Brand Update : Lux

Lux is getting better and bolder. Facing the pressure in a cluttered market, Lux is now in an effort to break the clutter. 2007 is seeing Lux in a new avatar: Lux Pink. Lux has launched all new Pink in a Special Edition pack. The new variant Lux Haute Pink comes in a new flavor, color and fragrance. The most differentiating being the packaging. Lux Pink as you can see from the picture is a stark deviation from the existing variants. The look is different and the message is also different. The brand says : Beauty is not a color or a fragrance... its an attitude! Lux invites you to wear this attitude everyday, to enter a world where we celebrate the pleasures of beauty. Lux .Play with beauty.

The new variant is being promoted in tvc and also in magazines. The brand takes on the pink and celebrates the color. This special edition Lux aims to break the clutter and tries to bring the excitement back to Lux. The packaging is tempting and can see a lot of trial purchases.

Related :
Limited edition
Lux

Minute Maid : Refreshingly Orange,Surprisingly Pulpy

Brand : Minute Maid
Company: Coca Cola
Agency: Leo Burnett

Brand Count:213

Minute Maid is the latest launch from Coca Cola. Minute Maid is the global leader in the fruit juice industry. The brand which was earlier associated with Orange Juice has grown to become a umbrella brand for fruit juices and has even extended it to non soft drinks.

Minute Maid was launched in India in February 2007.The brand assumes significance in the plans of Coke because of the scare it had in the pesticide issue. By launching Minute Maid , Coke is moving towards health drinks. According to Financial Express, the market for Packaged Fruit Juices is expected to be around Rs 350 crore. The market leader is Dabur Real with a share of 57% and Pepsi Tropicana with a share of 30%.

Minute Maid have a rich history. The brand was born in 1945 when Florida Foods Federation developed orange juice powder with a rich fresh-squeezed taste. The name Minute Maid signified the ease of preparation of this product ( "It can be prepared in a minute"). The brand became instant success. The brand later was acquired by Coca Cola. Today the brand spreads across the globe and comes in various flavours and SKU's. Some of the popular extensions include Calcium Fortified, Premium Choice,Heart Wise, Bone Wise etc.

Minute Maid is now being launched in India in a phased manner. The initial launch is in the southern states of Karnataka, TamilNadu and Andhrapradesh. The brand is being initially positioned on the superior taste platform. The brand uses the tagline "Refreshingly Orange, surprisingly Pulpy". The tagline signifies the USP of Minute Maid which is : Pulpy Orange juice drink with real orange pulp. The brand is targeted towards young adults who look at health drinks.The brand is priced at Rs 25 for 400 ml and Rs 60 for 1 litre. (I havn't seen the ad since it is not launched in Kerala, will be updated in due course)

The brand is expected to shake up the fruit juices market in India. The success of Maaza will give lot of confidence to Coca Cola in this segment. And a high profile launch will help increase the category size also.
Watch the international commercial here

Source:minutemaid website,financialexpress

TVS 50: RIP (1980- ........)

Brand : TVS 50 Mopeds
Company:TVS
Agency:McCann Erickson

Brand Count:212

TVS 50 is in the death bed. Anytime the plug can be pulled from the life support system which supports this brand. The brand which was once the favorite two wheeler of common man is at the end of its lifecycle.
TVS 50 has a special place in the automobile history of India. This brand was the first twin seater moped in India.Moped is the combination of Motor + pedal ( nobrainer isn't it).The history dates back to the time of first world war and later a resurgence during the great depression.
Mopeds were pioneered in India by Kinetic with its single seater Luna. But TVS 50 made the category popular. This simple machine which was a category between cycle and scooter was a affordable transportation mode for a middle class person who couldn't afford a scooter.

