Yo bykes : Ab Rasta Hai Mere Pass

Brand : Yo Bykes
Company : Indus Electro-trans ( Electrotherm)
Agency : Canvas Communications

Brand Analysis Count : 373

Yo Bykes is the first electric Scooter to be launched in Indian market. Launched in 2006, this brand is a market leader in the Rs 500 crore electric scooter market in India. Yo is from Indus Electrotrans which is a division of Electrotherm India which is a major player in the foundry and steel industry.

When electric bikes & scooters were launched in India during 2006, there were lot of expectations about this category. The rising fuel prices , air pollution , growing concern about environment provided enough opportunity for such a product. The rising fuel costs were the most significant factor behind the growth of this category.

Yo Bykes rode on the back of the higher fuel prices. Electric scooters are dirt cheap to run compared to petrol vehicles. Compare the cost of Rs 50 for 500 km for electric scooters to Rs 50 per 60 km for petrol scooters.

Besides the advantage in running costs, electric scooters had also another advantage .There is no need for license or registration for certain variants. According to Indian rules, those vehicles which are powered by engine less than 250 watts and has the maximum speed less than 25 kmph do not need license.

Yo Bykes launched the first scooter in this category branded as Yo Smart.

The electric scooters gained rapid consumer attention across the country. The market saw the evolution of a new category . In 2007, the electric two wheelers sales was around 10,000 units thus taking 10% share in the two wheeler industry.

These figures attracted lot of players into the market. Most of the bicycle marketers ventured into this segment. Even large companies like TVS and Bajaj began to view this segment seriously.

TVS felt that electric scooters was a major threat to its Scooty brand. It proactively launched the electric version of Scooty to counter this threat.

How ever, the euphoria over electric scooters could not sustain its initial momentum. The sales peaked when there is a fuel price hike but then it is back to low volumes.

The main issue was the power of the vehicles. The standard electric scooters were severely underpowered. This was because of two reasons. To sell scooters that do not need registration, the power had to be kept low. Another reason was that when power was increased, the fuel efficiency will come down.

To counter this issue, Yo bykes launched another variant Yo Speed which was having an engine output of 750 watts . This was the first scooter to get the approval of Automotive Research Association of India. But these high powered scooters had a price equivalent to the petrol scooters.

Even after two years of launch, electric scooters have not been able to give a threat to its petrol competitors. These brands still occupy a niche rather than becoming the mainstream category.

All brands of electric scooters including Yo is positioned on the basis of its fuel efficiency. Although fuel efficiency is an important attribute for a consumer, it is not a determinant variable for purchase of a scooter.

Due to the lack of power, these electric scooters does not appeal to men. And many would also use scooters to travel with family, e-scooters is definitely not a choice in such a scenario.

Most of the customers for this category are ladies and self -employed men who travel short distances. The common perception is that e-scooters are like underpowered scooterettes. Although the running cost is low, the cost of ownership is at par with the ordinary scooters. There is also a yearly recurring cost for the replacement of battery. So when a customer does his mental accounting, electric scooters' fuel advantage is not compelling enough.

So will electric scooters replace petrol scooters ?
No.
Then what is the future of electric scooters ?

The current differentiation of electric scooters on fuel efficiency will work only for certain segments of consumers. Yobykes have to find some other interesting propositions for the consumers to opt for such scooters.

Rather than competing with mainstream scooters, e-scooters should expoit multiple niches.

These scooters are excellent option aiming at students and pre-teens. It could be the First Scooter for everyone..

Another small niche are those environment conscious segment which are growing but now a very small one. Yo can partner with NGOs for a cleaner environment thus promoting the concept of such scooters.
Rather than focusing on fuel efficiency , YoBykes should be able to provide reasons for customers to chose an underpowered scooter. Otherwise, the brand will be highly dependent on the whims and fancies of OPEC 's oil barons.

Nestle Milkybar : Dum Hai To Bahar Nikal

Brand : Milkybar

Company : Nestle
Agency : JWT

Brand Analysis Count : 372

Milkybar is the leader in the white chocolate market in India. Launched in 1998, the brand is now making lot of noise in the media as a part of its repositioning exercise. In a typical market challenger strategy of Byepass attack, Nestle always avoided fighting head on with the market leader Cadbury's Dairy Milk.

Nestle chose to attack the market by launching brands like Kit Kat , Munch and Milkybar and thus create a new market for itself away from the market leader. Milkybar is one of such brands.

Milkybar is a white chocolate. White Chocolates are those which contains Cocoa butter, milk and sweets and no cocoa solids.

Milk Chocolates are those which contains milk solids in addiction to chocolate. In some reports, Milkybar is considered as a white chocolate while in some it is referred to as a milk chocolate. Nestle have anothe milk chocolate brand hence Milkybar can be positively confirmed as a white chocolate.

When I was indulging in chocolates, milk/white chocolates were a regular part of my indulgence, especially when bored with brown chocolates.

Although Milkybar was around in Indian market for a while, the brand came into aggressive state during the relaunch in 2006. During that time, Nestle relaunched the brand on the platform of healthy chocolate. The chocolate was fortified with calcium and positioned as a chocolate bar for energy and strength.
"Milkybar gives me power " was the brand's positioning platform.

Milkybar not only created the white chocolate segment but expanded it through product innovations. The brand launched a soft chewy fudge form of Milkybar branded as Milkybar Choo. This was a big hit for the kids who loved the soft fudge form of chocolate. The brand also made itself affordable by pricing the variant at Rs 5.

Currently the brand is running a campaign with a new tagline " Dum hai to bahar nikal " ( if you have guts, get out and play ) . The brand asks the youngsters to just get out and play.

Watch the campaign here : Dum Hai to bahar nikal

The ad is well made and drives a point. The campaign is backed by events and contests to reinforce the new positioning.

What is interesting is that the brand is addressing the higher age group of the target segment . I think that the previous TG audience for Milkybar was the kids of age 5-10 yrs. But the current ad is targeting pre-teens (8-12).

Milkybar is has competition from Milk Treat from Cadbury's.


Milkybar is a global brand from Nestle's portfolio. The brand was born in 1937. Globally the brand is positioned towards small kids. The brand have a mascot which is the " Milkybar Kid".
In India, instead of Milkybar kid, we have the picture of cow to reinforce the " Milk " factor.

The positioning of Milkybar was a healthy chocolate works well with parents. I was surprised when our family doctor suggest that we give milk chocolate to our child rather than the brown one. As a parent, I am also influenced by the " Goodness of Milk " factor. But often kids prefer the brown one over the white one.

Milkybar is a nice example of a brand carving a place for itself in a market which is dominated by an iconic brand. The new positioning may broaden the consumer segment for this brand. But how the older kids are impressed by the brand is something to watch for.

Canada Dry : RIP ( 1995-1999)

Brand : Canada Dry
Company : Cadbury Schweppes ( Later Coca Cola)
Agency : Mudra

Brand Analysis Count : 371

One of my colleagues yesterday showed me a 1989 issue of Business India where he pointed out an ad of a long forgotten brand - Canada Dry . We passionately talked about the brand which we both liked.

Canada Dry was launched in India in 1995 . The brand ,from Cadbury Schweppes ,was a highly popular brand of softdrinks across the globe. Canada Dry was a much hyped brand because it was from the house of Cadbury. Cadbury Schweppes launched Canada Dry and Orange Crush in the Indian market with much fanfare.

Canada Dry was a Champagne Softdrink. The brand has positioned itself as a champagne and the taste was different and refreshing.

The brand was also promoted heavily in various media. The ad featuring the snow and tiger brings back the nostalgia about this brand. The brand was positioned as a premium cooldrink . The brand gained immediate acceptance because of its association with Cadbury. The brand had the potential to become a premium softdrink brand in India .

But alas, the brand did not last too long in the market. In 1999 CocaCola took over the beverages business of Cadbury Schweppes and like GoldSpot and Limca , Coke killed this brand.

