Cadbury Perk : Time to Perk Up

Brand : Perk
Company: Cadbury's
Agency: O&M

Brand Count : 132

Perk was Cadbury's foray into the chocolate wafer bar category. Indian Chocolate market is estimated to be around Rs 500 crore. Although there is huge potential for this market, the penetration of this product category is very low. The percapita consumption of Chocolate in India is 160 gm compared to 8 kg in UK. The urban penetration is abysmally low at 15%.

Perk was launched in 1995. The product gained immediate consumer attention because of the nature of the product and some smart advertising. During my MBA days the competition between Nestle Kitkat and Perk was a hot topic in the marketing sessions. 11 years after the launch, Perk has not made a headway into this market. Reports suggest that both Perk and Kitkat is facing issues of stagnation.

Perk is a quasi chocolate product with wafer coated with chocolate. The product launch was a classic case of smart advertising. The brand was launched not as a chocolate brand but as a " Smart Snack" that can be had any time, any where and whenever you feel hungry. That was an awesome positioning and execution was perfect with Preity Zinta endorsing the brand. The tagline " Thodi Si Ped Pooja" was a classic tagline to have.

While Perk was taking about snacks , Kitkat was busy teaching its customers how to eat a Kitkat. Both campaigns propelled both brands into a great start. But soon both of these brands faced stagnation.

Perk tried to getover the stagnant market by launching a price led intiative. Like sachets, the brand launched variants at a price as low as Rs 5. This offensive prompted Nestle to launch Kitkat at a lower price.
Although the reduction in the price expanded the market to certain extent, the growth was not as expected. Primarily this is because of the characteristics of Indian market where Chocolates are not as popular as in the west and there is competition from the lower priced " Mithais".

Talking about the brand Perk, after the initial excellent start, the brand failed to capitalise on the positioning of the brand. Inorder to create more excitement, the brand tried to experiment with its successful positioning and changed the positioning to some bull shit.
I again wonder why brands change their successful positioning. Perk as a snack is one of the best positioning you can have. Preity is one of the best brand ambassador and both the brand and the model gel with each other.
From the " thodi si ped pooja" the brand took the positioning " kabhi bhi , kaise bhi" and then to some other taglines which I don't remember. The latest ad of Priety's encounter with Yamaraj again is a Damp Squib and is not funny as it is intended. The tagline is also not catchy and it says " baki sab Bhula de" meaning " forget all else".The problem with Perk ads is its over reliance on being funny. After the funny campaigns from Perfetti, every brand is trying to make the customers laugh. Humour if not carefully used will create a negative impact. Perk's initial campaign had a very light humour or a rightword will be playfulness or bubbly exemplified by Preity. But when the brand tries to be outright funny, the entire campaign becomes a flop. Perk has fallen to the trap of trying to be funny while the brand does not need to be funny.

Perk is having serious competition from Kitkat and Munch. The current positioning of Perk is similar to that of Munch which is endorsed by Rani Mukharjee. Perk can have solace that Munch ads are also lousy.

The fact that the market is stagnating shows that the brand is not able to create a place for itself in the mind of the customer( read Positioning) and it is competing with other full chocolate brands like CDM. Perk's initial positioning had they continued it could have helped the brand to have a space for itself different from other brands. Perk could have encouraged its customers to keep a Perk always at home and with them because no one knows when they will be hungry.

Source: superbrandsindia,agencyfaqs,businessline, strategicmarketing

Snuggy : Everyone Loves A Snuggy Baby

Brand : Snuggy
Company: Godrej Consumer Products
Agency: Mudra

Brand Count : 131

Snuggy is India's first Diaper Brand. Launched in 1987 by Shogun Diapers Ltd, Snuggy was acquired by Godrej in 2003.
Indian diaper market is worth Rs 100 crore and growing at the rate of 10 %. The market is dominated by three players

Huggies from Kimberly Clark & Lever with a market share of 70%, Pampers of P&G with 20% and Godrej with Snuggy with around 10%. Even after 20 years of the introduction of this product category, the category is not being growing in line with the potential.
The main factors that inhibit the growth of this category are the Cultural factors and the price. Indians are not used to this product. This category is concentrated on urban market. Diapers when launched in India was priced at a premium which kept of the majority of the customers. When launched, the price for diapers for a pack of ten where any where between Rs 150 - 200 which was perceived to be pricey.

