In the world of marketing and branding, even the smallest changes can have monumental consequences. Bira 91, a leading craft beer brand in India, learned this lesson the hard way when it decided to drop one word from its name. The result? A staggering loss of Rs 80 crore in sales. This incident serves as a powerful reminder of how deeply brand identity is tied to consumer loyalty and market performance.
In this blog, we’ll explore the story behind Bira 91’s rebranding misstep, the reasons behind the sales drop, and the key takeaways for businesses about the importance of branding.
The Rise of Bira 91
Bira 91, founded by Ankur Jain in 2015, quickly became a household name in India’s craft beer market. Known for its unique flavors, quirky branding, and youthful appeal, the brand carved a niche for itself in a market dominated by traditional beer giants. The name “Bira 91” was a nod to the founder’s love for the number 91, which symbolized energy and innovation.
The brand’s success was built on its ability to connect with millennials and urban consumers who were looking for something different from the usual lagers. By 2019, Bira 91 had become one of the fastest-growing beer brands in the country.
The Rebranding Mistake
In 2020, Bira 91 decided to rebrand itself as simply “Bira.” The company aimed to streamline its identity and create a more global appeal. However, this seemingly minor change—dropping the “91” from its name—had unintended consequences.
Consumers, who had grown accustomed to the original name, found the new branding confusing. The number “91” had become an integral part of the brand’s identity, and its removal disrupted the emotional connection that customers had with the product.
The Impact: Rs 80 Crore Loss in Sales
The rebranding led to a significant drop in sales, with the company reportedly losing Rs 80 crore in revenue. Here’s why:
- Loss of Brand Recognition: The name “Bira 91” had become synonymous with quality craft beer. Dropping “91” made the brand less recognizable to its loyal customer base.
- Confusion in the Market: Retailers and consumers were unsure if “Bira” was the same brand they had come to love. This confusion led to a decline in purchases.
- Emotional Disconnect: The number “91” had a story and a meaning that resonated with customers. Its removal stripped the brand of its unique identity.
Lessons for Businesses
The Bira 91 rebranding saga offers valuable lessons for businesses:
- Brand Identity Matters: A brand’s name, logo, and messaging are more than just marketing tools—they are the foundation of customer trust and loyalty.
- Understand Your Audience: Before making any changes, it’s crucial to understand how your customers perceive your brand and what elements they value the most.
- Test Before Implementing: Rebranding should be approached with caution. Conducting market research and testing changes with a small audience can help avoid costly mistakes.
- Consistency is Key: Sudden changes can alienate your customer base. Gradual transitions and clear communication can help maintain trust.
Conclusion
The story of Bira 91 is a cautionary tale for businesses about the power of a name and the importance of branding. What may seem like a small change can have far-reaching consequences, especially when it comes to consumer perception and loyalty.
For Bira 91, the decision to drop “91” from its name cost the company Rs 80 crore in sales—a steep price to pay for a rebranding misstep. However, it also serves as a valuable lesson for businesses everywhere: never underestimate the emotional connection your customers have with your brand.
