Tuesday, September 11, 2007

Nestle Munch : Can't Stop Munching

Brand : Munch
Company : Nestle
Agency : JWT

Brand Count : 272

Munch is the second largest brand in the chocolate based confectionery segment in India. It is also the largest selling SKU in the industry. Munch was launched in 1999 by Nestle to counter the brand Picnic from Cadbury. But now Munch survived and Picnic is dead.

Munch is positioned as a tasty brand. The brand is a result of the intense war between Kitkat and Perk. When Kitkat was launched, Cadbury launched Perk to flank its flagship brand Dairy Milk. The war between Kit Kat and Perk resulted in a stalemate and the category itself became stagnant. Then Munch was launched by Nestle as a price warrior. At Rs 5, the brand became a blockbuster success cannibalizing Kit Kat and forcing Perk to launch a low priced variant.

Munch is an any time consumption product. The product is a wafer layer covered with delicious chocolayer. The brand is positioned based on its taste. Munch uses the tagline " Can't Stop Munching" to promote its taste as the USP.
In 2004, the brand roped in the Bollywood actress Rani Mukharjee as the brand ambassador. The brand is promoted heavily across the visual media.

Watch the TVC here : Munch

Personally I never liked any of the commercials of Munch. All though Rani Mukharjee is perceived to be smart and full of energy, I always felt a touch of artificiality in the ads. ( compared with Perk and Priety Zinta) . And I never believe that the brand succeeded because of the commercials. The prime factor behind the brand's success was the price factor. Rs 5 always enthused the customers to make that impulse purchase. The quantity was just right for the price and parents will have a feeling that kids are not eating too much chocolate.
Munch is brand which has been innovating to keep the excitement going. Munch earlier had come out with a Coconut variant . Another major innovative variant was the Munch Pop Chocs. Pop Chocs are chocolaty nibbles in the form of wafer cubes. This variant is also promoted by Rani Mukharjee.
There is another interesting fact about Munch . Like Kit Kat, Munch is also trying to create a Brand Ritual. The ad asks the customers to Take a Munch Pop Chocs, Twist it and Pop it into the mouth. I feel that this attempt of creating a Ritual is not going to meet with the success that Kit Kat had.
Although I have serious reservations about the campaigns, the market has given a thumbs up to the brand. The company has also invested heavily into the brand which has reaped rich rewards.

Saturday, September 08, 2007

Coca Cola India : Little Drops of Joy

Corporate Brand : Coca Cola India
Agency : McCann Erickson


Brand Analysis Count : 271


Coca Cola India for the first time has came out with corporate campaign in India targeting its stakeholders. The multimedia campaign " Little Drops of Joy " is aimed at raising the corporate brand image of the company which took a heavy beating with a number of controversies it faced in different domains.

The new campaign is a part of a complete restructuring exercise in the Indian arm of this global change. Coca Cola recently announced its new corporate strategy called the " 5 Pillar " strategy. The company has identified the 5 pillars as
People
Planet
Portfolio
Partners &
Performance.

The Little Drops of Joy is a part of the communication strategy aimed at projecting the company as a responsible Corporate citizen whose main aim is to bring JOY into people's life. The main idea of this campaign is to lift the corporate brand from a single brand focus to a multi brand company ( a portfolio of brands). Little drops of joy campaign also aims at a image make over. The company plays down its size ( multinational ) and becomes more humble and approachable. The concept is communicated through the manifesto which now becomes the guidelines for future company operations. The manifesto is given below

A mighty ocean we’re not.
But
we are the little drops that make one.
Because small things go a long way. At Coca-Cola India,
we believe that there’s more to a little sip. It’s the moment of truth. A second of satisfaction. An instant of happiness. A bubble of hope. Because we don’t quench your thirst. We recharge your soul. For one moment. One drop at a time.

The new direction reminds me of the former Chairman of Coca Cola , Robert Goizueta who asked the company managers to capture the Share of Fluids taken by a customer rather than bothering about the competition from Pepsi.Likewise Coca Cola is trying to capture those little moments of joy.

Watch the TV Commercials here : Coca Cola Corporate

I cannot say that this commercial has a Big Idea. The idea is a copy of Mastercard 's Priceless campaign . The execution of the commercial is OK but for me its too much of Hindi (Havn't seen an English/Malayalam version.
The new campaign makes lot of sense for Coke since it has faced issues of pesticides , groundwater exploitation controversy at Plachimada in Kerala which hurt this brand more than the rival Pepsi.
Through this campaign , the company aims to gel with the Indian consumer as its own rather than a western one. Its sad since Coke has been more local in advertising than Pepsi but had to bear the brunt more than Pepsi in these controversies.