It is sad to see such brands being killed for no reason connected with customers. The only reason for Coke to kill these brands was to make way for Coke's original brands. In the case of Canada Dry , the brand only had a negligible presence in the Indian market.

Look at the Indian market now - Is there a premium softdrink brand in India ? Neither Coke or Pepsi was able to create a premium softdrinks category in India. They have not even tried yet.......

Best Marketing Practice : Cause Branding

Read my article on cause branding published in Adclubbombay site here : Cause Branding

Brand Update : Bournvita

After building the brand over a beautiful concept of confidence, Bournvita has gone down the ladder in the latest campaign.

I was virtually shocked to see the latest campaign for Bournvita ++ ( a new variant ?) which talked about the merging of Science and Nature !!!

In my last update on Bournvita, I had applauded Bourvita in taking up Confidence as its positioning platform. But it all has been virtually killed in the latest campaign.

I will share the Advertisement once I have it..

The ad which is poorly executed talks about Science and Nature coming together in Bournvita thus helping the kid to succeed. The ad shows a ( poorly made) Robot and a Grass covered man ( indicating nature) helping out the kid who is doing the homework.

If the ad is made aiming at kids, the agency have no idea about the new generation kid's standards . If the ad is aimed at parents, then again the agency have no idea about Parents either.... This ad is ideally suited for a kid in the year 1965....

I wonder why this sudden change in positioning ? Science , Nature and Bournvita have nothing in common. Bournvita is a tasty Malt Food Drink... it was like that and it will remain like that for consumers.

Bournvita has been selling on taste which was again reinforced by the association with the company brand- Cadbury's . The earlier campaign has taken the brand to a better positioning platform of Confidence against the arch rival Boost's focus of 'Winning Energy'.

The only logic I see in this ad is that the brand feels that consumers perceive Bournvita to be unhealthy because it is brown and tasty. Hence the sudden love for this nature- science crap. There were lot of other sensible ways available for this brand for developing association with health .

I think the brand has done a terrible mistake in forgoing such a valuable positioning platform as Confidence and accepting a crap positioning which is not at all relevant to the target segment.

Related Brand

Bournvita

Brand Update : Axe

Axe is a marketing phenomenon. This brand knows how to keep excitement ticking in the market. Last year saw the controversial Axe Dark Temptation making headlines . The brand has started 2009 with yet another launch - Axe 3 deo.

This is a unique innovative product where the brand asks the consumer to use two Axe Deos to gether to make a new fragrance. So Axe 3 comes in a combi-pack of two fragrances and the consumer can make a third one by spraying the two deos together.

Watch the ad here : Axe 3

Smart move indeed. Has anybody thought of combining two deos for a new fragrance ? ..

Axe 3 was launched in other markets in 2007 as a limited edition product.
A typical Axe 3 packs contains two deos marked 1 & 2. These cans should be sprayed together for a new fragrance.
The question is why should a consumer spend double the money for deos ? Why should he use two together and blow away double the money ?

The answer is that the brand does not expect every one to do so...

This is a product launched to keep the excitement going. That is the purpose of limited editions. All those Axe fans will try out this new product and competitors will have tough time matching this brand .

Axe has always been an unconventional brand. These seemingly outrageous innovations are in line with the brand's core positioning. And these launches gives enough reasons for Axe to advertise and that keeps the brand on top of the share of mind.

Related Brand

Axe

End Note : Neither the HUL website or the Axe Effect website carry any information about this new product launch. It is sad that a professional company like HUL did not have the common sense of regularly updating its websites.

Top Ramen : Its not Noodles, Its Smoodles

Brand : Top Ramen
Company : Indo Nissin
Agency : Dentsu

Brand Analysis Count : 370

Top Ramen is the second largest Noodles brand in India trying hard for the past 18 years to beat Maggi Noodles. Top Ramen is a global brand from Nissin. Launched in 1991, Top Ramen has been trying all possible marketing tool to dethrone Maggi.

As a hardcore Noodles fan, I remember trying out this brands on two occasions. First occasion was when the brand was launched. The brand quickly went into limelight with its famous positioning as Smoodles. I guess that Smoodles means Smooth Noodles . But after the initial trying,I went back to Maggi noodles.

The next occasion was when Maggi changed the taste. That was an occasion where, as a brand loyalist , I dumped Maggi . For a while I bought Top Ramen . Then when Maggi reversed the taste, I switched back....

Top Ramen at that point of time was one of the heavy advertisers in the media. And since the taste was also comparable , many Maggi users may have switched to this brand. But it could not retain the customers like me. One factor is the price. Top Ramen was always perceived as a premium brand compared to the affordable Maggi. ( Its my perception since I don't exactly remember the price difference ). The high price may have prompted many Maggi users to switch back .

Another factor was the promotion. Top Ramen could not sustain the share of mind it generated during the formative years. Maggi was able to bring in lot of noise because it had become an umbrella brand and was advertising for various other products .

Top Ramen had an interesting distribution strategy . For the past 10 years, the brand has been distributed by Marico. It is a case of marketing alliance where Top Ramen was utilizing the distribution strength of Marico. In 2008, the alliance was mutually called-off . Now Nissin is building its own distribution network.

It is puzzling to see that a global brand with lot of support from its parent could not put up a big fight with Maggi .The major issue faced by Top Ramen was the differentiation. Top Ramen could not offer any serious differentiation to Maggi either in terms of the product or brand. Since there was no serious differentiation, Maggi was able to gain back the lost ground because it was the pioneer brand who built the category. Top Ramen also lost out when Maggi repositioned itself in the health platform.

Having said that, Top Ramen had its share of innovations. This brand is credited with innovating a new category of cup-noodles in Indian market. The difference between cup noodles and instant noodles is that cup-noodles need not be cooked, it is ready to eat just after adding hot water into it.
Top Ramen currently holds more than 90 % share in the cup-noodles market. Maggi has recently entered the cup-noodles market with its brand Cuppa- Mania. It is expected that the entry of new players will expand the category.

Unlike instant noodles where the brands are targeting kids, Cup-Noodles is targeting adults. The segment aimed by Top-Ramen is 16-35 .

Top Ramen is also credited with the launch of curry-noodles in India. While ordinary noodles are dry, curry noodles have both gravy. Top Ramen to me is heavily associated with Curry Noodles. and that is one of the reasons why I did not buy the brand ( i hated the curry variant).

So the brand has not been remaining dormant. It has been doing the right things in the market but somehow the brand is not able to manage the perception among the consumers. It is in the promotion front that Top Ramen has failed to make an impact.

When Maggi repositioned itself as a healthy food, Top Ramen should have followed suit since the market was moving towards healthy foods. When Maggi launched its rice noodles, Top Ramen should have followed since it could have added value to the brand.

Except for the first phase of brand promotion, Top Ramen did not have any worthwhile campaign in its 18 years of existence. Hence as a customer, the brand is not giving me enough reasons to change my addiction to Maggi brand. Even it is not giving enough reasons for kids to buy this brand.

Related Brand
Maggi

Update : Marketing Practice reader ' Outspoken ' that in 1999 Shah Rukh Khan endorsed Top Ramen Curry Noodles. But that campaign has long been forgotten.

Savlon : Heals Without Hurting

Brand : Savlon
Company : Johnson & Johnson
Agency : Lowe Lintas


Brand Analysis Count : 369

Can a brand ,which was proved by laboratory tests as better than its competitor, backed by one of the most reputed business houses in the world, having many product advantages over its competitor, have any chance of failing in the market ?

If your answer is no , then think again ....


Savlon which was clinically proven to be a better antiseptic than Dettol ,backed by Johnson & Johnson ,having advantages like better scent and non-stinging properties miserably failed in the Indian market.

Why ?

Frankly I am also clueless. That is why Marketing as a subject is so intriguing... it is full of surprises. Philip Kotler once said " Marketing is a subject that is easy to (pretend to )unders tand but difficult to practice ".

Looking at Savlon, I wonder whether the success of a brand is depended on sheer luck... Is luck the only reason why out of 100 brands launched, only 5 succeed ?

