When you have two very popular brands, how often you think about leveraging the strength of those two brands for mutual advantage? Lessons are to be learned from the two most popular brands from Kraft foods - Cadbury and Oreo. When Cadbury was taken over by Kraft foods, many saw synergy in the business and not brands. However, Kraft foods have very cleverly leveraged the strengths of both the brands by launching variants exploiting the strength of both the brands.
Take the two products - Cadbury Silk Oreo which has Oreo biscuits inside and Oreo biscuits dipped in Cadbury chocolate. Consumers have different tastes, some like their chocolates to be crunchy while others would like creamy chocolates with no interference in between. But more importantly, consumers are craving for more consumption experiences. They are willing to experiment with different combinations and here loyalty seldom matters.
So when the two brands which have powerful equity decide to collaborate and bring new products together, the experiences multiply manifold. Of course, there will be consumers who don't like these variants, there are original products for them. However, a large set of consumers of this category of foods love new varieties and combinations.
While many FMCG brands bring out variants and combinations, it's very rare that such brilliant leverage of brand strength has occurred in the Indian market.
In classic marketing textbooks, one of the strategies in managing the maturity stage of the product lifecycle is product modification. Theory suggests that there are two types of modifications - retention modification and conquesting modifications. Retention modifications are those which aims at satiating existing customers while the conquesting modification is aimed at getting new customers.
Odomos has been in the market for decades and the challenge it faces is that stagnation in the market in terms of product penetration. Although mosquitoes are ubiquitous, Odomos is still a small brand in terms of size. This is probably because of lack of awareness and doubts about the safety of applying the cream directly into the skin.
Odomos in recent years has addressed this problem head-on by launching a series of different product forms. Now the brand is available in the original cream form, liquid, gel, patch and now wearables and spray form. This strong marketing thought behind the brand should be appreciated.
In the promotion front, the company has been very active. The target segment in most of the campaign is the children. I wonder why the company is restricting its target ( at least in the ads) to children. It is true that children are active outside the house and risk of them getting diseases is high, but the brand should have focused more on functional/benefit positioning targeting away from the age variable.
The current campaign of Odomos is also well made which is themed in a rap setting but again focusing on children.
The competitor Good Knight is also very active and since the product form differentiation is not insulated from emulation, other brands are also quick to come with their own versions.
My personal take is that Odomos should think of a change in the segmentation strategy focusing on the proposition of a facilitator to active life since mosquitos are a nuisance to an active outdoor life.
After the forward integration from an ingredient maker to a marketer of branded food products, Veeba has launched its new brand V-Nourish in the Indian market. The child nutrition market in Indian is worth around Rs 7000 crore and growing at around 12% YoY. The market is dominated by the likes of Horlicks and Bournvita. It is in this segment that an Indian company is going to fight for space.
And the company is doing it in style. The brand has roped in none other than King Khan to endorse the brand. V-Nourish is positioned as a wholesome tasty food and comes on 4 variants. The brand has also launched a variant V-Nourish PediaPlus for kids from 2-5.
The launch campaign is plain and simple straight forward talk by the celebrity about the brand benefits. There is not much scope for creativity in such a sort of theme.
It is really a coup of sorts for Veeba to having roped in SRK for the launch campaign. Although celebrity endorsement has become a common feature in advertising in India, the presence of such a star gives a big boost in terms of brand awareness for V-Nourish. To fight the likes of Horlicks, Bournvita, etc, you need such a headstart. Since this is a matter involving child nutrition, building brand trust is of paramount importance. Marketers at Veeba hope that SRK will help boost both awareness and trust for the brand. It is also interesting that SRK is seen to be a favorite for products involving kids - Byju's has also taken him as the brand ambassador.
In an interesting move, Colgate has moved from its traditional positioning of Strong Teeth to a much higher brand value of inner strength. The campaign started with Deepika Padukone and is currently taken forward with an endorsement from M.S.Dhoni and his wife Sakshi.
Colgate which rules the Indian market was very consistent with the brand's positioning. The imagery of the dentist and the demo using shell has remained the main theme of most of Colgate Dental Cream's advertising.
The new Colgate campaign talks about inner strength and tries to link the brand to the message. The tagline - Ander Se Strong which means: Be Strong from Inside. The new positioning is strengthened by the endorsement from Deepika Padukone and Dhoni. In a testimonial kind of ad, the brand uses the celebrities' personal experience to drive the new positioning.
It is not that Colgate has completely moved to higher-order brand values. In a follow-up ad, the brand is also reminding the consumers about the original positioning based on calcium and strong teeth. As a market leader, Colgate has to constantly be ahead of the game in this highly competitive market. The Indian toothpaste industry is witnessing changes prompted by the initiatives by brands like Patanjali Dant Kanthi. The new campaign definitely helps Colgate stay ahead of the competitors for a while.
Brand: Acko
Company: Acko General Insurance Co Ltd
Brand Analysis Count: #589
This is the era of digital technologies disrupting traditional business models. The same is happening in the insurance industry in India too. Acko General Insurance Co Ltd is the first digital-only insurance startup in India. The company aims to sell its products only through online and operate only in the digital space.
The Indian insurance industry is estimated to be around 1,20,000 crore and growing at 15-20% annually. The large population and limited penetration offer a large potential in this huge market. But the size of the market itself creates problems for the insurers. When the insurance industry opened up, a lot of global insurance players entered the Indian market but soon they found that cracking the diverse and large market is not that easy. This has led to a wave of consolidation in this space.
Insurance in India is a highly regulated market and demands huge capital investment from the players.
