Thursday, September 21, 2006

Hero Honda Street : RIP

Brand : Street
Company : Hero Honda


Brand Count : 128


Hero Honda Street was the first venture of Hero Honda to the the scooter category. Street is not a scooter but a step through bike. The product category lies between a Scooterette and Scooter. Street launched in 1997 died a slow and quiet death.

The product was launched as a step thru bike was not entirely new product category. There was a step thru bike running in the Indian roads named Bajaj M80. Street wanted to create a market for itself or perhaps a new category. But the product failed because it was haunted by M80.

Street was the Indian version of the world famous Honda Cub series of stepthrus. Honda Cub was the world's largest selling single model bike which has sold more than 2.5 crore units. But how come such a product fail in India.
The case is about marketing mistake.The product failed in all aspects of marketing mix except the distribution.
The product was not good enough. It looked like a glorified M80 which was used by Fish vendors and the like. M80 was the cheapest and rugged step thru from Bajaj aimed mainly at the vendors who had bought this product not for its looks but for the price and utility. Since Street exactly looked like M80, it put off all the urban buyers.
The brand was priced extremely high. Hero Honda thought that because of the success of its bikes, they can charge the Street a premium but this price around 30% higher than M80 failed to show value to the customers.
The campaign was also not successful. The initial campaign tried to teach the customers the new Clutch less gear system and its efficacy, the customers was not impressed with this feature. Infact this gear system is famous elsewhere in the world but in India it did not click.
I wonder why Hero Honda ventured into bringing this model to India fully knowing that an exact replica is selling here that too at a lower price and quality ? It is plain arrogance or myopia trying to sell such a product with out any design change. Hero Honda thought that the brand name Honda will differentiate the product but it didn't happen. More over the product did not offer any value proposition to the customer except that it has a unique gear system.
The brand was also not sure about the target segment ,whether it aims at the gender or any specific category. Kick start mode eliminated the entry chance to the Ladies category and the lack of styling repelled the guys.
Brand Report Card for Street ( Dr Kevin Lane Keller)
Delivering on Customer's desires : Negative . The brand failed to understand the need for the customer in the aspect of design of the vehicle.
Relevance : The category had some relevance since the customers were looking for a powerful scooterette. Most of the mobikes were sub 60 cc. But the brand failed to capitalise on this opportunity.
Value: Negative. The high price of the brand did not offer any value proposition to the customer. Although the product was of high quality
Positioning : Negative. The brand was not positioned on any sustainable and important feature. This prevented the effective communication of value to the customer. This was one of the major cause of this brand's failure. Besides the Points of Parity with M80 created problems for the brand. The owners failed to foresee this problem.
Integrated Marketing Activities: Since the problem was with the basic design of the product, there was not much the other activities could do. The marketing activities was bound to fail.

Street could have been a success if it had changed its design. Indian consumers are very discerning and value conscious. This brand failed to understand that.

Monday, September 18, 2006

Hidesign : Truly International

Brand : Hidesign
Company: Hidesign

Brand Count : 127

Hidesign is a brand that is truly an international brand that is made in India. Born in 1978 as a one man craftsman workshop, this brand has gone places.

Hidesign is India's premier leather goods company that makes leather bags, briefcases and wallets. This 90 crore brand is the Indian brand that features in the premium international stores worldwide. The Indian leather market is expected to be around Rs 1000 crore and the branded market is around 120 crore.
Hidesign is a brand that was built overtime through careful brand building . The brand which was launched as an export brand came to India and surprised to find the reception it had, despite astronomical prices. The brand came to India at the right time when the Indian consumers are splurging on lifestyle products.

Hidesign is targeting the upwardly mobile educated internationally minded executive. The brand is known for its craftsmanship and the quality of its products. All these years this brand has never compromised on quality. The main USP of this brand is its craftsmanship. The brand still uses the traditional craftsmanship and 70% of the work is by hand. The brand depends heavily on the craftsmanship. The core value of the brand is its attitude, tradition and its commitment to environment. Instead of using the much polluting dyes, the brand uses vegetable dyes .
The brand is positioned along the core values and the craftsmanship. The campaigns are trendy and the media is mainly magazines. Earlier in 2000 the brand initially was projecting quality as its major focal point. Now they have realised that despite the positive feelings, the brand lacks the attitude and emotional attachment . Hence the brand is on a campaign to connect to the customer emotionally.
In the premium segment , the brand does not have any domestic brand competition.The competition is from the Italian brands that are available in the upmarket stores. The entire category is dominated by the unbranded players and there is little efforts to brand the products.


