Brand Update : Lux Extends to Deo

Lux, India's most famous personal care brand has extended itself to deo. The campaigns are on air featuring the extensions. The deo market in India is witnessing huge amount of brand activity with new brands being launched almost every month. According to Economic Times, the deo market is estimated to be around Rs 1300 crore and growing at 40%. 

The question as always is what can be logic behind HUL extending its iconic brand to deo. It is not that Lux is not extended before. The brand has soaps, shampoos, bodywash in the product-line. Globally this is the first time that the brand is extending to deodorants. 

HUL has been a pioneer in creating the deo category in India. The company holds its leadership position in the market with its iconic brand Axe. HUL also has its anti perspiration deo Sure and also Dove. So rather than investing on these brands why would HUL try to extend Lux into this category ? 

One of the reason can be to pre-empt competition by flooding the market with its own brands. Lux has a huge equity which will translate to trials and incremental sales. Further, the company is also wary about the launch of competing brands like Santoor, Nivea etc into this category. 

However, HUL is taking the risk of spreading the budgets too far on these extensions. After Axe, the company was not able to come out with another blockbuster deo brand. It pulled out Rexona and Sure was not able to replicate the success of Rexona ( during the initial years). Dove is also another brand which is extended to almost all imaginable personal care categories.

Lux as a brand will get more diluted  if HUL tries to milk its equity too much. None of its earlier extensions could replicate the success of the core brand. Rather than diluting, HUL could have launched new focused deo brands.

Quco Hair Perfume : For Great Smelling Hair

Brand : Quco
Company : Vini Cosmetics

Brand Analysis Count : # 497

Have you ever thought of buying a perfume specifically for hair ? Were you ever conscious of how your hair smells ? If not, then marketers are out there to make you conscious about how your hair smells. From armpits to hair, perfume/deo brands are indeed expanding their horizon !! 

Quco is a hair perfume brand from Vini Cosmetics. Vini Cosmetics was founded by Mr Darshan Patel who was the co-promoter of Paras Pharmaceuticals. In 2010 , Mr Darshan Patel sold his stake in Paras to start on his own venture. Quco hairspray is one of the many products the company has launched in recent times.

Quco is trying to create a new category of hair perfume in the Indian market. The hair perfume products are virtually unheard of in Indian market and the launch of Quco has created lot of buzz in the market . 

There are lot of ! and ? about the scope of such a product category in India. One of the most important challenge that Quco face is to establish its usefulness in the mind of consumers. The brand is attempting to create a new category. The product is virtually unheard of in the market and consumers are not even aware of the need for a hair perfume spray . So even before establishing the brand, Quco needs to educate the consumers about the need for a nice smelling hair. The brand has launched its campaign in Television and is attempting to create awareness about the need in its first TVC.

Watch the ad here : Quco TVC

There are many factors that influence consumer adoption of new products like Hair Perfume . Some of the factors are Perceived usefulness, Perceived risks , attractiveness etc. The brand has addressed the perceived risk by claiming to be alcohol-free and safe for hair.

The fundamental problem is whether this product category has perceived usefulness in the mind of the consumers. Many consumers are not aware about the " hair smell " and even if they are conscious , the consumers depend on shampoo to handle the problem. Another issue is whether the consumer feels compelled to purchase a specific product to solve this issue. 

Quco will be a niche brand because of the nature of the product. It has to be seen how Indian consumers will warm up to the idea of a perfume for hair. Just like Rexona and Close Up taught Indian consumers about odor, Quco will have to educate and convince consumers about hair smell.Will Indian consumer will find the need strong enough to invest in a new product and use it on a continuous basis. These are the questions which the market will answer in future.

Marketing Strategy : Making Brand Portfolio Decisions

Brand portfolio decisions are strategic in nature. These decisions have very powerful impact on the entire brand architecture and marketing strategy of the firm. According to marketing theory, there are two basic brand portfolio models –House of Brands and Branded House.

Recently Rajiv Bajaj, CEO of Bajaj Auto announced a decision that the company will not be using the corporate brand Bajaj for any of the motorcycles produced by the company. Instead, the bikes will sport individual brand names and Bajaj Auto will be a garage of independent brands like Unilever and P&G. According to newspaper reports, the company will focus on four brands – Pulsar, Boxer, Discover and KTM and will not use the parent brand to endorse these individual brands. Bajaj Auto has made the decision to move from a Branded House portfolio model to House of Brands portfolio model.

House of Brands

House of Brands model refers to a brand portfolio where firms will choose different brand names for various products across categories. These brands will have own identity and personality. Different products in the same category will also have individual brand names. FMCG giants like Hindustan Unilever, P&G l follow the model of House of Brands. For example HUL has soap brands like Lux, Rexona, Hamam, Lifebuoy, Dove etc.

House of Brands portfolio model have many advantages. One of the biggest advantages is the focus that managers can give to individual brands. Since each brand will have separate identity, brand managers can devise focused strategies with regard to segmentation, positioning etc. Individual brands also give tremendous amount of freedom as far as strategies are concerned. Brand managers are not constrained in devising their strategies since the brand is not linked to any other brands in the portfolio.

Since the brands in the portfolio are independent, the failure of any one brand is not going to have an impact on other brands. Controversies affecting one brand will have minimal impact on other brands from the same company and brand managers can distance other brands from the brand which is facing the issue.

House of Brands model also have its fair share of disadvantages. Since the firm intent to have different brand names for various products, the cost of promotion of these multiple brands will be more compared to Branded House model.

In the case of House of Brands, the promotional budget has to be shared which will create internal competition among various brands for a larger share. While internal competition can be beneficial, there is also a chance of internal conflicts within the brand management teams.

Another potential disadvantage is the chances of brand cannibalization within a category. For example soap brands Rexona and Hamam from HUL compete with each other in some southern markets. Thums Up and Coca Cola compete with each other in markets where they co-exist.

If not done carefully, different brands in the portfolio can also create confusion in terms of positioning and segmentation. Overlaps in segments, cannibalization, same positioning, and clutter etc can occur if the firm is not careful about the individual brand strategy. At one point of time HLL (now HUL) found its brand portfolio with too many brands that overlapped with each other. The company had to undertake a brand rationalization exercise which reduced the number of brands from 110 to 30 power brands.

