Saturday, January 07, 2006

Colorplus : Underwear ? ... a rejoinder

In my earlier blogs I have praised Colorplus owners ( Raymonds) for their careful brand strategy and execution. I have in that blog wished that Raymonds will not mess up that brand. Seeing today's newspaper, I got the shock of my life , an ad of Colorplus Underwear. One of the best Brand Extensions I have ever seen in my life !!!

Let us see the rationale behind this wonderful extension. Colorplus is a respected brand in the premium menswear category. Men wear underwear. So men in the premium segment wear Premium Underwear. So why not launch a Premium Underwear ?. And since Colorplus is a premium brand, why not launch a Colorplus underwear?

Will it dilute the mother brand? No yaar, it is premium isn't it? Underwear always add value to the premium image of the brand. Oops !!!
Can it be called a backward integration ? May be a better word will be "undergration".

Well! enough of criticism! I thought I will do some research to find out why such a drastic move from Colorplus.
Hold your breath !
The Indian men's Innerwear market is worth around Rs 2500 crore ( I am also surprised!). The market is dominated by local and regional players. The organized branded innerwear market is estimated to be around Rs 750 crores. The premium innerwear market is worth Rs 120-150 crore.More interestingly this is a market which is witnessing a double digit growth.
No wonder ColorPlus is caught "Pants down"

The men's innerwear market is dominated by VIP with over 20% market share. The brand has been there for long and has established itself across the segments. Recently there has been lot of activity in the premium segment of the market.
2004 saw the launch of Hanes innerwear in the Indian market.Hanes is a 105 years old global brand which is worth around $2.2 Billion. The brand is launched in India by Sara Lee India Ltd. Hanes has targeted itself with "original Tagless Comfort". The emphasis on "Tagless " comes from the global research which showed that 2 out of 3 men are irritated by the tags in the innerwear. The brand is launched in India with some smart advertising from Mccann.
Another major player is the 125 years old global brand Jockey which has around 25% share in the premium segment of the market. This year also saw the Vanheusen brand from Madura Garments "Undergrating "to Underwears

But should you launch such innerwear through an extension?. This is a big market with a potential for a new brand. 2500 crore is a huge market. Why not a new brand exclusively for innerwear like VIP? Why should a Brand like Colorplus be diluted by a half hearted move in a new segment?
See the distribution dilemma that the brand will face .
To have a large market share , the ColorPlus innerwear has to be in all the shops that sell innerwears, that include small textile shops. If the company decides on an intensive distribution, then this premium brand will be visible to the customer in non premium outlets thus diluting the premium image and the exclusivity.
Again if the brand is restricted to select outlets, then the volume will not justify the brand extension, because convenience of purchase is an important criterion in this segment since the value of the product is low.Customers may not travel to a large textile shop to make such a purchase.

Well , If Colorplus is a brand that has been nurtured through careful advertising , this is an extension that could have been avoided.




Friday, January 06, 2006

Maggi : Its different


Brand : Maggi
Company: Nestle
Agency" Publicis

Maggi owned by Nestle is a brand that created a category for itself in the Foods market in India. The brand which is famous for the Noodles has evolved into the umbrella brand for Nestle in the Food segment.

Nestle launched its noodles in the Indian market in the early 1980's. Nestle wanted to explore the potential for such an Instant food among the Indian market. It took several years and lot of money for Nestle to establish( I would say create) its Noodles brand in India . Now it enjoys around 50% market share in this segment which is valued at around 250 crores.

Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the Indian Psyche. Indian Palate is not too adventurous in terms of trying new tastes. That may be the reason why we are still stuck with Idli and Sambhar.
So a new product with a new taste that too from a different culture will have difficulty in appealing to Indian market.

Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women. But it found that the sales are not picking up despite heavy promotion .Research then showed that Kids were the largest consumers of the brand. Realising this, Nestle repositioned the brand towards the kids using sales promotions and smart advertising.
Now Indians are the largest eaters of Maggi Noodles in the world. Maggi Noodles is a marketing success story.