The Brand Report Card (Dr.Kevin Lane Keller) for Hidesign
Delivering On Customer's desire: The brand has been able to identify and satisfy the customer's desires. The customers were in need of a brand that can offer them quality and looks which was lacking in the unbranded products.
Relevance: The brand is relevant to customer because of the change in the lifestyle of the upwardly mobile Indians
Value: Although the brand is priced astronomically , the target group is finding value in this product. But with these prices the brand is out of reach to most Indians.
Positioning: The brand rightfully identified its core value and the positioning is in line with the strength of the brand . The choice of the media and the copy of the campaign also reflects the positioning.
Portfolio: The brand has wide range of models and is seriously looking into expanding to different segments with in the category. The company is planning to introduce bags for the college going under a separate brand name.
Integrated Marketing Activities: The brand has been using its stores and all the marketing mixes carefully in promoting the brand
Management: The brand has been built over time and the management has been careful in building the core values of the brand
Support: There has been lot of support for the brand building efforts . The company has been spending the money wisely and carefully.
Marketing: The overall marketing activities has been perfect and has helped the company to create a world class brand.
Hidesign is truly international brand. It is a showcase of Indian marketing acumen and proves that Indians can make a world class brand.
source: agencyfaqs,hidesign.com,businessline.


Friday, September 15, 2006

Eyetex : Eye On The Next Generation

Brand : Eyetex
Company: Aravind Laboratories

Brand Count : 126

Eyetex is one of India's oldest Kajal. Kajal is the traditional form of eyeliners. It is a Collyrium manufactured traditionally using natural ingredients. Eyetex was started in 1938 by Mr Srivasudevan and in 1958, the company was taken over by Mr. AV Srinivasan.
Eyetex brand is one of the largest selling Kanmaye or Kajal in India. The brand is a small player in the Rs 2.2 Billion Indian cosmetic industry. The brand is facing competition from established players like Lakme , Revlon and other international brands and is facing with the problem of the product relevance in the changing Indian psychographics.
The tradition of applying Kajal to the eyes dates back to centuries .Even mythology have references of this product. Traditionally grandmothers used to apply kajal to the infants to prevent eye ailments. Ladies used to apply kajal using the fingers and the Kajal used to give a smokey appearance to the eyes.

Eyetex have been considered as a trusted brand in this segment. The brand although not much advertised, had immense positive word of mouth publicity and the through generations this brand has been passed on.
The brand is now facing the threat from the changing lifestyle of its TG. I am not sure whether the younger generation uses Kajals these days. The place of Kajal has been taken over by the modern Eyeliners. With international brands having the full range of these products that too in different colors and features, the survival of the traditional Kajal is at stake.
Eyetex is positioned as a trusted brand that is prepared from natural oils . With little or no promotions, the brand has a huge recall among the Indian ladies but with the new generations, Eyetex is not much popular.
Eyetex too has tried to change with times. From the traditional round shaped pack, it had metamorphosed to user friendly stick and eyeliners also. But the brand did not change with time. Eyetex is still banking on the trust and the equity of its customers who are fast becoming old. When there is a Revelon or Lakme eyeliner will the new generation pick Eyetex?

Compared to modern eyeliners, Kajal can be messy and there is a chance of the kajal spreading unevenly or smudge. With the modern eyeliners offering waterproof eyeliners and with different colors ( may be) and innovative extensions like Loreal Voluminous Mascara, Eyetex suddenly may find irrelevant for the modern consumer.
The silver lining is that for the ordinary Indian women who may not have graduated to eyeliners and mascaras, Eyetex brand is still relevant and the price so affordable. Eyetex may have missed the urban kid but the core segment may be still there. I am also not sure whether the urban girls bother about putting kajal everyday. In this era of fast life, these products are used only on occasions.
Eyetex has also taken a bold step to enter into color cosmetics with the brand Dazzler.Eyetex here is going to compete with the " Who is Who" of the global cosmetic industry. I am not sure whether Dazzler will be able to leverage the equity of Eyetex. Eyetex could have consolidated its position by introducing water proof eyeliners and modern " eye beauty care" solutions rather than venturing into categories that are too tough to crack.
The task of Eyetex should be to make the brand relevant to the next generation. It is going to be expensive and in this case a celebrity endorsement will help the brand to a great extent.
Source: Divanee,indiatoday,eyetex.com

Wednesday, September 13, 2006

Timex : What Next

Brand : Timex
Company: Timex India
Agency: JWT

Brand Count : 125

In the 30 Million units per year Indian watch industry, Timex is a brand is living its second life. Launched in 1992 as a joint venture between Titan and US based Timex, this brand was virtually dead during the early 2000. The company suffered huge losses and the brand was pushed to oblivion.