Is Savlon an unlucky brand ? or Did Johnson & Johnson failed in building this brand ?

Savlon was a brand owned by a pharmaceutical MNC ICI ltd. Later ICI's OTC brands was acquired by Johnson &Johnson . Savlon was relaunched in Indian market in 1993. The brand was expected to give the market leader Dettol, a run for its money. But even after millions of rupees spent , Dettol still rules the antiseptic lotion market.

Savlon had lot of advantages over Dettol. According to media reports, some lab tests indicated that Savlon is an effective germ killer than Dettol . Savlon is effective against both Gram Positive and Gram Negative germs.

Another advantage about Savlon was that it does not sting while being applied on wounds. Dettol used to give a stinging sensation while applied on wounds. Savlon also had a better scent compared to the more clinical smell of Dettol.

Armed with these properties, Savlon went into a direct attack on Dettol . The product was positioned as an antiseptic that does not hurt while healing. The main differentiators for the brand was its no-sting property and better smell. According to media reports, during the relaunch, J&J spent heavily on promoting the brand.
The relaunch was a success and consumers tried out the new product . But the story did not continue like that.

Dettol confronted the frontal attack from Savlon in a different manner. It tried to attack one of the most valuable brand of J&J - Band -Aid by launching Dettol plasters.

This move got J&J defensive. It never expected Dettol to attack another brand in retaliation. Dettol plasters had the potential to attract consumers because of the brand equity commanded by Dettol Antiseptic.

J&J scrambled to protect Band-Aid by launching a series of variants in the medicated plaster segment. In doing so, resources was spent on defending Band-Aid rather than in advancing Savlon.

Savlon suffered heavily because it lost the support interms of investment in brand building. Dettol had a brand equity built over more than 50 years (at that period of time) and it is not an easy task to break into that equity. It needed painful long term sustained investment.

How ever Savlon was pushed to a back burner after Dettol introduced the plaster. Savlon never re-emerged.

During 1998, a funny incident happened. I deliberately used the word funny because it is funny.
In 1998 HLL acquired the rights to launch Savlon Soaps from J&J. While the rights for antiseptic lotion remained with J&J, the marketing alliance was for soaps.

HLL was worried at the success of Dettol soaps. Armed with a strong association with antiseptic property , Dettol soap became a huge success and cornered a significant chunk of the premium medicated soap category. HLL, who wanted to rule the entire soap category ,wanted to arrest the rise of Dettol soap.

Instead of trying to develop its own brand of soap, HLL looked for an easy solution. Thus came the idea of marketing alliance with Savlon. With much fanfare, Savlon antiseptic soap was launched. J&J was happy because it got some cashflow by giving the rights of Savlon.The marketing alliance lasted only for 4 years.

According to reports, HLL put Savlon soap in dustbin in 2003 and repositioned its Lifebuoy brand to fight against Dettol.

So where did Savlon went wrong ?

There are marketing experts who say that the positioning of Savlon was not correct. No-stinging and sweet scent are not important for a consumer looking for an antiseptic lotion. What they look for is effectiveness. Hence Savlon was trying to differentiate on attributes which are not considered to be important by the consumers.

More over, consumers tend to believe that the stinging sensation is a side-effect of the effectiveness of the antiseptic.So if it does not hurt , it is not effective. Dettol has taught them that way.

I believe that Savlon did not achieve its desired success because J&J was not able to support it interms of investment. Somewhere along the way, the company disowned the brand. One reason can be that antiseptic lotion is a small market that does not warrant such heavy investment. But if that is so, the the company shouldn't have introduced a brand in such a category.

Savlon now occupies a negligible part of the market. It is a popular brand in the institutional market but in the consumer market, it is a no-brand.

Related brand
Dettol

Best Marketing Practice : Take- Back Campaign by Nokia

Nokia recently announced a green marketing initiative in India. From January 1, the company is taking back used mobiles and chargers from the customers for recycling. The campaign titled as Take-Back campaign is a unique social responsibility initiative by this market leader.

Under this campaign, the company is encouraging the mobile users to give their old, unused, broken mobiles and chargers for recycling. The campaign is initially launched in Bangalore, Delhi, Gurgaon and Ludhiana and will be expanded to national level in coming months.

Nokia has installed 1300 recycled bins at the Nokia Priority dealers across these pilot markets. Nokia also promises to plant one tree for every mobiles dumped. Another interesting fact is that the company accepts mobiles of any make.

This is a best practice because the brand is addressing an issue proactively. E-waste is going to be one of the worst environmental hazards in years to come. Mobiles contribute heavily towards this waste. India being the fastest growing mobile market in the world, this issue is going to be of mammoth size in the future.

The Take-Back campaign is aimed at educating people on the necessity of reducing e-waste through recycling. The concept of recycling is not popular in India and Nokia wants to set an example.

The campaign is also proactive because Nokia is the indisputable market leader in India with a share of 70 % in the mobile phone market. So the brand is responsible for contributing to the piling e-waste with regard to mobile phones.
Although Nokia says that the recycling will help the company in acquiring fresh raw materials, the new campaign is more of a social responsibility initiative rather than a business one.

By launching such an initiative, the brand is also giving an important lesson to other marketers. The lesson is about long term investment on brands. This take-back campaign is not going to generate any short -term benefits for the brand. Ofcourse it had given some positive PR for the brand but nothing more and nothing less. Indian consumers are not very thrilled by green marketing initiatives because of lack of awareness/concern. Second this campaign is also expensive because Nokia has to built an infrastructure to support this take-back. The benefits will come may be in future when consumers realize that the brand have foreseen such an environmental crisis and took proactive measures to reduce that . Now, How many brands will ever think of such an investment ?

In future companies will be made responsible for such accumulation of wastes . In developed countries, strict rules are now in force to check the proliferation of such wastes. India too will move to such a regulated regime in near future.

Hence it makes sense for a market leader to initiate such a campaign. It increases the brand equity ( in future) and also prepares a robust green logistics infrastructure for the future. Green logistics is denotes the logistical infrastructure to collect back the products from the customers for recycling or repair.

Cadbury Bournville : You Have to Earn It

Brand : Bournville
Company : Cadbury India
Agency : O&M

Brand Analysis Count : 368

On October 2008, Cadbury relaunched its Bournville brand of dark chocolates in India. Relaunched- because the brand has been in Indian market for over 30 years. But this brand was neglected . From my personal experience, I do not remember seeing this brand before it being relaunched.

Bournville is the name of a model village in England. This village has a strong association with Cadbury. According to Wikipedia, the village was set up by Cadbury when they relocated their chocolate factory there.

Dark Chocolate is a type of chocolate which is made by adding fat and sugar to cocoa. This is the type of chocolate where milk or milk additives are not added. Dark Chocolates are otherwise called Plain Chocolate. According to European standards, a chocolate must contain minimum of 43% cocoa to be considered as dark chocolate ( source :aalstchocolate .com)

In most of the global markets, dark chocolates are one of the fastest growing category . The growth is attributable to the health benefits of dark chocolates. Recently there were researches which stated that chocolates contain anti-oxidants and if taken in right quantities can be beneficial to health. Chocolate marketers took a marketing festival out of these research findings.

In India Cadbury relaunched Bournville brand for two reasons . Opportunity and Competition.

Mimicking the global trend, Cadbury also see a major opportunity in developing a new category of chocolates i.e Dark Chocolate Segment. In a market where 70 % share is owned by Cadbury, it feels that it is the right brand to develop the category. More over, the research findings about the health benefits also gives an additional marketing reason to develop this category.

Another reason for the relaunch is the competition that Cadbury face from the imported brands. Cadbury has lost its hold on the premium chocolate segment to imported brands. Now most of the retailers are stocking global brands like Ferrero Rocher, Mars etc. Customers are also preferring these global imported brands over the more familiar Cadbury brands.