During 1997 Maggi changed its formulation. It was during that time that Indo Nissin - a Japanese company launched its Noodles brand "Top Ramen" with lot of promotion and with SRK endorsing the brand. TopRamen gave Maggi a run for its money. The change in taste of Maggi was a mistake. The consumers rejected the new taste of Maggi. And in 1999 Maggi relaunched Noodles with the original taste. Nestle was ready to accept the consumers verdict and it paid off handsomely. Top Ramen could not sustain the growth it had for long.

Maggi's campaigns were revolved around its "convenience to make and good to eat " qualities. Ready in " 2 minutes " was a proposition that was well received by the market.

In 2005 Nestle made a very smart move. It knew that although kids love noodles, the parents were bothered about the health aspect of Noodles which was made of Maida. Hence Maggi launched Maggi Atta Noodles with the baseline " taste bhi health bhi" .Reports suggest that after 10 months of the launch , the product has been well received by Indian consumers. Maggi noodles is an example of a brand that knows the customer and willing to learn from the mistakes.

Maggi also tried to leverage the success of the Noodles to other food products like sauces , tastemakers , soups etc.
Maggi sauces needs special mention because it is another success story. Maggi have a market share of 45% in the 180crore ketchup market in India. Maggi leveraged the brand equity very effectively. The product quality was good and the communication was excellent. The brand was positioned as a "Different" sauce with the baseline " Its different".

Customers was intrigued as to what is different about the brand and was curious to try the sauce ( may be surprised to find nothing different,but that is marketing honey!). The ads featuring Javed and Pankaj kapoor was superb and funny. It was created by JWT. The new campaigns are handled by Publicis and the baseline has been changed to " enjoy the difference".
There was no need to change the baseline,may be ad agencies have an ego problem in accepting the creativity of another agency. So agencies change the baseline even at the cost of the brand.In this case even though the new baseline " enjoy the difference" was not very different from the old one, was it a change for the sake of change ?
I strongly feel that the brand managers should take the ownership of the brand and the way it is communicated. If it is left to agency alone, every time the agency changes, the communication changes.
Maggi after its long and tough journey is enjoying its well deserved success. Let us wait and watch for more journeys of Maggi.

Thursday, January 05, 2006

Pond's : As beautiful as you want to be !

Brand : Pond's
Company : HLL
Agency : O&M


Pond's range of products were in India from as early as 1947 . This is a brand that has celebrated Women's courage and personality. A brand that has tried to evolve with the changing persona of Indian Women.

Theron T Pond, a Pharmacist from Newyork introduced " Pond's Golden Treasure" in 1846. It was a Witch-hazel based wonder product. In 1914, Pond's introduced the cold cream and vanishing cream and that moment marked the brand's evolution to a beauty icon.

In 1955, Pond's merged with another company Chesebrough. In 1987, Unilever purchased the brand from Chesebrough- Pond's.

Pond's is a brand that has been carefully nurtured by HLL. Till 1980's Pond's were a household name in talcum powders. Later the talcum powder faced competition from other categories, we call it as boundary blurring. Hence Pond's had to enter to different categories in the cosmetic market. Pond's have a market share of around 65% in the 600 crore Indian talcum powder market. Subsequently Pond's also became a generic name in the Winter care market. Pond's brand was known more during the nineties for its cold cream.

HLL decided that the brand have potential to grow in the cosmetics market. So Pond's was positioned as an all purpose skincare brand. The Indian cosmetics market is estimated to be around 1850 crore and in that the skin care market is estimated to be around 1300 crores.

In a survey on customers by AC Nielsen ORG Marg in 2003 , Pond's were among the most trusted brands in India. It was not by accident. Pond's had certain qualities that created a trust among the users of the brand. Pond's is known for

consistent Quality
Constantly Improving &
Changing with times.

I feel that all brands should have these qualities to succeed in the market.
Pond's knew the pulse of the market which made it a top brand in the cosmetic industry.
Pond's is targeting at the premium skin care market in India which is estimated to be around 325 crore. Currently Pond's is also aiming at the super premium segment and the launch of super premium range is expected in first quarter of 2006.

