Ceat : Born Tough

Brand : Ceat
Company: RPG

Brand Count:138

Tyres as such is not an exciting market like FMCG or durables. The product that comes fitted with our vehicles come to the customer's mindset when it needs to be replaced (am talking about ordinary consumers).While in the case of business customers like truck owners, the choice of a tyre is important because of factors like mileage, maintenance and toughness.
Indian tyre industry is worth around Rs 10,000 crores and is dominated by players like MRF,JK, Appolo, Ceat etc. Ceat is one of the oldest players in the Indian market.
Ceat was established in the year 1924 in Torino Italy. For those who wonder what CEAT means, Ceat is the acronym of Cavi Electrici Affin Torino, that means Electrical Cables & Allied Products of Turin. Ceat came to India in 1958 in collaboration with Tata group. In 1982, RPG group took over the company which became Ceat Ltd.
Ceat was a major player in the market and the brand was promoted aggressively through the media esp in the passenger car segment. The brand faced its major challenge with the launch of Radial Tyres in the Indian market. Reports suggest that it was JK tyres that pioneered radial tyre revolution in India ( correct me if I am wrong).Radial was a disruptive innovation that changed the dynamics of the market. Ceat was caught unaware and the market slipped from this company.
Ceat now is in the fourth position interms of market share. The brand is well established in the Heavy commercial segment with amarket share of 19% while in the car radial, it has only 10%.
Ceat is famous for its Tagline " Born Tough". It is one of the best positioning you can have in the industry. The mascot Galloping Rhino exemplifies the positioning of the brand as the tough brand. Ceat used this mascot and the positioning during the nintees with lot of effectiveness.The website of Ceat talks about the target segment as Strong Men who are Dynamic and Adventurous which personifies the brand DNA. Ideally this brand could have been an icon in the market . But it did not become one.

For some reason ,the brand became invisible.The company may have chosen to concentrate on the OEM segment where more than branding , Sales effectiveness counts. Together with the aggressive media campaigns from MRF and JK , the brand was sidelined in the car/bike segment. The problems with Industry interms of rising input costs and reduced margins have added to the problems for this brand.

Ceat is a brand which have a good brand recall and equity. The quality aspect is questionable since the brand is featured at the lowest position in the JD Power surveys. With the entry of big international names like Bridgestone, Michelin & Goodyear into the market has made the task tough for the Rhino. Ceat had it been aggressive in brand building could have positioned itself as a premium brand for SUV and similar segments. The brand with its exceptional positioning platform has not being able to realise its potential in the point of view of a marketer.

Ceat : Born Tough, Mellowed Later.

source: domain-b.com,ceat.com,businessline

Coffy Bite : Coffee or Toffee

Brand : Coffy Bite
Company: Lotte India
Agency: JWT

Brand Count : 137

Coffy Bite is a power brand in the Rs 1500 crore Indian Sugar Boiled Candy market.This 100 crore brand has a history of 18 years of existence.

Coffy Bite is one of the brands which I grow up with. The brand is unique and its positioning and ad campaign was one of the best in that era. The brand is in the coffee category which is around 15% of the Sugar boiled candy category. Coffee Bite have around 9 % market share in the SBC segment.
Coffee Bite was introduced in India by Parry's confectioneries of the Muruggappa Group. This was the flagship brand of Parrys. Later in 2004 , Parry's confectioneries was sold to The Lotte group.
Coffee Bite is famous for the " Coffee -Toffee " argument followed by the tagline " Its a Coffee in a Toffee" . All the campaigns of this brand was a fun to watch and as a product, the brand offered excellent taste and quality. Overall this product was a winner. The brand enjoys a recall of as high as 85%.

With the entry of Big names like Perfette, Parrys faced intense competition in the market for all its major brands. Along with this heat, the company faced pressures in pricing coupled with rising raw material costs. Infact, these issues are still haunting the confectionery manufacturers.

The candy market is faced with two marketing issues

a. The product: since the product is purely an impulse product, lot of money has to be spent on the brand and also on developing new variants to create and sustain excitement.

b. The Price: The consumers in this segment is price conscious. Because of the competition, companies cannot afford to price the product at a premium and renounce volume. With the 50 paise price point becoming the industry norm, most of the companies are facing profitability issues.

