Pureit : As Safe as Boiled Water

Brand : Pureit
Company : HUL


Brand Analysis Count : 297

Pureit is the first foray of the FMCG major into the consumer durable market. Pureit is the water purifier appliance from HUL. Pureit made its test marketing debut in 2005. The brand was initially launched in Chennai. During the test marketing, the result was pretty encouraging and the brand was launched nationally in 2007.
The domestic water purifier appliances market is estimated to be Rs 450 crore ( HBL may 03/07) and is dominated by Aquaguard from Eureka Forbes. As discussed elsewhere in the blog, this category was not growing very fast because of the high cost of the product. The entry level water purifier was costing anywhere between Rs 5000- Rs10,000 .

Pureit is a battery operated purifier . The company uses the following differentiation points against the main competitor Aquaguard by claiming that the product works without gas/electricity thus the cost per litre of pure water is very less. More over the brand is priced at a tempting Rs 1600 which makes it the lowest priced purifier compared to Aquaguard or Kent.

Pureit is being positioned on the basis of its performance. The brand claims that the water from the purifier is ' as safe as the boiled water ' . By claiming that it purifies water as safe as boiling water, Pureit is trying to achieve Points of Parity with Aquaguard and Kent which also claims the same feature. Along with this POP, the brand tries to differentiate on the following points :
a. no electricity/gas
b. Cost per litre low
c. Price of the product is also low

Pureit works on different cleaning layers to ensure purity. There is a fibre mesh layer which removes visible dirt. Then comes a unique carbon trap that filters harmful pesticides and dirt. Then comes the USP - Germkill processor which kills all the bacteria and virus. Then there is a polisher which gives clear odorless water and a battery life indicator which tells you when to replace the battery. The product has a capacity of 9 liters in the upper chamber and 9 liters in the transparent chamber. According to the product website, the battery lasts for 1500 liters and the replacement battery costs Rs 250.
Pureit is now being promoted through all media. There are ads in local print as well as TV. Being the FMCG major, HLL was able to place the product in most of the supermarkets and key consumer points. The brand uses the tagline " As Safe as Boiled water'. The brand is mainly targeting households (mothers ) which have small kids.

Apart these common above the line promotions, what has struck me was the below the line promotions that HUL has undertaken for Pureit. A visit to my doctor proved it. There was a product displayed prominently in his clinic with all necessary brochures and inquiry forms.The brand is using the influencing power of the medical fraternity to its advantage. For the doctor , it just means that his patient has access to pure water while waiting but for the brand this small gesture adds lot of authenticity. HUL has done pretty good homework on this product. The brand is available in shops and also sold through direct marketing associates.
Although the low price of this product will help it to penetrate many households , there are certain issues also.
Pureit is a consumer durable that requires after sales support. When even specialist consumer durable companies are blamed for offering poor after sales support, can an FMCG company deliver efficient customer service.
Another issue is the replacement battery. Will HUL be able to offer this spare without delay ?
At the consumer side, the problem is with the battery. It is crucial that the consumer replace the battery at the right time and use this product. A delay in the supply of battery can cause non-usage for Pureit at households thus causing bad word of mouth. May be it is because of this fear that HUL in its website tells the consumers to buy an additional spare battery.
The brand has more chance of longterm survival if it is promoted through the direct marketing venture ( Hindustan Lever Network) of HLL .

Pureit is a product that is a boon to Indian consumers. Its a boon because it has helped making a category more affordable. More than that, the quality of potable water in our country is deteriorating day by day creating health hazards especially for kids. By making a product at an affordable cost, HUL has made another positive impact in its consumer's quality of life.

Khaitan : The Name is Enough

Brand : Khaitan
Company : Khaitan Electricals
Agency : JWT

Brand Analysis Count : 282

Khaitan is a well known name in the small appliance market especially in the Fans Category. Khaitan is a heritage brand which has a history of four decades. The brand came into existence during 1960s .
The brand is currently in a diversification mode extending itself to become a major player in the small appliances market. Khaitan now holds around 16% share in the Rs 1400 crore Indian Fan Industry.
Although the fan industry size is huge, the industry players are facing issues of competition from unorganized sector. Unorganized sector holds around half of the total market.It has to be noted that in the early 1990s the market was in the hand of four of five players like Usha, Polar, Khaitan etc . But later regional players hit the market with low priced fans which eroded the market share of these major players.
Facing this critical issue , Khaitan decided to enter the small appliances and electrical market since 70% of the revenue was dependent on fans. The entry ( related diversification) is aimed at reducing the risk of dependence of a single product category.
Khaitan was a brand built on trust. The brand was consistently positioned as a trustworthy brand and the tagline was " The name is enough ". From my childhood days itself , I have seen the ads of Khaitan and its popular voice over " What to say about Khaitan, the name is enough" . The brand was trying to communicate its core values of Quality and Trust. Although the ads were poorly executed, the communication strategy was consistent all through these years.
Inorder to reinforce the quality proposition, Khaitan introduced an innovative concept of Replacement bonds which was the guarantee from the Chairman Mr. SK Khaitan that the company will replace the fan if it has any manufacturing defects within one year of purchase.

In 2007 , the company diversified into small appliances (Heaters, Mixers,Iron) Electrical ( CFL,Circuit Breakers etc) . It is commonsense for a brand like Khaitan to enter the small appliances market because of the challenge it faced in its core fan business. I would say that it was late for Khaitan to diversify because the small appliance market has become equally crowded and highly competitive.

Khaitan knew that when entering a new market , it needs to change the perception of a " Fan Brand". The brand chose to take the Celebrity Endorsement route and signed the EX- Bollywood diva Karishma Kapoor as the brand ambassador. The new campaigns featuring Karshma is already on air. It is interesting to note that Khaitan is wise enough to retain the original tagline for its new range of products. The small appliance range is sub-branded as Hommate.
Watch the TVC here : Khaitan

Although Khaitan has diversified, it has not forgotten its core business.The brand has taken on the unorganized sector with a low priced variant Zolta. Interestingly , while the entire fan category is facing price competition, Khaitan has launched Designer Fans priced in the range Rs 10,000 - Rs 1,00,000. The new designer range is branded as Fantasy. Khaitan is also trying to strengthen its distribution by launching two company owned outlets Khaitan Fantasy and Khaitan City. Khaitan Fantasy will sell only designer fans while Khaitan City sells all range of products including small appliances.

Like any heritage brand, Khaitan is also trying to make itself relevant in the Indian market which has seen sweeping changes both interms of Competitors and also consumer taste and preferences.

Sony Vaio : All Eyes on You

Brand : Sony Vaio
Company : Sony
Agency : JWT

Brand Analysis Count : 270

Sony Vaio is making lot of noises in the media with its latest repositioning campaign. Vaio is Sony's subbrand in the Laptop segment . Viao was created in 1996 and is a major player in the Notebook/Laptop market across the world. The brand came to India only in 2004. The delay is owning to the restriction in using Wi-Fi 802.11g by the government till 2004.