Most of the global chocolate brands like Hershey , Ferrero etc are planning their entry to the lucrative Indian market. Recently the Mars group launched their brand Snickers in the Indian market.
This threat has forced the market leader to take a proactive defense strategy by creating new categories. By creating the new category of dark chocolates, Cadbury have the first mover advantage and also will be able to bring in freshness to the Cadbury umbrella brand.

Bournvilla is being positioned as the finest dark chocolate. The brand is currently promoted as the category innovator.
Watch the tvc here : Bournville

The brands says that one has to EARN this chocolate and not just buy it , referring to the quality of this chocolate. Bournville is made from the finest Ghana Cocoa beans and comes in four variants -
Rich Cocoa
Almond
Hazelnut
Raisin & Nut
The brand is retailed for Rs 75 for 80 gms.

Bournville is targeting not all customers. This brand is for those who love chocolates. The brand is aiming the 20-30 yr old SEC A segment. This is a chocolate that one will indulge when they feel like indulging. Because this product tastes differently from ordinary milk chocolates, the brand will appeal to a select niche.

That is why the brand is asking consumers to follow a special brand ritual while eating Bournville. One has to first enjoy the darkness of this chocolate. Then place the chocolate bar near the ears and break one cube and hear that crisp sound. Then smell the chocolate for that special aroma. Then slowly eat the chocolate enjoying it slowly. .....

I think that the brand will have lot of initial sales because customers will test it because of the attractive price. Rs 75 is an attractive price which will enable consumers to test it. But whether there will be a repeat purchases will depend on the liking of the taste .

Consumer Insight : Insurance is a Subject Matter of Solicitation

If you have seen any advertisement of Insurance products, you may not have missed this disclaimer " Insurance is a subject matter of solicitation ".

As a consumer , this disclaimer/warning is of utmost importance but often ignored.

What is the meaning of the clause " Insurance is a subject matter of solicitation".

The dictionary meaning of solicitation is " Ask For". Hence insurance is a subject that should be asked for . It means that customers have to talk to an adviser who will suggest the right product for your needs. Insurance should not be SOLD but Solicited......

Sounds out of the world isn't it ?

How many of us have asked for Insurance ?

In India, insurance is sold not solicited. Hence this dictum seem totally meaningless OR is it ?

If you read the terms and conditions put forth by Insurance companies, one will find relevance to this dictum.

The above dictum have relevance to consumers because it puts the responsibility for selecting the right product on the consumers than on the company. The website of a leading insurer states " Customer's participation in the insurance products are purely on a voluntary basis ".

As a consumer, the responsibility lies in
Understanding one's insurance needs .
Planning
Meet with a trained financial adviser.
Selecting the right product
Signing the contract.

But we know that most of the consumers are not aware about either their needs or the various options available before them. Hence the consumers have to obtain the help from a trained insurance advisor who will " advise " the customers and then help them to select the right product .

In practice, we find that none of the above applies. Insurance advisers take up the role of pure selling machines trying to " close" the sale rather than " advice " the customers. Companies put pressure on their agents to achieve targets often forgoing the basic dictum that drive this business.
While in the developed markets like USA , the actions of financial planners are highly regulated, here the onus is on the customers . CAVAET EMPTOR.... Buyers beware....

Most of the insurance firms also does not practice the dictum iof solicitation in its pure essence. If you have listened to any of the recent " sales talk" of advisers, they pitch the ULIP plans irrespective of whether you like investing in stock market or not.

There is no analysis of one's financial position or insurance needs. ( There are professional financial /insurance advisers who do all the right things but many doesn't) .

It is because of this non-professional selling approach that makes customers run away from an important product like insurance.

If insurance firms practiced what they preached, then insurance would have gained a much higher value as a product. And insurance sales persons would be regarded as a friend rather than a nightmare.

99% of my MBA students hate to get into a job in an insurance company. Much of this hatred happened because we forgot that we should sell the right kind of product to the right kind of consumers. As a customer I believe that insurance is one of the most important products which helps a consumer to be secure. But alas.....

In my experience as a prospective customer, I met only one advisor who professionally and systematically explored my insurance needs. Rest of all were trying to " sell " me insurance.

The million dollar question for an Insurance salesperson is

Will you walk away from a consumer for whom you do not have a right product ? Will you recommend your competitor's product to him if it fits his need ?

Its time for the insurance companies to Walk the Talk.... It is tough... your quarterly results will show negligible growth. But consumers will love you for it.....

Insurance is a subject matter of solicitation.

Marketing Funda : When Teaser Gets Teased

Read my article on Teaser ads published in Adclub Bombay Website here : When teaser gets teased

Zeiss : We Make it Visible

Brand : Zeiss
Company : Carl Zeiss India
Agency : Modern Medtech

Brand Analysis Count : 367

Carl Zeiss is a respectable name in the global lens' market. This decade old German company is named after its founder Carl Zeiss who was an optician. His company first started making lenses for microscopes and later extended his product range to cameras .

The company began its Indian operations in 1998. Although present in different verticals, the brand came into consumer space during 2005.

Carl Zeiss manufactures spectacle lenses under a joint venture with GKB Hi-Tech Lenses which is a home grown company. The spectacle lenses are sold under the brand Zeiss.

Indian spectacle lenses market is worth around $90 million ( Rs 360 Crore). Looking at the population, the potential is huge. But like many other products, this market is also dominated by unorganized sector which accounts for more than 75 % of the sales.

There are only two highly visible brands in the spectacle lenses category. One is the global major Essilor and other is Zeiss.

Zeiss has been trying to build its brand by consistently investing in media campaigns in India. It has been regularly advertising both in visual and print media.

The marketing of spectacle lenses is a difficult task because so far the category is regarded as a commodity. Consumers seldom ask for a specific brand of spectacle lenses since they are not aware of any brands neither they are aware of any specific advantages of using a branded spectacle lens.

So typically a consumer goes to the optician with his prescription and selects his spectacle frame and asks for the price of the lenses and gives the order. No where in the process , he asks for a particular brand for his lenses..
This offer tremendous opportunity for a marketer but it is not an easy task .
Zeiss has been trying to brand the commodity called spectacle lenses. But I am not impressed.

I have been watching the commercials of Zeiss for a while now. Frankly I did not knew that Zeiss was from the house of Carl Zeiss. I have heard about Carl Zeiss since the brand is famous as a camera lens. More over the latest mobiles from Sony and Nokia is now sporting Carl Zeiss lenses. Cameras which have Carl Zeiss lenses are often sold at a premium.


But the positioning strategy if Zeiss spectacle lenses is far from spectacular.

Watch the commercial here : Zeiss Spectacle lenses

The main USP of this brand is that it is branded...... Sounds funny isn't it ?

Zeiss is positioning itself as a spectacle with brand mark. For non-marketers, Brand Mark refers to the logo or symbol that the brand has.

I frankly does not understand the logic behind this positioning. Brand is defined as a name , term, symbol, logo which are used to identify and differentiate a product from the competitors .
But having a brand mark is never a differentiator. You cannot build a brand over its brand mark.....

Zeiss in their ads try to claim that " Brand nahi hai to style nahi " ( means if it is not branded, then it is not stylish ). It is true also. Consumers try to show off their brands. And successful brands are those where consumers are willing to act as living billboards.
Take Levi's or Nike, consumers are willing to show off. But not because they have brand marks.

First the company has to build a brand on certain core values or attributes . Once this is built, consumers will adopt the brand and act as the brand ambassadors. People does not buy Nike because it has the brand mark SWOOSH . But because they love the brand for its values embedded in " Celebrating authentic athleticism ". Consumers evangelize Apple not because of the brand mark but because of the innovation that is personified by the brand.

Here Zeiss has got it all wrong. Having a brand name or a logo is not suffice for consumers to love your brand. Brands should be built on strong attributes ( tangible or intangible). Brands with out brand values is at best a Label.

Zeiss thinks that its major competitors are the unbranded spectacle lenses. Hence the company feels that having a brand mark is the best differentiator. I was surprised to find that globally also the brand is positioned as a spectacle lens with laser marked brand mark.

