Manjal Soap: Essence of Turmeric

Brand : Manjal
Company: Marico
Agency : Bates

Brand Count : 148

In one of my earlier posts on Vicco I had talked about the virtue of Turmeric and the failure of Vicco in capturing the essence of this ingredient. Here is a brand that rose to fame just because of the turmeric essence. Manjal is an interesting brand.The brand was launched in Kerala in 2005 by SD pharmacy which is a traditional ayurvedic pharmaceutical company. SD launched Manjal without much hope of making this brand a blockbuster one because of the fact that the market is highly competitive with brands like Medimix and Chandrika ruling the Southern markets.
But the company was surprised at the reception Manjal got from the public. Manjal is the Malayalam of the word Turmeric.

Manjal's launch was a soft one with the company focusing on inducing trial purchase . The company liberally gave sample packs with leading magazines together with placing the product attractively at the shops. The smart packaging and the simple message captured the attention of the consumers .At the super markets, the customers were prompted to smell the brand to feel the essence of turmeric in the soap. These initiatives together with the name Manjal ensured remarkable trial usage by the TG.The product which is of high quality ensures that customers are satisfied with their usage experience.

Manjal Brand name had the magic that created a 9 crore brand within 8 months of its launch.With such a blockbuster name, there was no need for further explaining the benefits of the soap. The product was promoted in media as a natural herbal soap.

The success of Manjal had its share of problems for its owners. SD was not able to cope with the growing demand of the soap because FMCG is a different ballgame altogether. Thus stepped in Marico as a suitor.Marico acquired Manjal in January 2006. Marico was looking for a brand in the soap category and Manjal was a high potential brand in the southern states.

Manjal was repositioned by Marico giving more importance to the essence of turmeric rather than as a family soap. The TVC features the use of soap replacing the traditional bath using turmeric powder which is often messy. The ad targets the young girls rather than the early TG of family.

Manjal is a brand that has a potential to be an important niche brand in the herbal soap category. The brand name and the product attributes has impressed the consumers. With an accomplished Marketer like Marico to support this brand, it is sure to go places.

source: economictimes,agencyfaqs.

Nivea : Gentle Care

Brand : Nivea
Company : Beirsdorf AG (JL Morrison in India)
Agency: TBWA

Brand Count : 147

Nivea is a German brand marketed in India by JL Morrison. This brand has a history of around 96 years. Nivea came into existence in the year 1911. The brand has derived its name from the Latin word Nivius meaning "Snow White".

Nivea has been in Indian market for more than 30 years. But this brand which is truly a global brand has not met with success in India. Nivea globally is the brand that has its presence in around 20 product categories in more than 50 countries. But in the 1300 crore Indian skin care market, the presence of Nivea don't justify its rich heritage.

Nivea is famous worldwide for its face cream. Nivea Creme created by Dermatologists was launched in 1911 . The brand is considered to be the first to take the skin care category from the elite class to the masses. The brand worldwide is known for its Trust, Reliability and Accessibility. Globally this brand is positioned in the platform of "Gentle Care" and " Wellness". The brand has its elements of Color embedded firmly in the minds of the customers. Nivea took its "Blue and White" color as its brand element as early as 1924. From there onwards, this color scheme has been a brand identity for Nivea.

In India, the brand is known for its skin cream. Nivea cream is but perceived as a winter cream because of its thickness and oily consistency. While in other parts of the world, Nivea has successfully came out of this narrow perception, in India, the marketers were not able to effectively take the brand forward. With most of Indian stated do not have severe winter, the market for winter cream is very limited.Nivea has a market share of 19% in the Rs 108 crore skin cream market which is dominated by Ponds.Now Ponds hold the position which Nivea could have taken had it been more aggressive in the market.

Although JL Morrison tried to extend the brand to soaps, the extension has not been successful because of the halfhearted effort. With salespromotion now being used to promote this brand of soaps,further dilution of the brand equity is inevitable.

Nivea face serious marketing issues in India. The brand has not been aggressive enough in this market which is crowded with established brands. Nivea was never bothered about strengthening its positioning as a skin care leader. While Ponds successfully extended itself to other product categories, Nivea is stuck with its cream.This is a brand that failed because of marketing laziness. Nivea have huge brand recall and equity. It has the global parentage, successful positioning opportunity but was not able to leverage the strength because the Indian marketers didnot want to invest in the brand. The problem is that when the brand is licensed to a marketer in a country, the objective of the brand manager will be to milk maximum out of the brand rather than invest in longterm brand building. Every ads and campaigns will be weighed interms of the ROI and sales growth. Successful brands required longterm investment that will yeild results over a period of time. But in the case of Nivea, no such brand building efforts were to be seen.

The potential of the brand is evident from the fact that in the Grey market, the brand is sold well. There is also significant difference in the quality of imported Nivea and the local one. It is said that Nivea Deo is the best selling product in the grey market.

Nivea is sad story of a brand that failed to succeed inspite of having all essential Brand qualities. If failed because of marketing laziness.

source:rediff,brandweek,businesstoday,nivea.com

HP : Computer Is Personal Again

Brand : HP computers
Company : HP
Agency : Publicis

Brand Count :146

The Indian computer hardware industry is huge and growing. The sheer size of the Indian middleclass is an ample evidence of the huge potential for personal computers in the country. The computer penetration in India is barely 1 percent that makes the market more challenging and attractive.

Although the numbers present a rosy picture, the reality is not as rosy as it seems. The market is dominated by unbranded players and the computer today have a commodity status with brands losing its relevance to a home computer buyer. This has put lot of pressure for the organised player to reduce margins and cost to compete with the unbranded players. In the earlier stages of the evolution of this industry, the factors like reliability and service had given the organised players significant advantage over the unorganised sector. But with the standardisation of products and the outsourced service elements becoming popular, the branded computers lost their edge.
Even with the price war raging , the branded version costs anywhere between 20-30% premium over the unbranded ones.The rate at which the processors and technologies becoming obsolete is forcing the customers to look for cheaper options. The rationale for the customer is simple " The system I buy in 2006 is going to be obsolete in 2007, hence why invest in a branded one?".