Acko is a startup which aims to disrupt this space. The company which launched its operations in 2017 is India's first digital-only insurance company. This means, unlike traditional insurance companies, Acko will not have a network of offices, rather everything will be app/web-based. This translates to lower cost and competitive pricing of the products for the consumers. Traditional insurers depend on a wide network of insurance advisors and offices to serve the customers.
Acko launched its first product - auto insurance and claims to have reached the milestone of 20 million customers in the first year itself.
To create awareness, Acko is running the campaign with the tagline " Full Paisa Wasool " insurance which means - complete value for money insurance. The brand is positioned as a value-for-money insurer and betting on low price as the key differentiator.
The campaign which is humorous is also an example of using anthropomorphism in advertising. Anthropomorphism denotes the use of non-human characters in advertising for conveying human traits.
As a consumer, there are certain issues that this brand needs to iron out. First is the awareness regarding the brand. While the advertisement is good and generates eyeballs, for a customer, building trust is vital especially in the case of insurance. Auto insurance, in particular, is a price-sensitive segment, however, the customer should first be assured that he will be taken care of by the firm. I had to search a little on the internet to find the pedigree of this company. Although it is true that this company is targeting digital-savvy customers, in the era of convenience the firm cannot entrust the trust-building task to the customer only. Further, the website of Acko also has very little information about the company.Second issue is differentiation. The idea of digital-only insurance although is new, is not protected from emulation by competition. The established firms will be ready with their own version in no time. How Acko will be able to tackle the competition will be an intersting to watch.
One of the important foundations of trust is the performance of the brand. If Acko is able to deliver the promise of its digital insurance products, this brand will create a new path for insurance startups in India.
In 2015, Maruti launched a new channel to cater to the company's foray into the premium four-wheeler segment. The new channel was branded as Nexa. Nexa catered to the premium range of cars from Maruti like Baleno, Brezza, Ciaz etc. The Nexa showrooms were designed to project a premium feel for the segment of customers that prefer premium cars.
It was a challenging move for the company because the multi-channel strategy has its share of problems like organizational challenges, differentiation challenges, channel conflict, redundancy etc. The need for a premium channel arose because Maruti started off as a maker of affordable cars. Its range of cars was never targeting the premium segment. Some of the earlier forays of Maruti into the premium segment also failed to achieve traction.
Recently the company tasted its success with the mid-range and premium segment with some smart brand launches. Having a premium channel like Nexa enabled to company to give a different kind of experience to this segment.
In 2017, the company rebranded its traditional channel to Maruti Arena which sells the mass market brands like Alto, Wagon-R etc. The company also have a commercial channel and True Value channel for used cars.
In theory, the company has followed a Marketing Channel Segment Differentiation strategy where the channels differ in terms of the customer segment which they cater. Another type of channel differentiation is Task Differentiation where the channel members differ in terms of the tasks they perform.
Although the company has tried to create channel differentiation, there is still overlaps in terms of products. While some brands are exclusive to Nexa, some are available in both the outlets which can create potential channel conflict. Marketing Channel differentiation based on segments works well when there is a minimum overlap of characteristics across segments. Here in the case of automobiles, there is bound to be segment overlaps because of pricing overlaps as well as aspirational factors. We can see that the price of high-end variants of hatchbacks is equal to the price of certain mid-size entry-level variants. So the firms who have a channel differentiation strategy should ensure that these overlaps be kept a minimum.
But with the huge market share and product sales, the channel members at this point of time may not be complaining too much about the cannibalization of sales.
Wills Lifestyle was ITCs foray into Indian textile market. Launched in 2000, Wills Lifestyle initially was pioneering the premium fashion clothing market in India. The brand when it was launched was seen as an attempt by ITC to keep the equity of the cigarette brand Wills. Since cigarette brands cannot advertise, a clothing extension would be helpful in sustaining brand awareness. I viewed it as a case of surrogate advertising.
Contrary to my assumption, ITC had other plans for the brand. Will Lifestyle quickly became successful as a premium clothing brand. The company expanded the brand franchise through retail stores across the country. In 2006, Wills Lifestyle became the principal sponsor of India Fashion Week. Through this fashion event, Wills Lifestyle became associated with fashion thus differentiating itself with the other clothing brands. However, the product was priced at a premium this restricting its scope into a niche brand.
Over a period of time, the clothing vertical became a laggard in the ITC portfolio and I presume that the company's foray into the FMCG segment had all the management attention.
This year, the brand has a major restructuring. ITC has rebranded Wills Lifestyle into an acronym WLS. The brand also has a new positioning - sinless clothing which means 100% natural.
With the rebranding, Wills Lifestyle has severed its ties with the cigarette brand.
It is a very bold and risky move since at one stroke the brand has lost the source of its awareness. Now ITC will have to move the awareness of the older brand to the new brand name and that involves a whole lot of money. The new positioning of ' Naturalness ' is the buzz word in the FMCG space and ITC is hoping that the clothing market would also follow the trend. Also being natural is a good excuse to charge a premium!
WLS has adopted the tagline 'Live Natural ' to support the new positioning. The relaunch saw teaser ads across the print media.
Wills is a powerful brand which has huge resonance among the male segment. Trading that powerful brand for an acronym does not make much sense in the marketing point of view. However, ITC may want to disassociate other businesses from the cigarette brand so that in future ethical questions can be avoided.
A rebranding of this scale requires that the brand has to start afresh, right from identifying the source of brand equity to reworking all associated brand elements. With huge cash reserves, ITC does not have a financial issue in building awareness for WLS. What I am little skeptical is the " Natural " positioning platform of WLS. I don't see this as a compelling attribute, especially for a premium clothing brand. Time will tell.