Essilor has done a better job in promoting its brands like Transitions and Crizal. Consumers understand that these brands are having quality and certain important attributes.

Zeiss is a powerful global brand which has a reputation of being high quality manufacturer. The brand also has a powerful secondary association with the country of origin - Germany.

It should have taken some important attributes and promoted those attributes. Having a brand mark is an advantage but only after the brand is being built. People like others to see that their sunglass is a Ray-Ban because the brand has an image built on style and quality. Hence the Ray-Ban brand mark on the glasses make sense for the consumers.

First the brand has to understand the important attributes that customers look for in a spectacle lens. Then try to understand which are the most critical of those attributes which influences their decisions. Then develop the brand around those critical attributes. I don't think that the current USP of a brand-mark is considered important by consumers and is a sufficient reason for them to pay a premium for the brand.

Zeiss must go back and learn some basic brand building before investing such huge amount on money on meaningless campaigns.

Related Brand
Essilor

Brand Update : Bajaj Pulsar

Recently I saw an ad of Bajaj which showed that Bajaj XCD 125 is now in the DTSI Club . The DTSI which stands for Digital Twin Spark Ignition system was a technology patented by Bajaj.

This technology uses twin sparks at either end of the combustion chamber which gives faster combustion compared to the single spark plugs found in conventional engines. This twin sparks increases the power of the engine and offer better performance.

Bajaj did a great marketing move by patenting it and then branding this technology as DTSI. This is a classical case of ingredient branding. The DTSI was featured in the second generation Pulsar which was launched in 2003.

While Pulsar rode the wave in 2001 on the back of excellent styling and mind-blowing positioning , DTSI became the key differentiators for the brand after 2003. Pulsar was perceived to be a mean machine because of DTSI.

Pulsar thus created and ruled the performance bike category in India.

Its natural for any company to think of extracting maximum mileage out of a patented technology. Bajaj did just that by extending the DTSI technology to all its vehicle models including scooters . My doubt is whether Bajaj has commoditized the DTSI technology by extending it too much.

When DTSI was associated with Pulsar, it meant power , efficiency and performance . But what will DTSI mean when it is associated with a small scooter like Bajaj Krystal or a entry level bike like XCD.

Branding an ingredient is the same as branding a product. The consumers should feel that the ingredient brand is different from other ingredients . The concept of positioning also applies to ingredient brands.

In many ways, Bajaj has done correct strategies for DTSI. It patented it, protected it and branded the technology. But where it had failed was that it commoditized the ingredient brand.

Bajaj did not try to give a special personality for DTSI. Remember, DTSI had a strong secondary association with Bajaj Pulsar. Both the brands benefited out of this association. Pulsar used DTSI as a differentiator while DTSI got the performance tag from Pulsar.

But by making this technology available to all other brands without clearly looking at synergy was a big mistake from Bajaj. I have no doubt that the extension of DTSI technology to other brands will greatly help the sales of these brands . XCD will sell more when it has the DTSi technology.

When a measly powered scooter is also powered with DTSI, what is DTSI ? It had lost all its brand values which were power and performance. I don't think that XCD is anywhere near Pulsar in terms of power or performance. So in a way Bajaj has virtually killed this powerful ingredient brand.

The brand which is going to suffer most will be the flagship brand Pulsar. When every other Bajaj brands have DTSI, how is Pulsar different from rest of the crowd ?

The obvious answer will be the design. If it is so, then Pulsar could be beaten by any other bikes which are better designed. Having good looks is good for the brand but cannot be sustained over a period of time because :

Competitors can come with good looking bikes.
Designs can be outdated.

Both these are affecting Pulsar. Too many Pulsars on the road has made this brand dated in terms of looks. But DTSI was a powerful differentiator which cannot be copied since it was patented. But Bajaj , because of greed, faltered with one of the most powerful differentiators at its disposal.

Last month, I read a report saying that the newly launched Yamaha FZ 16 has become the number two brand in the 150 cc segment beating Apache RTR , Hero Honda Hunk and CBZ. In some markets, FZ also has beaten the market leader Pulsar. Without a clear differentiator, Pulsar is now more vulnerable than ever.

Is Bajaj listening ?????

Related Brand

Pulsar
Yamaha

Hyundai Accent : What Dreams Drive

Brand : Accent
Company : Hyundai Motors India
Agency : Innocean

Brand Analysis Count : 366

Accent is one of the highly successful long serving car brand in India. Launched in 1999 , this brand is now on its 10 th year in India. The simple fact that this brand has survived the highly competitive market in India speaks volume about the success of this brand.

Accent, when launched competed with the highly successful Maruti Esteem in luxury sedan market. While Esteem perished, Hyundai Accent is still managing its product lifecycle.

Accent is a brand which has survived only because of the product performance and quality. Frankly there is nothing to write about the marketing or branding strategy for this brand. Accent was a highly performing work-horse which was well designed quality product that offered excellent value for money. The company was able to make enough changes in the price which enabled the brand to ride the PLC effectively.

Accent now belongs to the entry level sedan market. When launched it was a premium car. Accent was an instant success because of its product quality and the rub-off from the success of Santro.

The company managed the product lifecycle of Accent using variants. Hyundai regularly updated Accent by launching different variants in line with the changing consumer expectations. There were four variants for Accent in 2002 which were GLS,GLX,GVS Tornado and Viva.

One of the most successful variants was the Accent Viva. VIVA launched in 2002 was positioned as a sporty sedan. The engine was tweaked to give more power and the variant was styled to give it a sporty look. Accent Viva was priced at a premium and was a successful niche variant.

In 2002 , the company launched the first diesel variant of Accent. The brand was the first one to launch the CRDI Diesel engine . Although the CRDI gained lot of interest, there was lot of problems for the diesel variants. Ultimately the diesel version was phased out in 2007.

Accent started losing in the segment when Ford launched Ikon . Later the segment became crowded with lot of product launches by the competitors.

At the branding front , except for the marketing of Santro, Hyundai in my opinion is a lousy advertiser. I don't remember any highly creative campaigns from them for any of their products be it i10, verna or Terracan. The quality of creatives for Santro also have come down drastically. They have always built their brands on the product performance.

For Accent also I don't remember any highy creative or good campaigns. But I remember some lousy ads of Accent trying to position it as a aspirational product. In those campaigns Accent had the tagline " Respect comes naturally ".

Accent had tried out different taglines during its different stages. The frequent changes in the tagline have really messed up the positioning of the brand. Accent is confused about whether it should focus on performance or image. The taglines of Accents were

Sheer Pleasure
Expect More
The Next Step
The Power to Excite
What dreams drive

Although the taglines were more performance oriented, the ads especially the television commercials was unfocused. The agency failed to understand that the core brand value for Accent was its product performance and value for money proposition.

Even in 2008 , Accent topped the segment in customer satisfaction in a survey done by TNS.

There were many rumors about the phasing out of Accent. But like Maruthi, Hyundai also does not believe in phasing out old brands. Auto analysts was predicting the phase out primarily because the brand was considered dated. It has been around for 10 years and consumers have become bored by the brand.
The rumor was further fueled with the launch of another mid size sedan Verna. In global markets Verna is sold as the new generation Accent . And in USA , Accent ( Verna) is one of the largest selling economy sedan.

With the launch of Verna, Hyundai reduced the number of variants for Accent. Now Accent has only one variant.

But Hyundai had other plans for Accent. In 2008 Accent was launched in CNG version. The CNG version is expected to boost the sagging sales of this brand. The launch also is an indication that Hyundai is not going to phase out this brand. This year, Accent was relaunched as Accent Executive with spruced up interiors.

One of the strong points for Accent is its design. Accent is still looking great. If Hyundai plans to keep this brand alive , it should focus on the design. Accent can ride the PLC by positioning itself as a stylish brand. It should experiment with colors and graphics. The product quality is already established,what the brand needs is excitement.

At this stage of the PLC, Accent will get a boost if the brand is endorsed by a celebrity. A high profile young film star can rejuvenate the brand for sure.

