A close look at why international pen brands fail in India shows how poor quality affects the famous brands adversely.
In a very bold strategic step, a well known Indian pen manufacturer brand bought the rights to manufacture and market a famous international pen brand in India. They also hired India’s biggest superstar as the brand ambassador. A very aggressive advertising campaign was unleashed to popularize the brand in India.
But, the venture failed miserably. The sales did not grow as expected. The world famous brand could not do well in India.
Assuming that the brand will sell on its reputation only, regardless of the quality, the license holders neglected the quality of the pen. It was very very inferior compared to the imported product. The buyers who knew the brand expected that same quality from India manufactured product, but it was way down the standards.
Gradually, the hype created by the brand died down. The same is happening with many other famous international pen brands.
All these European brands are realizing that if they sell their rights to the greedy, commercial minded organizations in India, it costs very dearly to the brand’s equity.
If you compromise on quality, even the biggest superstar can’t save it.