Vaio is the acronym of Video Audio Integrated Option which denotes the brand's positioning as a product that performs on both video and audio front. Like any other product from Sony, Vaio is also positioned ( and priced ) as a premium brand. Vaio launched its first series of Notebooks with a price ranging from Rs 80,000 - Rs 1,25,000 making it one of the costliest laptops available in India.
Sony has a market share of around 5.4 % of the Indian Laptop market which is estimated to touch a volume of 1.6 million units this year. It is this phenomenal growth of around 40 % that forms the basis of the latest launch of Sony Vaio CR range.
The Indian laptop market is dominated by HP ( 40 %) followed by Lenovo ( 17 %) and Toshiba. There is lot of activity in the notebook segment because of the lowering of the price barrier. Earlier the price of a typical laptop was costing upwards of Rs 45000. Now the entry level laptop price is anywhere between Rs 22,000 - 26,000. This has fueled the growth of this segment. The lowering of prices has attracted a whole set of new customers into this segment. Students , executives and businessmen began looking at laptops as a productivity enhancement tool. Companies began giving laptops to executives to keep them working when mobile. These happened without seriously hurting the sale of Desktops.
The interest of marketers in this segment is evident when we look at the promotions of leading brands in this segment . Most of them has signed up celebrities to endorse their brands. Acer has Hrithik Roshan, Compaq has Shah Rukh, Lenovo has Saif Ali Khan to promote the brand.

Sony Vaio has always tried to promote itself as an aspirational brand and resisted the temptation to get into the volume game. But here in this scenario , Vaio succumbed to the temptation. With technology no longer a major differentiator, Vaio understood that unless the brand repositions itself , it may be ousted by the feature rich rivals.
Viao CR was Sony's take on the new segment. Vaio targets the hip hop Indian youth aged 18-26 with the variant CR. The brand is now positioned as a fashion accessory rather than a learning/working tool. The new variant comes with attractive color options :
Blazing Red
Indigo Blue
Pure White
Beauty Pink and
Aroma Black. The new variant has some attractive features like Luminous Trim that reflects light which gives the laptop a shining look. Lustrous coating, custom Keyboard, and a personalized illumination LCD. The brand is now repositioned to reflect a playful spirit and a zest for life.
The brand now aims to catch the imagination of the youth market who looks beyond the speed and memory into design and aesthetics. At Rs 55000, Vaio tries to integrate aesthetics, brand image and technology to get into the minds of the young customer.


The brand is now running a high profile TV campaign now.

Watch the TVC here : VAIO

Viao now has the tagline " All Eyes on You" clearly spelling out its positioning based on the design or aesthetics. That is a clear shift from the rest of the brands in this segment who concentrates more on technical specs. So Vaio campaign breaks the clutter effectively.
Having said that the new campaign is definitely nice to watch but the positioning is nothing new. "All eyes on you " is used by many brands in various categories. There is no big idea in it. But the execution makes this old formula look pretty. To be more specific, I watch the ad to hear the music. Even the visualization is not something great compared to the blockbuster Bravio campaigns. Some sites say that the song " Look at me know " is sung by Anushka of the VIVA girls - V-channel fame ( to be verified) . Anyway the song make the ad sticky.

Aesthetics and design and obviously the more attractive price tag has helped Vaio a headstart in the new repositioning. But these factors are not sustainable over time. Soon the competitor will follow with vibrant colors and options. But Sony has the legendary brand equity that may help Vaio to take on the challenge. The war for Young Minds is definitely hotting up.
As of now Vaio can confidently say " Look at me now "

Onida Candy : RIP (1999 - 2002)

Brand : Candy
Company : Onida

Brand Count : 268

Candy is a sad brand story. This unique brand is a classic case of entire marketing mix gone awfully wrong. A good idea killed by poor marketing strategy. Or is it a failure because the brand was ahead of its times ?

Candy is the 14 inch Color TV launched in 1999 with much hype. In the early 90's the Indian brands were ruling the roast with no serious external competition. Then came the rush of Global brands to the Indian market. The market began to get crowded and technology no longer became the key differentiator. Candy was a serious effort from Onida to invent a new segment in the crowded undifferentiated TV market.
Candy was truly a Color TV, in the market where all TVs were either black or grey, Candy came with four color variants. The concept was good. Have a TV which is colorful and targeting young customers.
Candy was conceptualised based on certain customer insights. The young customers would like to hear loud which often created irritation with the grown ups. Hence why not have a TV which has a wireless headsets which would ensure privacy to the audience. The managers thought that the attractive colors on the cabinet and the cordless headset will act as a differentiator . Candy came in four colors : Berry Blue , Mint Green , Lemon Yellow and Cherry Red.

I feel that the brand managers was too ambitious about Candy. The brand was priced well above the existing 14 inch televisions. Candy was launched at a 40 % premium over the other brands. Candy thought that customers will be willing to pay a premium for the differentiators that Candy offered.
But the brand failed. Infact during 1999- 2001, the brand was selling like hot cakes but later the sales slipped. Ultimately Candy was no longer there in the market. What went wrong?
As mentioned above, Price was obviously the villain. The small TV market was the most price sensitive one and customers was not willing to pay 40 % premium for color alone. The brand failed to convince the TG on the value proposition of the brand.
There was segmentation issue also playing spoil sport. Candy was not focused on the TG because some where the brand wanted to attract the replacement market ( New TV for Old) rather than positioning itself as a second TV. This put additional volume pressure on the brand which was at best a Niche brand.

Because of the blurred segmentation, positioning also suffered. Instead of positioning as a youthful vibrant brand aimed at the youth, Candy was struggling to find the right positioning. It was trying to compete with the large TVs instead of creating a new segment. More over reports suggest that the four colors were not enough to create a vibrant brand. ( compare this to the 99 colors of Scooty) . Some customers felt that the colors are too dull to be paid a premium.
In 2001, Candy came out with a variant Candy Duet which had two colors. The brand made a big mistake by introducing a 20 inch variant further diluting the brand.

Candy when it was launched was touted as the APPLE ( brand) of Televisions. It was expected to do what Apple did to the Computer industry . The brand was to take aesthetics as the main attribute and revolutionize the market. But it neither had the aesthetics of Apple nor had the staying power. Candy is a case of poor marketing execution of a good product concept. An idea that could have carved a place in the market on its own. Onida had big plans for the brand . It planned to take Candy to the level of a multimedia brand but could not sustain the initial success. It failed to understand the value proposition of its consumers nor was it able to create a meaningful and sustainable differentiation . Some where in 2002-2003, the brand was quietly laid to rest.

Source : magindia.icfai case,businessline

Brand Update : Kent RO

Kent RO has landed its brand ambassador in deep trouble. Today Hema Malini who also is a Rajyasabha MP asked a seemingly innocent question in Parliament. " Whether government has any plans to reduce the excise duty of RO purifiers ? " This question has created a controversy which may snow ball into a terrible headache for Hema Malini.

According to the Parliamentary ethics, a member should not raise a debate or an issue which has a conflict of interest ( personal interest). Since Hema Malini is the brand ambassador of Kent which manufactures Reverse Osmosis (RO) based water purifiers, the war cry has already began.

Politics apart, I was aghast when I watched Hema Malini sweating in front of a seemingly soft journalist in Headlines Today. If the interviewer was Karan Thapar, Hema Malini would have got a heart attack. The actress is not a politician for sure and she messed up the entire interview

This brand ambassador was asked the following question.