Timex is America's number one brand. in 2003, the brand celebrated the selling of a whopping 1 billion watches. With a history dating as early as 1857,the brand is known for its technological excellence. Experts say that in US, Timex is to watches what Microsoft is to Computers.

In India, Timex is a different story all together. Launched as a mass market brand, Timex was in rough terrain from the start itself. In the previous blogs, I have mentioned brands which failed because of Premium pricing. Here Timex suffered because it sold cheap during the initial years. Although Indian consumers are value conscious, low price = low quality is the attitude that still pervades. It is not the price but the VALUE that matters to Indian consumers.The initial mass market focus diluted the international image and brand equity of Timex. So when Timex and Titan parted ways, Timex was having zero brand equity.

Timex was the master of innovation. In 1992 Timex brought the INDIGLO feature in watches . Indiglo is the worlds first electroluminescent watch which gives a beautiful green light at the press of a button. Now 70% of Timex watches have indiglo feature as a standard. Besides Indiglo, Timex along with Microsoft launched the Datalink feature that allowed downloads to the watch from a PC. Timex Ironman is the world's largest selling sports watch.
Timex brand is known for its style , multifunctionality and durability. The watch is technologically superior than any other watch brand. Timex is used by the Who is Who of Celebrities from Bill Clinton to Bill Gates, Terminator to George Bush, Brett Lee to Harsha Bhogle. Even with these brand qualities, Timex is still no where compared to Titan in India. That is because the brand owners failed to position the brand properly. In the initial years, the focus was the volume which diluted the brand and then came the lack of positioning of the brand.

Timex have the age old positioning of " Technology that keeps you ticking". In India, the brand has changed the tagline frequently. At one point of time, the tagline was " Time on your side" . Now the brand comes with the tagline " What next". Constant changes in the positioning statement will inevitably confuse the customer. Globally the brand has the USP of a innovation leader . Technology first was the brand motto. Along with this the brand is perceived to be stylish and durable. But sadly in India, Timex failed to communicate its core brand values to the consumer.
2003 saw a rejuvenation in Timex. The company restructured and a new marketing team was in place. The brand was repositioned as a premium watch and the sub 1500 range was done away with. The brand then concentrated on its core values. Timex have the range of watches like, Matrix, Expedition series, Brett Lee collection, Big Bold and Beautiful collection etc.

But even during that time also the promotions were not upto the mark. For example there was a range of Watches with a feature of Perpectual calender that does not need any adjustment. Timex spent lot of money on this feature but did not highlight the brand value. When Citizen positioned its Ecodrive, the watch was given more prominence not the feature. For the perpetual range the tagline was changed to " Time on your side". Timex also gave importance to the retail push by opening lot of Shop within Shop outlets named Club Timex.

Timex is running a new commercial for the Expedition range which looks good. But for that range the tagline is " What next". I am now pretty confused about the real intended positioning of Timex. May be the company wants to say to customer that Time moves so does Timex. In my humble opinion, Timex should align the brand with its global positioning. Timex globally has the tagline of " Be There Now". Since the Indian consumer is aligned to global consumer characteristics, Timex will benefit by having a global positioning since watches are considered now as a fashion accessory.
Source : Businessline, Timex.com, agencyfaqs,

Monday, September 11, 2006

Cadbury's Gems: Nonstop Excitement

Brand : Gems
Company: Cadbury's
Agency: O&M
Brand Count : 124

Cadbury's Gems is one of a kind product and brand. Unrivalled in all these years, Gems hold a special position in the consumer's mind. The brand which came to India in 1968 is still going strong.
Gems is still popular not because of its ads but because of the heritage or should I say nostalgia?
I still remember the excitement I had ( when I was a kid) when my father slowly pushed the Gems through the pack and we used to guess the color of the button that is going to come out. The same excitement I could see in my daughter's face now after almost 20 years. I still buy Gems for my kid not because of the ads but because it is a brand I grow up with. ( sorry for being emotional).
Although 38 years old, Gems managed to stay relevant. A lot can be attributable to lack of competition and the unique taste that the product has. I will say that the brand is still relevant because those consumers of yesteryear's are now the parents and inevitably, Gems will figure in their favorite list of chocolates.

