Marketing Funda : Brand Refresh

This post is inspired by  my learned Twitter friend @vijaysankaran when he queried about my opinion about the brand refresh by Raymond. I was more familiar with Re-branding and not refresh which lead to more learning about this term. 

Brand refresh is a term that signifies slight modification of the brand ( or brand elements). Radical modification or change of brand elements implies re-branding. 

Refreshing of brand usually happens under following conditions 

• The brand is perceived to be old.
• Brand is trying to appeal to a new segment , for example younger crowd.
• When there is a change in the brand positioning.
• When there is a shift in the characteristics of the TG.
• When the brand elements need modernization . 
• When the brand launches products in other categories ( Brand Extensions)
• When you feel consumers are bored with the brand.
• When nothing else can be refreshed !

Brand often do these refreshing by slightly tweaking the logo/color/tagline /positioning etc but as per the theory , radical changes in the brand elements are entitled to be called as Re-branding. Hence there is only a thin difference between re-branding and refreshing.

As the term implies, refreshing brand make sense especially when one cannot make any radical changes in the product. For example, for products like softdrinks, the product attributes remains the same and only thing that can be changed are the brand related attributes like taglines , slogans etc. 

Brand refresh can be done by 

• New campaigns 
• Changing taglines and slogans ( or introducing a tagline )
• Introducing or changing imagery
• Changing the protagonists in the campaigns
• Introducing brand extensions
• Introduce a brand element which was not there before .
• Re-positioning 
• Re-targeting 

My take on this term is that what ever activities that marketer undertake to make brand fresh without radically affecting the brand elements can be termed as brand refresh. One article rightly compared  Brand Refresh to a Makeover. ( source ).

Brand Update : Raymond formally enters into ready-to-wear segment

Although the reports of Raymond entering into the readymade segment was there since 2007, I feel the brand has only now fully launched itself into this category. The " Complete Man" now has become readymade !

The Indian men's wear market is around Rs 97000 crore and the formal menswear market is estimated to be around Rs 15000 crore ( Source TOI) . Raymond has brands like Park Avenue, Parx, Color Plus and Notting Hill in the segment.

The addition of Raymond will further strengthen the company's portfolio but at the same time would cannibalize the other brands like Park Avenue. Having said that the move has to be seen in the larger picture where the trend is moving towards the ready-to-wear segment.

Raymond is now running the campaign for its ready-wear push. The brand retains the tagline " The Complete Man".

Watch the ad here : Raymond Readymade
The ad is well crafted - simple and elegant.
As long as the brand moves with in the positioning of " The Complete Man ",  the readymade push would be well accepted by the consumers. But Raymond has to create a separate space for its brands with distinct identity to avoid cannibalization.  I think it will be interesting to see how Raymond will be affecting Park Avenue .

Marketing Funda : The cost of Hype

October 6 ,2014 could have been a historical day for Flipkart but in reality, that day proved to be more of a PR nightmare than a marketing success. It may be true that on that day, the company would have emptied its inventory of many products but at the cost of a lot of goodwill .

The huge hype created by Flipkart and the subsequent backlash forces us to refresh some basics in managing expectations. 

One of the classic theories related to expectation and subsequent satisfaction is Expectation-Confirmation Theory ( ECT) . The theory is no rocket science . It simply states that during the pre-purchase stage, the consumer forms expectations either by the conscious act of the marketer or through other means. After the purchase or service encounter, the consumer's satisfaction is decided on the perceived performance of whether the original expectations are confirmed.

Because of the equity established by Flipkart, the consumers expected that on that day 

• They would get a fair bargain .
• The site would work perfectly.
• Orders would be fulfilled.
• Deal would be fair.

Getting a big bargain is a game. Consumers know that and wouldn't mind if the deal is taken by someone else - its a competition. That's why for many consumers, getting discounts is an ego-satisfying process. But when there are news about price tampering and deliberate price increases     preempting the sale, the issue of fairness becomes dominant. It's here that Flipkart got the stick. Consumers were furious not because they didn't get the deal, they felt cheated because of the fairness- factor. 

Here Flipkart simply took the billion day offer to stratospheric levels that even to the best of the intentions, it cannot be matched. Then in reality the entire sale became a nightmare. 

