Amrutanjan rebranding

In 2006, Amrutanjan could boast of a market share of 25% in Rs 250 crores pain balm market in India but now in 2011 where the balm market size has sky rocketed like any thing to Rs 1700 crore, it just commands 10-11% market share. Amrutajan is a heritage brand considering it's bright history of almost 118 years in India. Despite the huge competitions from new players as well as from variants in balm category, Amrutanjan still holds strong brand equity and brand image in the minds of the consumers. 

This is a typical case of rebranding due to changing market expectations. 

 According to the model suggested by Keller, there are two forms of rebraniding- Evolutionary and Revolutionary rebranding. Evolutionary rebranding describes a fairly minor development in the company's positioning and aesthetics that too gradual. While Revolutionary rebranding describes a major identifiable change in the company's positioning and aesthetics. 

According to me, Amrutanjan has tried both evolutionary rebranding, by comming with the roll on variant and changing the positioning  and revolutionary rebranding by changing the logo and foraying into new product categories like ready to eat, hand sanitizer, beverages and napkins. 

Balm is the main stay business of Amrutanjan and here arises the question which is bothering the consciousness of every marketer: Is it wise enough to diversify even when their main business is declining?

The strategy followed by Amrutanjan to make timid forays in unrelated businesses like printing, fine chemicals and health spas seems to be a myopic one aimed at marginal market share. 

The pros of diversification into unrelated business for Amrutanjan are : 

•Better management & allocation of resources

•Realizing a higher return on investment

•Reduction in risk

The cons of diversifying into unrelated business for Amrutanjan are: 

•Diversion of resources & attention to other areas at the cost of existing businesses

•Risks of managing entirely new businesses

 Now's it's upto the new young leadership in the company to decide its fate.