Journalist : Madam, Can you please explain to us what RO system means ?
Hema Malini : mmmmm........ Helloo
Journalist : Madam, Can you please explain to us what RO system means ?
Hema Malini : I don't know the technical details.
Journalist : Madam , You endorse this brand and can you explain..?
Hema Malini : See the advertisement for more details...

( this is not a verbatim transcript)

The scrolling now says : Hema does not know about Reverse Osmosis.

Well..........

When I write about brands and celebrity endorsements, many readers and students ask for my opinion about the importance of celebrity endorsement in a marketing strategy. This episode highlights one of the pitfalls of celebrity endorsements. These occurrences can be rare. But it can happen.
In this case , Reverse Osmosis is the differentiation that Kent tries to project with the brand ambassador and now in a high profile controversy, the brand ambassador admits that she knows little about what she says ( along with her daughters) in the advertisement .

Embarrassing for the brand and for the brand ambassador.

Will it create any problems for the brand?
Only for the short term . Because customers are wise enough to understand that a brand ambassador does not know any thing about the product which he/she endorses. This episode is just another proof.

Will this create problem for Hema Malini ?
I think so. She may have a lot of explanations to do before the ethics committee.

This celebrity goof up is just a warning signal for all marketers. Make sure that your brand ambassador knows a little bit about your product. Atleast the Meaning and Spelling......

Related Brand
Kent RO

Source : Headlines Today

Brand Update : Titan

Titan has come out with a new campaign for its thinnest watch Edge.The ad features its brand ambassador Aamir .

Watch the ad here : Aamir and Titan

Launched in 2002, Edge is positioned as World's Thinnest watch. With a thickness of 3.5 mm, Edge is priced between Rs6000 and Rs.12000 . The brand is targeting Business Executives and professionals. According to a report from Television.com, EDGE has so far sold over 75000 watches in 2006 with a brand sales of over Rs 42 crore . Titan has big plans for this subbrand.

The campaign now on air tries to project the brand as something that will catch the attention. EDGE takes the tagline "More Attention that You can Handle". It is true also , since the watch is definitely going to catch attention ( My boss has one ) and the thin watch will not miss your eye. And as the commercial shows - you will notice it as long EDGE is visible. Although You may feel that the commercial is a usual one, I feel that the idea is from a consumer insight.

Related brand
Titan

Kelvinator : RIP 1963 - ?

Brand : Kelvinator
Company : Electrolux

Brand Count : 246

Kelvinator which ruled Indian refrigerator industry is no more. The brand did not die on its own. This heritage brand was killed by sheer negligence and marketing myopia. Any marketer with common sense would not have done this to a brand like Kelvinator.
Kelvinator came to India in 1963. The brand along with Godrej, Allwyn has ruled the market for decades. A global brand, Kelvinator has its origin dated back to 1914.The brand changed hands so many times and came to the fold of Electrolux in 1985.

In India, the brand's disaster started in 1996 when Whirlpool acquired this brand globally. Whirlpool wanted to sacrifice Kelvinator for its own brand The entire episode of the change of ownership of this brand will make any Hindi serial sops look like a kid's story. According to Business World, When Electrolux bought the company White Consolidated which owned the brand globally, In India during 1996 Kelvinator's Indian licensee sold the license to market Kelvinator to Whirlpool. So Electrolux became a contract manufacturer of its own brand which was being marketed by its competitor. Whirlpool had the license to market Kelvinator brand in India till 1997. Because of this Electrolux entered Indian market with its own parent brand. The fate of Electrolux in India was also not good since it ran into huge loses.

You can see that Kelvinator brand lost its place because it fell into a cobweb of ownership issues. Whirlpool did not invest in Kelvinator since it had the rights to the brand only till 1997. So why invest in some other's baby. So during these years, Whirlpool harvested Kelvinator while developing its own brand. When the brand came back to its original owner, Electrolux did not had the money to build this baby.In 2005, Kelvinator was killed. When the brand was taken off, it had a market share of over 14 %.
A look at the brand assets of Kelvinator will make every marketer drool. An International pedigree and a whopping market share together with two great brand elements :
Mascot : Penguin
Tagline : Its the coolest one.
During its peak years, the brand was heavily built. During 2000 , the Australian circket team endorsed Kelvinator and Adam Gilchrist was the main character in the TVC ran during that time.Kelvinator's main positioning was based on its cooling power. The tagline aptly captures the USP of the brand. Kelvinator's compressors was one of the best available globally. Besides that , the brand was considered to be a tough and reliable one.

One of the best and most apt tagline for any refrigerator brand " Coolest one" , this tagline is still in the mind of many Indian consumers. The brand equity was so powerful that even without much promotion , the brand had two digit market share during early 2000.
I would blame the death of this brand on its owners Electrolux. In 2005, when Electrolux decided to go for the parent brand, Kelvinator still had a life left. It could have been a wonderful entry level brand for Electrolux. A brand with so much heritage could have easily created volumes for this company. But alas.... According to reports,Electrolux is set to come back to Indian market in a new avatar.

Kelvinator will soon fade away from the memories along with it one of the coolest brands.
Source: businessline, businessworld, economictimes

Brand Update : Parryware

Parryware has now embarked upon a new campaign focusing on its range of bathroom fittings and accessories. Feeling the heat from the competitors and also unbranded products, the brand has renewed its marketing thrust.

But the new campaign is a sad story all together. In my earlier post on Parryware, I had mentioned that Parryware has redefined the Bathroom fittings by innovating the concept of Glamourooms. The brand achieved super brand status through this smart positioning. But during 2003, the brand made a big mistake in changing its core positioning to " Add glamour to your life" and then changed the tagline again to " Surrender to the temptation " and crap like that.

The new campaign is shocking. The brand now adopts the tagline " What a bathroom!". Its a pity that the brand has come to a full circle. It has reached the stage where it has started its successful journey. From "Glamourooms " , the brand crashlanded to "Bathroom".Glamourooms differentiated Parryware when everyone was talking about bathroom fittings and now also things are not so different. The fact is that man companies are talking about glamorooms and now Parryware has started talking about Bathrooms. What a paradox.I don't see a logic and cannot understand why those creative hotshots at JWT could ever letgo of a highly successful positioning and land the brand back to square one !
Ofcourse I know that the answer will be " the old positioning has lost its charm". But I feel that its the job of the creatives to find ways to refresh these ideas not kill them for the heck of change. The brand now is in a state where it has lost is DNA. The ads may be good but the strategy is horrible. The brand has undone the entire equity built over its past years ( Glamouroom era).

Do You see any logic?

Related Brands
Parryware

Kent Mineral RO : For Mineral Rich Water

Brand : Kent RO
Company :Kent RO systems
Agency : Glaze Ads


Brand Count : 238

Kent is a challenger brand in the Rs 600-700 crore Indian water purifier industry dominated by none other than Aquaguard from Eureka Forbes. Kent was launched in 1995 by Mahesh Gupta an IITian .

Kent is positioned as a premium brand of water purifier targeted at SEC A&A + Most of the existing purifiers are based on Ultraviolet technology .The brand Kent is differentiated from the main competitor Aquaguard through its Reverse Osmosis ( RO) technology. The brand uses the Markonym " RO" to communicate this to the customer. Most of the existing water purifiers use Ultraviolet technology which is much inferior to RO technology.