Best Marketing Practice : Be Proactive to Rumours

Yesterday my wife told me about an internal mail she received at her office. It said that Kurkure contains plastic which makes it more crispier than other snack foods . Further Appyfizz contains cancerous substances and if you take Mentos and Pepsi together, you will die.....
So no Kurkure and Appyfizz for our child from now on.

I tried to show my " Professorial " knowledge by telling her that these are baseless rumors and all these products are safe. But she rubbished it aside saying that the mail come from a very trusted friend of her.......

I was little upset by her comments, not that she doesn't trust me but by the fact that such emails and rumors can create lot of issues for the brand. A call to one of my friend in advertising confirmed that these rumors were running around for more than three years.

Although internet offers lot of opportunities for brand promotion, the biggest threat comes in the way of such rumors.
There are two typical responses to such a kind of malicious rumor. Do nothing hoping for this rumor to die a natural death or be proactive and do something about such rumors.

Marketers should take proactive steps in countering such malicious rumors that can later snowball into a viral negative campaign.

When I did a small google search on Kurkure, I was surprised by the results. The first result that came was a Kurkure blog which negated the rumors. More than that there was a paid link to the FAQ site of Kurkure which clarified further than the rumor was baseless.

That is a proactive approach to handling such rumors by Kurkure.

Marketers cannot stop anyone from making such malicious rumors. But they can effectively negate such rumors by acting on it.

Have a website : Its important for brands to have a place for them in the virtual world. Since internet is a media one cannot ignore, it becomes important for the brand to have a site.
Scan the net for such rumors : Marketers should need to scan the negative news that spread across the internet. This should be done on a regular basis.

Negate the rumor using Search engine optimization : The brand should negate the rumor immediately with out waiting for it to spread. Most of the Search Engine Optimizers will help the company to keep their information on top of the search engine listing. My logic is that when a netizen gets a rumor email, he will search for further clarification. If the company is not providing such a clarification then he will take decision based on the judgement. I am sure that those people who forward such malicious email believe that it is true . Otherwise he will not forward it and risk his credibility.

Use Public Relations : The best tool to handle such events is to use the PR department. Use all mass media to convince the customers that the product is safe. Have a permanent link in your website to offer clarification about such reported rumors. If the rumor has snowballed into a big crisis, have your senior executives issue statement clarifying the issue. It it is health related, have doctors endorse your product's safety standards.

Open a channel for customers to contact you : The channel can be either an email or a phone number where the customers can clarify any doubts about the brand.

I know it will be difficult for a brand to react to each and every rumor that does the round. But the effort is well worth it.

Brand Update : Kamasutra Condoms

After a long while, Kamasutra has come out with a new campaign. The current campaign is little different from the earlier ones in that the brand has shed the sensual route and has become more subtle.
The last campaign from Kamasutra was revolving around the theme of experimenting which was highlighted by the tagline " who do you want to be tonight ".

The latest ad shows a " button less world' where the guys roaming around with their button-less shirts. The teaser says " get ready to lose your buttons ".

Watch the TVC here : Kamasutra new ad

The brand has the new tagline " Most wanted men ".

This is a serious deviation from the core personality of the brand. KS is always perceived to be an extrovert, on-the face , open and a naughty brand which does not shy away from talking straight.
All through the life of this brand, its known to be controversial, sensual brand. Subtle was never this brand's character . So those who were expecting another set of shocking ads are bound to be disappointed.

The brand has also changed its tagline to " Most wanted men ". This new tagline is also a dampener. The tagline is very similar to that of Moods ( My Man !) . I think that the brand could have chosen some thing different from Mood's tagline.

Its interesting to note that in India, government is taking more initiative in promoting these products rather than the private players. Most of the condom marketers are not aggressive in their spends . One reason is that most of them are minting money by supplying it to the governmental agencies and NGO's . There are also reports that suggest that since government is selling cheap condoms through the same channel, premium condoms are losing the market.


In 2007 , the brand have extended itself to personal care by launching its range of deodorants and aftershaves. So far I have not seen any KS personal care products in super markets. I think it is an opportunity wasted.
KS have an equity which could be easily leveraged by the company in the personal care segment . It would have become a worthy competitor for Axe ,had the company "shamelessly " promoted this brand. How ever the company chose not to aggressively promote the personal care range. It would have filled the gap for a " Adult " personal care brand in the Indian market.

Related Brand

Kamasutra

Moser Baer : Rewriting the Future

Corporate Brand : Moser Baer
Agency : TBWA

Brand Analysis Count : 365

Moser Baer is a leading player in the optical media storage market in India. Not only that ,this Indian company is world's 5th largest manufacturer of Optical storage media. Founded in 1983, this brand has morphed from a business brand to a consumer brand.

Moser Baer started its operations by manufacturing time recorder units in collaboration with Maruzen Corporation of Japan. In 1998, the company diversified into manufacturing of 5.2 inch floppy disk. In 1999 the company went on to manufacturing of CD-ROMs and DVDs.

The Indian optical media industry is estimated to be around Rs 1500 crore. Moser Baer leads the market with a market share of around 40%. The brand is having a global share of around 20% in this industry.

The optical media storage industry is dominated by CD-ROMs. The trend is now moving towards DVD and latest Blu-Ray discs.

The CD/DVD industry is guided by the penetration of the respective disc drives . It is estimated that 75 % of the computers are sold along with the CD Drives and this factor have more impact on the sale of CDs at the consumer end.

If we look at the market evolution of these products, during the formative years, ordinary users never considered the CD drive as a part of the standard PC. CD Drives was considered as a luxury because of the high cost. This has severely restricted the popularity of CDs at the consumer end . CDs during those years was targeting the software segment.

When the CD drive price crashed, it became a part of the standard PC offering which paved the way for the popularity of CDs. Another big market for these products is in the entertainment sector.

Currently the market is moving towards DVD's since the cost of DVD writers/players have come down drastically.

Moser Baer operates in a market which is highly dynamic and volatile.This is a market which is full of disruptive innovations . One can never predict the lifecycle of a product. A small technological innovation can make a product irrelevant. It had happened in the case of Floppy Disks . The MP3 revolution has severely impacted the CD industry aswellas the entire music industry.

Hence to operate in such a volatile environment requires high flexibility in operations and strategy. The simple fact that Moser Baer was able to handle the Floppy to CD transition is a remarkable example of flexible product strategy. It takes corporate vision to identify the changes that are happening in the environment and then take a proactive step in addressing those issues.

It is not easy as we think. Take the example of CD replacing the Floppy Disk. The company has to first identify this as a disruptive innovation . Then they have to forecast the impact of this technology in their business. Then devise the strategy to handle that disruption. The problem here is timing. In technology marketing, timing is the key. We have seen big companies humbled by start-ups ( Microsoft Vs Google ) because the large firms fail to forecast the impact of these changing technologies on their business.

In the case of storage media disruptions are happening on a regular basis. We have seen Floppy Disk getting eliminated by CDs, CDs getting irrelevant by USB Disks, DVDs etc. There is heated argument whether DVD will be replaced by Blue-Ray discs

Look at the removable memory devises or the flask disks, these devices are increasingly making CDs irrelevant. These USB memory disks are portable , reusable and easy to use. These devices are a big competition for CD and DVDs. More over the various online file storing sites and file sharing sites makes life more dangerous for firms like Moser Baer.

So how will a company survive in such a very fluid environment.?

It calls for a very flexible product strategy. Such a strategy allows the managers to experiment and pull the company into different directions. Product Managers will be looking for emerging areas /technologies and will be investing in those new areas. Although this strategy is sexy, it is highly risky. Not all new technologies are disruptive. So it takes lot of wisdom and luck to spot and act on such a technology.

Last two quarters has been very bad for the company owing to the increase in the production cost and decrease in demand due to competition from other categories. One of the raw material for CD/DVDs is polycarbonate which is a byeproduct of oil industry. The rise in oil prices has increased the cost for this raw material.