Departing from the usual pitch based on functional benefits, Horlicks now have moved into emotional territory with the new campaign Bottle of Love. Horlicks has been very consistent in the brand campaign throughout its brilliant life in the Indian market focusing on the benefits. The " Taller, Stronger, Sharper " proposition has been very well received in the Indian market and Horlicks continued to be the market leader in the segment in India.
The new campaign is an interactive campaign which is emotionally laced targetting mothers. The campaign features Kota which is a place famous for competitive exam coaching. Aspiring medical and engineering candidates flocks to this place for coaching and the setup there is grueling and very competitive. Kota provides a relatable example of exam stress and Horlicks wants to provide solace to the kids.
The campaign is very well made and has already become very popular in social media.
The campaign is followed with ground activation where the brand wants the mothers to log into the site bottleoflove.in where they would get an empty bottle. They need to fill it up with anything that their kids love and Horlicks will ensure that the bottle will reach the kids.
In recent interviews with the media, the campaign managers tell that the idea behind the campaign is the fact that every house will have one bottle of Horlicks and the bottle will serve as the carrier of emotional nutrition for the kids.
The transition from functional nutrition to emotional nutrition is a clever positioning move for the brand. The functional nutrition value proposition has been commoditized with a lot of brands taking up that positioning. Further, the Indian market has also seen new product launches specialized in functional nutrition. It thus makes sense for Horlicks to ladder to a higher order benefit and Emotional Nutrition fits perfectly. The concept is powerful and scalable across the brand portfolio and also resonates with the target market.
Palmolive, one of the oldest brand of soaps in the Indian market has not been able to do justice to its existence. Despite its rich heritage, international pedigree and a strong parent, Palmolive has always remained a fringe player in the highly competitive Indian market. At one point in time, Palmolive had a range of products ranging from soaps to shaving cream. The shaving cream featuring Kapil Deva was a huge hit in those days.
Later, however, the company focus shifted from soaps and Palmolive was sidelined in the marketing front. There were sporadic interests in the brand but all those were
half-hearted ones.
This year, the brand is again making a comeback of sorts. The brand has launched a new range of facial bars with the positioning of being Natural.
The brand is currently running the relaunch campaign.
The company is trying to bring in some freshness to the brand in this relaunch. The brand is relaunched in three variants including charcoal variant.
The brand now has the tagline " Glow Naturally" indicating that Palmolive is trying to bank on the current trend towards natural products.
It is good to see some interest in developing this brand. Palmolive have strong awareness in the market but I feel that there is no strong association with the brand which it can develop. One of the task for Palmolive is to rediscover the source of equity and build on that.
Nerolac, which has a legacy of more than 100 years has always been playing second fiddle to Asian Paints in the Indian paint industry. Both in the field and advertising space, Nerolac was not able to beat the market leader Asian Paints. Probably after a long time, Nerolac had hit a bullseye in finding a credible message for its consumers.
The latest campaign of Nerolac- There is a little bit of Nerolac in your life, is a creative breakthrough for this brand. Everyone who has seen the ad was surprised at the message - the fridge, the car, the appliances are painted with Nerolac. That indeed is a powerful message which will change the way the brand is perceived.
The basic idea is to leverage the brand's credibility in the industrial segment to the consumer segment. Indian paint industry which is worth around Rs 47000 crore is classified into Decorative Segment and Industrial Segment. Decorative Segment constitutes 75 % of the total market. Asian Paints is the market leader in the whole paint industry with a whopping 41% share while Nerolac has a share of 14 %. But in the Industrial segment, Nerolac leads with 35 percent share.
To counter the market leader Asian Paints iconic campaigns capitalizing the emotions associated with color and home, Nerolac so far tried all strategies including roping in Big B for their campaigns but with limited success.
This time, the brand roped in the energetic Ranveer Singh as the brand ambassador. But the star of the campaign is the Big Idea. The campaign is very effective in driving the home that the home appliances which usually have the durable painting are being painted by Nerolac. That message instantly conveys credibility to the brand. Nerolac was able to give a piece of very powerful evidence to its core strengths - performance credibility. Ranveer Singh brings a touch of humor to the whole proposition.
This idea although very powerful does not have longevity in the sense that this cannot be continued for long. The brand needs to milk this idea within a short span of time and then move on with some sustainable proposition in the next phase of the campaign. For now, hats off to those brains who came up with this idea.
Hamam which has a rich legacy dating back to 1931 is charting a new course in its marketing communication strategy. This 300 crore brand from HUL has been positioning itself on the basis of its ingredients - Neem and Tulsi since its inception.
In 2017, the brand tried to change its course moving from the functional benefit platform derived from its ingredients to a higher order benefit. In marketing parlance, it is called brand laddering.
According to news reports, this is the first time that Hamam is moving away from the functional benefit positioning.
The 2017 campaign #GoSafeOutside aims to use the " women empowerment" as the platform for brand promotion. The brand is taking up the cause of safety of girls for its promotion.
The ad shows how a shy young girl is motivated by the mother to stand up on her own.
The concept of women empowerment is nothing new in the Indian marketing scene. Many brands including some soap brands like Lux have taken up this platform for brand promotion.
In this campaign, Hamam encourages the young girls to take up self-defense courses that would give them the necessary confidence to go out of their safe zone.
In 2018, the brand went further ahead with the campaign and tried to create a network of mothers called Hamam Mothers Safety Force. This network is intended to provide a watchful eye on the safety of young girls.
HUL is known for such ground level activation in its various cause marketing campaign for its brands. The brand should be lauded for identifying a potent issue regarding women safety and doing something about it. The brand runs the hashtag " GoSafeOutside for this initiative.