Identifying this gap, Kent was wise enough to own this technology and is now known as the brand which pioneered RO technology in India. In competitive strategy, the brand Kent adopted a bypass attack on the market leader Aquaguard.Here the company has leapfrogged new technologies to supplant existing products ( Kotler).Although RO technology is superior to UV, the major drawback is in the price front. While UV purifiers sells at Rs 5000-7000 range, the price of RO based purifiers starts at Rs 15000. This big differential in the pricing is expected to come down with the increase in the volume of RO purifiers.

We know that having a superior technology is not a recipe for success in marketing front. The brand faced two major issues, one to establish the brand equity and second to educate the customers about the new technology. The brand then chose the eay way out in establishing the brand inthe market i.e through celebrity endorsement. Kent roped in the Dream Girl ( or lady) Bollywood diva Hema Malini and surprisingly her daughter Ahana to endorse the brand. Hema Malini gave the brand instant eyeballs in the sense that viewers ( including mine ) was intrigued with the new brand Kent. The media chosen was print and TV. Hema Malini made sense because the target audience who are Mothers could easily identify with this celebrity homemaker. More over the presence of Ahana made this a family brand .

Last year ,the brand roped in Hema Malini's eldest daughter Esha Deol to support the brand . Thus Kent became the only brand which is endorsed by a celebrity mother and two daughters. According to reports, the new brand ambassador Esha is expected to give this brand an entry into the younger generation customers. The move also makes sense with the rise of lot of young professionals managing their own homes.
The brand had gained good reputation in the market which has prompted the market leader Eureka Forbes to come out with its own range of RO product.
Besides water purifier, Kent also innovated a fruit and vegetable purifier. This when used on vegetables and fruits, will clean the impurities and make them fresh. But the price of Rs 5000 makes it little unaffordable to ordinary customers.
Kent is positioned on the specific feature whereby the mineral content of the water is sustained even after purification. Hence the brand takes the positioning platform of Mineral Rich Pure Water which also acts as a differentiator.
The real impact of this brand on the market leader Aquaguard will be felt when the price of the RO purifier will match that of the popular UV purifiers. It will take a little while before that happens. Industry watchers predict that the product is moving towards the Reverse Osmosis Purifiers . When that happens Kent RO will reap the rewards of its investments.

Source: Kent website,businessline

Popy Umbrella : Dancing In The Rain

Brand : Popy
Company: Popy Umbrella Mart
Agency : Jelitta

Brand count : 237

Popy is the market leader in the fiercely competitive umbrella market in Kerala. Looking at the number of umbrellas it sold every year, I think that Popy is largest selling umbrella brand in India. Annually this brands sells more than 2 Lakh umbrellas.

Popy has a legacy that is associated with the rise of the product umbrella from a staid ugly accessory to an interesting product. The brand comes from a family that is credited with branding a product that once was considered commodity.
In 1954 Mr Thayyil Abraham Varghese established St George Umbrella mart with its base in the Alleppy District of Kerala. Soon the brand St George began aggressive marketing which made the brand number one in the market. In 1995, the family business split into two : Popy Umbrella mart and John's Umbrella mart. The competition between these two companies marked the umbrella market in Kerala - a haven of innovation and smart marketing.

Umbrella market is a highly seasonal one ( not a big discovery from my part !) and selling a seasonal product is any marketers nightmare because he may have to sell all the inventory during the season and also device methods to tide over the seasonality factor also. On the top of it, the product category was considered a commodity.
But Popy and Johns did wonders in the market. These brands made brands out of commodity through sheer innovation. But Popy got a headstart with its successful campaign that caught the attention of the consumers. The popular malayalam jingle " Mazha mazha kuda kuda mazha vannal popy kuda" became an instant hit in the market.

The brand Popy ( also Johns) is more interesting because it was able to make the product from a lousy dull product to a lifestyle product through sheer innovation. The brands made innovations that are aimed at all segments of customers be it kids, young customers or older ones. Some of the innovations are include auto-open/close umbrellas,walking stick like umbrellas,5 fold ones, umbrellas with steel rims water gun umbrellas for kids, umbrella with torch, umbrella that is too small in the size of a Ray Ban?,umbrella that has UV protection,umbrella in different colors etc.
If I have to write all the innovations, it will take two blog posts because that is the extent of innovations that these brands have done.This season the brand has come out with a Laser umbrella aimed at kids.
On the marketing front also the brands have carefully segmented the market according to the age and demographical variables and innovated to suit their needs. For example, one of the common problems faced by lady commuters is the problem they face with the closing of umbrella when they board a bus. The auto-close umbrella will close the umbrella with the click of a button. Also the brands come out with another umbrella that will resist heavy wind. For the older ones, the brand has umbrella that double as a walking stick.These small but customer centric innovations have kept the product an exciting one.
These innovations also has helped the brand to command a premium over the usual black ones.The brand comes in different price range from Rs 59 to Rs 35000. Popy has tie- up with Futai umbrellas of Taiwan mainly for the sourcing of cloth. The brand has more than 140 varieties of umbrellas in the market.

Despite these innovations and smart marketing, the brand faces issues from the entry of cheap umbrellas from China.These can take away the mass market from Popy because mass market is price sensitive and the product is seasonal. The life of umbrellas are less than 2 years and customers may not be brand loyals. Both Popy and Johns are on an overdrive to build the brand equity so as to sustain the imminent price war.

Brand Update : Titan

One of the most important components of a successful marketing strategy is innovation. Innovation can be interms of any of the marketing mix. This quality is clearly reflected in the brand strategy of Titan. This March, Titan has come out with a new collection of watches : Aviator Collection.

Aviator is the collection of watches inspired by the World War II fighter planes. The brand is targeting the upmarket global Indian. The range of watches are designed by the award winning designer Neil Foley . The designer has drew his inspiration from the rugged fighter planes like The Mustang,Spitfire, Hurricane , Messerschmidt ME 109 and the like.
The collection has 20 distinct styles and each watch has a name and a story behind it. The collection is differentiated by the unique sense of style and is following the psychographic segmentation.The price range is between Rs 4000-Rs 7000. The company press release also says that this watch is a celebration of JRD's first aircraft flight in India.

Titan has continuously experimented itself and this has helped the brand to be a superbrand. Aviator series, takes a cue from the Iconic Aviator of Ray-Ban and is trying to recreate the magic of RayBan Aviator. My doubt is whether the WWII series of aircrafts will inspire the new generation consumers?. Ofcourse there is no doubt that airplanes especially fighter aircrafts give a unique feeling to Men. Men always adore these beasts and the more ugly these fighters are, the more we tend to like it. The point is how many of us know the fighter planes of yesteryears?

Titan also has the answer, the answer lies in the unique tie-up with the National Geographic channel and the brand. Titan is sponsoring the Top Gun series of Natgeo which now airs a series on WWII airplanes. Hence the brand gets a boost and also free gyan to the TG about the warplanes. Interestingly Natgeo also has created a commercial for the Aviator Series showing real footages of the fighter planes.
So far so good. But my doubt remains.. But I feel that a watch collection that celebrates a Mustang looks more classy than a watch that celebrates an F16 isn't it?