It is this scenario which may have forced Moser Baer to undertake many related and unrelated diversification. In 2006, the company forayed into entertainment business. The company launched an entertainment division which focused on distribution of movie CD/DVD. The company procured around 10,000 movie titles and aggressively started distribution.

Moser Baer shocked the movie industry by launching movie CDs and DVDs for as low a price as Rs 28 and Rs 34 respectively. At that time, a DVD used to cost minimum Rs 150 and CDs at around Rs 80. The move made lot of sense because the expense for Moser Baer was limited to promotional and distributional expenses.

According to reports, Moser Baer adopted an FMCG model of distribution for these CDs. The reason was to drive the volumes in order to compensate for the low price. The low price of Moser Baer movie CDs was a deadly blow to the pirate- mafia which was a major threat to the entire movie industry.

This move of Moser Baer was complimented by the low priced DVD players that entered the Indian market. The price of a branded DVD player came to the level of 2000-5000 which enabled many households to own one.

Another diversification of Moser Baer was into the Rs 12000 crore PC peripheral market which include products like CD/DVD drives , hard disks, speakers etc. Moser Baer expects to corner 20 % of this lucrative market .
In the business market, Moser Baer has diversified into manufacturing of photo-voltaic cells which is used in harnessing solar energy.

A major unrelated diversification for this brand was into the consumer durables in 2008. Moser Baer entered the consumer durable space with a high decibel launch of LCD televisions and DVD players.

Watch the tvc here : Moser Baer

Although the corporate tagline for Moser Baer is " Rewriting the Future " , the company decided to have a seperate tagline " Ultra Life " for its consumer durable venture. The brand is projecting itself as the advanced fururistic technology brand. For the movie CD venture, the brand has another tagline " Hello Happiness ".

In a branding perspective, the same brand has three different positioning strategy in three different categories. Theoritically this will result in brand dilution.


I seriously doubt the logic behind Moser Baer entering a space where it has virtually no standing . It does not have the brand equity nor the marketing strength to fight the competition. In this space it will be fighting all the major consumer durable brands of the world like Sony, Philips, LG, Samsung, Onida, Panasonic and what not.

Moser Baer may be a well known brand in the CD category but it is a zero in the consumer durable space. The only advantage for the brand is the brand familiarity. Consumers have seen this brand but that is not sufficient to counter the competition of established brands like Sony.

Moser Baer is trying to fight the war using price as a proposition. The price of LCD TV is much lower than the established players. Hence the price + brand familiarity may give some head start for the brand.

Another serious issue for the brand will be the time and energy needed for Moser Baer to establish itself in the consumer durable space. The company may have to devote considerable resources , both money and managerial time ,to be successful as a consumer durable major. This will seriously impact the investment needed in its core business. In this period, when cash is the king, the brand may have to spend judiciously .

Moser Baer has also launched products like USB disks in order to pre-empt the competition from that category which makes more sense than the consumer durable venture. It could have spent more energy on establishing itself in the USB media space and even launch products similar to ipods.
It makes more sense if Moser Baer concentrated on Memory ,Storage and even PC peripherals space rather than spent valuable resources on highly competitive market like consumer durables

Bosch : Invented for Life

Corporate Brand : Bosch
Agency : Saatchi & Saatchi


Brand Analysis Count : 364



Have you ever thought about the brand of wipers you have in your car? Ever thought about the brand of spark-plug of your bike ? How many of us have insisted to the mechanic that we need a specific brand of spark-plug or a wiper ?

Compare that to a consumer insisting on Pentium Core Duo for his computers.

Welcome to the world of ingredient branding.

Bosch want to be the Intel in the auto world or I would rephrase it to Bosch has the potential to be the Intel of Automotive industry.

Bosch is world's largest auto-component manufacturer with more than 275 subsidiary companies spread across the globe.Bosch has a history dating back to 1886 when Robert Bosch founded the company which was known as Workshop for Precision Mechanics and Electrical Engineering.

The company came to India in 1951 as Motor Industries Company Ltd ( MICO) . The company established itself as a leader in spark-plugs . Infact MICO was almost generic to spark-plugs. At the not-so visible engineering industy, Bosch is famous of its motors, power tools, braking systems, etc.

Bosch India has operations in for verticals
Automobile components
Industrial technicals
Consumer goods and
Engineering and IT services.

In 2008 the company decided to rebrand its entire operations in India under the name Bosch .
Under this rebranding exercise , the company is currently running a heavy campaign across various media.

Watch the TVC here : Bosch

Before rebranding , MICO also invested heavily in building its brand presence across the country. Most of us are familiar with these names although we are not quite directly in touch with the products.

There are two markets for most of Bosch's products ( automotive) - Institutional and After market .

The institutional segment consists of the OEM segment where the consumers use Bosch products as a part of the standard equipment. The after market segment consists of the replacement of the worn-out products .

Bosch have a strong foundation in the OEM segment and has relationship with most of the major automotive companies in India. The brand was in news recently for collaboration with Tata Motors for the Nano project.
In the replacement market, the consumers leave the decision of spare parts to the workshops and the marketing is done through the distributors and dealers.

Bosch is a brand known for its engineering excellence and innovation. According to Superbrands.org, Bosch registers 2750 patents every year. The company is famous for its inventions like
Diesel fuel injection
Power tools
ABS
Bosch Traction control
Electronic stability program etc.

Infact the Bosch founder Robert Bosch was the first to introduce the eight hour work schedule long before it became a norm.

Another interesting fact about the company is that 92 % of Bosch is owned by a charity foundation and most of the profits are ploughed back to the company for growth and expansion. It is one of those rare private companies which are owned by a charitable foundation.

Bosch is a brand founded on innovation . The core brand value is innovation and engineering excellence. In 2004 , the brand acquired the tagline " Invented for Life " . The brand has lived up to its promise of innovation.

Another interesting fact which I discovered during my study on this brand was about Blaupunkt. Blaupunkt is a brand owned by Bosch ( I never knew that ! ). In 1929 Bosch launched the first car stereo radio system which created the way for the world famous Blaupunkt brand.

Bosch's branding initiative come under the ingredient branding. This is a special case of co-branding where we brand ingredients, components or parts which are contained within other branded products ( Kevin Lane Keller ) .

Although the current brand campaign by Bosch is driven by the rebranding exercise, I see an opportunity for Bosch to create an identity in the consumer's mind also. From my personal experience, my wiper for my car was not working properly and I changed it twice but still it shows problems. After seeing the ad, I am going to ask my mechanic to put Bosch wipers.

Although this may be a one-off case, it shows an opportunity for the brand in the after market. Battery marketers like Exide , Ameron etc had built the brand slowly using consumer targeted campaigns. Now consumers have started insisting on these battery brands.

Brand Update : Tata Indicom

Tata Indicom is currently running a new brand campaign extending the concept of " Listen to your heart " ( suno dil i awaaz " ) positioning. The new positioning is being reinforced using several tvcs featuring various celebrities . The brand has roped in Himesh Reshammiya, Karan Johar, Lalit Modi, Prachi Desai, Irfan and Yusuf Pathans as the brand ambassadors.

The ads shows these self-made successful persons talking about how they listen to their heart and achieved their dreams. All these personalities chose their profession based on their interest often defying the advice of their relatives and friends. The brand is celebrating their success.

This is classic case of brand laddering is supported by a 360 degree campaign by Tata Indicom including events, outdoors and conventional media vehicles.

After some rustic campaigns using Kajol and Ajay Devgan, the brand has finally found its core positioning platform.
I liked the slogan and the execution of the repositioning exercise. But somehow I fail to see a strong connect between the current positioning and the product. When Airtel talks about " expressing yourself " , its easy for us to connect to their core service.

But it is little difficult " listen to your heart " and Tata Indicom service. Hence the brand should have first established the connection between the current positioning and the brand.
According to the reports, the brand 's core idea is to empower people to listen to your heart. But where will the product fit in ?
Is it that you listen to your heart using Indicom
or
Those who use Indicom are the ones who have listened to their hearts ?