The success of a cause marketing campaign revolves around the relevance, brand connect and the impact. This campaign is very relevent in today's times. It needs to be seen how HUL carries this forward to create a lasting impact on the consumer's mind.
Cadbury recently launched a new brand Crispello in the Indian market. The new product is the company's second entry into the crispy chocolate segment, the first being Perk. The new brand will be fighting with the likes of KitKat, Galaxy etc. While this segment is dominated by chocolate covered wafer products like KitKat, Cadbury's Crispello is a wheat crispies covered with chocolate.
The Rs 8000 crore chocolate market is witnessing intense competition with global players fighting it out for the share of the pie. Now the who-is-who of the players are in the market and to be in the game, brands need to constantly innovate.
Crispello is targeting the new generation of customer who is always looking for a variety of experiences. Crispello is targeting the customers who want light indulgence snacking options. According to company reports, the brand understands that customers of this generation want multi-textured and complex experiences and the brand aims to deliver that option.
The new brand follows the same brand architecture of other Cadbury brands. The new product is endorsed by the category brand- Cadbury, followed by the family brand - Dairy Milk.
The brand also follows usual positioning of Dairy Milk centered around the concept of " Kuch Meetha Ho Jaye ".
The launch advertisement is also in sync with the positioning. Interestingly Crispello is positioned as a healthy diet snack targeting women in Europe.
The strategy followed by Mondolez which has been ruling the Indian chocolate market is to keep the excitement going among the consumers. The Cadbury brand has seen a lot of product launches which had kept the brand in the limelight. Some of the launches have been highly successful in the likes of Dairy Milk Silk.
With global brands like Mars, M&M etc stepping up the game, the market leader is also making aggressive moves to stay on top. Exciting times ahead in this market.
This October saw one brand coming back to life. Hyundai decided to name their new entry-level hatchback as Santro. Indian market is witnessing an interesting brand name phenomenon of a resurrection of dead brands. After Santro, Mahindra is launching the Jawa brand. Ads of Dianora ( remember Dyanora brand ?) brand is there in some channels in Kerala.
Santro in the earlier avatar had a dream run in the Indian market. It paved way for Hyundai to become the second largest car maker in the highly competitive Indian market. However, Hyundai decided to put the brand to rest and opted for a strange alpha-numeric brand i10 as the successor. Although the brand found acceptance, it was not a blockbuster brand like Santro.
The new Santro has no similarity with the old models. Neither in looks or in the technical specification. The product looks like a car born out of i10 and Chevrolet Beat.
In the brand communications, Santro tries to link itself to the old Santro's USP of a tall boy design, however, the new Santro does not look like a tall boy.
Just like the relaunch of Baleno, here the company has used a very famous brand name for the new launch. There is no need to be nostalgic about it. There was some nostalgia when I heard the news of Santro relaunch but that vanished when I saw the new Santro being totally different from the old.
So why a sudden rush for dead brands. The only reason is the brand awareness that some of these brands carry across all these years. For example, Jawa and Yezdi still have huge awareness among the Indian riders. We also know that these bikes were real headaches in terms of mechanical failures and ride quality. You need extra-strong calf muscles to make a Yezdi start. But since those were the only options, consumers tend to buy it. When better bikes came, these brands died.
In the case of Santro, it had strong equity created out of excellent product performance. Old Santros are still running without any issues.
By launching the new product with an old brand which has excellent brand awareness ( recognition + recall) gives a real boost to the launch efforts. There need not be any investment in building awareness by using an old brand. Since Santro did not have any issues in the previous life, it does not come with any baggage. Hyundai just had to fuel a hype of an old brand resurrected, the media will take care of the rest of promotion because of the news value. The launch of Santro had earned a lot of earned media space just because of the brand name.
Hyundai had priced the new Santro in a sweet spot and according to auto-portals, the product offers excellent value for the price paid. Automobile market success heavily depends on product and service related attributes and less on brand-related attributes. Santro again depends on how the car works and with Hyundai's track record, it will not be a problem for the new brand.
Skoda came into the Indian market way back in 2002 with the highly successful premium sedan Octavia. Ever since the brand has created an image of a premium brand with very sturdy cars. However, the brand was eclipsed when the Indian market saw the likes of BMW, Audi, and Mercedes fighting it out with new models and brand promotion
. Somewhere down the line, the brand went into a slumber, my assumption is that when the Volkswagen brand was promoted heavily, Skoda went into sleep.
2018 is witnessing a comeback of sorts for this brand. According to newspaper reports, Volkswagen group is planning to put Skoda brand in the center of India 2.0 strategy.
One of the issues that the brand is facing is the perception ( rather truth) of Skoda being expensive to maintain in terms of service and spare costs. This issue was faced by Ford who ran a big campaign trying to change the perception.
To change the perception, Skoda is offering warranty and service package to the car owners and a celebrity-driven brand campaign.
The brand has roped in Boman Irani as the celebrity endorsing the new campaign. Interestingly Boman Irani is also endorsing Cars24 portal. Seems like he is the new favorite of Auto brands.
Skoda needs to change the perception of being expensive to maintain since the brand is expected to launch a series of products that will drive VW's share in the Indian market in the coming years.
Because of this perception, Skoda cars are not in the consideration set of most of the customers who look for an upgrade in the mid-range segment. In my opinion, Skoda is a kind of squeezed in the Indian car market with the luxury segment being dominated by brands like Audi, Benz, BMW etc while the premium segment is witnessing the intense competition between the likes of Honda and Suzuki.
The money that the brands like Skoda and Ford had to incur to change the perception of being expensive to maintain brand is a lesson to marketers. Perceptions are easy to create and often created without a thought. Once the perception is set in the mind of the target market, it will burn a hole in the brand's pocket for a long time.
