Tuesday, September 04, 2007

Bubbaloo : Funfilled Center

Brand : Bubbaloo
Company Adams ( Cadbury's)


Brand Analysis Count : 269

This brand is Cadbury's latest foray into the bubblegum market.Bubbaloo is the latest entrant in the Rs 180 crore bubblegum market. Bubbaloo is a global brand which came into existence in 1985. The original owner was Adams which later became the subsidiary of Cadbury's.Bubbaloo is now sold in 25 countries and is a global major in the bubblegum market.

Bubbaloo is a soft bubblegum with a liquid filled center. The brand is similar to the Center Fresh in the form . The brand is positioned as a bubblegum with FUN FILLED CENTER. The brand is targeting kids unlike Center Fresh which is more of a youth oriented brand. In the market, Bubbaloo is competing with Boomer and Babool which targets the same segment.
Like Boomer , Bubbaloo also has a mascot . The mascot is named Bubba : the cat. Bubba is a modern friendly stylish cat and the first commercial is already on air.
According to the company Bubbaloo is trying to differentiate itself by the product qualities. The brand is much softer and as its competitors , Bubbaloo make big bubble. Infact the brand is famous for the largest bubblegum bubble ever blown ( 58.4 cm). Bubbaloo comes in two flavors : strawberry and mixed fruit. Although the differentiation of being Liquid Filled is not a USP or a serious differentiator, in the confectionery market , it is the noise and the offers that matters. The brand is priced at Rs 1 and the company expects a market share of 10 -15 % in the near term.

The brand is in a market dominated by two major brands. Boomer and Babool together commands 87 % of the market. Again the market is flooded with consumer promotions ( free gifts and collectibles ) and establishing itself will be a challenging task.
But the silver lining is that Indian Bubblegum market is growing at 20 % which makes it attractive for new players. And since there are only two players, Cadbury's also thinks that there is a room for a third brand.
There is another interesting feature to this brand. Although Bubbaloo is from Cadbury's and Cadbury have a brand equity which is unmatched in the confectionery space, Bubbaloo does not associate itself with the parent brand. The reason is obvious. In theory we call it the Secondary Association. Having a secondary association with Cadbury's will have a negative effect on both Bubbaloo and Cadbury's because Cadbury is strongly associated with Chocolate. And a bubblegum never fits into this association. Hence the brand takes the parentage of Adams .
Bubbaloo has all the necessary brand elements to make it big. A mascot, globally successful product, lots of money to spent on advertising and the excellent distribution strength. Kid's Channels will see lot of airtime spent on the fight between the THREE B's

Sunday, September 02, 2007

Onida Candy : RIP (1999 - 2002)

Brand : Candy
Company : Onida

Brand Count : 268

Candy is a sad brand story. This unique brand is a classic case of entire marketing mix gone awfully wrong. A good idea killed by poor marketing strategy. Or is it a failure because the brand was ahead of its times ?

Candy is the 14 inch Color TV launched in 1999 with much hype. In the early 90's the Indian brands were ruling the roast with no serious external competition. Then came the rush of Global brands to the Indian market. The market began to get crowded and technology no longer became the key differentiator. Candy was a serious effort from Onida to invent a new segment in the crowded undifferentiated TV market.
Candy was truly a Color TV, in the market where all TVs were either black or grey, Candy came with four color variants. The concept was good. Have a TV which is colorful and targeting young customers.
Candy was conceptualised based on certain customer insights. The young customers would like to hear loud which often created irritation with the grown ups. Hence why not have a TV which has a wireless headsets which would ensure privacy to the audience. The managers thought that the attractive colors on the cabinet and the cordless headset will act as a differentiator . Candy came in four colors : Berry Blue , Mint Green , Lemon Yellow and Cherry Red.