May be the brand is using the second proposition. Tata Indicom in a sense is trying to create the brand personality using these celebrities.

But I still feel the disconnect ..........

What do you think ?


Related Brand
Tata Indicom

Marketing in Recession

In my earlier post , I had pointed out some strategies for marketers to counter the recession. I think that Indian firms have realized that there is going to be a significant slowdown in the coming quarter.

Auto companies have taken a proactive step by reducing the prices. Most of the auto giants like Maruthi, Hyundai, Tata etc have reduced their prices by a significant amount. This move was further aided by the Central Government reducing the excise duty. These companies hope that the price reduction may boost sales.

But there is a limit to what a marketer can do inorder to tackle the slowdown. The marketer have limited option of reducing prices , increasing promotions etc . But these actions will not be sufficient to tackle the systemic issues that created this meltdown.

I am not an economist and hence I may not be able to give a detailed economic view of the current crisis. For that you may check out Harvard University Professor Greg Mankiw 's blog ( warning : its full of economics ) or IIM A Professor Jayanth Varma's blog ( warning : its full of finance ).

I am presenting my view about the larger issues that both the industry and the policy makers should be addressing. I am talking not as a marketing academic but as a middleclass consumer.

The current crisis that we face in India is different from that of USA. We currently do not have the sub-prime crisis . Although there is a real estate bubble, our banking system is sufficiently protected ( I hope so !) . But we face the ripple effect from the global crisis.

Indian Government has been proactive in its steps to ensure liquidity and providing confidence to the consumers and industries. To that extent, things are moving in the right direction.

I think that we have failed to understand the real issue behind this slowdown. The real problem is the slowing down of consumer demand and not the liquidity. Many marketers are pressuring governments to allow liberal credit to the consumers. That means banks will be offering easy credit to consumers which will then boost demand.

It will be suicidal to boost demand using cheap credit. The US market suffered because most of the growth was based on cheap credit.

I think that the consumer demand is going to go down more rapidly in 2009, because of the negative news spreading ( that includes this post also). If you examine the reason behind the eroding consumer confidence , there is only one - Job security.

When people lose jobs, they stop spending ( common sense). When the news of lay offs spreads, everyone stops spending and starts saving. The more the job losses, the more the fall in demand.When demand drops, companies cut jobs.....This is a vicious cycle

So when firms cut jobs, they are contributing to the bigger mess. This problem has a bigger magnitude in Indian context. Unlike USA, we don't have social security and most of the companies also doesn't provide one.

When Barack Obama talked about protecting US jobs and creating new jobs, I think he is moving in the right direction to tackle the fundamental issues.In India also , Prime Minister had made an appeal to corporates not to cut jobs ( there are political reasons for that since elections are around the corner).

It is time for the government to think about a broader social security plan in India. The National Rural Employment Guarantee Scheme is one of such initiative but not enough. I am not sure whether government is in a position to create a social security system , but some thinking has to be done in this direction.

Instead of social security , India have a provident fund system which has been made mandatory by law to certain class of employees. When economy was in a boisterous mood, we do not think about any of these things. Concepts like long-term growth, life long employment, loyalty all became old fashioned. I think this is the time where we have to revisit those old values.

Consumers tend to spend lavishly when he feels secure. Jobs offer him security. India saw a consumer boom when there was plenty of jobs. When the jobs started losing, demand also came down.

Any move to ensure easy credit without creating stable jobs will have serious repercussions. It would take an effort from both the employees and owners to start building a new culture .

I don't know whether this post make any economic sense ?... What do you think ?


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Marketing During Recession

Tempo Traveller : Quality is the Key

Brand : Traveller
Company : Force Motors


Brand Analysis Count : 363

In 1983 the Firodia group entered into a collaboration with Diamler Chrysler for the production and use of OM616 engine for their vehicles in India. This was the beginning of the successful LCV manufacturer Bajaj Tempo.

In 1987 the Bajaj Tempo launched Tempo Traveller in the Indian market. The product powered by the famed Mercedes engine created a new experience in the commercial passenger vehicle segment.

Bajaj Tempo is a serious player in the LCV market in India with a series of products like the Tempo Trax, Matador etc. But among these products, Tempo Traveller has a special place.

In 2005, Bajaj Tempo went in for a Corporate rebranding .The company adopted the name Force Motors .

Tempo Traveller belongs to the LCV category which are essentially vehicles used for commercial purposes like passenger carriers , goods carriers etc. Tata Motors rule this market .

In the passenger carrier segment, Tempo Traveller occupies a niche. It belongs to the premium range of people movers . Tempo Traveller holds more than 80% share in its niche. It had virtually no competitors till Tata launched its LCV passenger carrier Winger. The total passenger LCV market is around 15000 units.

Tempo Traveller although popular in the people - mover segment, has its presence in the goods carrier segment also. The brand is also a major player in the ambulance segment.

Since this brand is in the B2B space, there is little promotional activity in the advertising front. For Tempo Traveller, the brand has immense visibility because it was existing in the market for two decades. The brand also has a reputation for its quality, ruggedness and reliability.

In 2005, Tempo Traveller also had to rebrand itself. Tempo is a brand name owned by Daimler Chrysler. Hence Daimler wanted Force to drop the term 'Tempo 'from the brand name. Hence now Tempo Traveller is known as Traveller. But for the customers, still the brand is known as Tempo Traveller.

Although the brand is having huge equity, there were concerns over the outdated engine and the looks for the brand. There was a feeling that the product was dated. Hence Force motors recently did an extensive make over for the product. The entire look of the vehicle was changed and the company introduced the latest CRDI engine from Mercedes for the latest version.

The new look and the updated engine for Traveller is expected to take the brand to new levels of growth. Traveller is a brand that was built solely on performance.

Brand Update : Complan

Complan has never been an aggressive player compared to the market leader Horlicks . This explains the reason why such a powerful brand is languishing in a distant position of 15% market share compared to the 60 % share of Horlicks.

While Horlicks has been breaking new grounds with a series of variants aiming at the entire family segment, Complan was lying low all these years. The major happening for this brand in 2008 was the launch of the new flavor Kesari Badam . In the promotional front, the brand was in a low key mode continuing with the extension of its earlier campaign focusing on EXTRA growth.

Today's newspaper had a stunner ad from this brand. It was a front page solus advertisement in the Malayalam Daily with a direct comparative ad targeting Horlicks.

What was striking in that ad was that Complan has put a direct comparison with Horlicks by showing Horlicks brand on the ad and then comparing the various attributes. I have seen such explicit comparative ads in automobile sector . In most of the comparative ads, the name of competing brands will not be directly mentioned to avoid litigation. The ads will either use letters or dummies for comparison.

The ad copy asks the readers to chose between the " low cost health drink " and " Complete Growth " . Then the ad talks about why Complan is better than Horlicks by comparing both in the parameters like
Main Ingredients
Protien Content
protien Quality
Number of nutrients .

The ad also reinforces the new positioning " Grow Twice Faster ".

Complan is also running a TVC around the same theme. The TVC is almost a Cut- Copy of the Horlicks' earlier campaign of " Taller, Sharper, Stronger ". The ad shows the before-after results of two samples and claim that Complan users grow two times more than the non-users.

I was wondering why this sudden provocation. A google search indicated that Horlicks has been running a campaign digging at Complan's main attribute of ' 23 vital nutrients '. I have not seen that ad of Horlicks.


The ad spoke of the high price of Complan and was claiming that Horlicks had more than 23 nutrients but costs less than Complan.

Complan had challenged this in Mumbai High Court but the ruling was not in their favor. Hence the brand has taken the war into the public.

Price always have been the weak point of Complan. Those who has used this brand know that its good but was terribly expensive compared to the other highly advertised brands. More over the brand was a little confused regarding its positioning and communication. However, the current spat has bought some life into this brand. It will be interesting to see how Horlicks reacts to this direct attack.


Related Brand

Complan

Horlicks