Branded House

Branded House portfolio model is where the firm chooses to have one brand name for all the products that is marketed by the company. Many firms use the corporate brand name for all the products that they sell in the market. Dell is often cited as a classic example of a Branded House.

The biggest advantage of Branded House is the economies of scale in terms of brand promotion activities. Since there is only one brand to promote, the firm can channel the entire resources more effectively.

Another advantage of Branded House is that the promotional cost of introducing new products into the market will be significantly lower compared to House of Brands. Since the new product will carry the common brand name, there is an increased chance of consumer acceptance because of the existing brand equity of the parent brand. The firm is thus spared of the task of building brand awareness from the scratch.

A major disadvantage of Branded House model is the possibility of brand dilution arising out of different products from the same brand. Unless carefully monitored, product proliferation within the brand portfolio can dilute the core positioning of the parent brand. It may not be possible for all products to have the same positioning theme and any deviation from parent brand’s positioning will dilute the core positioning them of the Branded House.

Firms strictly adhering to Branded House portfolio model may have to forego many market opportunities if those categories do not fit into the parent brand’s positioning. For example a Branded House marketing luxury product may have to forego the mass market opportunities because of the positioning constraints. That constraint is not applicable for House of Brands because the positioning of one brand may not affect another.

Another disadvantage of Branded House portfolio is the impact of product failures/controversies on entire portfolio. Since all products carry the same brand name, failure of one product can have a negative impact on the parent brand. Any controversy involving a single product can have devastating influence on the entire product range.

Although theoretically these two portfolio models exist, in practice firms tend to use various elements of both models together while devising their brand portfolio strategy.

(Reference: Tybout, A., & Calkins, T. (2006). Brand Portfolio Strategy. In Kellogg on Branding (pp. 104-129). Wiley India.)

Originally Published here at Adclubbombay.com

Sure : No Sweat

Brand : Sure

Company : HUL

Brand Analysis Count : #456

HUL has launched a new brand in the Indian market - Sure . Sure is an antiperspirant brand from Unilever's global product portfolio. The brand is claiming to be the largest selling antiperspirant brand in the world. Sure is sold extensively in UK and Europe.

Sure is an interesting brand for a variety of reasons. The launch of Sure brand marks another era in the deodorant market in India. The deo market is divided into categories like Body Spray, Deo with germ fighting properties and Antiperspirants. The Rs 700 crore Indian deo market is dominated by the body spray categories. The launch of a global brand like Sure is going to develop the antiperspirant market in India.

For the promotion of Sure, HUL has roped in the actress Asin. The brand is currently running the launch campaign across South India featuring the celebrity.

Watch the launch ad here : Sure

Since the antiperspirant category is new to the Indian market, the brand has tried to educate the customer about the product category in the launch phase. The launch ad essentially talks about what the product is and the comparison between ordinary deo spray and antiperspirant.

Another interesting aspect of Sure brand launch is the question mark over the fate of Rexona. The fact is that Sure is Rexona !!!

While Sure is marketed across England and Europe, the same product is marketed as Rexona in other global markets including India. There are rumors that with the launch of Sure in India, HUL may kill Rexona deo brand in near future.

According to newspaper reports , Rexona which created the deo market in India is now a marginal player in the market with hardly 5% share. HUL virtually messed up the Rexona brand (soap) with lot of experiments like migrating to Hamam. Even in the deo category, Rexona was virtually neglected in terms of promotional spend.

Sure is marketed with the same tagline and brand elements as Rexona. Both Rexona and Sure carries the same logo - the Tick mark and the same tagline " It won't Let You Down". Sure is also using the slogan " No Sweat " in the launch campaign to reinforce the product benefit.

It is unlikely event where you see two different brands using the same logo and tagline. It does not make any marketing sense unless there is an underlying thought of migrating one brand to another. It can be assumed that Sure will launch its full range of deos and Rexona will be slowly taken off the shelves.

The deo market is witnessing intense competition these days with n number of launches happening. The trend these days seems that get a good fragrance, outsource production and do high profile marketing.

Even the antiperspirant market has seen new launches with Garnier launching its product in the category recently. By launching Sure , HUL is making sure that it does not leave any part of the category to the competitors.

Brand Update : Rexona (Reborn November 2009)

HUL never ceases to surprise me. One year back , HUL decided to kill Rexona and migrate the brand to Hamam. The brand also launched a high profile campaign announcing the migration of Rexona to Hamam. It created a Hamam variant named Hamam Abhyangasnanam and all the ads screamed - Rexona is now Hamam Abhyangasnanam .
Yesterday , I was surprised to see a television commercial of Rexona. So the brand has been resurrected after one year. I am not sure why a company like HUL has such a complicated brand strategy. How can a company decide on killing one brand, spent crores of money in promoting the brand migration and after one year decide to bring back the killed brand??

If the company doing this is an amateur firm, then it can be seen as a learning experience but when the company is HUL, no logic can explain this. Can a company like HUL misjudge consumer mindset like this ?

The only reason I see is that there is some serious brand vision issue with HUL. The company has lost its vision for the brands. There is a discontinuity in the strategy for the HUL brands and this is evident in the way HUL has dealt with the brands in recent times. I have a feeling that the brand managers have lost a long term focus on the brands. They are now driven by the ROI and short-term profitability which is driving them in unnecessary brand extensions and migrations.
At the deo front , Rexona deo is a neglected brand . The promotions are not good enough and nothing exciting is happening at that domain. It is time that HUL devise some longterm brand vision for its brands before it is too late.

Anyways , as a customer, I am glad that Rexona is back. This is a sensible brand and have a potential to be a good simple family soap.

Related Post
Rexona

Brand Update : Wild Stone

Wild Stone has become milder. It is interesting to see a brand evolving and trying to find the right kind of positioning. Wild Stone which started off as a very very naughty brand is now moving to a mature , approachable platform.