The success of this product can be attributable to two things : price and utility. At a low price one could have something better than a cycle and also which was simple to handle and no hassles. The brand became favorite for small traders and at one point of time an entry level category for teenagers.
The Mopeds are now facing extinction because of the rise of certain categories within the two wheeler segments . The emergence of scooterette took away lot of consumers who was in the TG of mopeds.Along with that the product also had its inherent problems. The most nagging one being underpowered. The pedal starting also distanced ladies from considering this product. Although the product offered good mileage, the emergence of scooterette virtually took the consumers away from mopeds.

TVS has tried to keep the brand afloat in the changing market. It introduced a 72cc moped :TVS XL Super to make the moped powerful. Over its lifecycle the brand changed from TVS 50 to TVS Champ to TVS Superchamp to TVS XL Super and TVS XL Super heavy. The pedalling gave way to kick starting .So looking at the product changes, the company has done all the right things. Even in 2001, the brand had 66% market share. But the question is about the shrinking market for mopeds. In 2003 the company officials announced that the brand is slowly being phased out.

TVS was once a brand that reversed the fortune of TVS motors. It was a cash cow for the company and kept afloat the company during trying times.Now this category itself is becoming irrelevant or is it? One significant factor to look is that the design was never touched upon regarding the mopeds. The look remained the same.Globally mopeds are a preferred product category for short distance commuters. Looking at the electric bikes that are being promoted now in India, the performance is comparable with mopeds. So are curtains being pulled a little too early? Theoretically there is a gap existing in the market between cycles and scooterettes:Where TVS Scooty remains the leader. Price wise also there is a scope for a product. But mopeds in the current design and image may not bring in customers especially urban customers. A redesigned funky and attractive two wheeler in the price range of mopeds still holds some market. In western markets there are 50cc mobikes that teens use. No for an urban teenager, there are less options or settle for a ladies scooterette.

Will it take a Honda to reinvent this category.....
Source:businessline

Brand Update : Sunfeast

In a unique marketing move, FMCG major ITC has launched a new range of Sunfeast Biscuits: Sunfeast Sachin's Fit Kit. The brand's uniqueness lies in the fact that first time in India a product is being co-created by the company and the brand ambassador. In a world cup Googly , Sunfeast has not only roped in Sachin as a brand ambassador but also bought in a variant of a different kind.

Sunfeast Sachin's Fit Kit is the first Indian brand where the celebrity has been actively involved in the product development. Sachin has shared his dietary regimen which has helped him to stay in top fitness for more than 17 years ,with the company and the product was developed taking inputs from the dietary regime. The new variant is branded as Sunfeast Sachin's Fit Kit.

Sachin's Fit Kit comes in two variants : Vitamin and Protein Enriched and Multi-Grain. The Vitamin and Protein biscuit has Vitamin B1 B2 B5,B6 & B12 in it. The Multi-Grain biscuits has 6 grains in it viz Barley,oats, raggi,corn and wheat. The range retails for Rs 5 for 75gms and Rs 10 for 100gms.
The brand is promoted by Sachin and TVC's are on air now .The brand uses the taglines " Ab Har Ghar mein Sachin" translated to "Sachin in everyhouse" and also " Sachin ne Banaya" translated to : " Made By Sachin". The ads are made by Prahlad Kakkar for Ulka. The TG as I infer from the TVC is kids. The rationale of the current high profile heavy investment product is the understanding that Indian consumers are getting more health conscious. According to media reports, a part of the sales revenue will go to Sachin as a Royalty apart from the fee for endorsement.
The ordinary range of Sunfeast is endorsed by ShahRukh Khan (Watch TVC Here).The brand is leaving no stones behind and Sachin and SRK endorsing the same brand gives it an Awesome leverage

Related Brand
Sunfeast

Source:itcportal,businessline

Asian Paints: Every Color Tells a Story

Brand : Asian Paints
Company: Asian Paints
Agency: O&M

Brand Count : 211

Asian Paints is the market leader in the highly fragmented and highly competitive Rs 7750 crore ($1.73 Bn) Indian paint Industry.The organised sector constitutes around Rs 5400crore ( $1.2 Bn).
Asian Paints started its journey in 1942 with four young men in a garage in Bombay. The name Asian Paints was picked randomly from the telephone directory. The brand has traveled from that garage to become a Rs 1000 crore brand.From 1968 ,this brand occupies a premium position in the Indian Paint industry.

