Thursday, February 16, 2006

Vicco : Lost in the woods?

Brand : Vicco turmeric
Company: Vicco lab

Vicco Turmeric cream is India's first fairness cream although it is not positioned as a fairness cream. The product which is based on turmeric have a 54 year old history. The product was launched in 1956 missed the liberalisation era all together.

Although the product is successfully exported, the potential of Vicco Turmeric is not fully utilized in the Indian market. Vicco was marketed as a skin care cream . Over the years this product is stereotyped as a brand for " would be brides" . The ads which was aired for a long time had this theme.
In olden times this theme perfectly works since marriage is the most important occasion in a woman's life. But Vicco failed to understand the changing consumer trends which Fair & Lovely correctly sensed. Women have changed and their attitude towards life have also changed. Instead of marriage, now there are many occasions where women celebrate . Infact the stereotype of marriage now don't work. In simple terms the TG changed.
Vicco never was aggressive. It continued with its conventional traditional strategies while HLL marched away with the market.
Vicco Turmeric ayurvedic cream is in the naturals segment of Indian skin care segment which is estimated to be around 1300 crore. Except for Vicco there are no pure naturals brands in this segment . All major brands have a naturals extension some of them have failed miserably.
Vicco had huge potential because of its excellent quality , brand recall and more importantly the ingredient "Turmeric". It should have owned "Turmeric" factor. Now we see lot of local manufacturers selling turmeric powder to women to be used as a cosmetic. That was a market that Vicco should have concentrated. Fairever succeeded because of the ingredient saffron. Vicco could have made a killing with turmeric which is one of the best ingredient you can ever have. But alas....
Although there is lot of concentration on fairness market, there is a market for pure beauty creams which can give a wholesome solution to the consumers, Vicco turmeric had all that to be a leader.
A brand is built only if there is a clear strategy and support . Vicco failed to understand the changing value system of the customers. What it needs is a repositioning strategy based on the wholesome properties of turmeric and lot of noise in the market.
What a potential to be wasted.......

Wednesday, February 15, 2006

Wagon-R: For a Smarter Race

Brand: Wagon-R
Company: Maruti
Agency: Hakudo Percept

This is one of the successful brands from Maruti portfolio in the premium segment of compact cars. Wagon R was launched in February 2000 and has gone through several makeovers during these 6 years.

Wagon-R which was priced very steeply during the launch did a drastic price cut to appeal to the customer. Initially Wagon-R struggled with the value proposition. The quality of the car was excellent and Wagon-R was rated as a top quality compact car by JD Power Quality surveys. Once it got the price right and with the demise of Zen, Wagon- R had a jolly good run.

Wagon-R has a unique Tall Boy shape is one of the original tall boy cars although the credit for tall boy design popularity goes to Santro. Wagon-R was initially positioned on the basis of the functionality platform. Initially promoted as a family car with the baseline “Feel At Home” Wagon-R is yet to find the right message to be given to the customer

Maruti calls Wagon-R as a Multi- Activity vehicle t with a unique look, more space and excellent drive quality. Maruti likes Wagon-R to be perceived as an Off-beat car.

Maruti struggling to find the right fit for the car in the minds of the customer,changed the positioning from “ Feel At Home “ to “ Inspired Engineering” to “ As Interesting as You Are “ and finally to " For a Smarter Race " to project the unconventional design and the off beat persona of the car. These changes have not so far affected the sale of the car either positively or negatively. The car sold very well because the product was good. Since the competitor Santro has really bored the customer, Wagon-R gave a choice to the customer.

Recently Wagon-R changed the positioning again. The new baseline says “For a Smarter Race”. The campaign shows the young man doing the unconventional act like starting his own business and the chick getting really impressed by that. Very unlikely fit; such kinds of guys drive a Scorpio or a Safari. Also the locale of the ad is a riverside; Wagon-R is not an off-roader!

Maruti is still confused.

Wagon-R has the record of a brand which has changed the positioning so frequently like a baby changing its diapers. The sale is going north because the product is good contrary to the fact that the positioning is going south (We may have to test whether positioning affect the sales of a product. Wagon-R proves it doesn’t). Personally I don’t think that Wagon-R is bought by unconventional offbeat thinking yuppie. All my friends have bought this car because of its functionality as a compact city car: nothing more,nothing less.

As long as the product is selling, anything goes …..

Tuesday, February 14, 2006

Domex : 100% germ killer

Brand : Domex
Company : HLL
Agency : Lowe

This is a brand that is trying to challenge the unorganised sector. The household cleaner market is estimated to be around 400 crore and the phenyl market is around 200 crore. Domex is a major brand in the floor cleaning and disinfectant market in India.