I feel that the brand managers was too ambitious about Candy. The brand was priced well above the existing 14 inch televisions. Candy was launched at a 40 % premium over the other brands. Candy thought that customers will be willing to pay a premium for the differentiators that Candy offered.
But the brand failed. Infact during 1999- 2001, the brand was selling like hot cakes but later the sales slipped. Ultimately Candy was no longer there in the market. What went wrong?
As mentioned above, Price was obviously the villain. The small TV market was the most price sensitive one and customers was not willing to pay 40 % premium for color alone. The brand failed to convince the TG on the value proposition of the brand.
There was segmentation issue also playing spoil sport. Candy was not focused on the TG because some where the brand wanted to attract the replacement market ( New TV for Old) rather than positioning itself as a second TV. This put additional volume pressure on the brand which was at best a Niche brand.

Because of the blurred segmentation, positioning also suffered. Instead of positioning as a youthful vibrant brand aimed at the youth, Candy was struggling to find the right positioning. It was trying to compete with the large TVs instead of creating a new segment. More over reports suggest that the four colors were not enough to create a vibrant brand. ( compare this to the 99 colors of Scooty) . Some customers felt that the colors are too dull to be paid a premium.
In 2001, Candy came out with a variant Candy Duet which had two colors. The brand made a big mistake by introducing a 20 inch variant further diluting the brand.

Candy when it was launched was touted as the APPLE ( brand) of Televisions. It was expected to do what Apple did to the Computer industry . The brand was to take aesthetics as the main attribute and revolutionize the market. But it neither had the aesthetics of Apple nor had the staying power. Candy is a case of poor marketing execution of a good product concept. An idea that could have carved a place in the market on its own. Onida had big plans for the brand . It planned to take Candy to the level of a multimedia brand but could not sustain the initial success. It failed to understand the value proposition of its consumers nor was it able to create a meaningful and sustainable differentiation . Some where in 2002-2003, the brand was quietly laid to rest.

Source : magindia.icfai case,businessline

Saturday, September 01, 2007

Brand Update : Scooty Pep

Scooty has come out with a remarkable campaign - 99 color campaign. The brand now is available in an unbelievable 99 shades. I think it is the first time in the world that an automobile is available in 99 shades.
In marketing classes we use a quote from Henry Ford about the Model T car which was available only in black. " You can have any color as long as its black" ( although there is no proof that he said this).
Marketing has come a long way.....

TVS is now running a series of campaigns featuring the brand ambassador Trisha highlighting this feature.

Watch the TVC here : TVS Scooty

The move is unique and high risk. Scooty off late has been facing tough competition from Pleasure , Active and Krystal. Although the market share of Scooty has not been affected, the brand faces issue of differentiation. The competitors are feature rich and hence differentiation based on features no longer remains. All these brands are heavily promoted in the media. Hence to sustain the leadership, Scooty has to find a unique and serious differentiation.
Color never has been considered a differentiator in the Indian market. Marketers were skeptic about using colors as a differentiators because it is costly to manufacture products in various colors and customers may not be willing to pay a premium for the colors. But those thoughts were applicable in the past. Now consumer research shows that Colors has become an important attribute in the purchase of durables. One reason is that Features now no longer has the exclusivity. Another factor is the need for certain segments of the customers to express their individuality through colors. The affluent Indian middle class are also looking for aesthetics along with features. Hence while choosing a refrigerator, one may buy one which matches the color of the wall.
Scooty's new initiative is based on the consumer insight that customers are willing to pay a premium for unconventional colors. And individuals wish to express their attitudes through the colors. The popularity of Yellow Zen and the success of Godrej's EON range of refrigerators reinforces this insight.
And as the marketing theory suggests, when you have to promote a differentiation, do it in style. Differentiation should be important, distinctive,superior,preemptive, affordable and profitable. And 99 colors definitely makes a difference and significant too. But there are concerns. Concerns regarding the economies of scale . I still wonder how TVS managed to pull it through their production process. Managing the inventory will be a nightmare for TVS managers. According to reports, signs are encouraging. one out of four customers selects an unconventional color. Scooty charges a premium of around Rs 1000 for these colorful variants.

If I go by the theory, Scooty will be the brand which have the largest number of product line extensions. Cool....