In the last few years Wild Stone has been experimenting with its positioning. The brand looking at the huge potential in the deo market created a stir with its "explicit" controversial ads. But those ads were infact doing lot of negative word of mouth in the media space. Although Wild Stone brand got noticed, the image got entangled in the negative mindset. The brand had the tagline of " Wild By Nature " and its ads were nothing but wild.

Later Wild Stone's marketing was taken up by Future Brands ( source) . Then a shift happened in the brand's approach. The brand became subtle but of course it couldn't let go its " sexual overtones". The brand adopted the new tagline " Barely Legal".

Now the brand is running a new campaign for its variant Wild Stone Aqua.

Watch the tvc here : Wild Stone Aqua

The new ad is a refreshing change from the earlier campaigns of Wild Stone. The ad is nicely made and the brand's positioning theme fits in nicely with the ad. What is more interesting is that Wild Stone has adopted a new tagline " It happens". The new tagline is a far better one than the " Barely Legal " . More over " It happens " gives the agency lot of room to work on. And also it gives a message that Wild Stone man doesn't have to " Try Too Hard". Hopefully the brand will retain the new tagline and explore its possibilities.

The positioning of Wild Stone is not a remarkable one. Almost all the men's deo has adopted the same positioning of " Women Chasing Men". Brands like Axe Fuel,Denver, Set Wet Zatak all have adopted the same theme. The advantage that I see in Wild Stone is that the brand has adopted an Indian theme while all the other brands are going for foreign models and settings. This can prove to be a good advantage for Wild Stone. Although the market leader Axe is going great guns with regular product launches, its ads have become little detached with the Indian market ( my opinion). Axe may face the issue of a consume disconnect if it continues to import ads.

Related Brands

Wild Stone

Axe

Denver

Fuel

Fa

Rexona

Secret Temptations : Sorry Boys

Brand : Secret Temptations
Company : McNroe Chemicals
( Marketed by Future Brands)

Agency : Euro Rscg


Brand Analysis Count : 379

After spreading a fire of controversy with the brand Wild Stone, McNroe Chemicals is back with another deodorant brand named " Secret Temptations". The new brand of deo which is targeting the girls is already making noise in the visual media.

Secret Temptations is marketed by Future Brands which is the brand- consultancy division of the Future Group. By associating with India's largest retail company, the brand has already have ensured presence across India. With the backing of this large retail giant, the only thing that Secret Temptations have to concentrate is to build the brand.

According to Exchange4Media website, Secret Temptations is a popular brand in Eastern India. It was in 2009 that the brand have made a national launch.

The launch of a deo targeting the female segment makes sense because there is a potential for a deo brand in this segment. Rexona ,Cuticura, Fa and Spinz are the major players in this category.And none of these players are aggressive in the market interms of brand building and promotions. Rexona is banking on its past glory and other players are silent in the market.

The market is flood with imported brands and I feel that the threat of Indian brands are from these imports rather than the domestic competition.

Secret Temptations is targeting the teens and youngsters. Although the name Secret Temptations can give the brand a sexy connotation, the company has deliberately decided to go decent about this brand compared to the controversies created by WildStone brand.

The launch campaign of Secret Temptations is a good one ,clearly communicating the brand's promise.

Watch the campaign here : Secret Temptations

The idea of guys being " floored" by the fragrance and the girl playing hide & seek gives the brand a sense of 'cool'. The fact that the girl choose not to reveal the identity to the "impressed" guy also makes a point- which will be liked by the target audience. At last there is an ad which breaks the usual pattern .

The brand also has a cool tagline " Sorry Boys" which is inline with the positioning of the brand . While most of the female personal grooming brands are centred around the concept of " impressing guys" theme, it is refreshing to see a brand towing a different path - girls playing " hard to get" .

It will be interesting to see how the market leader Rexona will react to the competition. HUL has been showing some of the foreign ads for Rexona currently rather than developing India-centric campaigns.The leader is complacent and it gives an opportunity for a challenger brand like Secret Temptations to make a place of itself in the Indian market.

According to reports, Secret Temptation is not going to be a pure deo brand but a personal grooming brand for girls.

Related Brand

Wild Stone

Brand Update : Rexona RIP ( 1947-2008)

So its official, Rexona will be laid to rest. I recently saw a TVC where the ad says Rexona is now Hamam. First I couldn't believe it. Then I searched for the news but there was no information anywhere about this possible brand migration.

Just now I got an sms from my journalist friend that Rexona soap is going to be migrated to Hamam.

The brand was in the life-support for quite a while. The first attempt to kill the brand was during the power brand strategy where Rexona was planned to migrate to Lux. At that time Rexona was launched with Lux milk cream. But after some time, HLL decided not to migrate Rexona. Then I thought that this brand will be rejuvenated. But now is has been confirmed that Rexona Soap is now history.

As a customer I am sad because it was a nice soap. As a marketer, I am upset because such a good brand is being killed. For HUL , the reasons can be many. In this era of cut throat competition, it does not make sense to have too many brands. So the logic is to put your money into those brands which are powerful. Rexona has never been a volume/revenue contributor for HLL.

Another reason is the existence of Rexona deodorant which had a different image compared to the soap. Its in India that Rexona exists in soap category. Worldover Rexona is famous as a deodorant.

It is more difficult to kill a brand compared to launching a new one. There can be issues of managers getting emotional about the brand . Another difficulty is to handle the existing customers of the brand. HUL is hoping that Rexona customers will migrate to Hamam. As a customer I will not migrate because I have a different perception about Hamam.


Rexona deo will be given more focus by the company now that there is no soap variant. HUL has been using imported International commercials of Rexona in India. Its sloppy marketing to import global campaigns into a diverse market like India. HUL had the resources to do it by itself but its trying the short-cut.

So in the FMCG kurukshethra one more brand has been killed. This time by the own company.

Related Posts

Rexona
Hamam

Comfort : Make a Good Clothes Day

Brand : Comfort

Company : HUL

Brand Analysis Count : 333

Comfort is the new launch of HUL in the fabric care market. Although the brand was launched in early 2008, it was recently that the brand began making noise in the media. Comfort is a global brand with its origin in UK in 1969.