Sting is the Pepsico India's challenger brand in the Rs 200 Crore sports and energy drink market in India. According to Livemint, Indian sports and energy drink market are in a nascent stage with a consumption of 45.2 Million Liters in 2016. Redbull rules the market with a share of 64%.
The size of the Indian market and the growing interest of the consumers towards non-carbonated and less sugary drinks has made this a very attractive market for these products. Moreover, the government has come out with norms for energy drink market which makes a clear regulatory framework for the players.
Sting is launched with the positioning of product performance. The tagline of the brand is " Electrifying Energy, Ultimate Taste". The launch ad is effective in communicating the positioning but cannot be claimed as anything creative because it reminds of the Center Shock ads of the past. The ad is targeting the health conscious young Indian consumers.
The brand is priced almost 50% less than the market leader Redbull. I have not seen this brand in my city. I guess, the national rollout has not happened yet for the brand.
Indian sports and energy drink market is still a niche market. Although there is a shift towards healthy drinks, consumers ( in my opinion) is little confused about the product usage. In marketing terms, the category lacks salience. The brands in the category need to educate the consumers about the product usage and usage situations in order to expand the category. Although we can argue that the product descriptor ( energy drink) is there in the product label, that will only help in category identification. If the category needs to expand, it should make more usage situations for the product. Currently, the category is popular among sports enthusiasts which restrict the growth of the market in terms of market size.
The low price of Sting may induce more product usage for the brand and thus offer a challenge to the market leader. However, Sting needs more than the quirky launch campaign to challenge Redbull.
Santoor, one of India's largest brand has been on a roll these days. Recently, the brand became the second largest selling soap by volume, toppling HUL's Lux ( Source). The success of the brand is attributed to the consistency and focus in brand building.
Recently an interesting twist has happened in the brand's approach to positioning. The brand relaunched its Santoor Gold in a new avatar. Santoor Gold was launched in 2015 as a premium variant differentiated by the presence of Sakura extracts and saffron as the ingredient. The product was launched initially in the southern states like AP. Three years later, the variant is relaunched. This time the sakura extract is missing and prominence are given to the saffron and sandal ingredient.
More importantly, the ad of this variant does not follow the core positioning of the parent brand - the mistaken identity.
This is a drastic change in terms of the brand's positioning strategy.
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The earlier campaign of Santoor Gold followed the mistaken identity theme. The question remains as to why the brand chose to tread a new path for its variant? One scenario is that the brand is testing a new positioning different from the age-old one with the new variant. The second scenario is that the brand chose to have a new positioning for the variant targeting a much younger crowd.
However, theoretically, it is always better to have the variants following the positioning theme of the parent brand otherwise the synergy of the brand-line promotions will be lost.
Recently Vini Cosmetics Ltd, which is famous for the Fogg brand, launched a new brand Prepair ant-ageing segment. The Indian anti-aging market is worth around Rs 1500 crore ( as per Business Standard) and around Rs 2600 crore as per IIFL. The market is at a nascent stage but is expected to grow owing to the aging population and expansion of the category by marketers.
The market already has seen global brands like Olay in the past. However, Olay was skimming the market with its premium positioning. Later the market witnessed the entry of HUL with Ponds Age Miracle range and Nivea with Q10 Plus. But these global brands tried their luck in the premium space of the segment.
Vini Cosmetics has probably spotted the gap in the market and has launched the brand Prepair aiming at the larger pie of the segment at a lower price point. Prepair is created as a family brand endorsing multiple products in the anti-aging segment. The company has launched Prepair regenerating skin cream for women as Prepair 4050. For men, the company has launched Prepair 40+; probably men won't mind if the brand says openly that it is for the age group of 40 above. The brand name is a compound brand name or Lexical brand name combining Prepare and Repair. The tagline is Be Prepared.
The brand is launched with ads that are aimed at category development. The ads are plain-vanilla informative in its execution.
There are separate campaigns for male and female segments.
The large FMCG market in India offers a lot of opportunities for niche products. The Indian market is such that these niche markets often grew to become large segments. Vini Cosmetics is betting on the anti-aging personal care segment as one which has the potential to grow big.
Too Yumm! is a brand which created a lot of interest during the IPL 2018. This is a new brand from the RP-Sanjiv Goenka group. It's for a long time such a big ticket launch is happening in the FMCG space.
Indian salted snacks market is worth Rs 23000crore as per Economic Times. The salty snacks market is further divided into following sub-segments; India namkeens valued at Rs 9500 crore, Potato Chips valued at Rs 5500 Crore, Extruded snacks valued at Rs 4300 crores and Bridges valued at Rs 3400 crore. (Read the ET report here)
Too Yumm! is positioned as a healthy alternative to the existing potato-based chips dominated by Lays. As India moves towards more healthy snack options, the new brand aims to take advantage of this trend.
Since Too Yumm! is fighting the giants like Pepsico, the brand has taken an aggressive stance. It has roped in the Indian cricket team captain Virat Kohli as the brand ambassador. Virat was recently in news for declining to renew the Pepsi contract. He has taken a stance that he would endorse only products which are promoting good health. (Source: NDTV). So getting Virat to endorse Too Yumm! is a big coup of sorts.
The brand is positioned as a guilt-free healthy tasty snack. The introductory advertisement was very loud in conveying the message of a guilt-free snack.
The brand uses the tagline " Eat Lot, Fikar Not" and the terms " Fikar Not" is retained in the subsequent campaigns which means worry not. The brand later followed up with the launch of multi-grain chips which has the proposition of baked not fried benefit.