Related Brand
Titan

MotoRokr: Music Addiction

Brand : MotoRokr
Company: Motorola
Agency: O&M

Brand Count: 230

Indian consumers never had it good before especially in the mobile phone market. From Rs 777 to more than Rs 2 lakh price ponts and from basic phones to most advanced smart phones, Indian mobile phone consumers are being pampered like no other..
Indian mobile phone market is huge worth more than Rs 30,000 crore growing at a pace that makes even the most optimistic analyst speechless.With Reliance Communication launching a Rs 777 handset, the market for cell phones will reach new heights.

Indian mobile handset's market is dominated by Nokia. According to different statistics, the market share of Nokia is around 40- 50 %. The market share has comedown due to heavy competition from the players like Sony and Motorola and host of other players. The huge market and the revenue potential along with the increased competition has forced marketers to go in for hard core segmentation strategies in this market. The market leader Nokia was not really into serious segmentation in early days since the brand had commanding market share. But it was the challenger brands like Sony Ericsson and Motorola which started offering specialized products to specific segments.
I think it was Sony Ericsson which started offering specialised phones and communicating specified brands for specific segments. Although Nokia had such models, its communication was more general. Sony having left out of the mobile race started offering CyberShot Mobile Phones targeting the customers looking for camera phones, In the segment of music phones, it extended its Walkman brand to the mobile phones with the Walkman series.This has forced Nokia to specifically target certain models as music and cameraphones.

Motorola was left behind in the segmentation game. It was busy focusing on the design game with its MotoPebl and MotoRazr. But 2007 saw Motorola coming in to the music phone market with a bang. MotoRokr was the answer to N-Series and Walkman.MotoRokr came into the market with a bang. Not because of the product but because of the communication. Motorola had struck a chord with its brand ambassador Mr Abhishek Bachchan.It is very rare to see a brand striking such a perfect brand Ambassador. The agency was also able to use AbhishekBachchan effectively to promote the brand Motorola.
For MotoRokr, Abhishek was at his best. The ads for MotoRokr was hilarious and striking.

Watch the ads here : MotoRokr

Although the brand Motorokr is not a feature packed smart phone ( competitors has better features) , the brand communication has set its foundation as a music phone. The brand is targeting 18-35 who has a passion for music. According to a report in Agencyfaqs, the big idea is that there is a thin line separating Music Loving and Music Addiction. The brand adopts the line of Music Addiction .
Although the brand launch ad has firmly set a positive launch pad for Motorokr, things are not as rosy as it seems. The brand faces intense competition with Sony Walkman series which has successfully leveraged its iconic Walkman brand equity to its advantage. Recently it had roped in Hrithik Roshan to endorse its range of music phones. The new ad adopts the tagline " The thump is here" to announce the brand war.Nokia will also be looking at this segment seriously because such fragmentation of market will be dangerous for a market leader.

For the customer its is Music Time...
Related Brand
MotoPebl

source :agencyfaqs,technews

Preethi Mixie : I Guarantee

Brand : Preethi
Company: Maya Appliances

Brand Count : 206

Preethi is an upcoming brand in the heavily crowded small appliances market in India. The brand has grown from a humble beginning to become the market leader in Mixer-Grinder market. Preethi is a brand from Chennai based Maya Appliances. The brand was born in 1978 and was no where in the main scene till the late nineties.
Preethi after 29 years is all ready to spread its wings . The brand which is famous in South India has started its journey to become national. The Mixer-Grinder market is worth around Rs 1000 crore and the market is dominated by local players. Almost 60% of the market is unorganised. Preethi is the market leader in the organised segment with a market share of over 30%.
Until late 1990's , Preethi was a small player and the market leader was Sumeet which had a huge brand equity among the consumers. Facing the issue of stagnation, Maya Agencies deputed a marketing and consulting firm Suhita Ethinic Marketing Services Ltd on a Channel and Customer research initiative. The research revealed lot of insight to the company regarding the product and also on the customer buying behavior. One major insight that the company got was the quality attribute that was highly associated with the brand. Both the dealers and customers strongly associated quality and ruggedness to the brand. These insights has helped the company to further sharpen their strategy.
The growth of the brand over the last 5 years has been phenomenal. The market leader Sumeet faced lot of internal issues that adversely affected their position in the market and Preethi became the market leader in the mixer-grinder segment.

Mixers and grinders are of three types : Mixer-Grinder, Juicer-Mixer-Grinder and Food Processor. Mixer-Grinder constitutes the largest category. This market faces the issue of price competition from local players. Hence all serious marketing activity takes place in the Rs 1500 + segment . It is estimated that there are 500 different manufacturers of Mixer Grinders in the country. Another issue is the frequency of purchase. Earlier a family would use the product for more than 15 years but over time, the frequency of purchase has been halved to around 7 years. Most of the time , these products are either bought/gifted at the time of marriage /housewarming and after repeated servicing , the family will opt for a new one. Hence the task of the marketer is to catch the new users everytime and often it is expensive.

I noticed this brand a few years back through the TVC. Preethi regularly uses television to promote the brand. The protagonist in the ad is a homemaker who guarantees the quality of the product . The tagline is " Preethi Mixie : I Guarantee". What impressed me was that the brand has used a homemaker ( Models are used) and the message is simple straight forward. The brand had a good share of voice in the local media. More interesting was the support that the brand enjoyed from the channel. When I inquired about this category, most of the dealers had high opinion about this brand.
Another factor that helped this brand was the product changes that the company made in tune with the trends. The brand comes in following variants : Ecoplus, Popular,Chefpro ,Supergrind and the latest one Blueleaf. In my opinion the strength of the brand is its understanding that Indian homemakers need powerful motor and Preethi Mixies delivered the maximum power.Even in my experience, most of the mixers are severely underpowered to meet the need of a typical Kitchen.

Blue Leaf is the latest offering from Preethi aimed at the upper segment .The new range is designed by Neil Foley of Titan Fastrack fame. The brand priced expensively at Rs 3500+ aims at the SEC A segment .BlueLeaf combine both design and power and is marketed heavily by the company. The brand takes a cue from the heavily promoted Philips Mixie who takes the USP of the silent mixer.Through Blueleaf, the brand intends to project the brand towards a lifestyle positioning.
Preethi has established its equity in Southern Markets by emphasizing its quality and with the new variant Blueleaf, it is all set to go national.

source: businessline,domainb

BlackBerry : Small,Smart & Stylish

Brand : BlackBerry
Company: Research In Motion


Brand Count:204

BlackBerry is an interesting brand especially in the Indian context. The brand belongs to the Canadian Company : Research in Motion. The brand was globally launched in the year 1999. The brand was an answer to the need for a traveling executive to connect to the office.
Blackberry is a device which supports Push Email,Text messaging,Internet faxing web browsing etc. Rather than a device, Blackberry is a technology that enables one to forward emails from the customer's desktop to the mobile device. BlackBerry was an instant hit across the world and when you go to an airport, its inevitable to see executives using this device. BlackBerry was named By Lexicon Branding Inc which is a firm specialising in Brand Naming services. The name is said to be derived from Strawberry 'cause the buttons of the device looked like strawberry. ( source:wikipedia)
BlackBerry came to India in 2004. Airtel was the first service provider to enter into contract with BlackBerry. In India, Blackberry never advertise but it is the service provider that advertised the connectivity. Since this brand was aimed at the corporate users, it made more sense to entrust the promotional task to the sales persons rather than to the advertising agency.

