Thursday, October 19, 2006

Tata Sierra : RIP

Brand : Sierra
Company: Tata Motors
Agency: O&M

Brand Count :144

Sierra is the first passenger car from Telco ( Now Tata motors). Tata Sierra was launched in 1991 marking the transformation of a Truck manufacturer to a Passenger vehicle maker. Sierra was an entirely a new product in the Indian car market at that time. This three door vehicle was indeed the first SUV to hit the Indian roads.

Sierra was the baby of Ratan Tata and his first attempt to make a mark in the Indian Business world after taking over Telco. But the product bombed inthe market. Sierra can be said as a brand that came too early. The Indian market was not ready for this concept.

I personally love this car for its look. Most of you will agree that this vehicle is a stylish one. Even with the entry of all major SUV brands in India, Sierra looks contemporary ( my opinion) and modern.
Why did Sierra failed in the market?
a. Price
b.Quality
Sierra primarily failed in the market because of its steep price. Priced around Rs 5 lakh, the brand failed to appeal to the value proposition of the Indian consumer. Another factor was the corporate image of the company. Telco was rightly perceived as a truck manufacturer and Sierra was the first passenger car. Hence the consumers were not ready to shell out a premium for this brand

Then there was the quality issue. Sierra was a truck in the car form ( no problem with that!) .The consumers knew that and the price don't justify the quality proposition given in the product. Although steeply priced, Sierra had all the goodies that 2005 cars offered like power steering, power windows etc. Yet.... Sierra failed to enthuse the customers.

Sierra was rightly positioned as a sporty beast. The ads and campaigns rightly promoted the brand and it had all the potential to be an icon. Telco made a mistake in having high hopes for this brand. At the best, the product could have been a niche brand and an important one. The brand could have lifted the company to a higher level, had the quality issue was rectified.

Even today , we can see this car on the road . And most of the owners who uses this product because they like the brand not for any other reason such as low price.I read in an article that the design guru Dilip Chabaria loves the look of Sierra. As the old ad of Sierra says , "Sierra is not owned It is Possessed". Today Sierra's position is occupied by Scorpio and rightly so.. If launched again with a right price , there is still a market for Sierra.

Source: indicar,businessline,agencyfaqs.

Wednesday, October 18, 2006

Kwality Wall's : Pleasure Up

Brand : Kwality Wall's
Company: HLL
Agency: McCann Erickson

Brand Count : 143

Kwality Wall's is one of the major brands in the Indian icecream industry. The brand Kwality icecreams which was one of the first icecream brand of India came in into existance in 1940. In 1956, the brand which was a local brand began to spread its wings. In 1995, Kwality Icecreams came into HLL's fold and is now marketed as Kwality Wall's.

The Indian icecream market is estimated to be around Rs 1500-2000 crore with the organised market hovering around 600 crore. Kwality Wall's had a market share of around 40% of this segment. Although HLL and Amul is claiming leadership in the Indian Icecream market, the fact is that the market is highly fragmented and increasingly commoditised.

Amul entered the icecream market with a low price that changed the entire dynamics of the game. Kwality Wall's could not sustain the price competition and withdrew from the mass market. This has resulted in Amul gaining the market leadership position with around 27 % and Kwality walls reduced itself as a premium player. ( the market share figures are terribly confusing ).

With so many players in the market with little differentiation, the market is facing the issue of commoditisation. Flavour,taste, quality and Branding are the major differentiation opportunities in this industry. Flavour and product varieties were the route taken by major players. But flavours/varieties can be easily replicated by the competitors. Hence the only meaningful differentiation could be the brand.
Kwality Wall's has some of the blockbuster product varieties up in its fold like the Cornetto, Feast, Viennetta. But could not sustain because the same was imitated by the competitors.Cornetto became a generic name but HLL could not capitalise on that popularity.
Amul took the life out of Kwality by positioning itself as " The Real Icecream" since Kwality is mainly made of vegetable oils.
Kwality Wall's since the onslaught of Amul has faced positioning issues. The brand had struck a reasonably good positioning as a " Connector of Hearts" . The brand had the famous tagline " ho Jaye Dil Ka Connection" and some good ad campaigns. But the the brand began to go haywhere.
The positioning changed and so has the quality of the campaigns.There was no need to change the positioning. But someone at the company was bored by this.
The recent tagline of Kwality Wall's is " Pleasure Up" which could be mistook for a tagline for an Aphrodisiac . The ads also could not be viewed with family . When I first saw the campaign i mistook it for a condom Ad.
The marketers at HLL is totally confused about the brand values , the basic STP and all marketing fundas. The owners are too obsessed with the dictum " Sex Sells", or they are too desperate about this brand. While Amul carefully connecting its corporate image with their icecream brand, Kwality Wall's is repelling its existing customers. Kwality Wall's should be positioning itself as family brand with quality and variety as its major strength's. There is also a space for a subbrand in the youth category . The task is to create an excitement in the market with promotions and new product introductions. But Kwality Wall's is wasting its money in positioning itself as a " Sexy " brand.
With the whole icecream segment becoming commoditised, it takes lot of careful strategic brand management to survive. Kwality is facing its worst crisis in its life. It has to find a platform otherwise, it is going to be out of this market.
source:businessline.walls,hll.com

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