The ads also had some shock value with a fitness icon like Virat endorsing chips and also the visuals showing him non-stop munching. In the later part of the ads, the endorser clarifies on the healthy nature of the product.
In a marketer's perspective, the brand has ticked all the right boxes. The company has enough cash to burn in promotions. The brand has chosen the right brand ambassador and the positioning is also relevant in this environment. The brand is also priced at par with the going rate. Currently, the brand is available only in select cities.
The challenge for the brand is to sustain the differentiation. The proposition of a healthy snack is not defendable since the competitor can easily launch their own versions. Secondly, the momentum contributed by the high profile brand ambassador is also not a long-term solution.
Too Yumm! is all poised to ride the healthy snack food trend for now.
Patanjali's Dant Kanti has really made the market leader Colgate in a tight spot. The aggressive promotions and the positioning based on Ayurveda has slightly dented the market share of Colgate. More than the market share, the Ayurveda push may shift the parameters on which the consumers decide on the toothpaste purchase.
During the initial phase, Colgate tried to counter the Dant Kanti's challenge by strengthening the existing variant Colgate Herbal and Colgate Salt. But that did not make an impact on the forward march of Dant Kanti.
Colgate then used the flanker brand Cibaca to fight the challenger. Earlier, when the price warriors like Anchor and Babool challenged Colgate, the market leader used Cibaca to neutralize the threat effectively. This time, the same strategy was used by launching Cibaca Vedshakti which boasted of the natural content. The flanker brand was priced at almost 30% lower than Dant Kanti.
The strategy seemed to have failed. Recently Colgate launched another variant Colgate Swarna Vedshakti in the Ayurveda space. This time the market leader is launching a direct attack on the competitor with the flagship brand.
The variant is priced at a premium to the challenger brand. The new variant is positioned as a toothpaste that combines traditional with modern.
The ads follow the testimonials from mothers to build authenticity to the brand. The current campaign is aimed at increasing the adoption of the brand.
Now Colgate has two variants with the similar brand name ( or part)- Colgate Cibaca Vedshakti and Colgate Swarna Vedshakti with different prices. My hunch is that Colgate is migrating Vedshakti to the parent brand and may discontinue Cibaca Vedshakti in near future.
Colgate has realized that Dant Kanti is not about fighting on price. Patanjali is making the Ayurveda segment of the toothpaste market which was a niche in to a mainstream segment. If such a shift happens then Colgate's leadership position will be under threat. Colgate probably had done the right thing by fighting Dant Kanti with its flagship brand.
Kaytra is an interesting brand story. The brand is from the AVA Group which is the owner of the famed Ayurvedic brand Medimix. Kaytra is a brand jointly created by AVA Group and the celebrity hairstylist and makeup artist Ambika Pillai.
This is an example of co-branding and if you observe the logo, you can see the name of Ambika Pillai along with the Kaytra brand. It is not a unique case since Indian market has witnessed many such co-branding exercises.
As a professional, Ambika Pillai commands a lot of respect in the market. Kaytra's brand promise is that it is created using the expertise of Ambika Pillai. The brand is positioned as a premium product with the personal endorsement from the celebrity hairstylist.
The brand is now testing the waters in the Kerala market and according to media reports, the brand will be launched in other markets soon. Having said that, I have not seen the products in any of the supermarkets so far. Probably the brand is very selective in the distribution.
The advantage of Kaytra is that AVA Group has expertise in FMCG market and through Medimix has sufficient distribution reach. The second factor is that Ambika Pillai is personally vouching for the brand which adds a lot of power to the authenticity of the brand. The source of the brand equity for Kaytra is Ambika Pillai and her reputation.
On the promotion side, the creator has been able to get the endorsement from many of her celebrity clients and the brand is generating content about personal care in social media. Ads featuring Ambika Pillai is also aired on various television channels.
According to the brand website, Kaytra is the Sutra of good skin and good hair. Interestingly there is no tagline for this brand.
For a product in the hair-care space, the survival of the product solely lies on the tangible performance. Hope that the brand will live up to the expectations set by the creator.
In 2017, Jyothy Laboratories ( JLL) launched a new product in the small but growing toilet cleaner market in India. Branded as T-shine, which probably is shortened version of Toilet-Shine, JLL is entering into a market dominated by Harpic.
JLL always launches the products with some uniqueness which has helped its brand beat large competitors. It launched Ujala in the liquid form, Exo with anti-bacterial properties which forced the market leaders to scramble for points of parity.
In the case of T-shine also, the USP of the brand is that it claims to be 100% organic. The Point of Difference is based on the allegation that the existing players in the toilet cleaner market use harmful acids which can cause respiratory issues.
T-Shine claims that since it is 100% organic, it is safe. The market leader Harpic's USP is the cleaning capability. Harpic has been effective in communicating that to the consumer. Having a sparkling toilet is something of pride - as per the brand communication. Domex, the other major player has been focusing on killing germs. T-Shine is trying to create a separate identity focusing on the organic nature of the product.
With Patanjali also aggressively entering the space, we will see a slew of organic variant launches in this segment.
In a surprising move, Coca-Cola launched a new variant for Thums Up celebrating 40 years of glorious challenging existence. The new variant is named Thums Up Charged. According to the company, the brand has more thunder in it compared to the parent product.
Thums Up Charged is currently running the launch campaign featuring the brand ambassador Ranveer Singh. As we know, Ranveer Singh replaced Salman Khan in 2016. With the new brand ambassador, the brand had also changed the narrative. While Thums Up always had the theme of the protagonist chasing the product and doing what it takes to get hold of the product, the new theme completely destroys the core promotional theme by making the protagonist a superhero with the brand as a sidekick.