Indian fabric care market is huge .The numbers available in the media is confusing . Rediff puts Rs 8800 crore market size to the laundry care industry.
The fabric care market is broadly divided into three categories

Prewash : Stain removers, softners etc

Main Wash : Detergents

Post wash: Whiteners

Obviously the mainwash category is huge and dominates around 60-70% of the total market.

Comfort is initially launched its fabric softener product in India. Although the market is nascent, there is a hidden potential for such fabric care products in the urban market.
On the promotion side, the brand had just playing imported ads from the other markets
Watch one tvc here : Comfort ad

The ads are in the genre of animation /claymation and is totally out of sync with the Indian consumer's tastes. I am not sure why a company like HUL need to cut costs by importing foreign ads which are totally out of place in India.Frankly speaking , the ads does not convey any meaning and I never understood what the characters said . Hence I may not be able to speak on the positioning strategy of this brand.


The category is still emerging. The need for a fabric softener is not currently felt by Indian consumers. Especially the pre-wash treatment of clothes are new to Indian consumer. In the case of expensive clothes, consumers depend on drycleaning and for ordinary daily wear , we have taken for granted that the clothes should withstand the detergents and lasts for a reasonable time.

Hence the task of this brand is to create an awareness about the need for such products. There has been products like Bambi, and Ezee which had the softeners but failed to create a category .

Another hindrance to the category's acceptance will be the time and effort for using these products. In this fast life, do the customers have time to soak the clothes in softeners first and then wash it ? I guess no. In some cases where the clothes are pretty expensive, consumers may take the pain but in normal course, it is unlikely.

It was the reason why Unilever introduced Comfort Pearls in UK. Comfort pearls can be put in the washing machine along with the detergent and it gives the same result. It is a smart way of making the product easy to use for the consumer.

In India, the brand wants to test the market first before going all out. So initially this brand will be a niche product and I think that the category will be restricted to a niche.

But the way HUL has promoted this brand is a deviation from the usual best practices for which HUL is famous for. The company failed to take the local consumer tastes into consideration and just put some campaigns for the sake of it. There has been a trend in HUL to depend on foreign commercials fueled by the success of Axe campaigns. Lux , Rexona deo and Dove are other brands which recently started showing foreign ads. I feel that this is a unhealthy trend which can disconnect the brand from the consumer. Again and again it has been proved that Indian market needs to be addressed differently and HUL is trying to implement the plan of " One message( ad) for entire world ".
Its sad to see this from a company which talked about " Dirt is good ".

Marketing Funda : Power Brand Strategy

Power Brands strategy was the much hyped brand strategy of Unilever's which debuted in India in 2001. The father of this strategy was Niall Fitzgerald who was the Chairman of Unilever during that period.

Mr. MS Banga, one of the youngest Chairman of HLL at that time thought it was a good strategy that can be implemented ( or imported) in India. But four years later, the entire strategy was shelved. The much hyped power brands strategy was laid to rest quietly. Fitzgerald exited Unilever and Mr. Banga moved out of HLL to become the President of Unilever's Foods Division.

What is Power brand strategy?

Power branding refers to building multi-product, Multi-category brands which have global reach. (Marketing Week Dec. 2000) . The idea behind this strategy is to build global brands which endorse multiple products in various categories ( something like an umbrella brand).

To understand the relevance of this strategy, it is important that we understand the background under which this was mooted by Fitzgerald. In 2000, the $44 bn giant Unilever was reeling under the pressure to balance Size and Growth. Over these years, the company has grown to become a behemoth which was under severe marketing attack from small agile companies. This pressure forced Unilever to relook their brand portfolio. Unilever had a whopping 1600 brands ( mind you Brands and not SKU's) across various categories. The top management thought that this many number of brands is the main reason for the lack of growth momentum.
In an interview in Advertising Age, Unilever's Chairman remarked that there were hundreds of brand which existed in the company portfolio but nobody knew Why these brands existed?

Along with that there were other issues in the global market such as

Retailer Power: Large retailers like Walmart changed the power equations in the market. The power moved from manufacturers to distributors. Retailers began to aggressively market their Private Labels. Shelf Space became scarce and Retailers began to stock only large brands.

Brand Proliferation : The huge number of brands and their extensions along with the plethora of private labels forced customers to go for economical private labels because no longer brands provided meaningful differentiation.

This paved the way for the thought that it makes sense to have a limited number of large brands which could be extended to multiple categories / product lines which would reduce the clutter in the market. Another logic was the Pareto Principle of 80/20. Twenty percent of the brands contributed 80 % revenue, hence why not spent the marketing budget on those big brands that contributed to the revenue.
The result of all these thinking was the much hyped Power Brands Strategy which was the core strategy in Niall Fitzgerald's "Path To Growth" agenda for Unilever. Under this Unilever was going to prune its brand portfolio from 1600 brand to a core 400 Power Brands.

HLL's Power Brand strategy

Taking a cue from this, Mr Banga introduced the same strategy in HLL in the year 2000. HLL was also facing growth issues at that time . Like the parent, HLL had a huge brand portfolio consisting of 110 brands and hundreds of SKU's. Competition was hotting up and HLL was struggling to retain market share in various categories.
Mr. Banga decided to rationalize the brand portfolio by concentrating on 30 Power Brands and 10 regional jewels. The company expected that with a reduced number of brands, it will be able to concentrate on the large brands with more promotional budgets.
The plan was like this :
a. Reduce the number of brands from 110 to 40. This can help in increasing operational efficiency and reduce brand clutter.
b. Increase promotions for Power brands thus offsetting the loss from the brand rationalization.
c. Migrate users from small brands to Power brands.
d. Have ambitious growth plans for Power brands ( 8-10%).

The Power brands was chosen on the basis of Size, Brand Strength, Uniqueness and Growth Potential.
But the results were disastrous. After the Power brand strategy implementation, HLL' s topline took a major hit. Profits went down by 22%. In many smaller markets, HLL 's brands were knocked out by small regional brands.

Why Power Brands failed in India?