The problem that Coffy Bite faced was again the issue of relevance. Because of some reasons, the brand missed the new generation. The brand was perceived to be " Old". Hence even though the recall was high, the actual purchase was as low as 20%.

The task for the new brand owners "Lotte" was to make the brand more relevant to the new generation. By New Generation , I mean those kids born after1990's : the liberalisation child.

Lotte changed the packaging to make the brand more contemporary and youthful. The communication also was changed. Thank God, the brand managers did not change the famous " Argument". So the argument continues. The new baseline is " Enough to start an argument" was an unnecessary change for this brand which is famous for its " Coffee in a toffee" baseline. The brand owners has to think as to who is bored by the old baseline, company or customer? As a customer I prefer the old one. I think that the brand need not change the taglines and positioning to become more relevant.

Since the category is Coffee, you cannot have any other taste, that can give some consistency to the communication.I hope the owners will not come up with variants like Pineapple coffy bite. Besides the taste, the "Coffee -Toffee" argument gives the creative guys lot of things to work with.I feel that this brand should take the " Topical" advertisement route perfected by Amul( discussed somewhere in my blog) which will be enjoyed by all. One more major positive for this brand is that it is more of a family toffee that gives it a huge market to tap.

Coffy Bite is a brand that has a unique space in the mind of the customers. Is it a Coffee or a Toffee.. the argument continues.

Source: Businessline, agencyfaqs,fnbnews.com, lotteindia.com,economictimes.com

Cerelac : In a Tough Terrain

Brand : Cerelac
Company: Nestle
Agency: McCann Healthcare


Brand Count 136

Cerelac is the market leader in the Rs 3oo crore Baby Cereal market in India. With a market share of 85%, the brand have a huge equity in the Indian market. The brand right now is facing the worst nightmare of its lifetime .

In Kotler's Marketing Management text, he elaborates on the various external environmental factors that affect marketing . In that chapter, he talks about the regulation and laws affecting the marketing of a product. Cerelac is a classic example of Regulations negatively impacting the marketing of a brand.

The infact foods market is a very sensitive market. Since it is concerning infants , the stakeholder's interests are high. In India the market is regulated by an act IMS act of 1992. The act lays down the rules for marketing infant foods and other products in the market. Earlier the law prohibited any advertising and marketing campaigns for baby foods for babies under 4 months of age.Recently the act was amended and restricted any promotion of foods for infants upto the age of 2 years. This amendments was a severe blow for Cerelac whose target market was infants.

Along with this regulatory factor , other factors also affected this brand. The major influencers of this product ;the doctors began recommending normal food for infants. Another major influencer WHO began global campaign on promoting breast milk and the government began to demarket milk substitutes.

The marketers (generally speaking) were also responsible for creating such a situation. The brands were promoted using claims not validated and there were also quality and health issues that was ignored. Seeing all the chubby babies on the ads, it is said that mothers started feeding infants with artificial foods that may have caused health problems. ( I have not yet come across any such serious health issues in kids who took these foods).

The new amendment prohibits use of baby models in the packs and restricts any form of promotions including sponsoring doctor conferences, surrogate ads, events etc. For sure this may have a huge impact on the market for such kind of products.

Sensing the threat to the category of Cerelac, Nestle has launched a brand Ceremeal ( a porridge) for kids aged above 2 years.

Now Cerelac sells through word of mouth publicity. The product will sell because there is a need for such nutritional infant foods in the market. Even there is going to be a huge potential for infant milk substitutes because of changing lifestyle and the fact that there is an increase in the number of working mothers.

Cerelac as a brand has not written off its future. In 2003, the brand launched a new formulation Cerelac 123 aimed at different stages in a baby's growth chart.

Since the brand is not advertised, the positioning is not very obvious. The brand is basically positioned as a highly nutritious food for infants.

So here the million dollar question for the marketer is this :

How do you promote such a product where there cannot be any promotion?

Surrogate advertising will be caught by the civil society workers and unnecessary controversy will be created. Events are also ruled out.

