Sugarfree : Freedom From Calories

Brand : Sugarfree
Company: Zydus Cadilla
Agency : Rediffusion

Brand Count : 150

Sugarfree is the market leader in the emerging category of Sugar substitutes. The sugar substitute market in India is estimated to be of Rs 60 crore growing at 15%. The market is expected to grow even faster because of the changing lifestyle of Indian elite. Sugarfree has around 70% market share in this segment.
The category will be of interest to marketing practitioners because of its potential. Primarily marketed as a sugar substitute for diabetic patients and diabetic prone middleaged Indians, the market is witnessing a change in the positioning of this products.

The major players in this markets are Sugarfree, Equal and the new aggressive entrant Zero from Alembic. These products are now targeted at the more " Proactive " consumers who are health conscious and non diabetic. This is a risk that the marketers are taking. The rationale is that these proactive consumers have seen their friends and relatives suffering from the consequences of diabetics . Hence will be looking for options to substitute sugar in their daily diet. Hence the product is positioned as a substitute for sugar ( to a certain extent). The rationale behind this positioning is to create a positive image about this category. If these brands are marketed as sugar substitute for diabetic patients, the consumers will hesitant to publicly buy this product. But when these products are marketed as a healthy option to stay fit, there is a positive perception towards this category.

The segmentation for this category will be SEC A1-A2 aged between 30-40. Although marketing campaigns are trying to position this as a healthy alternative to sugar, I feel that the actual buyers will be those who have been diagnosed with diabetics or youth in the risk category who have diabetic parents .

Since this product category is new, the task of the marketers are manifold. The consumers has to be educated about this product. Since the TG is not diabetic patients, the task is more difficult because the competition will be with ordinaryl sugar. Another task is to make the consumer to try the product. Then comes the price, these products are priced at a premium and hence it will be a tough task to convince the value conscious Indian consumer.

Should you spent so much money in repositioning this category away from diabetic patients? The reason for this question lies in the fact that India will have large number of diabetic patients owing to the changing psychographics. It takes minimum effort to convince the diabetic patients to take this product .( I am not sure whether diabetic patients can take this product, correct me if I am mistaken). I feel that there is a good market for a brand that targets this diabetic patients rather than beating around the bush and spending hell lot of money on repositioning. Hence " Enjoy life with Diabetics " will sell more than " freedom from calories".

Sugarfree has the ingredient of Aspartame which is a low calorie sugar substitute. The competitor Zero is having sucrose based sugar substitute.Sugarfree has recently ran into trouble because of some health issues regarding its ingredient Aspartame.

Sugarfree is positioned on its " Low Calorie" attribute and the campaigns promote this brand as a healthy option for consumers who have less time for exercise and targeting mainly at the SEC A category. Lack of product awareness and high price will limit this product category to a niche ( a profitable one) .

Source: agencyfaqs,timesfood,businessline

Mysore Sandal Soap: Pure Sandal

Brand : Mysore Sandal Soap
Company: Karnataka Soaps &Detergents Ltd
Agency: MC&A

Brand Count : 149

Mysore Sandal Soap has a unique place in the Indian Soap market. This soap with a history dating from 1918 has survived in a market which is witnessing cut throat competition. Mysore Sandal Soap is manufactured by the Public sector company : Karnataka Soaps &Detergents ltd ( KSDL). Although this is a product from public sector, the brand has been able to create a unique place in the Indian consumer's mind.

Mysore Sandal Soap is made from pure sandal oil distilled in the state government's factory and the soap is devoid of any animal fat. Mysore sandal has the distinction of being the world's only soap with pure and real sandal oil. The sandal range has four products : super premium gold,baby soap,Winter version the normal sandal soap.

In the Rs 4500 crore Indian soap market, this brand has a minuscule share of only 80 crore ie 2%. The brand can be said to be a niche brand in the premium soap category.

According to the media reports, even the company officials feel that the brand has the potential to be a Rs 400 crore brand but since the resources for brand building and some laidbacknes has limited the growth of this brand.The TG of this brand is right now 40 year olds with majority of consumers in the southern state of TamilNadu.

The brand typically faces the problem that all heritage brands faces, that is to stay relevant to the new generation.Mysore Sandal is facing the issue that its loyal users are getting older and the new generations are moving to more visible brands.

2006 saw a very surprising move from KSDL. It roped in an unusual brand ambassador MS Dhoni to endorse the soap. The purpose was to make the brand attractive to the new generation. But whether Dhoni and Mysore sandal will fit is something to be seen. It will take some innovative marketing campaigns to merge the two different personalities: one the brand which is traditional and the model which is so modern and flamboyant. The current campaigns are ordinary which just shows Dhoni endorsing the brand.

This is a brand that does not need a model to endorse but what it needs is tonnes of marketing support interms of advertising campaigns ( in other words lots of money).The brand has a huge brand equity and recall. Those who have used this brand will vouch for its quality and fragrance.I would say that the potential of brand is such that it should look for extensions into perfumes and Deos. The brand is primarily seen a south Indian brand and to have a pan Indian presence calls for some serious investment. I feel that with a superior product like this , every penny spent on this brand will be worthwhile.

source: hindubusinessline,agencyfaqs

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