The primary reason for failure of Power Brand strategy was that HLL miscalculated the power utility of small brands especially in the Indian context. Although there were issues of competition, Indian market was different from global markets at that point of time. Retailers were not that powerful ( compared to Europe or America) and there was no Private label competition.

The withdrawal of smaller brands was the big mistake done by HLL. Smaller brands, although did not contribute significantly to the profitability had lot of uses. It acted as flanker brands for large brands thus preempting competition. Small brands was more accepted locally and when these brands were withdrawn, HLL lost its presence in the smaller markets. The brand rationalization also pulled down the distribution because many brands piggybacked other brands in various markets. The cutdown also helped the surfacing of many regional brands which established in small markets and later grown to fight large brands from its base.
Another strategy that failed was the migration effort of Power brands. The pruning of smaller brands was initiated with the assumption that users of these brands would be migrated to power brands. This assumption failed miserably. A classic case is the failed migration effort of Rexona to Lux. The users of the smaller brands of HLL moved away from the company to brands of other companies.

These issues snowballed into a situation where HLL 's topline got affected which inturn affected the investor sentiments. As a result, HLL went in for a face saving restructuring exercise which led to the exit of Mr Banga from HLL and a silent burial of Power Brand strategy.

Axe : The Axe Effect

Brand : Axe
Company : HUL
Agency: Lowe Lintas

Brand Count : 252

I was delaying writing about this brand for the reason that I doubted whether I will be able to do justice to my favorite brand. An Icon for sure Axe is a success story that is so difficult to emulate. One can only marvel and enjoy.
Axe has got every thing perfect for its success, It got its segments correct, the targeting was exemplary and Positioning : something to drool for. And more over Luck was on its side.

Axe was born in France in the Year 1983. 24 years later, this brand is Unilever's Best selling brand worldwide. It has an iconic status in whichever market it has entered. It is also one of the rare brands which can boast of replicating its entire marketing mix across geographical boundaries. The campaigns that you see in India is what the entire world is watching. For those who propound Glocalisation , AXE is an exception.
Axe deo was launched in India during 1999. The brand launch was very quiet and theoretically the brand was having the strategy of Slow Skimming i.e High Price Low Promotion. Axe at that time was the leading men's deo brand in Europe and was popular in India in the Grey market ( available in duty paid shops) .HLL may have launched this brand inspired by the volume of Axe sold in the Grey market. At that time, the deo market was a nascent one with an estimated market size of Rs 72 crore. HLL had the brands Denim and Rexona and was ruling the market. Axe was priced at a premium above the Denim brand which was positioned as a male deo brand.
Axe initially was launched in the fragrance Java, Alaska and Atlantic. HLL did not bother to fine tune its Promotional mix to Indian market but just imported the promotions .... meaning, the company just ran the ads which was popular in the Europe and other markets. At that time , the product was also imported from Europe. And IT CLICKED.... rest as they say is History...
Axe in 2002 was having a market share of over 35% and soon HLL phased out Denim brand to concentrate on this Star.

Axe is the naughtiest brand in the Indian market. The brand is targeted at male aged 16-25 . Internationally this brand targets male aged 15-25. I personally feel that it targets all 'Young at heart" naughty guys. The brand has its brand values of Cool, Fashionable and Stylish. And world over, the brand sticks to its core values. The biggest strength of this brand is the underlying message or the DNA which is that the brand users are High on Confidence and always for the Axe users, Girls Makes The First Move. I think the biggest competitive advantage of this brand is its complete monopoly over this brand proposition. All its campaigns revolve round this central theme of Seduction where Girl makes the first move.
I think it has lot of subliminal implications. The brand assumes that Men wants( Likes) to be Seduced . That feeling ( of being seduced) gives a big boost of self confidence to a man. Although many brands take this proposition, Axe just made it perfect.

I have seen lot of ads where girls are seen drooling over Hunks in Motorcycle or in Readymades, or even in Innerwears, but in most of the Axe ads, there are no Hunks, only very ordinary or even skinny kind of people getting assaulted by beautiful girls. That makes the brand more approachable. Had Axe used a Hunk, the promotions couldn't have been so effective. The brand managers were so wise that when they used a celebrity like Ben Affleck, They ensured that the brand is made approachable
See the TVC here : My Favorite Axe ad
Having said that, The males seen in Axe commercials are not Losers: the ads are careful to show them as confident ( in one way or other) or a better term will be self assured. That is ultimate execution.
The power of this Big Idea has ensured that Indian consumers lap up the foreign commercials without any hitch. I don't remember any India centric ad for Axe especially in Television. And Indian consumers are not complaining either.

Along with these , the brand also ensured that customers are constantly engaged with new fragrances and campaigns. In 2005, Axe had a high profile launch of its new fragrance CLICK and before that there was Axe Land campaign and followed by Axe-Academy then Axe Voodoo and the latest one Phenomenon. I have tried most of the fragrances and not all of them are good, but I try it because I like the brand. That is the power of brand.
Axe is one of the rare brands that has embraced new media to the maximum extent. The brand has started its Internet based marketing initiative in India with Axe Land which involved a virtual trip to the Axe world. Globally also this brand has lot of online initiatives which are almost always naughty.In UK the Axe is marketed as LYNX.Checkout the cool web initiatives of this brand :
Axe- feather
Axe Effect
Axe Phenomenon
and also a blog called Evan and Gareth

Not only the brand uses TVC's to its advantage, the print ads of Axe won several accolades in various ad events. The creatives run amok with the kind of flexibility that they get from the positioning.Besides Print, the brand also uses outdoors to its maximum impact. Axe is a classic example of 360 degree branding effort. Now Axe has a common message in over 70 countries where Unilever sells this brand. Iconic in a real sense.

One of the reports term the marketing strategy of Axe as " Adventurous Marketing" .That is true because its risky because the brand deals with Girls & Seduction. Not always every one may like the theme or the campaigns. In India especially there are self styled Cultural Policemen/Women who cries foul for anything and everything. It is really surprising that so far, Axe has escaped their AXE. That also shows that the ad agency is also careful about the concepts put across the Indian media.
While in a more liberal markets, Axe tests new levels of " Adventures" , here the brand plays really safe. It also ensures the campaigns run in Indian media is accepted because most often its the entire family who watches the TV.
I know I just have touched the tip of Marketing Iceberg called Axe.