Domex was launched in 1997 targeting the premium end of the market . Initially the brand was marketed as a premium specialist floor cleaner. Floor cleaners are less popular in the Indian households. Only 3% of the households use floor cleaners. 97 % use proxy products which are the combination of phenyl, detergents ,acids and bleaching powders.The purchase of floor cleaners depends on the demographic factors and the type of floors.

HLL realising the potential in this segment reduced the price of Domex from Rs 42 to Rs 22 to appeal to the mass market. Hll also tried to woo the hospital segment for Domex. It launched a co branded certification program called Domex Clean hospitals. This project was later put on hold.

Domex has a 30% share in the Rs 30 crore specialist floor cleaner market neck to neck with Lizol from Reckitt & Benckiser. How ever in the Rs 40 crore toilet cleaning segment Domex is lagging behind the market leader Harpic which have a market share of 75-80%.

While most of the players in the household cleaning segment focus on the cleaning ability, Domex is positioning itself as a germ fighting cleaner. It promises 100% germ kill ( if Domex is used undiluted) and is targeted at households where there are kids. Domex is also trying to fight Harpic using the " germ kill" platform. Harpic is focusing more on cleanliness. The ads are catchy and right on target.

Although the market for specialist cleaners is small the ultimate objective of Domex is to capture the unorganised Phenyl segment which is a larger segment. Domex launched a Domex + phenyl variant to capture this segment.
Domex also launched a direct to customer initiative named " phenyl Khallas" to educate the consumers about the virtue of using Domex comparing it with local phenyl.
Domex is a bold brand trying to capture a commodity market

Monday, February 13, 2006

Vimal suitings : Where art Thou ?

Brand : Vimal Suitings
Company : Reliance Industries Ltd
Agency : Mudra


One of the oldest and most respected iconic textile brand of India is languishing some where in the attic of the mega corporation Reliance. The brand which started of as a Saree brand developed itself into a mega textile brand for women , men and even for furniture ( Vimal Harmony is one of the largest furnishing brand).

Vimal suitings was launched in 1980 after the successful Vimal range of sarees. At that point of time Reliance was a predominantly a textile company. This brand was carefully positioned as a premium men's suitings brand. The brand which was handled by Mudra, was promoted heavily by Reliance. At that time the major competitors being Bombay Dyeing and Raymonds.

According to the case study of Vimal available in Mudra Website, the Vimal Suitings brand was developed in 4 stages . The first stage involved convincing the customer about the quality of the brand explaining the technology behind the making of Vimal in advertisements. The second stage involved creating a personality of the brand using living legends. In the ads, living legends like army veterans, experts in various fields were used as models to build the character of the brand as a credible brand. The third stage involved promoting the brand as a fashion brand or Style guru. The ads showed Kabir Bedi and the likes catched the imagination of the TG. The 4 stage used cricketer as models to appeal to larger crowd. May be Vimal was one of the first brands that used cricketer as models ( correct me if I'm wrong).

I would add the fifth stage as letting the brand die without giving it any marketing support.

The brand was targeted at the young ambitious who are challengers to the CEO's . The brand personality was stylish, and aspirational. Vimal was promoted using the famous tagline " OnlyVimal " created by Late Frank Simoes. The tagline is said to be personally approved by Dhirubai himself. The brand was a premium brand and the ads were catchy. Reliance also opened exclusive Vimal showrooms as a part of promoting the brand.

Later in the 1990's the Reliance business model changed. The company changed from textiles to petrochemicals and Vimal was not fitting into reliance business plans. It was the only retail brand of Reliance ( now we have RIM) and company never focused on Vimal.

As far as a marketer is concerned, Vimal was a great brand with huge potential ( whether it fits into Reliance plan is another issue). 90's also saw the shift in the consumer's preference towards readymades. Although reliance had a readymade brand "Reance" it was a half hearted move which resulted in a flop.

Vimal was known for its quality and style. Still people remembers its simple baseline " Only Vimal". Lack of marketing support had virtually killed the brand. Now the position that Vimal occupied is now owned by Raymonds and Reid & Taylor.
News reports suggest that Reliance may revive the Vimal brand owing to their retail foray and the opening of the textile sector to the global markets. Vimal have already being messed itself up with the launch of V2 brand which is cheap and available even in grocery stores. What a way to mess up a brand ! Vimal have stopped marketing sarees and is said to be concentrating on suitings. Suitings are becoming more popular because of the increasing globetrotters and professionals.

Reviving Vimal will be very difficult since this brand has lost its touch with the new Indian consumer.

Oh Vimal!