HP ( Hewlett Packard) is one of the major players in the organised market in India. This multinational giant have around 20% share in the desktop market. Reports suggest that HCL-the domestic player is leading the market.
In this market which is typically fragmented with chances of differentiations are slim, it takes lot of innovation and marketing skill to survive. That is what HP is currently doing. In June 2006, HP launched its global marketing campaign to reinvent the personal computer industry. The campaign with the tagline " The computer is Personal Again" is an attempt to brand a commodity again. Personal Computers or PC was what we used to call the desktops but later the term lost its charm and we began to use the terms like desktops, laptops and notebooks. These terms were technical terms and was a result of the market becoming more mature and as a result more commoditised.Most of the campaigns by computer manufacturers were focusing on technical specifications and price offers. There were little branding efforts and most of the campaigns were dealer ads funded partly by the manufacturers. Branding was slowly dying and sales promotions were gaining prominance.

HP's new initiative is to bring back the personal nature of the computers. Business Week in a report has detailed that this campaign is intended to position HP as a company that truly understands how central PC's has become to most people's life. The campaign features a " Hand drawn graphic of a Hand" in every ads. Only select products will be highlighted in this campaign and these products will be promoted using only their striking feature. That means that the company is going back to the marketing basics of USP, Positioning and Differentiation. The campaign has also roped in MTV for a Advertiser Funded Programme titled " Meet or Delete" reality show as a part of its 360 degree brand campaign.

The print ads featuring celebrities stand out intheir designs and communication. The sheer beauty and depth of campaign makes it one of the most memorable marketing efforts of recent times. The campaign globally is conceived by Goodby, Silverstein and Partners for the Personal Services Group of HP.
Another beauty of the current positioning platform is the flexibility and creativity that it offers to the marketer. There is ample scope for extending this positioning to all product ranges, new products and across segments.The campaign also gives the marketer an opportunity to experiment with the product, change its design and sometimes make mistakes all in the name of reinventing PC.

With regard to the current theme and its execution in Indian market, the ads mainly is targeted at the affluent middleclass tech savvy customers. The ordinary lot will not understand this communication because the execution of this ad is too complicated for an ordinary buyer to understand. I am not sure whether HP is only aiming at Premium customers ?The success of this campaign will depend a lot on how this strategy is being executed at the customer moments of truth or touchpoints. Is he going to get a personalised attention at the retail level? Will the company follow this strategy with new product ranges and extend this campaign to a mass level?

Whatever be the outcome of this campaign, this will be rated as a classic marketing initiative . As a marketer, I am happy because " Marketing is personal again"

source: businessweek, bbc,expresscomputers, agencyfaqs

Dinesh Beedi : Smoked Out

Brand : Dinesh Beedi
Company: Kerala Dinesh Beedi Cooperative

Brand Count: 145

Dinesh Beedi is one of the regional players in the Indian Beedi market. Manufactured from the district of Kannur in Kerala state( Gods Own Country), this brand is facing the dark prospect of extinction.
Beedi's are Indian cigarette prepared by rolling tobacco wrapped in Tendu leaf and secured with colored thread at one end. This is the cigarette of the poor. But in recent years, this product category is facing a crisis.

Dinesh Beedi is the product of Kerala Dinesh Beedi Cooperative which is the largest "worker owned cooperative " in the world. Besides It is also the largest women owned cooperative in the world. Run by the communists, this society came into existence in 1965 following a bitter fight between the beedi workers and owners. The fight led to the formation of a society that offer good management practices and owned by the workers.

The Indian tobacco market is huge and worth around Rs.10,000 crore .Predominantly this market is dominated by Beedi's. It is estimated that beedi contributes 70-80% of Indian tobacco market.
The beedi market is highly fragmented and there are regional players catering to respective markets.There is no one major player in the Indian market and no more than 5% marketshare is held by a single player.

The beedi industry is faced by a myard of issues. Although this industry employs 44 lakh workers, there are rampant cases of exploitation of workers, poor working conditions, child labour etc. With the governments banning tobacco promotions and also the ban of smoking in public places been enforced, this industry has been put into death bed.Along with the rising input costs, labour issues, taxes has virtually removed all possibilities of profitability.While large cigarette manufactures passing on the tax burden to the consumers, beedi manufacturers cannot do it because of price sensitiveness of the market.

Dinesh beedi was the brand that was affected to the maximum. Once a profitable company, this society is now in deep finacial trouble. With diversification projects failing, the livelihood of thousands of workers are at risk.

While private players in the beedi industry can afford to reduce costs either by mechanisation or reduced labour costs, Dinesh Beedi could not do that because it has been constituted to give workers a decent life. With the Government trying to demarket the entire category , the brand does not have a chance to survive.

The possible option before the company is to restructure the entire process and eliminate costs, raise the prices to bring in profitability.

While Dinesh has tried to diversify into unrelated foods category, what could have been more marketable is to venture into low end cigarette category although you will be competing with the likes of ITC. There has been cases of failures in upmarket diversification, but Dinesh had its competence in the tobacco industry .Hence any tobacco related products in the like of chewing tobacco could have benefited the company more ( I am not touching the ethical part of selling tobacco). Like Liqour market what ever demarketing that government does , this is a market that is not going to die and there is a good potential for players like Dinesh had it taken due care in ensuring profitability.

Source: Indiatoday,businessline,cess.edu,wikipedia,businesstoday

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.

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