For the axe fans, check out a blog dedicated to Axe at Axeads

Brand Update : Rexona

Hindustan Lever Ltd has signed in Hollywood diva Preity Zinta as the brand ambassador for its Deodorant brand Rexona. The company in a press release also mentioned that the brand will be extending itself into health and hygiene rather than limiting itself to fragrance and deo. Preity will be endorsing the Rexona Roll- on range of deos. The move aims at increasing the volume and user base of the brand. I have written last year that the brand needs a celebrity boost and it seems that my reading was correct. Preity is the right choice for the brand and if properly used, she can give a new life to the brand. Preity has proved her might in reviving the fortunes of brands like Perk and Scooty. Rexona is targeting the SEC A and B segment. According to the news reports, the company plans to launch a 360 degree campaign to rev up the brand.Preity Zinta is considered to be a very positive and confident personality and the association will have a positive effect on Rexona. The brand has the tagline of " Be Ready" and the body copy reads " Who will you meet next". Right now the brand is being promoted using foreign ads which may not have the required impact. The new campaign featuring Preity is expected to hit the media soon.
source: allbollywood.com

Related Brands
Rexona

Hamam : Trusted Family Soap

Brand : Hamam
Company: HLL
Agency: Lowe

Brand Count: 197

Hamam is one of the oldest soap brands in India. The brand came into existence in 1934 and over this 73 years has successfully built a space for itself in the consumer's mind.The brand has successfully fought the competition and the changed environment. The brand was owned by Tata Oil Mills ( TOMCO) and later became the HLL brand when HLL acquired Tomco.

Hamam is a natural soap .Although many reports put this brand as a herbal soap, Hamam is more of a natural soap than herbal. The brand have a market share of about 9-10 percent of the Rs 4000 crore Indian soap market.The brand has a huge market share ( more than 25%) in the Tamilnadu market.
When HLL implemented the Power Brand strategy, Hamam survived the axe because of the strong equity it had among the consumers. Hence the axe fell on Rexona which was also a natural soap with the same positioning as Hamam.
Hamam was positioned initially as a complete natural family soap.The brand was built on the Trust factor. The earlier ads typically showed Mother and child with mother explaining the meaning of Trust using the example of Hamam.The brand may have acquired this quality from its original creators TATA.
Although the brand was able to manage the PLC, it had its share of problems. At one point, HLL was facing the competition from Herbal/ayurvedic soaps. HLL tried to position Hamam as a herbal soap by changing the composition by adding Neem ingredient and reducing the TFM. But that reduction of TFM disqualified Hamam as a soap and the brand lost many of their loyal customers.
2005 saw HLL repositioning the brand by adding more ingredients. The brand now talks about having a Perfect Balance of Neem, Tulsi and Alovera Extracts. The packaging also has been made more contemporary and the shape of the soap has been made oval.2006-07 saw a change in the communication of the brand. The brand no longer talks about trust but now positioning itself as a beauty enhancing soap.The brand has now come out with a variant that contains green gram, turmeric and sandal .The color of the soap also has changed to sandal from the traditional green color. This move is a marked deviation from the age old positioning of the brand as a natural green soap.
Hamam for years has been able to sustain its market position because of the strong brand loyal customers .The brand now wants to be relevant to a new consumers ( younger generation). The brand also faces stiff competition from a plethora of brands offering the same ingredients and benefits. The latest repositioning exercise is aimed to keep the brand relevant and also leverage the brand equity it had built up over these years.

source: hll.com,businessline

Santoor : For a Younger Skin

Brand :Santoor
Company: Wipro
Agency: FCB Ulka

Brand Count : 189

Santoor is the second largest soap brand in the Popular segment in India. This Rs 500 crore brand comes from the Software giant Wipro. The brand was launched in 1985 as an ordinary soap with sandalwood and turmeric as its main ingredients.

The brand was initially test marketed in Bangalore and encouraged by the positive response, the brand became national a year after.The brand was positioned as the beauty + skin care at a reasonable price and the brand derived strength from the efficacy of the ingredients. At that time the brands which had sandal as the main ingredient was Moti and Mysore Sandal Soap.

The brand derived the name from combining Sandal + Turmeric and it is not from the musical instrument that it got the name Santoor.
Although the brand became popular, the company was not satisfied with the results. The customers was not buying the ingredient story : says MG Parameswaran in his book on Brands: FCB Ulka case studies. The research suggested that customers are not correlating the brand with skin care and beauty.

Thus started the brain storming on getting the " WOW " factor to build the brand. The wow factor came in the form of the new positioning " For Younger Looking Skin". The positioning come from the consumer insight that ultimately the customers look for a younger skin which is another smart way of defining beauty. The focus on " Younger Skin" also act as a powerful differentiator because other brands were focusing on "beautiful skin" or "looking beautiful".
The next big idea came in the form of communicating the " Younger Skin " concept using "Mistaken Identity " theme ( source : MG Parameswaran's Book). The brand has consistently developed this theme over these two decades of its existence.

Santoor is a brand has consistently understood the consumers and was not complacent to change. The brand was the first one to use a Mother and her five year old daughter to endorse the brand. Most of the ads showed spinsters in their campaigns while for Santoor, the protagonist were Mothers. But showing Mother as the protagonist had its share of issues also. The customers felt that since this brand is meant for adults, it will not be soft on skin. This made the company to change the size texture and the shape of the product.