More over BlackBerry did not need to advertise because it was a product which clearly satisfied a need of its TG. When it was launched,there was no smart phone or web enabled phones.Hence BlackBerry offered a solution to stay connected while travel. This product was lapped up by Corporate India. Although BlackBerry is not a mobile phone, the brand was able to build a point of parity with Mobile phones by associating itself with the cellular service providers. Airtel had an exclusive agreement with BlackBerry which will expire on March 2007. Hutch has already announced its association with BlackBerry and TVC's are already on air. You can watch it HERE

2007 is witnessing a huge change in this product. BlackBerry is repositioning itself. A brand that was targeting the CEO's have now set their sights on the younger crowd.The brand has metamorphosed to a Cellphone directly competing with Nokia and Motorola. Earlier BlackBerry never looked like a phone. The shape was different and the instrument had a QWERTY keypad with its iconic TrackWheel + Click feature. The brand was so famous that the users sometimes get addicted to it and some used to call it CrackBerry. But slowly the brand began to take itself to the cellphone territory.
BlackBerry launched its stylish version of BlackBerry branded BlackBerry Pearl 8100 which is aimed at the younger generation. The brand which is priced at around Rs 25,000 is expected to drive decent volume.
BlackBerry was earlier positioned on its email feature. The brand was positioned as a pure play email device. But now the positioning has been changed .The tagline says " Small Smart and Stylish" which reflects the look and design of the device.
Although BlackBerry is entering the highly competitive cellphone market, the brand has made a clever move by allowing non BlackBerry devices to offer email services using the BlackBerry Connect Software. This is a very smart move from the company which see itself more as a technology company rather than a device company. It has not made the mistake of Apple Computers which during the early days refused to sell the operating systems separately. Now customers can opt for smartphones from Nokia or Sony Ericsson to access email using BlackBerry technology.
BlackBerry has seen exponential growth in the subscriber base globally since its launch. The service already has 6.2 million users worldwide. In India too , this brand has become an essential tool for the busy executive.
Earlier an executive had to use a Cellphone and a BlackBerry to be fully connected,but the latest BlackBerry eliminates the need for multiple devices and converges all features into one. By doing so, BlackBerry is getting out of its comfort zone and entering into a deep sea. The Pearl will directly compete with Nokia and we have to see how Nokia reacts to this move.

Source:blackberry.com,wikipedia

Ajanta Quartz : From Clocks to Tiles

Brand : Ajanta /Orpat
Company: Orpat Group
Agency: Mudra

Brand Count 157

Ajanta Quartz was established in 1971 and the story reminds us of a typical rags to riches kind. Starting as a small establishment at Morbi in Gujarat , Ajanta rose to become the world's largest clock manufacturer in 1999-2000 clocking 1 crore time pieces in that year.

The company was founded by Odhavjibhai R Patel ( O.R.Patel) who started manufacturing mechanical clocks under the brand name Ajanta. During the mid 1980's , Mr Patel was wise enough the foresee the end of mechanical watches/clocks and the evolution of Quartz technology in clocks. The company was quick to change over to quartz clocks .

Ajanta in a way changed the entire clock market in India. The market for watches and clocks are estimated to be around 30 million units. Surprisingly Ajanta during the eighties was the only Indian manufacturer of clocks. The brand came into limelight by creating a price disruption in the market. The clocks were priced ridiculously low and came in wide variety of shapes and sizes. The ever value conscious Indian consumers did not waste any time to lap up this brand. At one point of time Ajanta clocks were a favorite gift item in marriages. Favorite for the giver, because the product was cheap and had reasonable quality. For the receiver of this gift, he would be left with too many clocks that sometimes you can see more than two clocks in the same room! After my marriage, I was left with too many clocks that some of them are now still in a packed condition. The brand was also clever in coming out with various designs and the blockbuster religion based designs that was highly popular in the Indian market.

But competition was starting to create problems for this brand. Many Indian firms started to emulate Ajanta's business model and the market was flooded with cheap clocks. Added to that the low cost clocks was dumped to Indian market from China. Sensing that the business may soon become unviable, Ajanta tried to set up a manufacturing facility in China to balance the cost equation and to compete with cheap imports. At one point of time Ajanta commanded 70% of the market share.

Ajanta also ventured in to the manufacturing of calculators under the brand Orpat (derived from the founder's name O.R.Patel). In this market also the brand faced competition from the cheap imports.Then came the telephone set market where also Orpat has established itself as a major player.

2003 also saw the company diversify to totally unrelated areas like FMCG. Ajanta launched its toothpaste with much fanfare and tried to repeat the story in clocks to this segment. Ajanta shaked the toothpaste market with its low price of Rs 18 for 200 gm pack while the FMCG majors like Colgate retailed for Rs 54 for 200 gm. This caused ripples in the market and the Goliaths were to a certain extent humbled by the Davids like Ajanta, Anchor and Babool. But this story also went sour with Colgate and Hll flexing its marketing muscles with launching low priced flanker products like Cibaca Top and ended up regaining market share from these price warriors.

The Patels were unfazed by these setbacks and their entrepreneurial spirit should be really appreciated . The group then ventured into small appliances and then to CFL lamps under the Orpat name. In the CFL lamps segment, Orpat quickly established itself again using price as an advantage and is reported to have a market share of 50% in that segment fighting out with Philips. Now the company is venturing into Vitrified Tiles segment under the brand name Oreva. All these diversification are banking on the model of Low price, high volume and Economies of Scale.

Orpat has evolved into an umbrella brand for many product categories . The brand is positioned on the basis of "Low Price " platform. The brand is also facing challenges because of this positioning. Every company which is using "low cost " of production as a competitive advantage faces the problem of sustaining the cost advantage. With the trade barriers becoming a thing of past, most of the companies can take advantage of outsourcing from low cost countries to compete with low price warriors. The problem become dangerous when the Brand is being positioned as a " Low Price " brand rather than a " High value " brand. A classic example of High Value Positioning is Tata Indica where the company is not raving about its price but the value that it delivers.

Ajanta has relied on the distribution strength to build its business with low brand building activities inorder to cut costs.In the initial phases, the brand was very aggressive in promotions. But now the brand is facing competition with brands like Samay who is more aggressive in the promotions front.Ajanta now faces the issue of differentiation because the Price is now not a differentiating factor. The brand also faces competition in the technology front interms of the LCD clocks may replace quartz in future.Theoretically Ajanta should be pioneering the digital clocks if it want to get the first mover advantage.

Orpat as a brand in the electronics and small appliance market will have a bright future if it position in the platform of Value rather than price.


Source: orpatgroup,economictimes,agencyfaqs,businessline

HP : Computer Is Personal Again

Brand : HP computers
Company : HP
Agency : Publicis

Brand Count :146

The Indian computer hardware industry is huge and growing. The sheer size of the Indian middleclass is an ample evidence of the huge potential for personal computers in the country. The computer penetration in India is barely 1 percent that makes the market more challenging and attractive.

