From Bira to Mahindra: Branding Challenges That Shook Companies

Brand identity is crucial in the corporate world, influencing consumer perception, trust, and market positioning. However, businesses sometimes encounter unforeseen challenges when renaming their products, undergoing legal disputes over trademarks, or even suffering due to mistaken identity.

From Bira beer’s regulatory hurdles to Mahindra’s clash with IndiGo, and Tata’s unfortunate Zica renaming, several companies have struggled with name-related controversies. This article explores how name changes and branding disputes have impacted certain businesses in India and their market presence.

B9 Beverages: Bira’s Regulatory Hurdles

B9 Beverages, the company behind the popular craft beer brand Bira, faced significant setbacks in FY24, with sales declining by over 20% and losses widening by 68%. The trouble began when the company changed its legal name, requiring a re-registration of product labels across multiple states. This led to a temporary halt in supplies for several months, directly impacting sales despite continued demand.

Founder Ankur Jain acknowledged the issue, stating, “Due to the name change, we had to undergo a 4-6 month cycle of re-registering labels and reapplying across states, which resulted in virtually no sales for several months.” In addition to these regulatory delays, Bira also encountered policy shifts in Delhi NCR and Andhra Pradesh, key markets contributing to over a third of its sales.

The financial impact was severe, where Bira reported a net loss of ₹748 crore for FY24, surpassing its total sales of ₹638 crore. The brand’s sales volume also dropped from 9 million cases in FY23 to just 6-7 million cases in FY24.

IndiGo vs. Mahindra: A Legal Trademark Battle

Mahindra & Mahindra, a leading Indian automaker, found itself in a trademark dispute with IndiGo, one of India’s largest airlines, over the use of the branding “6E” in its latest electric vehicle, BE 6e. The lawsuit, filed in the Delhi High Court in December 2024, alleged trademark infringement, as “6E” is IndiGo’s widely recognised call sign and brand identity.

While trademark disputes are common in India, legal conflicts between two publicly traded giants are relatively rare. Mahindra, in response, argued that its branding was distinct, with “BE 6e” being a completely different mark rather than the standalone “6E.” The company remains firm on contesting the case, emphasising that there is no likelihood of consumer confusion between an airline and an electric car brand.

Tata Motors: The Unfortunate Timing of Zica

Tata Motors faced an unusual branding crisis when it had to rename its hatchback, originally named “Zica.” The name was derived from the words “zippy” and “car,” intended to reflect the vehicle’s energetic appeal. However, the unfortunate timing of its launch coincided with the global outbreak of the Zika virus in 2016, a mosquito-borne disease linked to severe birth defects.

With the World Health Organization (WHO) declaring Zika a global health emergency, Tata found itself in an awkward position. While the car had already been marketed for months, the company decided to rename it “Tiago” just before its official unveiling at the Auto Expo. Public sentiment played a crucial role in this decision, as Tata wanted to avoid negative associations with the deadly virus.

Snapchat vs. Snapdeal: A Case of Mistaken Identity

One of the most bizarre cases of brand confusion occurred when Snapdeal, an Indian e-commerce platform, became an unintended victim of public outrage against Snapchat.

In 2017, a report claimed that Snapchat’s CEO, Evan Spiegel, had dismissed India and Spain as “poor countries” and expressed disinterest in expanding Snapchat’s presence in these markets.

While Snapchat denied the allegations, the controversy sparked a wave of backlash. However, many people mistakenly assumed Snapdeal was the company in question and began uninstalling its app, leaving negative reviews, and calling for boycotts.

Conclusion

Brand identity is more than just a name, it represents a company’s reputation, trust, and market position. As seen in these cases, name changes, legal disputes, and mistaken identity can have significant financial and reputational consequences. Companies must navigate these challenges carefully, ensuring that branding decisions align with market trends, legal frameworks, and public perception to safeguard their long-term success.

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