The target group that Pond's is aiming are the ladies above 30yrs of age. It is trying to capture the skin care needs with anti- ageing ,skin rejuvenation and anti- wrinkle products. Currently this segment is dominated by Revlon and other foreign brands.

Pond's uses the baseline " As beautiful as you want to be " I consider it as one of the best baselines currently on air. It tries to redefine beauty as something more than superficial. The baseline of Pond's cold cream " Googly Woogly Woosh" does not convey any meaning but the ads are lovely.

I have serious reservations of other ads of Pond's but I hope it appeals to the target market.

Pond's is a brand that is not complacent. In the talcum Powder category , Pond's have many variants like Dream Flower, Sandal, Prickly Heat ,and recently relaunched Magic. This has ensured that the leadership position remains intact.

Pond's is a brand for " Well grounded, self assured, and confident " women. HLL have used campaigns and events ( the prestigious Pond's Femina Miss India) to create and capture the beautiful moments in the life of the Indian Women.

Wednesday, January 04, 2006

Ujala : Char Boondom Vala

Brand : Ujala
Company: Jyothi Lab
Agency: Situations Advertising and Marketing


Ujala is a brand that revolutionized the fabric whitener industry. I consider Ujala as a super brand(although it is not considered by Super brands ) because
1. It changed the usage habit of the target market.
2.It dislodged the leader
3. It created a category for it self.
4. It has become a generic name.

You can seldom see such brands.

Ujala was launched by Jyothi Lab in 1993 in south India and its national launch was in October 1997. At that time liquid fabric whitener was non existent category. The category that was existent was the powder blue and was created and dominated by Robin Blue from Reckitt and Coleman. Robin Blue was generic brand at that time .

Ujala was not seen as a competition for Robin by Reckitt -a typical case of marketing myopia. The reason was that Robin commanded a huge market share and the liquid form required customer education and that is a hell lot of money to be spent on ads.

Reckitt was wrong. There was a customer need waiting to be satisfied.Powder blue had its inherent disqualification. Customers were not fully satisfied with the product. Ujala provided the solutions. Powder blues were messy, had to be used in large quantities hence less value for money, even after rinsing, there were traces of blue on the clothes etc. Reckitt was also slow in responding to competition. The liquid variant of Robin came very late.
Ujala carefully positioned itself as a
1.Reasonably priced
2. Conveniently packaged
3.Superior whitening
alternative to Robin Blue. Mr. Ramachandran who is the Chief Executive of Jyothi Lab was a marketing genius . He spent a lot of money on smart advertising. During 1990's the jingles of Ujala was all around in the radio.
From 26% in 1998, Ujala commands a market share of 70% in the category now.

Ujala campaigns executed by Situations Advertising is known for its simplicity and effective use of jingles to promote the brand. The Jingle " Aya Naya Ujala Char boondom Vala" effectively communicates the brand attributes.
It is also interesting to know that the consumers use around 3-5 drops of Ujala. That shows the trust that customers have in the brand.


Although we say that changing the usage habits of Indians is the most difficult things to achieve, Ujala is a brand that showed it is possible

Tuesday, January 03, 2006

Close Up : Kya Ap CloseUp Karthe hain?