Related Brand
TVS Scooty

Thursday, August 30, 2007

Brand Update : Bingo

According to today's Business Standard, Bingo has eaten into the market share of Lays. Six months into the launch, ITC has really broke into the stronghold of Lays. The report cite the clever marketing strategy and the localisation of flavors as the main factors that aided the success of Bingo.
Although it is too early to praise Bingo or ITC on their success, I feel that getting the brand to a market share of 16 % is something commendable. Bingo now aims for 25 % of the Rs 2000 crore branded snack market. The share of Lays have reduced from 65% to 45%.


The brand had made a base for itself. There are various factors that aided the success of Bingo.

High Decibel Advertising : Although I have reservations about the quality of ads, Bingo was able to capture the Share of Noise through its heavy spend. Helping that was the latest move of Lays to change the famous tagline to " Har Program ka Main Food"

Novelty Factor : The snack market is driven by impulse purchases and Bingo had the advantage of the ITC parentage that encouraged consumers to try out the product without much inhibition.

Regional Flavors : This is where Bingo beat Lays in their own game. Lays was the first to localise flavors but Bingo specialized on local flavors and the key differentiator was the Localized flavors.

Distribution strength : If you ask me which is the most critical success factor of Bingo, I would put the distribution strength as the numero uno. Go to any supermarket or kirana store, Bingo is highly visible. In India there is no company that can match the distribution strength of ITC and this has helped this new launch very much interms of Shelf Space and retailer support.

Having said that Lays cannot be written off. Whenever a new brand comes, the larger brands lose market share . Like wise the high profile launch of Bingo has eroded the market share of Lays but things can change very fast. Lays have already scaled up their marketing initiatives and new flavors are on the anvil. The brand also have came out with pack costing only Rs 3 ( sachetisation) to induce non users to try out the brand.

The war has started and for marketers and customers, its going to be a treat.

Related Brand
Bingo
Lays

Wednesday, August 29, 2007

Grasim Suitings : For The Self Made

Brand : Grasim
Company : Aditya Birla Group
Agency : O& M

Brand count : 267

Grasim is a major brand in the Rs 2500 crore Ready to Stitch market. The brand which had its existence since 1957 .Grasim is a major player in the Rs 2500 crore Ready to Stitch textile segment. The brand lags behind the market leader Raymond's which holds a market share of about 25- 30 %.
Grasim comes from a company that is one of India's largest manufacturers of cement and VSF.

Grasim is now on its path of repositioning. The brand was earlier positioned as a Modern Fashion Brand. The positioning was reinforced by a series of new fibre launches . The collections like Aqua Soft, Ice Touch etc kept the brand in the limelight. The brand used the tagline " Power of Fashion" to convey the positioning.
Now the brand has changed its positioning. Grasim has roped in the Bollywood Super hero Akshay Kumar as the brand ambassador. The tagline has been changed to " For the Self Made". The TVC featuring the actor is now on air.
The repositioning is very significant for the brand because of the nature of competition that it faces. The competition is not only from the textile brands but also from the Readymades. Every day we have new brands cropping up. In the brand competition , brands like Mayur , Reid and Taylor, Raymond's have stepped up their campaigns. Grasim wanted itself to be relevant and hence this attempt.
The brand now has changed its personality from a Fashionable brand to an Ambitious Brand. According to a report in Agencyfaqs, the brand has broadened its TG to include the rural and small town markets where the Ready To Stitch wears are still popular. The new TG is 35 + male from smaller towns who are informed, fashion conscious and ambitious.
In that way the choice of the brand ambassador is apt. Akshay is known for his humble beginnings and his struggle in life as a cook, a martial arts trainer and then to stardom. Hence the brand ambassador and the new positioning has many things to share. The new TVC also tries to relate the life of the actor and the brand. Impressive thought.