The new variant also follows the same theme of the hero doing unbelievable stunts and brand is positioned as an enabler. The current ad is hyperbole at its worst and one wonders what the brand is trying to communicate.
The act of racing in reverse gear is something I cannot comprehend even in my dreams. While the earlier campaigns featuring Salman or Akshay, there was hyperbole but in those ads, the fact that the stunts are done for getting the brand made sense. There Thums Up was the hero, not anymore.
The logic of launching Thums Up Charged is also intriguing. What can be the possible reasons?
The stated reason is to expand the brand and fuel growth. Often brands use product-line extensions as tools for growth. But the question is whether a brand like Thums Up needs a variant for growth. My understanding is that Coca-Cola never aggressively pushed for growth for Thums Up. The brand is so strong that it doesn't need a variant for growth, only focused efforts from the company are needed.
A conspiracy theory from my side is that the company may be trying for a taste change for the brand. According to newspaper reports, the Thums Up Charged have a higher amount of caffeine which gives it more punch compared to the original one. The new variant will test the new taste and if the consumers accept the new taste, then slowly the variant will replace the original one in future.
The performance of Thums Up Charged would be an interesting thing to watch for months to come. This summer would decide the fate of this variant and the future of original Thums Up.
However, here is wishing a Happy 40th Birthday to Thums Up.
Veeba is an excellent example of forward integration. The company which is one of the major suppliers of salad dressings and sauces deciding to enter into consumer retail. The company is a major supplier for brands like KFC.
In 2015, the company decided to enter into the consumer retailing of its wide range of sauces, dressings etc and in December 2107, Veeba made an aggressive marketing campaign across the various media.
Indian food industry is worth $48 billion (source: Livemint) and is witnessing a lot of action owing to the changing demographic profile and a shift in consumer behavior. The relevance of a brand like Veeba is enhanced because of the shift in consumer behavior. According to this interesting piece from Best Media, Indian consumers are becoming foodies. Not only that there is a trend of experimental cooking at home but in that consumers look for convenience.
The interest in the food is not new in the Indian market. However, we are also seeing an influence of West in the food habits which is also reflected in the home cooking part. Veeba tries to capitalize on this trend and one of the news report calls the products of Veeba as " enabler" which is a very good description of the brand.
The brand campaign by Veeba correctly captures the value proposition of the brand.
The ad highlights two main value proposition of Veeba - Convenience and Variety. The brand has the tagline " Aaj Kya Khaoge " which translates to " What will you eat today " gels well with the brand's value proposition.
I feel that as a brand, Veeba has hit the right notes to capture the attention of the consumers. The brand is also priced quite competently and is available in many supermarkets although the distribution is yet to reach its required intensity at least in my city ( Cochin).
The brand's major challenge is competition. It is interesting that the owners of Veeba created the brand Fun Foods which was sold to the German company Oetker which is also in the same line of business. If you go to a supermarket, we can see a lot of brands jostling for space in this category. While Veeba has essentially created an attractive value proposition and brand awareness, the sustainability of this will be crucial to brand's success in future.
Brand Trust is an important concept that is of interest to both practitioners and professionals. The brief video highlights the basics of brand trust and its important dimensions.
In December 2016, Bajaj Auto launched a new product line under the brand Dominar. Dominar was Bajaj Auto's challenger for the market leader in the 250- 500 cc premium motorcycle segment - Royal Enfield. Royal Enfield commands almost 96% share in this segment. According to reports, Royal Enfield managed to sell 3500 - 4500 units every month.
And Dominar arrived in style. The launch was marked by a campaign which made fun of the market leader.
The advertisement had two objectives. First is obviously to create attention and it does with perfection. The second objective is more subtle. The objective is to establish a competitive frame of reference in the mind of the consumer. Dominar doesn't want to be seen as a sports bike in the same class of the best selling Pulsar. If the customer categorizes Dominar in the same category as Pulsar, it can lead to cannibalization. Hence Dominar wants the consumer to consider the brand as a competitor for Enfield even though the brand looks very different from the market leader.
Another objective is the create a comparison with the exemplar - in this case, Enfield, and thus make the consumer compare the brand with the market leader thus making an entry into the choice set of the consumer.
Dominar is positioned on the performance platform. The brand is positioned as a bike which is fast and powerful. The launch campaign " Not for Babies" was intended to position the brand as the fastest of the lot.
The results during the launch were very good for Dominar. It even closed the gap with the market leader in some months, but later the sales plummetted which prompted Bajaj to refresh the product line with new launches. Some decline is attributed to the GST effect.
Although the initial advertisement campaign was superb, the brand failed to sustain the creative onslaught. Dominar's current campaign " Dominar vs Social Media " is IMHO a dud campaign.
The campaign totally looks unbelievable and kiddish. From comparison with Enfield, the brand started its comparison with Social Media ?? This hyperbole not only misses the mark but also dilutes the positioning and image built around challenging Enfield. Probably this lack of creativeness caused the decline in the sales of the brand.
As per the news reports, Enfield continues the dominance in the segment. In a market where one player holds substantial share, there is always room for other players. But whether Dominar will be able to dominate the segment would largely depend on how the brand is consistently positioned against the competitor.
Indian e-commerce industry is on a song these days with Big Billion Days and Great Indian Festivals and products flying off from the web-shelves. According to KPMG, on an average, there are 1-1.2 million transactions happening in India every day. Indian e-commerce industry had done business worth $12 billion GMV in 2016. Analysts paint a bright future for this industry in years to come.
