Harvard Case - Rebel Foods: Managing the Brand Portfolio
"Rebel Foods: Managing the Brand Portfolio" Harvard business case study is written by Parul Sinha, Bikramjit Rishi, Rajkumari Mittal. It deals with the challenges in the field of Marketing. The case study is 11 page(s) long and it was first published on : Oct 31, 2022
At Fern Fort University, we recommend Rebel Foods implement a strategic brand portfolio management framework to achieve sustainable growth and profitability. This framework will focus on clarifying brand positioning, optimizing portfolio allocation, driving innovation, and leveraging digital marketing to achieve market leadership in the foodtech space.
2. Background
Rebel Foods, a foodtech startup, has achieved remarkable success by leveraging its innovative 'cloud kitchen' model and building a diverse portfolio of popular food brands. However, the company faces challenges in managing its growing brand portfolio and ensuring each brand's success. The case study focuses on Rebel Foods' need to develop a clear brand strategy to navigate the competitive food delivery market and achieve long-term growth.
The main protagonists of the case study are:
- Jaydeep Barman, Co-founder and CEO of Rebel Foods, who is tasked with leading the company's growth and expansion.
- Kshitij Jain, Head of Marketing, who needs to develop a comprehensive marketing strategy to manage the brand portfolio effectively.
3. Analysis of the Case Study
To analyze Rebel Foods' situation, we can use a combination of frameworks:
a) Brand Portfolio Analysis:
- Brand Hierarchy: Rebel Foods has a multi-brand portfolio, with different brands targeting specific segments and price points. This requires a clear brand hierarchy to manage brand relationships and avoid cannibalization.
- Brand Equity: Each brand's equity needs to be assessed based on factors like brand awareness, loyalty, and perceived value. This helps prioritize brands for investment and identify those needing revitalization.
- Brand Portfolio Matrix: A matrix can be used to classify brands based on their market share and growth potential, guiding resource allocation and strategic decisions.
b) Marketing Strategy Analysis:
- Segmentation, Targeting, and Positioning (STP): Rebel Foods needs to clearly define its target markets for each brand, understand their needs and preferences, and position the brands accordingly.
- Marketing Mix (4Ps): The company needs to optimize its product offerings, pricing strategies, distribution channels, and promotional activities for each brand.
- Digital Marketing: Rebel Foods should leverage digital channels like social media, search engine optimization (SEO), and online advertising to reach its target audience and build brand awareness.
c) Competitive Analysis:
- Direct Competitors: Rebel Foods faces competition from established food delivery platforms like Swiggy and Zomato, as well as other cloud kitchen operators.
- Indirect Competitors: The company also competes with traditional restaurants and food businesses.
- Competitive Advantage: Rebel Foods needs to identify its unique strengths and leverage them to differentiate its brands and gain a competitive edge.
d) SWOT Analysis:
- Strengths: Rebel Foods' strengths include its innovative cloud kitchen model, strong brand portfolio, and expertise in digital marketing.
- Weaknesses: Challenges include managing a growing brand portfolio, ensuring brand consistency, and maintaining profitability.
- Opportunities: Opportunities lie in expanding into new markets, developing new product categories, and leveraging technology for efficiency and customer experience.
- Threats: Threats include increasing competition, changing consumer preferences, and potential regulatory challenges.
4. Recommendations
1. Develop a Strategic Brand Portfolio Management Framework:
- Define Brand Roles: Clarify the purpose and target audience for each brand within the portfolio.
- Establish Brand Guidelines: Develop consistent brand guidelines for each brand, including logo, messaging, and visual identity.
- Prioritize Brands: Focus resources on brands with high growth potential or strong brand equity.
- Monitor Brand Performance: Track key metrics like sales, customer satisfaction, and brand awareness to evaluate brand performance and make adjustments.
2. Optimize Brand Positioning and Targeting:
- Conduct Market Research: Understand the needs and preferences of target customers for each brand.
- Develop Unique Value Propositions: Clearly articulate the benefits and unique selling points of each brand.
- Refine Brand Positioning: Position brands effectively within their respective market segments.
- Target Market Selection: Identify and target specific customer segments for each brand.
3. Drive Innovation and Product Development:
- Product Innovation: Develop new products and menu items that cater to evolving consumer preferences.