In Brand Management , I used to teach that changing consumer values were one of the major forces that affect a brand. The case was true for Santoor also. Indian women's mindset were evolvingand breaking free from the traditional mindset. The Mother-daughter equation and the campaigns set in the supermarkets, wedding and bangle shop did not do well with the achievement oriented customers. That was a message to the marketers that the product communication has to change. The achiever protagonist was introduced in 2004. The campaign showed the mother as a successful fashion designer with the same positioning and theme.The brand also extended itself to a range of beauty products and to talc. Now Santoor have face wash, talc , soap and fairness cream.
2006 saw a big change in the marketing strategy for Santoor. The campaigns showed Saif Ali Khan ( in North ) and Madhavan ( south ) in the TVCs. The TVC's shows these celebrities along with the Mother and child in the usual mistaken identity theme. Many were asking whether the brand is going to appeal to males also. I was also taken by surprise seeing Male celebrities endorsing ( acting ) in the Santoor ad. The following questions remain unanswered:
a. Whether this brand needs celebrity endorsement?
b. Is bringing in a male celebrity going to make this brand less appealing ?
c. Has the equity of the protagonist getting diluted with the introduction of celebrity?

For the first two questions, my personal opinion is that using a celebrity without a change in the overall positioning will have a positive impact to the brand. The use of celebrity will make the ad sticky thus making the campaign more effective. For the question C, I believe that with the celebrity, the power of protagonist will get diluted because she is plays a second role in the campaign( debatable point). But as long as the positioning remains consistent, there are no issues isn't it?
Santoor is a super brand that has build itself to a Rs 500 crore brand with its own strength and not piggy banking on any celebrity. The brand is facing tough competition from heavy weights and is now seeking support from outside to stay as a leading FMCG brand.

Related Brands
Pears, Mysore Sandal Soap, Margo, Lifebuoy,Rexona,Dyna, Johnsons,Fair and lovely, Cinthol,Dove, Ponds

Source: Businessline,wiprowebsite,FCB Ulka on brands.

Spinz : Fragrances That Transform

Brand : Spinz
Company: CavinKare
Agency: Rubecon

Brand count : 181

Spinz is India's very own brand of perfume. The brand once the market leader had lost out of the race at one point of time is trying to make a comeback in the fiercly competitive Indian market. Spinz was launched in 1997. The brand was an instant hit in the Indian market was strongly associated with fragrance.
Indian perfume market is small with a value size of Rs 65 crore. The market is tough for account of following reasons.
a. The penetration of perfumes in abysmally low at less than 1% even in the urban market. The low penetration accounts for the fact that Perfumes do not figure in the priority list of most of the Indian consumer. Here in India, body odour is not a taboo. People don't feel embarrassed if they smell bad. They don't even bother to check whether they smell bad or not. Although this psyche is slowly changing : thanks to the effort of Deo marketing companies.

b. The astronomical prices of perfumes often discourages the Indian consumers to indulge in this category. Although there are many perfumes ( local) which are low priced, most of the well known brands are priced out of reach of ordinary Indian consumer. The low quality of the low priced perfumes, often create a negative feeling on the Indian consumer about the value proposition in this category.
c. The grey market and spurious brands act as another deterrent for the consumer.There are fakes of all the well known perfume brands available at every corner of the country. Hence there is no guarantee that the brand which has been bought is a fake one or the original.

CavinKare saw opportunity for a brand that was reasonably priced and ensured good quality to the consumers. That gap gave birth to the Spinz brand. Spinz was positioned on the basis of fragrance. The brand also lived up to the positioning and offered exciting fragrances but priced reasonably. The brand also experimented with packaging. Cavinkare was the first firm to popularise sachet in shampoos ( Velvette was owned by Cavinkare's founder's father). The company tried to make perfumes affordable by introducing sachet perfumes for a price of Rs 10. The company also introduced one time use sachet for Rs 2. All these efforts was to increase the penetration of the category as such. The brand also tried to create a Spinz day to popularise perfumes. Feb 12 was marketed as fragrance day but that initiative did not became that popular.
Buoyed by the positive response of Spinz perfumes, the brand extended itself to talcum powders. The Indian talcum powder market is worth around Rs 650 crore is dominated by Ponds from HLL. Spinz talcum powder was positioned on the same platform as the perfumes. The brand has its stronghold in South India.
Spinz perfumes faced lot of problems during early 2000. The reports suggest that the brand faced lot of packaging issues that prevented it from further growth. In 2005, the brand was rejuvenated. Cavinkare has put new vigour into the brand. The company has roped in South Indian Film actress Ms Asin to endorse the brand. In the new avatar , Spinz is being positioned as a young cheerful modern bubbly brand. The brand retains its positioning based on the fragrance.The brand has enough space to grow because of its excellent value proposition.

Related Brands
Ponds
Yardley
Cuticura
Rexona
Oldspice
source:businessline,cavincare website,magindia

Cuticura: Leaving You Speechless

Brand : Cuticura
Company: Cholayil
Agency:Rediffusion

Brand Count:135

Cuticura is an International brand which has a history of 200years. Once synonymous with talcum powder, this brand was pushed to oblivion because of marketing myopia or marketing laziness.
Cutucura came to India 80 years back.Cutucura was owned in India by Muller&Phipps. Globally this brand was owned by Keyline Brands which was acquired by Godrej Consumer products in 2005. Interestingly the brand is owned in India by Cholayil who are the marketers of Medimix soaps.Cholayil refuses to sell the brand to Godrej. Godrej hence have the rights to the brand outside India. It looks like a typical hindi film story script. Cutucura may be crying " Main kon hu, Main kahan Hu, Mera papa Kaun hai"?

Cholayil acquired the brand from Muller in 2002. The brand was given a make over and the new owners was trying to revive the brand. Cuticura was a leading brand of talcum powders in India in the 80's. Indian talcum powder market is estimated to be around Rs 600 crore. In the late 80's the brand faced competition from HLL and Cuticura was not able to sustain in the market.One major factors was that the Muller underestimated competition. The brand failed to change . Today the talcum poweder market is dominated by HLL's Ponds with 65% share.

Cuticura's stronghold is the southern market where it claims to have a share of 30%. The brand still holds equity in this market. So for Cholayil who markets Medimix, this brand gives a platform to get into personal care business.

Cuticura is known for its fragrance. The classic brand also famous for its orange and white packing which still has a huge recall. Cuticura while retaining its classic product launched a lavender variant in 2003. Reports suggest that the variant failed to make any ripples in the market. But these efforts helped the brand to post a decent turnover thanks to the brand equity. Now this brand is worth Rs 10 crore.