The backbone of the e-commerce boom is the logistics. According to KPMG report (Link), the logistics industry driving the e-commerce is worth $ 0.46 Bn and expected to touch $2.2bn in 2020.
With all these actions happening, our very own India Post seems to be taking a backseat in the whole festival. While Flipkart and Amazon have already built their own logistics arm, there are scores of entrepreneurs who want a reliable logistics partner who can reach the nook and corner of a vast country like ours.
Look at India Post, no one can beat the reach and equity of this institution. At the same time, the institution is also not in good shape financially. One year back the department has scaled down its post offices and closed down a lot of unviable post offices. In a country where last-mile connectivity is a bottleneck for many firms, India Post scales down its reach to become financially viable. Irony.
According to this report in ET (link) India Post is taking actions to reap the benefits of this e-commerce boom but not enough. By this time, it could have been the largest beneficiary of the boom. But sadly the institution failed to capitalize the opportunity. It could have geared up the infrastructure and technology to match the speed of the market. I think the game is not over yet with many new formats are being explored in the Indian market and lot of small shops are getting on the bandwagon. Hope that India Post can become the preferred partner for those firms who desperately need a reliable last-mile partner.
"My iPhone 7 is broken but am going to wait for iPhone X. I will manage with my broken phone till then " reads an instagram post of a celebrity. IPhone now has an Osborne effect moment. Osborne effect is when the announcement of a future product affects the sale of current product. Osborne effect happens when the future product is announced at the launch of current product itself.
This September Apple announced the launch of iPhone 8 and 8 plus. Along with the iPhone 8, Apple also announced iPhone X which is a most awaited product launch. IPhone X will be available from November. The announcement of thr next generation iPhone X will prevent many potential customers from going for iPhone 8 whose flagship status will have a short life of two months.
The interesting question is how the 8 and X versions co-exist?
It took Patanjali to wake the giant from slumber. The Rs 36,000 crore HUL has been disturbed pretty hard by the Rs 5000 crore Patanjali resulting in the relaunch of Ayush brand. It seems like a replay of the epic battle between Nirma and Surf, however, the outcome of the current fight remains unpredictable.
Ayush was launched by Hindustan Unilever in 2001. The brand at that time was launched to tap into the premium space in the Ayurveda personal care market. However, the plan failed and Ayush was sidelined in the huge brand-lines of the company.
Patanjali which was established in 2006, began aggressively marketing from 2015 and virtually ignited the growth of Ayurveda based personal care market in India. But what is surprising is that the multi-national giants like HUL, Colgate etc were probably in a state of Marketing Myopia. They failed to see the rise of Patanjali and could not counter the challenger. The result is that within a short span, Patanjali rose to a higher level of brand awareness and reasonable equity in a certain category of products.
The reaction of HUL was also on predictable lines, take an old brand, dust it off and relaunch. Thus launched the revised version of Lever Ayush. The next challenge is to counter the source of Brand Equity of Patanjali. Patanjali heavily draws its equity from Baba Ramdev. Lever Ayush chose the celebrity route. Along with the celebrity, the brand has chosen to partner with Arya Vaidya Pharmacy for the development of this product. However, the campaigns don't really promote this association which is a big mistake. Arya Vaidya Pharmacy has excellent equity and could have given more firepower to the brand in countering Patanjali.
In the relaunch, Lever Ayush has roped in Akshay Kumar as the lead brand ambassador. The brand is currently running the relaunch campaign across various media.
For personal care products targeted at the female segment, the brand has chosen Tamanna as the brand ambassador.
Lever Ayush is positioned as an authentic ayurvedic brand. The tagline of the brand is - Sahi Ayurveda - translated to ' True Ayurveda'.
It has to be seen whether the customer would buy that positioning endorsed by the celebrity.
In the pricing front, Ayush has shed the premium tag and is taking Patanjali head-on by launching the products in the price range of Rs 30 - 130. According to newspaper reports, HUL is promoting the Ayush brand in the Southern States.
The fight between HUL and Patanjali in the personal care space would be a good fight to watch for.
Matches Industry is an interesting one to study. The Rs 1500 crore industry is now in the declining stage of the industry life cycle. The decline of once indispensable product category was prompted by the popularity of gas lighters, decline of cigarette sales and increasing cost of production.
According to media reports, the safety matches market has declined by almost 25% last year.
Homelites is a brand which came into existence in 1987. The brand was owned by Wimco which was world's largest match manufacturer. Wimco was a market leader at that time which had the most popular match brand - Ship.
The decline of Wimco started in 2003 when ITC decided to enter the market with AIM brand. With the huge distribution muscle, ITC was quickly able to dethrone Ship and establish AIM as the market leader. The fact that ITC's cigarette sales network cover the length and breadth of the country ensured that AIM got an upper-hand over its competitor.
In 2005, ITC bought Wimco and now dominates the Indian Matches market. ITC follows the outsourcing model for this product. The product is sourced from small manufacturers and branded and sold through ITC's distribution channel.
Homelites was created to break the price-sensitivity of the market. Matches are considered to be a low involvement product with price and distribution holds the key to success. Earlier 92% of the market was dominated by 50 paise price point. Now it is Rs1.
Homelites was positioned on the long-lasting benefit. The product had extra-long match handles and was carbonized to give extra-performance. And it was priced at a premium of Rs 2 per pack.
I also happen to find a very good creative ad for this brand on youtube.
According to reports, 54% of purchases of this product category happens at home. With the popularity of gas stoves and gas lighters, there is a chance that this product category may decline further. Probably the usage would be limited to the lighting of the lamp for religious purposes. Theory says that one of the strategies to survive in a declining industry is to try and reinvent. Wonder if there is a scope for such a strategy in this case.
