Friday, December 05, 2008

Brand Update : Setwet Zatak

Paras Pharma has been promoting its deo brand Zatak aggressively during the last two years. Its campaign featuring foreign models have been popular among the target segments. Moreover Paras has been able to give an international look for this Indian brands.

Last month Zatak has released a new television commercial which is a spoof of the popular Axe commercials. The ad has generated lot of media interests with various business portals discussing this move.

The ad shows a skinny man literally using the axe ( not the deo but the real one) in a movement that is the same as that in the Axe commercials.Then two girls walks towards him and the man thinks that they are coming for him but they walk past him towards another hunk ( the Zatak guy).

Watch the commercial here : Zatak Spoof

Although many reports suggest that Zatak is taking on the competition head on with Axe, I have a different view. Zatak is a small brand compared to Axe. Paras also has limited resources to fight the mighty giant HUL.So this strategy is aimed to gain more eyeballs at the expense of the big boy Axe.

I don't think that Paras is aiming to dethrone Axe from its leadership position not in the near future.

What could be the options available for a challenger brand in a category which is dominated by a big company ?

One option is to start small and carve a small market without directly competing with the leader or to attack players of its own size or local and regional players.

Another option is to go in for the frontal attack which is a high risk, high pay-off strategy. This strategy will work effectively if the current leader is not serving the customer segment properly . ( source - Philip Kotler's Marketing Management )

Zatak has chosen to attack Axe directly . Although it is a high risk strategy , for a brand like Zatak, it has some advantages.

This strategy reinforces the positioning of the brand . If you look closely , Zatak is having the same positioning as Axe. i.e Girls Chasing Boys.

Zatak has been driving this positioning using its various commercials. The current campaign is pitching the brand opposite to Axe and hence conveying to the customers that Zatak is the alternative to Axe.

Deodorant is a category where customers are loyal but willing to experiment. Since the investment is low, customers tend to try in new fragrances and brands. But most of the customers have their favorite brands and fragrances.
In the market Axe has been dominating and there are virtually no strong alternative for Axe except may be the Cinthol brand which was relaunched using Hrithik.
So by attacking Axe directly, Zatak is putting itself into a position alongside Axe. So even if it does not become number 1 it can be a successful number II
Justify Full
Now the risk is with regard to HUL's response to this spoof. Afaqs report says that HUL currently is not planning to retaliate. But it will definitely watching the moves of Zatak. Zatak should also be careful not to take these spoofs too far with follow ups. Too much spoofs can give a perception that Zatak cannot exist on its own.

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