The lessons learned has to be that marketers need to set realistic expectations ( common sense !). But some times common sense need to be emphasized. 

Brand Update : Wagon R Teaches How to Manage Product Lifecycle

The festive season of 2014 saw the launch of  limited edition Wagon R Krest. Wagon R which was launched in 1999 is still the 4th largest selling car brand in India. The product is a classic example of how consistent performance + value-for-money positioning will achieve long-lasting success in Indian market. 

Wagon R has become a success because it is one of  the most practical car in the Indian roads. Be it space, comfort or reliability, Wagon R has delivered consistently over the last 15 years.

On the product front, Maruti has been very smart in ensuring that the product and the brand is kept relevant to fit the changing consumer needs.

The brand went for relaunches and modifications in 2003, 2006 and 2010. 

In 2013, Wagon R launched another variant- StingRay with a new positioning to attract the young consumers. 

This year, the company is keeping the PLC rejuvenated by launching a limited edition product branded as Wagon R Krest. The new variant has new front grille, audio system, reverse parking sensors, new seats and some sticker jobs. The new limited edition is priced at a premium of Rs 22000 over the original Wagon R. 

From 1999 to present, the brand has sold around 1.3 million units and counting.  In the branding front, the company had tried to maintain the brand's visibility . Earlier it used the actor Madhavan as the celebrity endorser effectively. More than the brand's campaign, it is the practicality of the product that has made it a best-seller.
Maruti has plans for a diesel version and an AMT version for this brand. This brand will be here for a long time for sure.

Schmitten Chocolate : Love to Love it

Brand : Schmitten
Company : Rajhans Group


Brand Analysis Count : # 550

The Rs 4500 chocolate market has a new player- Schmitten. Schmitten is a Swiss chocolate made in India ! or to be fair, this chocolate is positioned as a Swiss chocolate. The new brand comes from Rajhans group which is a Rs 3500 crore real-estate developer. 

The new brand- Schmitten is positioned as a premium brand competing with the like of Cadbury Silk and Temptation. Schmitten is the mother brand which is being launched as a moulded chocolate like Dairy Milk. Schmitten also has another product - Hoppits which is a bar-chocolate like 5 Star.

According to newsreports, the chocolate although made in India is made with machine imported from Switzerland, Denmark and Germany and uses Ghanian coco beans and Swiss recipe.

Priced at Rs 80 for 70 mg pack, the brand resides at the premium end of the chocolate market.It is priced competitively for a luxury brand.

Schmitten is launched with the endorsement from Priyanka Chopra. The launch campaign is styled as a musical and the brand has the tagline " Love to Love It ".

Watch the ad here : Schmitten 

The basic premise of the brand's launch message is that its a crime to ask for a bite of Schmitten. The brand had a launch teaser campaign where various punishment for taking a bite of  Schmitten is shown.

Watch : Teaser Schmitten

The musical ad has some kind of a novelty in it but doubt whether the packaging and the ad has succeeded in creating the premium image for the brand. The ad purely talks about the story and doesn't convey any message regarding the USP of the brand.

My take on the launch campaign was that it could have been much better and the premium factor is missing in the ad.

Further the tagline " Love to Love it " is a confusing tagline. What does it actually mean !!

Having said that, since chocolate is an impulse purchase, Schmitten , with its celebrity endorsements would get consumer trials and eventually it is the product performance that is going to be the key. 

Brand Update : Xcent ropes in Shah Rukh Khan

Xcent launched by Hyundai in the sub-meter category has been well received by the customer. According to newsreport, the brand has sold around 35000 units since its launch. To boost the existing success,the brand now has decided to leverage its prized asset- the brand ambassador- Shah Rukh Khan.  

SRK has been the brand ambassador of Hyundai for the last 16 years. According to NDTV, this 16 years association is a record for any brand-celebrity in India. From the launch of Santro to the i10, SRK has been the integral part of the brand campaign for Hyundai. 

But more than the brand promotion, it is the performance of the products that create success in the Indian auto market.

SRK in the new campaign for Xcent amplifies the brand's promise of " more value for money ". 

Watch the ad here : SRK Xcent

In the new campaign, the brand had added an additional claim of " The real family sedan ". The well made ad pitches the brand against the tough competition from the likes of Honda Amaze, Tata Zest, Maruti Dzire etc.