Although the numbers present a rosy picture, the reality is not as rosy as it seems. The market is dominated by unbranded players and the computer today have a commodity status with brands losing its relevance to a home computer buyer. This has put lot of pressure for the organised player to reduce margins and cost to compete with the unbranded players. In the earlier stages of the evolution of this industry, the factors like reliability and service had given the organised players significant advantage over the unorganised sector. But with the standardisation of products and the outsourced service elements becoming popular, the branded computers lost their edge.
Even with the price war raging , the branded version costs anywhere between 20-30% premium over the unbranded ones.The rate at which the processors and technologies becoming obsolete is forcing the customers to look for cheaper options. The rationale for the customer is simple " The system I buy in 2006 is going to be obsolete in 2007, hence why invest in a branded one?".

HP ( Hewlett Packard) is one of the major players in the organised market in India. This multinational giant have around 20% share in the desktop market. Reports suggest that HCL-the domestic player is leading the market.
In this market which is typically fragmented with chances of differentiations are slim, it takes lot of innovation and marketing skill to survive. That is what HP is currently doing. In June 2006, HP launched its global marketing campaign to reinvent the personal computer industry. The campaign with the tagline " The computer is Personal Again" is an attempt to brand a commodity again. Personal Computers or PC was what we used to call the desktops but later the term lost its charm and we began to use the terms like desktops, laptops and notebooks. These terms were technical terms and was a result of the market becoming more mature and as a result more commoditised.Most of the campaigns by computer manufacturers were focusing on technical specifications and price offers. There were little branding efforts and most of the campaigns were dealer ads funded partly by the manufacturers. Branding was slowly dying and sales promotions were gaining prominance.

HP's new initiative is to bring back the personal nature of the computers. Business Week in a report has detailed that this campaign is intended to position HP as a company that truly understands how central PC's has become to most people's life. The campaign features a " Hand drawn graphic of a Hand" in every ads. Only select products will be highlighted in this campaign and these products will be promoted using only their striking feature. That means that the company is going back to the marketing basics of USP, Positioning and Differentiation. The campaign has also roped in MTV for a Advertiser Funded Programme titled " Meet or Delete" reality show as a part of its 360 degree brand campaign.

The print ads featuring celebrities stand out intheir designs and communication. The sheer beauty and depth of campaign makes it one of the most memorable marketing efforts of recent times. The campaign globally is conceived by Goodby, Silverstein and Partners for the Personal Services Group of HP.
Another beauty of the current positioning platform is the flexibility and creativity that it offers to the marketer. There is ample scope for extending this positioning to all product ranges, new products and across segments.The campaign also gives the marketer an opportunity to experiment with the product, change its design and sometimes make mistakes all in the name of reinventing PC.

With regard to the current theme and its execution in Indian market, the ads mainly is targeted at the affluent middleclass tech savvy customers. The ordinary lot will not understand this communication because the execution of this ad is too complicated for an ordinary buyer to understand. I am not sure whether HP is only aiming at Premium customers ?The success of this campaign will depend a lot on how this strategy is being executed at the customer moments of truth or touchpoints. Is he going to get a personalised attention at the retail level? Will the company follow this strategy with new product ranges and extend this campaign to a mass level?

Whatever be the outcome of this campaign, this will be rated as a classic marketing initiative . As a marketer, I am happy because " Marketing is personal again"

source: businessweek, bbc,expresscomputers, agencyfaqs

Singer Sewing Machines : Facing a Crisis

Brand : Singer
Company : Singer India ltd
Agency : JWT

Brand count : 141

Singer is a 130 year old brand in India famous for its sewing machines. Singer came to India in 1870 and is a Pioneer in developing the product category : Sewing machines.
Sewing machine was once a must in every households in India and was even a part of one's dowry. Those aged >30 may have noticed the dusting old machine at their homes. This once popular small durable is slowly fading into history.

Sewing machines are losing popularity in India because of the changing demographics and lifestyle. With the couples working and the evolution of Nuclear Urban Families (NUF) , the relevance of this category itself is now in doubt.

In olden days the brand was an example of Craft and Frugality. Craft in the sense that it showcases the talent of the Bahu and Frugality in saving the stitching costs. Now with the popularity of readymade clothes , this category has been thrown out of Urban households.

Singer is one of the largest manufacturers of sewing machines in India . The brand is credited with pioneering the installment culture in India by offering sewing machines to rural households on installment during 19th century. Still rural India contributes to the sale of sewing machines where it is used as a wage earner.

The marketers of sewing machines have tried to create more interest in the urban households by introducing electronic sewing machines ( userfriendly) and coming out with " Sew yourself patterns" encouraging the homemaker to experiment and create her own fashion wears. But these initiatives were not successful and it has forced these players to diversify into other small appliances.

The basic issue with the machine being less popular is

a. The task is tedious.

b. It takes training to make a good stitch.

c. No longer an attractive pasttime.

d. Machine not user friendly.

This product category is failing because it failed to change with the consumer.Although there were innovations, the product was such that the users had to be trained in using this product.

With the urban women not getting enough time to engage in attend classes, the category began to lose popularity.

Unless the manufacturers address these issues , the product category will be limited to industrial sewing machines and customers in the sewing machines. The category is already a century behind the new generation. I bet that an urban 15 year old may not have even touched this machine. May be the marketers have to comeout with an automatic computer aided machine that prints or stitches with the click of a button or something like that which is fast and easy to use.Other wise this category will fade from the households forever.

Source : businessline,myiris.com,wikepedia agencyfaqs.com

Prestige Pressure Cookers : Long Way To Go

Brand : Prestige

Company: TTK Prestige
Agency: Mudra Communications


Brand Count : 119


Prestige pioneered the pressure cooker market in India. Launched in 1950’s this brand has popularized pressure cooker as an essential cooking device.
When Prestige was launched, Indian consumers were somewhat afraid about using pressure cookers. The product category was looked upon by the consumers with suspicion and fear. Prestige changed all that. The brand using careful communication messages were able to establish itself as the safest cooker.

Prestige brand was able to address the initial concerns of the consumers like the nutrients getting destroyed using the cookers and more importantly the normal inertia in changing the way of cookers.

Long before the Product Demonstrations began to be popular among marketers, Prestige started highly successful house to house demonstrations to popularize the efficacy of this product category. These steps enabled the market to grow very fast. The pressure cooker market is estimated to be around 6mn pieces.

Not resting on laurels, Prestige was careful enough to innovate. In 1980, it came out with the first Pressure Pan which can cook a variety of Indian dishes. In 2003, to tap the premium segment, Prestige launched the Deluxe range of pressure cookers. The safety features like “Gasket Release System” and the “Gasket Offset Device” was invented by Prestige.Prestige also introduced a unique concept of separator cooking which means that two dishes can be cooked in the pressure cooker at the same time thus increasing the utility and reducing the fuel costs.

Later Prestige ventured into Non stick cookware category extending the brand. The company was leveraging the brand equity of Prestige to this new category. There also Prestige tried to provide freshness through innovation. It launched India’s first Metal friendly nonstick cookware range.

The reason for the brand extension is that the market for pressure cookers was not growing. The branded cookers faced lot of competition from unbranded cheap products. The unbranded cookers corner about 50% share in this market.
The pressure cooker market plus the nonstick market is worth around 600 crores, making it more sensible for the company to extend the brand.