The story of the evolution of Asian Paints as a brand is interesting. The brand now has an iconic status in the industry thanks to some blockbuster big ideas from O&M. The brand once positioned as a mass market brand has evolved itself to a higher plane.

Indian paint industry can be broadly divided into two segments
a.Decorative segment which constitutes the wall paints : exterior and interior, wood paints etc
b.Industrial segment which consists of automotive paints, and paints for industrial sector.
Decorative segment constitutes around 75 % of the total paint industry and Asian Paints is the market leader with around 44% share. In the Industrial segment, Nerolac is the market leader.

In the decorative segment, it is interesting to see how Asian Paints have changed the buying process of the product like paints.Paints are usually considered to be a low involvement product. In earlier times, the decision of the brand was taken by the builder/contractor and the home owners does not involve much in the process may be the decision of color rest with the house owners.
Asian Paints realized the need for brand building even during sixties. But at that point of time, the company had a wide range of brands/subbrands. The focus of the company was on product innovation and service network and managing quality proposition.The brand focused on mass and rural market. Asian Paints had a mascot called Gattu who was created by the celebrated cartoonist R K Laskhman.These efforts made the brand a leader during the late sixties.

Then the company realised that although volume justified the leadership position, share of mind for the brand was very low.That was the result of the mass segmentation adopted by the brand. Rightly so because the industry was driven by channel driven promotions, building a brand at that time was" uncommon sense". During 1983, the company tried to reposition the brand as a premium brand. Asian Paints initiated the corporate campaign aimed to position the company as the number one player in the industry.The objective was to upgrade to a more margin premium product marketer .The corporate campaign " Spectrum of Excellence" was aimed to increase the Salience of the brand in a quiet market.

But this campaign failed to inspire any interest in the consumers and the company felt that the market is moving towards a commodity market where price is the most important differential. Asian Paints undertook a consumer research aimed at understanding the perception of consumers about the product category. The research revealed lot of interesting insights. Consumers felt that paints could change the mood of the space and it was a sign of festival and plenitude.It could make a gloomy place bright and pleasant. From this insight came the campaign of Asian Paints associating itself with festivals. Research also confirmed that customers tend to repaint their houses on the occasion of festivities. Thus born the campaign "Celebrate with Asian Paints". The campaigns were carefully crafted and there were different campaign for different regions. These campaigns effectively enhanced the brand equity of Asian Paints and established itelf as a premium brand. More than that , these campaign ensured an emotional connect with a brand in a low involvement category.The brand also phased out many subbrands and rest of the subbrands was brought under Asian Paint's umbrella brand.

During the late nineties the brand had to be reinvented. Because no longer festivities formed an important part in ones life. Since many brands went after festival seasons,the positioning platform has become cluttered.More over the consumer buying behavior has changed. The category was becoming less seasonal. People started associating more importance to home decor and interiors. The choice of color became a high involvement decision. From a low involvement category, paint was increasingly becoming a high involvement category.

The brand also went in a brand overhaul. The logo was changed to a contemporary upmarket one designed by Entreprise IG based in Singapore.The logo/design was to convey self expression, sophistication and Technology.

Thus came the birth of a wonderful positioning strategy created by O&M. The insight was that the brand is about people and homes and homes reflect the people living in it. Hence " Har Ghar Kuch Kehta Hai" translated to " Every Home has a story to tell". This campaign is a perfect example of a brand laddering up and connecting to a higher level in the mind of the customer. The campaigns reinforced the brand as a premium emotional brand.
Along with the campaign Asian Paints also ran parallel ads for its subbrands. Saif Ali Khan endorsed the premium brand Royale .For Apex Ultima, the campaign was highly localized and was different in different market.