The brand has now adopted the mainstay marketing philosophy of most of the readymade brands now existing in the market. Get a star to endorse it. In that way Grasim has forced itself to move to the popular road ( easy one ) . The brand is expected to spend around 7- 8 crore on this exercise. Remember that Grasim has become popular on the strength of the innovations in fabric rather than emphasis on promotions.
Grasim was perceived to be an upmarket elite brand. The brand was also sold at a premium. Infact this is a brand that has used EVENTS to promote itself as an upmarket fashionable brand. Grasim was the brand that came out with the first Mr India contest which is running in its 12th Year. When it was launched, the contest evoked lot of PR and media attention which inturn benefited the brand.

But the managers at Grasim wanted the brand to look at the masses. From the elite premium club, the brand wanted itself to be more affordable. The logic behind the current repositioning is to make the brand a Masstige brand. Hence the brand chose to go in for a undifferentiated celebrity approach. By doing so, Grasim is putting its entire brand equity at stake and that too on a celebrity. Grasim could have done so with out a celebrity. Now look at the plight of Mayur suitings which took Salman as its brand ambassador. Now Salman is in Jail and can the brand bank upon Salman?
I am not jumping into conclusion that the new positioning of Grasim is not good. I feel that it lacks the depth and is too much depending on the endorsers rather than the brand itself. After the contract with Akshay ends, what will the brand do next ? Can it survive with a model? NO !
It will have to find another celebrity who was self made . The brand has put itself into a vicious circle and it may have to depend on one celebrity or another. Personally I feel that a brand should stand for itself not on any real person ( celebrity) .
I think that the brand had made an error in believing that the guys in semi urban and rural markets are only influenced by celebrities . I am sure that they are pretty confused by the plethora of celebrity endorsements and may be looking for a change. Those fashion conscious customers of Grasim will be wondering what happened to this fashionable brand suddenly changing its personality.

Akshay is definitely a right celebrity to endorse the brand with the new positioning. But whether the celebrity endorsement strategy is right for the brand, only time will tell.

source : agencyfaqs

Monday, August 27, 2007

Gold Winner : G for H

Brand : Gold Winner
Company : Kaleesuwari Refinery Ltd
Agency : Crayon's Advertising and Marketing

Brand Analysis Count : 266


Gold Winner is a major player in the branded edible oil market in India. This brand from the Southern India made its debut in 1995. A price warrior during its launch , this brand has transformed itself to a serious brand.
Gold Winner now commands a 20% market share in the whole of India and have a commanding 70% share in Tamil Nadu. The brand has serious plans for itself and has already making its way to the North Indian market.

I have noticed the earlier ads of Gold Winner talking about health and ending with the tagline : Gold Winner is Gold- Winner. The ad made no impact on me as a marketer except an acknowledgment of the huge budget that the brand had. Gold Winner gained its initial market with a price war on the major brands like Sundrop and Sweekar. Gold Winner was retailing on a huge price discount and the heavy media campaign ensured the required volume to sustain the price war.
Then came a surprise. The quality of the campaign changed dramatically with a new Big Idea.

G for H
Gold Winner For Health.

The brand identified its DNA in those simple equation. This discovery changed the whole brand personality. I am not saying that Gold Winner discovered something new. Health was the platform that all edible oil marketers used to promote their brands. Sundrop and Suffola held their markets building on the health platform. But what I liked about Gold Winner was on its execution of the Common Idea.
Watch the Commercial here : Gold Winner Ad
Also the brand used Kids effectively in the ads making the Mothers the Target Segment. While Suffola uses Wife as the TG and the ads are more adult dominated.

With the TamilNadu market in the fold, the brand is making inroads into new market. This Onam, Gold Winner has entered into the Kerala Market. The brand has already started a high profile marketing campaign comparing the Brand with the popular Coconut oil . Kerala is a different market because here coconut oil is used as the cooking medium. Gold Winner is trying to position itself as a healthy alternative to the Coconut Oil.
Gold Winner is an example of how a brand can make a mark on a cluttered market through smart execution of an old idea. The brand is now moving out of its major market to a more competitive National Market. The G for H campaign will get the necessary eyeballs. I am sure that the threat will prompt players like Saffola and Sundrop to take the war to the Gold Winner's territory . It is war time....