Tuesday, October 17, 2006

Essilor : Seeing The World Better

Brand : Essilor
Company: Essilor International
Agency: Orchard

Brand Count : 142

Essilor is a Euro 2.4 billion company which is a world leader in Ophthalmic products especially lens. India is a big market for ophthalmic lens. With an estimated population of more than a billion people and more than two billion eyes, this is a market that cannot be ignored.
As discussed in the RayBan case , the Indian eyecare market is estimated to be around Rs 1200 crore.
The ophthalmic lens category is different because these are prescription lenses and is mostly unbranded. Usually the customers are unaware of the brand of lenses which they are wearing and it is decided by the opticians as to which brand need be used. Hence this category is a B2B category and the influencers are doctors and deciders are the opticians. The users have no idea about the lens.

Essilor came to India as a joint venture between Essilor and SRF in 1998. Later the joint venture was converted into a 100% subsidiary of the French parent. Essilor ,as reports suggest has been able to garner a fair share of the Indian market.
Essilor came into the User's radar during the high profile campaign for Varilux range of progressive lens; lenses used by people aged above 45. Essilor used the famous cricketer Shrikanth to endorse the brand. The company is using TVC, print and outdoors to promote this brand.
Essilor was also marketing savvy in developing a corporate brand. The ads were catchy and I would say it is a bold initiative to brand a B2B product at the userlevel.
There are certain issues as far as marketing person is concerned.
a. Should Essilor needs to go in for consumer marketing? Mainly because the users till now does not have a role in selecting the lens brand. Essilor is trying to make the consumer ask for this brand ( at a premium price) . That calls for a significant investment in brand building.

b. Will the consumer believe the Ads or the Optician who is considered to be an expert?

Essilor is trying to bridge a huge gap that the users face in this category. ie the issue of quality. We all know that we don't know what we are wearing over our eyes . We are not sure about the price of the lens or the price of the frame ( they say that the margin for the frames can be upto 1000%) . Hence there is a space for a branded player to establish standards and set prices. Essilor is doing just that. The brand is trying to take the power from the opticians to the company. It may not happen that consumer will ask for this brand just as you do it for FMCG products, but over a period of time , the consumer may perfer paying a premium for this brand.
It will take some time before the effect of this branding effort to show results. Varilux is already established in the TG's mind ( premium customers). But the task is tough. Essilor has a range of brands in this category like
Crizal: Hard multi coated lenses & Airwear: New generation polycarbonate lens and many more.

The corporate brand is positioned as the best in the category with the tagline " Seeing The World Better" talks about the quality of the brand.This brand should be in the watchlist of any persons interested in Brands

Source: essilorindia.com, businessline,agencyfaqs,magindia, indiainfoline


Monday, October 16, 2006

Singer Sewing Machines : Facing a Crisis

Brand : Singer
Company : Singer India ltd
Agency : JWT

Brand count : 141

Singer is a 130 year old brand in India famous for its sewing machines. Singer came to India in 1870 and is a Pioneer in developing the product category : Sewing machines.
Sewing machine was once a must in every households in India and was even a part of one's dowry. Those aged >30 may have noticed the dusting old machine at their homes. This once popular small durable is slowly fading into history.

Sewing machines are losing popularity in India because of the changing demographics and lifestyle. With the couples working and the evolution of Nuclear Urban Families (NUF) , the relevance of this category itself is now in doubt.

In olden days the brand was an example of Craft and Frugality. Craft in the sense that it showcases the talent of the Bahu and Frugality in saving the stitching costs. Now with the popularity of readymade clothes , this category has been thrown out of Urban households.
Singer is one of the largest manufacturers of sewing machines in India . The brand is credited with pioneering the installment culture in India by offering sewing machines to rural households on installment during 19th century. Still rural India contributes to the sale of sewing machines where it is used as a wage earner.
The marketers of sewing machines have tried to create more interest in the urban households by introducing electronic sewing machines ( userfriendly) and coming out with " Sew yourself patterns" encouraging the homemaker to experiment and create her own fashion wears. But these initiatives were not successful and it has forced these players to diversify into other small appliances.
The basic issue with the machine being less popular is
a. The task is tedious.
b. It takes training to make a good stitch.
c. No longer an attractive pasttime.
d. Machine not user friendly.
This product category is failing because it failed to change with the consumer.Although there were innovations, the product was such that the users had to be trained in using this product.
With the urban women not getting enough time to engage in attend classes, the category began to lose popularity.
Unless the manufacturers address these issues , the product category will be limited to industrial sewing machines and customers in the sewing machines. The category is already a century behind the new generation. I bet that an urban 15 year old may not have even touched this machine. May be the marketers have to comeout with an automatic computer aided machine that prints or stitches with the click of a button or something like that which is fast and easy to use.Other wise this category will fade from the households forever.