Although the Cholayil group has taken serious steps in reviving the brand, the campaign lacked the punch needed to propel the brand to new heights. The brand still retains the classic positioning based on fragrance. The new tagline talks about the brand leaving you speechless . Although creative idea is OK, the execution is horrible. The hyperbole fails to catch the imagination of new generation.

The biggest challenge that the brand face is that its core users have become old. The customers who liked and used this brand have now become old and the new generation does not know this brand. Hence the brand has to be relevant to the new generation competing with the power brands like Ponds.

2006 saw the brand extending to deodorants. The extension was branded as Cuticura DeO2.The main USP of DeO2 is its ingredient Farnesol. The brand has the tagline " Let your underarms breathe". Although a not thrilling tagline, to some this make sense because this product will help you smell good without inhibiting perspiration which is an important function of the body. Most of the deos inhibits perspiration to control the bad smell.

Unlike the talc ad, the DeO2 campaign is carefully executed to appeal to the newgen. Cuticura DeO2 will be pitted against Rexona, Fa, etc in this segment.

The brand has a potential to be a serious player in the personal care segment. The brand has to exploit its brand equity and strive to be relevant to the new generation who may have forgotten this brand

source: historypages.net, magindia.com, agencyfaqs, cholayil

Rexona : Won't Let You Down.

Brand : Rexona
Company: HLL
Agency: JWT

Rexona soap was launched in India in 1947. It is one of the well known brand in the 4500 crore soap market. Although the brand does not have any significant market share, it has a loyal customer base. Rexona soap was positioned as natural skin care soap for a silky glowing skin. With its excellent quality and good communication, initially the brand was well received by Indian consumer. In 1989, the brand came out with Coconut based ingredient which was one of its kinds at that period.

But over the period this product lost its way and was competing with HLL’s own brand Hamam. In 2003 HLL as a part of the “ Power Brand “ strategy decided to merge this brand with Lux. Thus came the variant “ Rexona with Lux cream”. In 2005 HLL again decided to make Rexona independent. All these measures ensured that a good product like Rexona be battered to pulp in the Indian market. Rexona is an indigenous brand created by HLL to market in India.

Rexona deodorant is a different story altogether. Rexona was originally created in Australia in 1900. Rexona is the largest deo brand in the world and the brand is estimated to be worth around Rs2000 crore and is available in 90 countries. Rexona is the brand that created the deodorant market in India. This brand is a classic case that proves the marketing ability of HLL. Deodorant market was virtually non existent in India till 1995. Some international brands were available but the market was virtually non existent. Indian consumers were not bothered by their own odor. Infact we believed that body odor was the other person’s problem. So HLL had the task of build awareness of the need of the consumers to smell good. For that Rexona ads educated the customers the main source of odor is armpits which generate 90% of odor and only 1% sweat. When the other brands like Baccarose talked in terms of aspirational features, Rexona talked about the rational benefits of the product. It was positioned along the baseline “ har pal sath nibhaye” . Rexona was introduced initially in the form of Roll On and Stick and later to aerosols. The sticks were priced smartly to induce the customers to try the products.The effective campaigns and smart pricing created a category of Deo in India. The deo market zoomed from 0 to 70 crore in less than 3 year’s time.

Rexona faced competition basically from grey market international brands like brut. Rexona was perceived by Indian consumers as an Indian brand because of its presence in the soap category. Ironically, the Rexona soap is available only in India. Because of the low pricing and its local association, Rexona could not be positioned as a premium deo.

There are three type of deos
1. Body spray
2. Alcohol based germ fighters
3. Antiperspirant
Rexona falls into the third category.

Rexona deo introduced lot of variants in order to block competition from entering the category it has created. HLL also introduced AXE and Denim to further consolidate the position.
Rexona Deo is now positioned as a unisex brand with the baseline “ Won’t let you down”. It is highlighting the brand as world’s largest selling deo and the rational benefit of 24 hr protection.

While Rexona deo is enjoying its leadership in the deo, the soap is wandering around in the market like an orphan. Since the soap brand is now disassociated with Lux, I hope that it will get some oxygen.

I personally feel that Rexona should be positioned as a natural soap and variants like cucumber etc will create a niche for it.

Set Wet : A cool cool brand

Brand : Set Wet
Company : Paras Pharma

When I first saw the ad of Set Wet hair styling gel, I thought it was an international brand. Then the little" P" at the side of the screen revealed that the brand is from Paras Pharma. Paras is a company that dares to experiment and a smart marketer. Paras clearly identifies unmet needs and satisfies them effectively. Take the case of Moov and Itch guard, the successful brands from Paras which are leaders in their respective niches.

Set Wet is such a bold step . The brand which has already made people look up with its smart advertising aims to establish it self in the Rs400 crore male grooming market which is growing at a fast pace. The fact that 15-34 year old males are now earning big money ( thanks to IT and ITES), it is a market no marketer can discard.

Except for Gillette and HLL & Sara Lee ,there are no serious players in the male grooming market. Gillette while dominates the shaving products market, HLL created and owns the Deo market with AXE and Rexona.There was a brand OldSpice which was synonymous with after shave in India ( what happened to that brand will be dealt with in the coming blogs) The hair grooming market is dominated by Brylcreem from Sara Lee TTK. Set Wet is trying to compete head on with Brylcream which has a market share of 75% in the hair cream market.

Paras wants to have a brand in the male grooming segment and made a perfect start with Set Wet which has also been extended to perfumes. The perfume market is valued at about Rs1800 crore dominated by foreign brands at the upper end of the market.

Perfumes and deos were products that were not popular in India mainly because of cultural factors. We are not much bothered about the odour and bad odour was never considered as a taboo until HLL came and taught us that smelling bad is not good. The deo market saw a jump from 0 to 72 crores in just 24 months.

The void in the Indian perfume market gives tremendous opportunity for a product like Set Wet.The campaigns of Set Wet have an international look since we Indians consider any thing PHOREN as the best. Positioned as a Cool and naughty brand, Set Wet has a lot of potential.