In the early 2000 the company took the brand into a higher level by launching small kitchen appliances under the concept of Prestige Smart Kitchen. The small appliances along with cookers and nonstick is worth around Rs 3000 crores. Hence Prestige was hoping to cater to a larger market with its new range of Small appliances like Mixies, gas stoves grinders etc. The small appliance market although is large is crowded with small and large competitors and is tough to crack.

Although market reports suggest that Pressure Cooker market is almost stagnated, the figures show another picture. The penetration of Cookers in Indian households is as low as 36% and rural market penetration is only 18%.There is also a huge market for replacements. But the players are not able to break in to this market. It will take some marketing disruptor (new term from me) to break into the untapped market.

The major competitor for Prestige in Pressure cooker market is Hawkins. Launched in 1959, Hawkins is neck to neck with Prestige in market share estimated to be around 25%.

Hawkins in 1993 tried to break into the premium range of cookers by launching its Futura range of Pressure cookers. Although the design and the ads were catchy the price if Futura will give “Pressure “the Indian consumer. The price is around 200% more than the ordinary cookers. Hence Indian consumers have given thumbs down to this range. Futura has cornered a niche in the market but the growth is limited because of unreasonable price.
Although the early campaigns of Prestige brand has been able to create the brand equity, the share of voice of this brand still remains low. The brand does not remind you of any meaningful positioning except for the safety factor in Pressure cookers. If this brand has to transform itself to be a small appliances brand, it has to discover some core values of the brand and position the brand around it ( Which it has not done). For example, a regional brand “Preethy “which is a major player in the Mixie category is using a homemaker (model of course) to endorse the brand by using the tagline “ I guarantee” which can be extended to any product categories.

Prestige has to strategically position the brand inorder to use it as an Umbrella brand to endorse multiple categories

Source :Agencyfaqs, Bharathidasan Institute of mgmt website, indiatoday.com, magindia

Akai : The Original Price Warrior

Brand : Akai
Company: Videocon
Agency:SSC&B

Brand Count 118

Akai is the brand that changed the Indian CTV industry for ever.The 25000 crore Indian consumer durables market survived at one time because of Akai. Akai was brought to India by Baron International , a company floated by the young Kabir Mulchandani.

Akai was launched in India in 1995 and there after the CTV market was never the same. Before Akai, the CTV was a luxury affordable only to the middle class and above. The starting price of CTV at that time was Rs 15000 and above. It was a big task for a middle-income family to afford one at that time.

Players like Videocon, BPL, Philips and Onida dominated CTV market at that time. Akai had to break the stronghold of these players and how they did it is one of the greatest marketing success stories ever.
From 0 to14% market share within 18 months. That was the outcome. Akai did this by going by the advice of Don Corleone “ Make an offer that no one can refuse”.

“ Rs.9999 for a 21 inch color television” screamed full-page ads in newspapers. It was for the first time that a consumer durable marketer took full pages that too frequently. Along with the price, Akai invented the concept of exchange schemes into the Indian market and customers loved it. Nobody could believe the offer and the price. I don’t think anyone now also knew how it worked out.You go to the dealer with an old TV and you could get a discount of Rs 5000 on the new one. WOW…
Akai positioned itself as a price warrior and the heritage factor of being a Japanese company boosted the brand image of the company. The tag “Made in Japan” always impresses Indian consumers and it helped Akai to scale up in the market with in a short span of time.

Baron also took an unconventional distribution strategy by advertising heavily before the product hit the market. This created rush in the market and distributors paid upfront to get the orders and the company had the money before selling its product. The additional margins also satisfied the dealers.

The price and the hype affected the market share of the leaders in CTV market .All the players cut their prices as high as 40% so as to survive. This prompted customers to believe that they were being forced to pay a higher price before Akai came into the market. The price offers expanded the Indian CTV market like a rocket propeller

Akai ran into rough weathers shortly after 1998. Akai globally was owned by Ontario based Semi Tech corporation. Baron ‘s relationship with Semi Tech became rough. Baron, to tide over the probability of severing ties with Akai, forged a deal with Aiwa of Japan for marketing Hi Fi music systems.
Kabir Mulchandani did the same with Aiwa selling the brand at a price unheard of and making the product category reachable to middle class. But Aiwa as an upscale brand ( 51% of the co is owned by Sony) was not happy by this positioning ,however an the brand was looking for an upstart in the Indian market and Kabir’s strategy helped Aiwa to create a brand awareness and expand the market.

Akai thus severed its association with Baron and forged a marketing relationship with Videocon. Videocon was marketing the brands of Semitech like Sansui.

Akai struggled to shrug of the image of a low price brand which was strongly embedded in the mind of the Indian consumer. As Mr Abrahan Koshy of IIMA says ‘ Discounted brands are promotion dependant” so to survive Akai had to spend heavily on Advertisements and it was a difficult proposition.


Baron later tried its luck with another Chinese brand TCL but could not succeed. Once a poster boy in the media and once acclaimed as a marketing whiz kid, Kabir Mulchandani has faded in to history as a one product wonder. He is battling lot of legal issues and nobody talks about him now. But marketing history remembers him as a Disruptive Marketer who made two luxury product categories CTV and Hi-FI systems affordable to the Indian consumer.


Akai expanded the Indian CTV market which is now estimated to be 80 lakhs units per year. The Korean majors currently dominate the market. Since the launch of Akai in 1995, the entry-level models are ranging sub 10000, which was unthinkable in the 90’s. Now all the major players including SONY have a CTV model below Rs 10000. Even Flat TV starts in this range. All these, thanks to AKAI. But the brand has now become a marginal player in the Indian market. Videocon is finding it difficult to fit this brand into its already crowded product portfolio. Aiwa is fighting it out at the affordable TV and Music system category with the backing of SONY.

Source : agencyfaqs, estrategicmarketing,businessworld

MotoPEBL: Inspired by Nature

Brand : MotoPEBL
Company: Motorola
Agency: O&M


MotoPebl is the new range of handsets from Motorola.

Although Motorola has been there in India for a while , it had not been able to break into the Nokia fortress so far. Nokia is commanding a staggering 78% market share while Motorola is having 4.6 %.Never the less Indian market is growing leaps and bounds.

MotoPebl was launched in April 2006 after the success of MotoRZR and MotoSLVr is set to shake up the Indian market. Moto Pebl is a pathbreaking move by Motorola in many respect. With regard to the product characteristics, promotion and pricing, Motopebl is showing us that Motorola has finally discovered the marketing manthra to succeed in Indian market.

This brand is different from the other Motorola brands in the sense that MotoPebl focuses more on design and aesthetics rather than technology. Motopebl is inspired by nature. The promotion is also a significant shift from the earlier promotions. Motorola is perceived to be a technology company. Most of the ads were busy talking about the features of the product. I remember seeing double spread ads talking about the technology that was a immediate putoff for a non tech geek.

Motopebl talks to the right side of the brain. The ads are simple and so sharp that it provokes the TG to try out the product, that is the success of the campaign. The ads are so short and sharp that it is going to save Motorola lot of money. In the pricing also Motopebl is different because it is priced reasonably at 10990.

MotoPebl by all means have the potential to be a best seller. Nokia better watch out..