As of now the company rely on the shelf promotion for the product. The company has launched lot of flavours and variants in attractive colorful packages that give a banner effect at the shops.

The product is priced at a premium and does not have any sales promotions giving the company value growth.Since the brand is facing little competition, the lack of media promotions may not hurt the company too much.

One thing I have noticed is that the brand has a cute mascot or brand character . It is a blue teddy ( I am not sure whether it is named). If the brand wants to aggressively promote, then Teddy can show the way. Start giving away this small teddy with Cerelac and kids are gonna love it. The marketer can do wonders if they have a cute Mascot /Character.

Cerelac has one, use it.

source: businessline, agencyfaqs, magindia, nestleindia

Disclaimer : This is an analysis of the Cerelac brand in the point of view of a marketer, not a promotion of this brand.

Cuticura: Leaving You Speechless

Brand : Cuticura
Company: Cholayil
Agency:Rediffusion

Brand Count:135

Cuticura is an International brand which has a history of 200years. Once synonymous with talcum powder, this brand was pushed to oblivion because of marketing myopia or marketing laziness.
Cutucura came to India 80 years back.Cutucura was owned in India by Muller&Phipps. Globally this brand was owned by Keyline Brands which was acquired by Godrej Consumer products in 2005. Interestingly the brand is owned in India by Cholayil who are the marketers of Medimix soaps.Cholayil refuses to sell the brand to Godrej. Godrej hence have the rights to the brand outside India. It looks like a typical hindi film story script. Cutucura may be crying " Main kon hu, Main kahan Hu, Mera papa Kaun hai"?

Cholayil acquired the brand from Muller in 2002. The brand was given a make over and the new owners was trying to revive the brand. Cuticura was a leading brand of talcum powders in India in the 80's. Indian talcum powder market is estimated to be around Rs 600 crore. In the late 80's the brand faced competition from HLL and Cuticura was not able to sustain in the market.One major factors was that the Muller underestimated competition. The brand failed to change . Today the talcum poweder market is dominated by HLL's Ponds with 65% share.

Cuticura's stronghold is the southern market where it claims to have a share of 30%. The brand still holds equity in this market. So for Cholayil who markets Medimix, this brand gives a platform to get into personal care business.

Cuticura is known for its fragrance. The classic brand also famous for its orange and white packing which still has a huge recall. Cuticura while retaining its classic product launched a lavender variant in 2003. Reports suggest that the variant failed to make any ripples in the market. But these efforts helped the brand to post a decent turnover thanks to the brand equity. Now this brand is worth Rs 10 crore.

Although the Cholayil group has taken serious steps in reviving the brand, the campaign lacked the punch needed to propel the brand to new heights. The brand still retains the classic positioning based on fragrance. The new tagline talks about the brand leaving you speechless . Although creative idea is OK, the execution is horrible. The hyperbole fails to catch the imagination of new generation.

The biggest challenge that the brand face is that its core users have become old. The customers who liked and used this brand have now become old and the new generation does not know this brand. Hence the brand has to be relevant to the new generation competing with the power brands like Ponds.

2006 saw the brand extending to deodorants. The extension was branded as Cuticura DeO2.The main USP of DeO2 is its ingredient Farnesol. The brand has the tagline " Let your underarms breathe". Although a not thrilling tagline, to some this make sense because this product will help you smell good without inhibiting perspiration which is an important function of the body. Most of the deos inhibits perspiration to control the bad smell.

Unlike the talc ad, the DeO2 campaign is carefully executed to appeal to the newgen. Cuticura DeO2 will be pitted against Rexona, Fa, etc in this segment.

The brand has a potential to be a serious player in the personal care segment. The brand has to exploit its brand equity and strive to be relevant to the new generation who may have forgotten this brand

source: historypages.net, magindia.com, agencyfaqs, cholayil

Stori : Clothes With A Twist

Brand : Stori
Company:Chaya Garments
Agency : Saatchi & Saatchi

Brand Count : 134

Stori is a mischievous brand. Launched in 2000, Stori is a premium casual wear brand from Chaya garments from Bangalore. Stori caught the fancy of the customers from the launch itself through out of box creative advertising campaigns. The brand can be called as an " AXE " of this segment.