Diaper is competing with the traditional way of using Clothes which has the advantages of reuse,inexpensive and to a certain extent more healthier for the babies. Healthier in the sense, diapers used to cause rashes while clothes didn't. While Diapers has the advantages of convenience and cleanliness.

In India, unlike the west, parents tend to use Diaper on babies only during travel to minimise cost. Inside the house they use the traditional method since no one is bothered what the kids do inside a house.

In the last two years , the marketers have tried to reduce the price of diapers to induce more usage. The prices have come down to Rs 10 per piece. But still the market has not grown to the expectation. The reason is the simple economics. A diaper at best can be used on a kid for around 3 hrs ( that too is risky) that calls for 4 diapers per day and 6 if also used at night. That will cost an amount ranging from 40-60 per day working out to Rs 1200 to 2000 per month on diapers alone. That is totally unimaginable expense for a middle class family.

Hence in the Brand Report Card, the category scores very low in terms of value to the customer. Since the product is a use and throw kind, the customers try to use the product only during travel.

To reduce this price barrier, the marketers have come out with nappy pads that costs around Rs 5 per piece that is much more affordable but again the value factor is not justified, because one has to change nappy pads more often hence when the total cost is taken into consideration, diapers and nappy pads costs equal.

Diapers are usually imported from other countries and branded in India. This product category also face competition from cheaper imports .

Snuggy although is the pioneer in this category is dominant only in the south. With the distribution reach of Godrej, this brand has a good potential to increase its share in other markets also. Godrej has plans to extend the brand to other children's products.

The challenge for this brand is to expand the diaper market. For that the company may have to create a price disruption. I feel that the right price for Diaper to break into Indian consumers will be Rs 5. For nappy pads it is Rs 2. It is a tall order and with the current cost structure, it may not be possible.

But that is a challenge that companies should take if they want Indians to use this product more. The potential is high because of the changing psychographics of Indian consumer. With both the couples working and kids being sent to Playschool even at the age of 2, there is going to be a huge market waiting to be tapped.

Source : godrejsnuggy.com, agencyfaqs,dnaindia

Kinetic Blaze : Shortcut To Fame ?

Brand : Kinetic Blaze
Company: Kinetic Motors
Agency: Grey Worldwide

Brand Count : 130

Kinetic Blaze is the new launch from the beleaguered kinetic motors. The company which pioneered the concept of gearless and self start scooters are now in crossroads. Kinetic after breaking up the JV with Honda faced tough competition for Honda which virtually wiped off Kinetic scooters from the market.

Kinetic was not able to produce any blockbuster products other than the most popular Kinetic Honda. The launches like K100 and Nova range bombed in the market. Honda while captured and redefined the entire scooter market with its Activa.
2006 saw the launch of Kinetic Blaze. Blaze is the 1st product from the much publicised seven vehicle Italiano series. These designs are bought from the world famous Italjet Moto. The designs are done personally by Leopoldo Tartarini, the head of Italjet Moto.

Blaze is so far the most powerful scooter in India. This 165 cc mean machine is huge and heavy. Blaze was all set to redefine the scooter market in India. So far so good....

Kinetic was clever in rightly identifying the problem. The brand had took a beating after Honda left.The brand equity suffered a hit after many new product failures.So the primary task for the company was to reposition and rejuvenate the brand and give it a contemporary look . For that Kinetic needed something that could be the talk of the town. So wisely it invested heavily in getting the best designers and conceived the seven series with emphasis on style and "machoness".
But all these efforts went into mud because the agency played spoil sport. The launch ads ( TVC) was nothing but a marketing disaster. The agency just killed the product. The ad talks about Rohit Varma.
We had enough of Digen Varma and Balbir Pasha. Then here comes Rohit Varma jumping from the tenth floor of the flat on a Kinetic blaze and a bunch of cracks(fans) cheering.I wonder how this guy managed to take this heavy thing all the way up. Then the baseline says " Short cut to Fame". It is one of the lausiest positioning statements ever.