Friday, February 10, 2006

Nightingale : Experience The Finest In Paper

Brand : Nightingale
Company : Srinivas Fine Arts

Nightingale is a super brand ( my choice). There has been lot of debates and thinking about how to market a commodity. Want an answer? Study this brand. Nightingale has carefully built one of the best brands in an industry dominated by unorganized sector.Nightingale is the brand owned by Srinivas Fine Arts (SFA). SFA had a humble beginning. Started in 1964 by Chockalingam and Brothers, as a print trading company in Sivakasi, SFA have now become a global player with a presence in 5 continents. SFA later expanded their business from print production of textile labels to maps and graphs. In 1974 SFA started its own paper trading business. In 1992, it expanded to packaging, soaps and matches.In 1990's SFA introduced the Nightingale brand to the world.

The Indian stationery market is estimated to be around 5000 crores with the organized market accounting to around 500 crores. Nightingale now produces a wide range of products from Diaries to notebooks and journals.

Nightingale right from the beginning carefully positioned itself as a premium brand. The market for diaries was not hot and no effort on branding was visible. I remember only one player : Eagle brand for diaries and notebooks.

Nightingale changed all that. It has created and now owns the premium end of the diaries and notebooks with a clear market and product strategy.
Nightingale brand is built on Innovation , Quality and Image. The brand has carefully segmented the premium segment of the Diary market. IT has also ensured that the quality will be the major focus. During the early days, there was not much focus on the quality aspect for these kinds of products. It was basically a functional or utility product. Nightingale changed that perception and positioned the diaries as a lifestyle product.

Besides quality, Innovation was the factor that was crucial in branding a commodity. Nightingale based its product not only on functionality but also on concepts. The diaries and notebooks are concept oriented. For example, there are Nightingale diaries like Religious diaries (Nightingale was the first one to come out with a Christian diary), Environmental Diaries, Notebooks which are based on personalities, Diaries that have cartoons and quotes, Vedic diaries etc. Altogether there are 264 varieties of diaries from Nightingale.
Nightingale was the first brand to have diaries for various professionals like engineers, doctors which had special sections useful for these professionals.
Nightingale also markets its most expensive diary “ Silver Oak “ which is priced at Rs 57000. This undated diary has 140 gm silver ornamentation and designed by David Sarac. Already the corporate have grabbed this product for corporate gifting.

Let us look at how carefully Nightingale crafts each of the products. Take the case of a product called Layflat notebook. The product have long durability , It maximizes the use of space and have a special ruling and comes with a page marker. Each of the products has some qualities that make it worthy of a premium.

Innovations like a five year diary, undated diaries, theme based diaries personal journals like journal to write about your dreams, and Fashion diaries have made this brand a lifestyle brand.

With Nightingale , experience the finest in branding....

Thursday, February 09, 2006

Pleasure : Why Should Boys Have All The Fun ?

Brand : Pleasure
Company: Hero Honda
Agency: FCB Ulka

November 2005 saw the launch of the scooter from Hero Honda branded " Pleasure". The launch is a bold one because of two reasons
1. The scooter is going to compete with its technology partner Honda.
2. Hero Honda is perceived as a bike manufacturer.

Pleasure is a 102 cc scooter targeting the young ladies. The launch makes sense because the scooter segment is now growing and is expected to touch 1 million units. In the scooter segment , the ungeared scooter segment is growing very fast. Hero Honda wants to have a pie of this segment. It is a paradox in that in 1990's Hero Honda disrupted Scooters with its 4 stroke bikes and now it is introducing a scooter.
Pleasure is positioned as a Pleasure scooter. The company is targeting Ladies and Ladies only ( that is clearly and obviously cried out in the baseline and in the ads). That,I will call a sound strategy. If you are targeting ladies, why should you expect men to ride that scooter. So Hero Honda has decided that the brand will be for ladies. Pleasure is going to be sold through " Just4her" showrooms where the salesperson will be ladies . ( Men are going to be pissed off by that)
The product comes with 8 flashy colours and lot of features for the fairer sex like broader seats, electric start etc. So as far as the product concept goes, Hero Honda have a winner at hand.
The communication executed by FCB Ulka which is splashed all over the channels have an international look and aimed at the ladies of age group 18 - 35. The segmentation is based on the current techno boom and the emerging empowered ladies segment.
Will it work in the real world?
If I had the answer, I would have been next Philip Kotler.
There are some danger points in Pleasure's paths. The product is pitted against Honda Activa and Dio. Activa is a formidable player and its reputation itself is an entry barrier for Pleasure. Since the pricing of Pleasure is comparable with that of Dio, Pleasure should have to make sure that it create a meaningful differentiation.
Hero Honda off late has been unsuccessful in its new product launches. It has not been able to take out Pulsar or Boxer and all the new product launches like Ambition was flops. So Hero Honda will have to convince the ladies to choose Pleasure over Activa. If Hero Honda is able to sustain the brand over one year, there is a possibility of migration from Scooterette segment to Pleasure.
Till that time " Let boys have fun" .....