Stori is positioned as a Brand with a Twist . The tagline says " Clothes with a Twist" . The basic idea of the campaign is to project this brand as a brand with sex appeal. The initial campaigns features a " Mystery Man" who gets all the girls. These ads ( all print ads) were unique in the sense that there are no models featured. The ads have a humour touch to it and a story to tell.The stories are set in different natural settings like Desert, Rain Forest, Green Meadows, Sunflower fields.These campaigns were well recognised and the creative was done by the agency "1point size".

Stori competes with brands like ColorPlus and Allensolly in the Rs 250 crore Corporate Casualwear market . Stori is very expensive and is targeted at the upwardly mobile executives.The brand claims to have 10% market share in this segment. The segment which Stori targets is a tough market and it really takes lot of marketing muscle to break into the customer's mind. Stori was careful in choosing the medium and the message.The main USP of this brand is that it is made only from natural fibre .The company have tried to create a story for the brand and to a certain extent was successful in doing so. But the major hurdle this brand will face will be to sustain the brand in the market. The availability of resources for brand promotion is found to be the major factor that limits any small brand's growth.

The brand has immense potential to make it to the big league even international because the platform which the brand has taken has enough space for the marketer to experiment. The brand can experiment with different "Stori" ies . I shall go to the extent that Stori , if carefully built can be in the leagues of " United Colors of Benetton".

Source:agencyfaqs, businessline, fibre2fashion,financial express.

Rupa Innerwear : Ye Aaram Ka Mamla Hai

Brand : Rupa
Company: Rupa & Co
Agency: Bates

Brand Count :133

Indian innerwear market is estimated to be around Rs 5160 crore and Rupa is one of the largest innerwear company in India. The company was established in 1987 has a range of brands in the Men's innerwear and lingerie segments.

Rupa is the company's mass market brand. The brand has the distinction of the first innerwear brand to be endorsed by celebrities ( correct me if Iam wrong). Although an unlikely brandname for a men's innerwear, the brand has around 14% share in the segment. The market leader is VIP with a marketshare of 20%.

The innerwear market is dominated by unorganised sector commanding more than 60% of the market. The branded innerwear market is only to the tune of Rs 750 crore. Recent years saw hectic marketing activity in this segment with foreign and national brands launching their products in the market.

Rupa brand has been seriously nurtured and the owners has been using Stars to endorse the brand. The major stars who endorsed Rupa range include

Govinda for Frontline range replaced by Salman

Saif Ali for Bruno

Aishwarya Rai for Softline range

Lisa Ray for Bruno for Her.

This has ensured that the brand receive a mass appeal. The brand is positioned on the platform of comfort and the tagline is the famous " ye Aaran ka mamla hai".

2003 saw the company's foray into the premium segment of men's innerwear with the brand Euro. The premium segment is worth around 120-150 crore and is witnessing lot of competition. Global majors like Sara Lee with Hane's brand and domestic majors like Color Plus, Van Heusen and Peter England has launched its range in this segment.

Euro is positioned as an upmarket brand and is not relying on Stars to promote the brand. The brand is positioned on "sex appeal" and the TVC of the ad features the man being "assaulted" by ladies . Euro also is the brand that came out with the " Bacteria resistant " innerwears. The brand is said to have captured around 20% market share in this segment. Rupa has roped in Alyque Padamsee as a marketing consultant to develop this brand.

With all the major brands eyeing for a share in one of the largest and most potential innerwear market in the world ( just look at the population), Rupa is bracing itself for a tough marketing warfare. Rupa has been careful in communicating and positioning its brand to the masses. But since the brand is relying on Bollywood stars and currently its ads are dubbed in the Southern market, VIP is dominating in the southern market. Rupa may have to think about having some campaign flexibility for tapping the market in the south.The greatest challenge for any innerwear marketer is to fight the unorganised sector which dominates this market coupled with cheap imports.

With the launch of Euro, Rupa is testing its marketing acumen in one of the toughest market. After all "Ye Aaram Ka Mamla Hai"

Source: magindia, agencyfaqs,fibre2fashion.com, businessline