The product is supposedly good; that is what most of the reviews say. The scooter is huge with the size of Pulsar and wheel base of a Bullet and weighing 135 kg. Hell this is a macho scooter that too with a mileage of around 50 kmpl ( under dream conditions), and look at what the agency has done. No positioning and no creative thoughts only bull shit.The brand had lots to talk about. It was male, powerful, stylish and safe. The TG could have been those who wanted a powerful city rider.Here much more rational communication was needed instead of hyperbole.

With a price tag of Rs.50000, this brand is going to compete with none other than Pulsar. The question is will you opt for a Blaze or a Pulsar? Hence the success of this brand will be heavily dependant on the way the company position the brand. No other bikes have so far being able to dethrone Pulsar , so does Blaze have a chance? With this stupid positioning, I will say No chance.

Blaze was the right vehicle for rejuvenating Kinetic Brand. It could have been a Pulsar for Kinetic had it marketed it right. Pulsar captured the attention of TG with its Definitely Male campaign. But what about Blaze ?

Blaze if positioned properly at best would have been a niche product. The brand would have appealed to people who did not like Bikes. But the current positioning dampens every chance of its success.

Kinetic have to realise that there are no shortcuts to fame.

Source : Businessline,Indiabikes.com, autocarindia, agencyfaqs,kineticblaze.com

Charagh Din : CD Rocks

Brand : Charagh Din
Company: Charagh Din
Agency: Network Advertising

Brand Count : 129

Charagh Din Shirts otherwise popularly known as CD Shirts is a unique brand. CD shirts are known as the only One store readymade brand in India. The brand is available in its showroom in Mumbai and nowhere else. The CD showroom in Mumbai is considered as the largest shirt store in the world.

Charagh Din was originally New Lord & Co came into existence in 1947. Two years later this small tailoring company was bought over by the enterprising Mr Arjan Daswani which converted this shop into a wonderful brand. CD has grown from a 800 sqft shop to 100,000 sqft shop because of the owner's never ending passion for quality and marketing excellence.
The brand's fame began to spread from Mumbai to other parts of the country and CD began to figure in the shopping list of those who travel to Mumbai. I have friends who buys 10 shirts when they visit Mumbai and wears only CD shirts.
CD shirt was built on three basic qualities
a. Sophistication
b. Good Taste
c. Special Identity.
The brand was earlier known as the " Shirt that Fits". The word of mouth spread fast with the increasing list of Who is Who began wearing this brand. More over CD was the first branded party wear shirt in India. The brand never failed to experiment with design and it gave the brand a contemporary look even after 60 years of existence.

For every successful brand the challenge comes when the brand begins to expand. CD does not want its USP of one store brand to be diluted by opening multi-location stores. Hence the brand embraced the net to expand the volume. In 2001, the brand was available online. The owners feel that the net will take care of the reach while the brand could be built through the media.

Recently the company have started aggressive promotion for this brand. The baseline of the brand has been changed to " CD Rocks". The ad features Czech models partying in a typical party locale. The ad is poorly made and does not convey any tangible value of the brand. The aim of the campaign was to project CD as a party shirt to the target segment of urban youth . But the execution and the models was a flop ( my opinion).

*****

Dr Keller's Brand Report Card for Charagh Din

Delivering on Customer's Desires: Positive since the brand has been maintaining its quality and design excellence. The product is put through rigorous quality checks and the company makes sure that the new designs are launched every month.

Relevance: The brand still has relevance in today's market. There is still a need for a brand which is young and vibrant

Value: CD shirts are priced quite reasonably and this makes the deal more attractive

Positioning: The brand has made a change in its positioning which I think is a negative factor. The new campaign have failed to convey any values or strength of the brand.

Integrated Marketing Activities: The brand has not fully integrated its activities on the web. Since this brand has an online store, no aggressive online promotions are seen. I haven't yet received a single e-mail from the company promoting its range.

*****

Charagh Din is a brand that has immense potential. It has the heritage, quality, Share of Mind, brand equity and the uniqueness. But the company seems to have forgotten its strengths. The brand is wise to have retained its uniqueness of one store brand by using web as the alternative channel. But still it has not fully harnessed the power of web as a media for brand building.I hope that in the quest to capture the mind of the urban Yuppie, the brand does not dilute the equity that was built over time.

Source: Charaghdin.com

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.

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.