear for sportswear, and Koolho for affordable fashion. The house of brands strategy led to a 64.7% profit increase 2015-2017 by diversifying risk across brands. However, it requires different branding strategies and risks cannibalization. A branded house strategy leverages a strong parent brand but risks damage from any single product failure. Going forward, TDC plans to follow a blended strategy giving each brand comparable value to the parent brand for long-term success.

Uploaded by

Nagaraj Babu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Q2a. Discuss the branding strategy of TDC.

Should it follow a House of Brand Strategy or a


Branded House strategy?

[Note: There is no standard solution or correct answer to the questions asked. The solution
provided is one of the approaches that can be taken up.]

Founded in 2012, Tiktauli De Corps, has shown the rapid growth through 2017. They had a
strong hold on driving the profitability, market understanding and customer delight. They
followed house of the brand strategy where the individual brand under the parent brand name
TDC had different positioning and offerings.

Tiktauli De Corps -
Product Range

B2B Fullfillment- Online TDC- EDM fashion Koolho- Affordable


Fieldgear - Sportsgear
supplies in bulk apparel and accessories fashion wear

With house of the brand strategy the profit increased across in-house brands year on year by
64.7% from 2015 to 2017. The brand goal is to provide 360 degree retail with global online
presence.

House of brand strategy:

Pros:

1) The house of brand strategy provides a great reach in terms of the customer base and you can
maintain a variety in the same with different product offerings.
2) In case the company wants to test a new product offering, in this case they can easily try this as
there is less risk involved.
3) The distribution of revenue is basis the popularity of individual brand rather than the whole
parent brand in case of reputation damage of one of the products.
Cons:

1) Branding becomes a tiresome activity as you need to implement different strategy for different
product lines.
2) Brand loyalty is very difficult to achieve in case of multiple facets product offerings.
3) There is a potential cannibalization of the existing brands by the new brands under the same
parent brand.

Branded house strategy:


Pros:
1) The is one brand image and hence the branding strategy remains the same across products.
2) Confusion among customers is nullified and the brand equity and brand loyalty can be leveraged
with new products.
3) Trust factor plays a major role and hence long term success can be defined and strategized with
a strong brand equity.

Cons:

1) Some product failures may lead to all or none approach, hence can damage the brand image
with just one product failure.
2) A great product under a weak parent brand may not perform well and might succumb to it.
3) There might be a confusion with the value proposition of the parent brand if the points of
differentiation among the products are very varied in nature.

Brand differentiation of the in-house brands at Tiktauli De Corps:

B2B Fulfillment TDC Fieldgear Koolho

•Owns 71.5% of the total •Apparel and accesories •This brand specifically •This is a brand for
turnover of the brand in inspired by hip hop and caters to the sports and affordable fashion clothing
2017. Its the major bread EDM music. This brand has fitness enthusiasts and and accesories. The target
and butter of the vertical at ~10% contribution in the contributes ~14.6% audience is the young age
the group. This provides overall turnover. This towards the total turnover people in the age range of
ease for e-commerce brand caters to the a and becomes the 2nd 18 - 28/30 Years with a
giants to connect with specific audience in the age contributor after B2B certain audience overlap
brands for the bulk orders. group of 14-24 years and vertical. The target with TDC. This brand
interested in the hip hop audience is very much contributes a mere 4% in
and EDM genre of music. different than the music the overall turnover but
Also the house hold inspired TDC poduct line. the profit has decreased
income ranges from $25k - This brand has shown a from 2016 (year of
$75K. The right pricing great improvement with introduction) to 2017. The
point is anyhwhere over 600%+ growth in major point of
between INR4000- turnover. The target differentiation is that this
INR15000. audience for the same brand caters to the general
would be young audience youth but TDC focusses on
in the age range of 18- specific EDM and hip hop
30/35 Years. loving youth.

Basis the brands under the umbrella brand and the differentiation in the offerings/target
audience Tiktauli De Corps should follow the house of brand strategy.

Also, going forward upon understanding of the long-term implications of the strategy
they go ahead and follow a blended strategy where each brand within the umbrella brand
has comparative brand value as the umbrella brand itself.

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