Source : businessline,myiris.com,wikepedia agencyfaqs.com

Friday, October 13, 2006

John Players : Play It Cool

Brand : John Players
Company: ITC
Agency: FCB Ulka

Brand Count : 140

John Players is the mass market apparel brand of ITC. Launched in December 2002, the brand is poised for becoming a major player in the Rs 6000 crore ready-to- wear market in India.
John Players when launched in 2002 faced a luke warm response from the market. Primarily because of quality and positioning issues.

I mentioned about quality on the basis of my own experience about the brand. I purchased this brand because of the ITC tag plus the price offer ( 1+1 free). I was terribly disappointed with the quality of the material and the range. But I could see the rush at the counter for this brand because of the offer.

John Players is competing with Peter England in the mass market range. ITC knew that Peter England has established itself as a value for money brand and it is a tough brand to compete with. 2005 saw John Players identifying the right positioning platform for itself.

John Players is positioned as a brand with a cool attitude. It is positioned as " Style With a Playful Side" exemplified in its tagline " Play It Cool". The brand rightfully fills the gap of a Cool Brand in the mass market category. The brand is being endorsed by the style icon Hrithik Roshan and the advertising campaign featuring Hrithik was well executed. The brand has a price range of Rs 500-900 for its shirts and Rs 800+ for the trouser range.

Although the positioning platform of being a " Cool " brand is a wonderful proposition, it is a task that is difficult to achieve. It is like a very abstract concept. To quote Ms Rashmi Bansal from a presentation she made at our campus, It is not possible to make a brand or a person " COOL" by just saying that it is " Cool", the customer has to perceive it as a Cool brand. That cool attitude should come into the brand DNA. Hence it is a tricky situation and a tough task for the brand manager. The marketer has to create a lot of subliminal cues to make the brand cool. Hence the brand logo, colors, ads, models, colors etc has significant impact on making the brand " COOL". That is the reason why there are a few COOL brands in our country.

Since my tryst with John Players was not that positive, I have chosen to stick with my favorite brand Peter England. But I think that ITC has worked upon the quality and design aspect of this brand. The brand is in a very tough terrain. It is to be noted that this brand is usually promoted during the festive season mainly using sales promotions. I hardly see any brand building campaigns of John Players during off season. While brands like Color Plus, Van Heusen, Louis Philippe is being built using print ads in a systematic and regular manner, John Players is a brand that is not investing in regular and frequent campaigns. I feel that with a model like Hrithik endorsing the brand, John Players should look at print campaigns at regular and frequent intervals.



source: itcportal,agencyfaqs,businessline,economictimes



Thursday, October 12, 2006

SS Music : Losing The Spice

Brand : Southern Spice Music
Company: Fortune Media ( Martin Lotteries)

Brand Count : 139

Southern Spice Music (SS Music) is an interesting case study. This unique channel was launched in April 14 2001. The channel was initially conceived to be one to broadcast the daily draw of the lottery . The promoters was primarily lottery dealers ( largest in India ) and had ventured into online lotteries.The channel was conceived to create transparency in the selection of lottery winners. Since the duration of lottery draw is only 30 minutes, music videos were used as fillers. Hence 18-20 hours were devoted to music videos which acted as fillers.

But contrary to the designs of the promoters, the channel had a flying start. The channel had filled a gap in the market. The need was for a south Indian music channel. Indian Music channel industry at that point of time was dominated by MTV and Channel V. As usual these channel disregarded the need of the South Indian consumers. Hence without knowing , SS Music catered to this unsatisfied need.
When I saw this channel, I was pleasantly surprised and delighted as a consumer . The programs were good and the VJ's were bubbly. The channel owners too was surprised at the reception it got and played to the audience. There were blockbuster programmes like Reach Out and Viewer's choice. The brand was slowly becoming MTV of South India. At one point of time SS Music displaced MTV in TAM ratings in Tamil Nadu and was a consistent second in music channels in the south.The cumulative reach of SS Music was 15.99% in 2004. This ensured that lot of ads to flow into this channel. The TV ad spend in Tamilnadu is around Rs350 crore and in Kerala it is Rs 100 crore.Started with a meagre 5 crore, this channel doubled its revenues in no time.The channel plays a wide assortment of music from the 4 southern states.
2006 saw this channel facing intense competition from its home turf TamilNadu. With the market leader Sun TV not letting any competition to gain upperhand in any segment revamped it Sun Music Channel and launched another music channel ( Live ) branded KTV. SS Music is also faced with distribution issues ( My cable provider does not support this channel). Together with the dip in any new blockbuster programmes, SS Music is facing its toughest test in the market.

The brand was positioned in the line of MTV . Youth , Assertive, Stylish, Gennext can be said about this brand personality.
SS Music was a brand that was given a personality and life by the consumers. But later the brand failed to live upto the expectation of the viewers. The brand has to again go back to the customers to find what made it tick . In otherwords the channel lost its spice and the programs no longer was exciting.
SS Music has all to potential to become a profitable niche player in the Southern market. The creative directors should reinvent the channel inorder for it to survive.

Source:southernspice.com,businessline,rediff.com

Wednesday, October 11, 2006

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

Monday, October 09, 2006

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