But will these campaigns help the makeover, I guess not. It will be actions that will speak louder than ADS in the case of Corporate Brand Image. Trusted corporate brands like TATA , Infosys and the likes has built its reputation through its actions rather than ads. Coca Cola globally is respected as a highly ethical corporate citizen. Its sad that in India, the company had to face unexpected setbacks from some of the stakeholders. The company has now identified its mistakes and these campaigns ( I hope ) are just a signal of the beginning of a new era for Coca Cola India.

Source: agencyfaqs.cocacola website

Thursday, September 06, 2007

Sony Vaio : All Eyes on You

Brand : Sony Vaio
Company : Sony
Agency : JWT

Brand Analysis Count : 270

Sony Vaio is making lot of noises in the media with its latest repositioning campaign. Vaio is Sony's subbrand in the Laptop segment . Viao was created in 1996 and is a major player in the Notebook/Laptop market across the world. The brand came to India only in 2004. The delay is owning to the restriction in using Wi-Fi 802.11g by the government till 2004.

Vaio is the acronym of Video Audio Integrated Option which denotes the brand's positioning as a product that performs on both video and audio front. Like any other product from Sony, Vaio is also positioned ( and priced ) as a premium brand. Vaio launched its first series of Notebooks with a price ranging from Rs 80,000 - Rs 1,25,000 making it one of the costliest laptops available in India.
Sony has a market share of around 5.4 % of the Indian Laptop market which is estimated to touch a volume of 1.6 million units this year. It is this phenomenal growth of around 40 % that forms the basis of the latest launch of Sony Vaio CR range.
The Indian laptop market is dominated by HP ( 40 %) followed by Lenovo ( 17 %) and Toshiba. There is lot of activity in the notebook segment because of the lowering of the price barrier. Earlier the price of a typical laptop was costing upwards of Rs 45000. Now the entry level laptop price is anywhere between Rs 22,000 - 26,000. This has fueled the growth of this segment. The lowering of prices has attracted a whole set of new customers into this segment. Students , executives and businessmen began looking at laptops as a productivity enhancement tool. Companies began giving laptops to executives to keep them working when mobile. These happened without seriously hurting the sale of Desktops.
The interest of marketers in this segment is evident when we look at the promotions of leading brands in this segment . Most of them has signed up celebrities to endorse their brands. Acer has Hrithik Roshan, Compaq has Shah Rukh, Lenovo has Saif Ali Khan to promote the brand.

Sony Vaio has always tried to promote itself as an aspirational brand and resisted the temptation to get into the volume game. But here in this scenario , Vaio succumbed to the temptation. With technology no longer a major differentiator, Vaio understood that unless the brand repositions itself , it may be ousted by the feature rich rivals.
Viao CR was Sony's take on the new segment. Vaio targets the hip hop Indian youth aged 18-26 with the variant CR. The brand is now positioned as a fashion accessory rather than a learning/working tool. The new variant comes with attractive color options :
Blazing Red
Indigo Blue
Pure White
Beauty Pink and
Aroma Black. The new variant has some attractive features like Luminous Trim that reflects light which gives the laptop a shining look. Lustrous coating, custom Keyboard, and a personalized illumination LCD. The brand is now repositioned to reflect a playful spirit and a zest for life.
The brand now aims to catch the imagination of the youth market who looks beyond the speed and memory into design and aesthetics. At Rs 55000, Vaio tries to integrate aesthetics, brand image and technology to get into the minds of the young customer.


The brand is now running a high profile TV campaign now.

Watch the TVC here : VAIO

Viao now has the tagline " All Eyes on You" clearly spelling out its positioning based on the design or aesthetics. That is a clear shift from the rest of the brands in this segment who concentrates more on technical specs. So Vaio campaign breaks the clutter effectively.
Having said that the new campaign is definitely nice to watch but the positioning is nothing new. "All eyes on you " is used by many brands in various categories. There is no big idea in it. But the execution makes this old formula look pretty. To be more specific, I watch the ad to hear the music. Even the visualization is not something great compared to the blockbuster Bravio campaigns. Some sites say that the song " Look at me know " is sung by Anushka of the VIVA girls - V-channel fame ( to be verified) . Anyway the song make the ad sticky.

Aesthetics and design and obviously the more attractive price tag has helped Vaio a headstart in the new repositioning. But these factors are not sustainable over time. Soon the competitor will follow with vibrant colors and options. But Sony has the legendary brand equity that may help Vaio to take on the challenge. The war for Young Minds is definitely hotting up.
As of now Vaio can confidently say " Look at me now "

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