The 'LALU' Brand in Rural Bihar
In June 2006, it was reported that Prakash Agro Industries (Prakash Agro), an agro-based company in India, was selling cattle fodder under the brand name ‘Lalu Pashu Aahar'(Lalu cattle food). That the product had used the name ‘Lalu'as a brand didn't surprise any one. It had increasingly become common in the state of Bihar, for some businessmen to brand their products or services under the name of the popular politician from the state, Lalu Prasad Yadav (Lalu). Lalu, currently the Union Minister of Railways for India, is also a well known politician across the country.Satish Kumar Singh (Satish), Manager, Prakash Agro said that during the discussions on branding the fodder, they chose the ‘Lalu'name as they felt that this name was very popular in the rural areas of Bihar and would help the product establish an instant rapport with the rural customers. Satish said, “The name Lalu guarantees instant success and is very popular in the rural areas of Bihar hence we thought there is none other, which can better connect the product with the rural masses and also save money on advertisements.” 1
Prakash Agro reported that the outcome of this branding strategy had surpassed the company's expectations and they were facing problems in meeting the huge demand for their fodder. They were sending 200 tonnes of fodder everyday to the market and reported a monthly turnover of Rs.200 million per month. The company had plans to market the fodder in other states under the same brand name.
This was not the first time that a ‘Lalu'branded product had become popular with the rural masses in Bihar. In June 2006, it was reported that a toffee candy branded as ‘Lalu ka Khazana'(Lalu's treasure) had become hugely popular among children, especially in Northern Bihar. These toffees, locally called as Lalu Chocolate, were produced by a company called Chetak and were available in two packs priced at Rs 1 and Rs 2. The toffees were packed in sachets which depicted Lalu in two outfits - one wearing his traditional dress, ‘kurta and pyjama'with silver hair, and the other one as a magician dressed in trendy jacket and jeans.
The company was able to sell more than 100,000 sachets of ‘Lalu ka Khazana'toffees, since its launch, and was witnessing a steady demand. A distributor of the toffees said, “Lalu Chocolate is a big hit in rural areas of north Bihar districts like Muzaffarpur, Sitamarhi and Madhubani due to the unmatched popularity of Lalu.”2 A shopkeeper said that kids always asked for Lalu Chocolates regardless of its flavor or taste, only due to the popularity of the Lalu name. It was reported that in a bid to attract more children, the company was offering freebies such as rings and ear rings as gifts along with the toffees.
[1] “Brand Lalu ruling Bihar rural markets,” http://sify.com, June 19, 2006.
[2] “Food for thought: Lalu Chocolate,” http://timesofindia.indiatimes.com, June 08, 2006.