In the recent past I have seldom seen an ad of Gems. A major change in the Product Mix came in the early nineties when Gems reworked on its pricing and packaging strategy. It made a clever move by inventing new price points at Rs 5 making the brand more affordable. In the recent past, Gems pack is available for even Rs 2.
2006 saw the first variant of Gems in the form of Fruity flavours branded as Gems Jungli. The chocolate core has been changed to fruit flavours which is a major change in terms of the brand. Gems is known for its chocolate core with sugar coatings. With this variant, Gems is in a way moving away from its core .
Jungli has given the brand something to speak about. Now lot of promos have started aiming at the target audience ( kids). The ads are OK but not upto the creative standards of O&M. I bought one for my kid but the excessive coloring is a dampener. The color of the sugar coating seems to be too much and caused alarm as to how healthy the color is. The classic Gems do not have that much coloring or the color don't seem to be unhealthy.
I don't remember the old ads of Gems but looking at some of the blogs like Vishalpatel.com , the ads seem to position the brand along excitement. Even during the 80's there was Gems Bond a mascot for the brand. The old ads also talked about creating pictures using Gems. Those campaigns have put this brand firmly on the kids mind that is still making impact.Now Gems has been promoted using events and contests .
Gems have a problem at hand. How to make this brand relevant to today's kids. With lot of action in the confectionery market with lot of brands, Gems cannot rely on the old brand equity. May be the Jungli launch was to make the brand more visible in the segment now but are we not forgetting the classic Gems ?
Although positioned on excitement, right now Gems do not have a solid positioning. I agree that it is one of a kind and there has been imitations that have failed but success should not lead to marketing myopia.
Gems has to consolidate and nurture its core brand to be relevant to the much more dynamic and highly evasive consumer of today. Gems has to make sure that the excitement is nonstop.

Friday, September 08, 2006

Harpic : Ready For The Challenge?

Brand : Harpic
Company: Reckitt Benckiser
Agency: Euro RSCG

Brand count : 123

Harpic is the market leader in the small category of toilet cleaner segment in India. With a commanding market share of 80%, Harpic is a brand that withstood or escaped unhurt the lazy marketing efforts from its owners.

Harpic is a European brand that came to India way back in 1950s. Toilet cleaning market is traditionally dominated by the unbranded Phenols and when considering phenols, the market is worth Rs 500 crore. But the branded toilet cleaner market is minuscule estimated to be around Rs 50 crore.
Harpic unlike other Reckitt brands were given some marketing support from the brand owners. The brand had changed with times and had some careful innovation with regard to the packaging. During 1990's the product came out with a unique nozzle which ensured better reach. Harpic also introduced a Flushomatic variant in line with the changing preference of consumers towards European closets and Flushes. Harpic also initiated a co branding initiative with Parryware to get into consumer mindset early even when he is completing his house.

These efforts together with the lack of competition enabled Harpic command a major share in the segment. But of late the segment is witnessing competion. The major competition is from Sanifresh from Balsara. The challenge of Harpic is to get into the households that are using the cheap Phenol products. The venture of Reckitt with a phenol product bombed in the market.
Harpic is positioned along its triple benefit Stain removing, freshness and germfree. The ads which are criticised for lack of creativity speaks about the Harpic challenge. Celebrity like Aman varma entering a house and cleaning the toilet was rated as the most distasteful ads. But my personal opinion is that the ad conveys the core message. It is a no nonsense ad and is targetted towards the households using phenols and not the educated sophisticated users.
The innovative flushmatic variant was well received in the market But personally I find it difficult to open the flush and place it. Some flushes need screw drivers to open it. But it was a innovative effort that has to be appreciated.
Harpic is a brand that has been trying to break the segment barrier. It is still considered the urban product. In a lighter sense : with millions of toilets around, the potential is immense. I am not sure whether small sachets for single use will work for toilet cleaners ?

May be to break the price barrier, Harpic may have to think out of closet.

Source: India today, agencyfaqs, economictimes,magindia