Brand : Close Up
Company: HLL
Agency:O&M

CloseUp is the original youth brand in Indian toothpastes. Launched in 1975, this brand is the first gel toothpaste aiming at the youth segment. HLL through CloseUp have created and owned a segment for itself.
The 2200 crore toothpaste market that was dominated by Colgate Dental Cream needed some competition and Hll used CloseUp effectively to fight the market leader.CloseUp was a disruptive brand that changed the structure of toothpaste market in India. With the red colour and smart advertising , it forced the market leader to change its strategy and launch a gel variant.
The customer insight was that people are conscious about their breath and want to get close with each other with confidence. Based on this insight the brand was positioned on the Fresh Breath platform . The campaign was executed showing "Happy couples having fun together". Even film Theatres had corners called as "Close Up Corners". The brand had the aspirational persona in it. Close Up have used films and filmi songs to appeal to the Indian youth. Close Up was the first brand to introduce the " Self Check" of breath. The famous " HA HA" was the idea of Close Up introduced in year 1987.
In 2004 Close Up again was relaunched. During that period, the fight between Pepsodent and Colgate was hotting up. Both of these brands were owning the oral care platform and CloseUp 's share was coming down. Close Up found that its mono-attribute focus is losing the sheen .Hll relaunched CloseUp With Vitamin and Flouride . Thus CloseUp offered more than Fresh Breath it also offered Oral Care.
Close Up launched lot of variants that bombed in the market. The variants like Oxy fresh and Eucalyptus Blue failed in the market. HLL decided that only the Lemon variant will continue. The reason behind the failure of variant is because Close Up is a Sensorial brand. And in such kind of brands, variants will not work. In categories which are more rational, variants will work.

Colgate have given a run for money for Close Up with their gel variant. The "Talk To Me" campaign was a run away success. Colgate failed to capitalise on that campaign- that is another issue. But the gel variant took the breath out of Close Up.
Close Up had to reinvent to keep the category that it created. The account was shifted from JWT to O&M. Now the mother brand is focusing on three attributes : Fresh breath, White Teeth and Strong Teeth.
O&M have brought out a campaign " Kya aap Close Up Karthe Hain" which was perceived as "cool" among the market.
The recent campaign which aims at positioning on the "Smile " factor is a damp squib, the campaign is poorly executed and treats the target market as a bunch of adolescents who will do any thing to attract the opposite sex. Indians never was bothered about the way they look, let alone how their teeth look like. That is why 33% of urban market is not using tooth pastes and 67% of rural still use the traditional way of brushing teeth like neem sticks. So when the ad shows that a young person being conscious about their teeth, it does not click.( my opinion). I guess the agency have run out of ideas.

This is a brand that have created a category for itself. It will be sad if it cannot dominate that category. But that is what marketing is all about " survival of the smartest".

Monday, January 02, 2006

Pears : Pure and Gentle


Brand : Pears
Company : HLL
Agency : Mcann Erickson


Pears is one of the oldest soap brand in the world. Launched in India in 1902, the brand commands a unique position in the mind of the people. There is still virtually no competition for the brand in its segment.
Pears is unique from other ordinary soaps in that the glycerin is retained in the soap. Pears is famous for the transparency and company shows it as the sign of purity. The soap is mellowed under controlled condition and is individually polished and packed in cartons. The traditional Pears is amber coloured and there are two variants.

Pears originally was born in London in 1789. The makers of the soap were A&F Pears London owned by Andrew Pears and Thomas J Barratt( who is considered by some as a pioneer of advertising). They developed the 3 point strategy in promoting pears 1. Spot the gap in the market 2.Develop the product to fill the gap 3. Convince as many to buy the product. These three points are still valid in contemporary marketing. Even during that period, the product was promoted by smart advertising. The makers, co-opting with John Everett 's painting "Bubbles", blurred lines between ads and Art. They even came out with controversial ads at that time to promote the brand.


In 1917 Levers acquired the brand. In India Pears targets the premium segment of the market. Although the brand has a legacy, it is lagging behind Dettol in the category with a market share of around 4-5% in the segment and less than 1% in the overall soap market.
HLL has tried to strengthen the brand with two variants : Blue for Germ fighting and Green for Oil Control.
Of late , the brand is facing competition from Doy Aloe vera which offers similar quality at a reasonable price.
Hll has always supported the brand with careful advertising. The brand is promoted with the positoning as a Pure and Gentle soap. The transparency of the soap acts as the visual cue for purity and the glycerin content as the sign for gentleness. Pears commercials highlight the virtue of the soap using Mother and Child as the central theme . "Pears Mother" is used as the central character to appeal to the emotions of the target market.
Although this brand has been carefully nurtured, the brand remains a niche player in the soap segment.