View Asian Paints ad here : Pongal :Saif Ad

Taking a cue from the success of Ghar campaign , the brand took ownership of the COLOR. The insight is that each color has a story to tell. The latest campaign reflects on the color and uses the campaign " Har Rang Kuch Kehta hai" translated to "Every color has a story to tell".The brand is so serious about the color that it has tied up with IIT to explore new colors and conduct research on colors.
Asian Paints is a classic branding story and the brand is still exploring and growing.

source:businessline,agencyfaqs,Ficci

Marketing Funda : Limited Edition

Marketing Funda #4: Limited Edition

The post is inspired by one of my students Mr.Prateesh who raised this intriguing question: Why do companies come out with Limited Edition products?
Obviously this question can be seen in the light of high promotion advertisements of Marketing giants like Pepsi launching Pepsi Gold and Mirinda Limited Edition.
According to Wikipedia, the term "Special Edition" when used in Marketing, is intended to give the product something new and previously unseen in the regular edition.Limited Edition carries a sense of urgency and the products will be released for a shorter time or in limited numbers.
Limited Edition term is derived from publishing industry where limited number of editions can be printed with top quality impressions. But later this term was taken and used across industries.

Although Limited Editions are sold at a premium, there are many FMCG companies take up this concept minus the premium factor.The industry that has used this concept widely is the automotive sector . In India too there were lot of products that come with Limited Editions. The recent one is the Pepsi World cup Gold. Pepsi has earlier came out with Pepsi Blue in the last world cup.

The reason for launching a Limited Editions can be many :
1. Induce brand rejuvenation
2.Consumer Connect
3.Celebrate an event
4.On occasions/Festivals
5.Sales Promotion
6.Test Marketing
7.Creating a Hype in the market
8.Celebrity Endorsement
9.Encourage multiple purchases.
10. Create Brand Associations
11. Enhance Share of Mind

According to MG Parameswaran of Ullka, marketers use Limited Editions to increase consumer connect, to excite the market or for celebrations ( source:Financial Express). For example Lux came out with two limited edition flavor Chocolate Seduction to celebrate its 75 th anniversary.Pepsi Blue is to celebrate World Cup. Amara Raja Batteries had a Limited Edition to celebrate Narain Karthikeyan's entry into F1.

Sometimes Brands come out with Limited Editions to Excite the market. If the brand sales is plateauing, Limited Editions can bring back excitement into the product.The incremental improvements may encourage many new consumers into the product thus rejuvenating the brand.
Limited Editions also help to encourage customers to make multiple purchases as a Collectors item. Sometimes marketers use these Editions as a test marketing of a feature of attribute. For example Wagon R used a series of Limited Editions to test market some of the features which later became the part of the standard equipment.
Limited Editions are also used by marketers to boost the Share of Mind i.e to ensure Top of Mind Recall. Brands like Pepsi which has limited scope of differentiation in terms of product attributes uses Limited Edition like Pepsi Aha, Caffe Chino to boost the image and also the high profile promotion ensure top of mind recall.

Limited Editions are used for special seasons and occasions. Many marketers launch event/theme based variants of their products that runs for a short period but with a view to enhance the brand image.Some times Limited Editions are used to create a hype in the market.

Another advantage marketers see in Limited Editions are to use it to maximize the use of a celebrity.Palio effectively used Sachin and Special edition cars to boost the image of the brand.Limited Editions also help the brand to create positive brand associations. Coke used limited edition Rang De Basanti bottles to create positive association of truth and optimism.

All though there are many advantages to using Limited Editions as a strategic marketing tool, often these editions are expensive.Most often the return from these limited ranges cannot be measured. Sometimes the Limited Editions become failures which in turn affect the brand equity of the parent brand. Now a days marketers use Limited Editions as a tactical weapon ( sales promotion ) rather than a strategic tool.

Source: Financial Express