- Product Lifecycle Management: Manage the lifecycle of each brand and product, introducing new offerings and phasing out older ones.
- Data-Driven Product Development: Leverage data analytics to identify trends and customer preferences for informed product decisions.
4. Leverage Digital Marketing Strategies:
- Social Media Marketing: Utilize social media platforms to engage with target audiences, build brand awareness, and drive sales.
- Content Marketing: Create valuable and engaging content to attract and retain customers.
- Search Engine Optimization (SEO): Optimize websites and online content for better search engine visibility.
- Search Engine Marketing (SEM): Utilize paid advertising campaigns on search engines to reach target audiences.
- Influencer Marketing: Partner with relevant influencers to promote brands and reach new customers.
5. Enhance Customer Experience:
- Customer Relationship Management (CRM): Implement a CRM system to track customer interactions and personalize marketing efforts.
- Customer Journey Mapping: Understand the customer journey and identify opportunities to improve the overall experience.
- Loyalty Programs: Develop loyalty programs to reward repeat customers and build brand loyalty.
6. Explore International Expansion:
- Market Entry Strategies: Research and select suitable international markets for expansion.
- Cross-Cultural Marketing: Adapt marketing strategies to cater to cultural differences in target markets.
- Global Brand Positioning: Develop a consistent brand positioning strategy for international markets.
5. Basis of Recommendations
These recommendations are based on:
- Core competencies and consistency with mission: Rebel Foods' core competency lies in its innovative cloud kitchen model and its ability to build and manage a diverse brand portfolio. The recommendations align with the company's mission to provide delicious and affordable food options to a wide range of consumers.
- External customers and internal clients: The recommendations consider the needs and preferences of Rebel Foods' target customers and ensure that internal teams have the necessary resources and support to implement the strategies effectively.
- Competitors: The recommendations take into account the competitive landscape and aim to differentiate Rebel Foods' brands from those of its competitors.
- Attractiveness: The recommendations are expected to contribute to Rebel Foods' profitability and growth by increasing market share, enhancing brand equity, and driving customer loyalty.
6. Conclusion
By implementing a strategic brand portfolio management framework, Rebel Foods can effectively manage its growing brand portfolio, achieve sustainable growth, and solidify its position as a leader in the foodtech industry. The recommendations outlined above provide a roadmap for the company to achieve its ambitious goals and navigate the complex and competitive food delivery market.
7. Discussion
Alternatives not selected:
- Focusing on a single brand: This would simplify management but limit growth potential.
- Acquiring existing brands: This could be expensive and risky, and may not align with Rebel Foods' core competencies.
Risks and key assumptions:
- Changing consumer preferences: The recommendations assume that consumer preferences for food delivery will continue to grow.
- Competition: The recommendations assume that Rebel Foods can effectively compete with existing players in the market.
- Technology advancements: The recommendations assume that Rebel Foods will continue to leverage technology to enhance its operations and customer experience.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline the specific steps, timelines, and resources required to implement the recommendations.
- Establish key performance indicators (KPIs): Define measurable metrics to track the success of the implemented strategies.
- Regularly monitor and evaluate performance: Conduct periodic reviews to assess progress and make necessary adjustments.
By taking these steps, Rebel Foods can ensure that its brand portfolio management strategy is aligned with its long-term goals and contributes to its ongoing success.
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Case Description
Rebel Foods, the world's largest internet restaurant company, had operations globally and launched multiple cuisine brands to satisfy consumers' taste buds. Among them were Faasos, Behrouz Biryani, Oven Story, Mandarin Oak, Lunch Box, and many more under the Rebel umbrella.1 Over time, only three brands-Behrouz Biryani, Oven Story, and Faasos-became the highest contributors to the bottom line. Rebel also started offering cloud kitchen space services to early-stage food entrepreneurs and distribution of well-known established brands such as Wendy's. However, Rebel's revenue slipped in FY2021 to INR 405.1 Crore (USD 52.11 million) compared to FY2020, which was approximately INR 558.7 Crore (USD 71.87 million). Rebel Foods' frequent launch of multiple brands, many new initiatives, and slipping financials left many unanswered questions. How should the company manage its brand portfolio? Should it launch new brands or collaborate with established brands? Was there a need for Rebel to change its brand portfolio?
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