Brand Update : 7Up is riding on celebrity this summer

 7Up this summer has a strategy focused on celebrity influence. A brand which is lagging behind in terms of market share has been on a confused path all along. Launched in 1992, the brand followed the international template of importing its brand mascot- Fido Dido. It was a refreshing campaign during those times and Fido Dido looked uber-cool. However, the brand struggled in the market fighting the likes of Sprite which now has over 20% market share while 7 Up is below 5%. The brand discontinued using Fido Dido for a long period and around 4 years back, it bought back the character. However, the mascot struggled to fit into the Indian context with its Western looks. 

This summer, the brand went into a hyper-promotion mode fueled by celebrity endorsement. First came Rashmika Mandanna, then Anirudh and now Ranbir Kapoor. The brand also tuned its positioning based on freshness. The brand now has the positioning statement of Super Duper Refresher in the campaigns. 

The repositioning started with Rashmika Mandanna featured advertisements. The brand cleverly used the celebrity ambassador's young vibes and communicated the positioning using very- smart mnemonics. To convey the refreshing benefit, the brand used the mnemonic of a blob of water bursting over the celebrity. With Rashmika Mandanna's expressions added more punch to the brand's promise.

The campaign was followed by another featuring the current music sensation Anirudh Ravichander with Rashmika along the same theme.

The brand further pushed the envelope by roping in Ranbir Kapoor for the pan-Indian appeal. 

The brand has done everything right in terms of positioning and execution. The scorching summer of 2024 will add more fuel to most of the soft-drink players in India. By the campaign scale and execution, I think that 7Up has been able to get its promotional strategy right. The positioning on the basic platform of Refreshing benefit coupled with the use of mnemonics and celebrity is a good recipe for success although very expensive to sustain.

Marketing Practice : FMCG Giants to Leverage Elections Through Small Packs

 An interesting article in ET sheds light on how FMCG giants like Parle and Dabur are trying to leverage the election season by launching small pack items like Rs 5 and Rs 10 sachets of snacks, biscuits and beverages. Already, the players are witnessing an uptick in the sales of small packs. The surge is due to the large number of election rallies expected to take place in this election season. 

Dabur is also upscaling the distribution of pocket-sized packages of beverages, hair oils and shampoos to take advantage of the season. Another player Balaji Foods is also gearing up the production expecting a hike in demand for its snacks. According to the report, this trend is backed by the expectation that there will be a 6-8% increase in the sales of these small-pack items mirroring last season's data. The logic is that the election rallies lead to large, captive audiences which create a heightened demand for quick, on-the-spot refreshments. Either these purchases are individually bought or sponsored by the political party. This trend of marketers taking advantage of such large events is not new and we have seen how brands have taken advantage of mass events like Kumbh Mela in the past.

Brand Update : Nestle Munch Extends to Breakfast Cereals

 In an interesting move, Nestle has extended its chocolate wafer brand Munch into breakfast cereals. The Nestle Munch breakfast cereals were launched in June 2023. Theoretically, this move is brand extension into unrelated categories. While the breakfast cereals from Munch retain the chocolate flavour and the crispy nature of wafers, it is a big jump from wafers to cereals. 

Indian breakfast cereal market is huge with a market size of approximately $4.5 billion ( Rs 380 Bn) and growing very fast owing to the consumer preference for quick and convenient food options. Munch launched in 1999 had a good run in the Indian market and along with Kit-kat has a significant market share in the Indian chocolate wafer market.

The brand is running a series of campaigns for the launch.

The brand extension is positioned on the crunchiness and taste attributes it has derived from the parent product. The brand focuses on youngsters rather than kids in their campaigns. The parent brand Munch Wafers has been focusing on taste and quick energy as its positioning attributes. One of the major pain points for consumers of breakfast cereals is the taste vs healthiness. This brand extension is for those consumers who consider taste as their most important decision-making criterion. One should also not forget the kids as a major influencer in the purchase process.