Tata Nano : A Promise is a Promise

Brand : Nano
Company : Tata Motors
Agency : Rediffusion ( Rumour)

Brand Count : 303


As a die-hard fan of Ratan Tata , I could not resist joining the euphoria around the Tata Nano. Yes, the world has seen and heard enough of the Tata's one lakh car. Today , every news, talk show talks about this revolutionary new product. Tomorrow newspapers and mags around the world will be celebrating this brand.

Seldom one gets an opportunity to witness a product launch that has the potential to change the dynamics of an industry as such. When the world boasts of an Ipod , we Indians did not had something to talk about. Now we have.
I am a big fan of Ratan Tata because he is someone who could be considered a true representative of Indian management ethos. The way he took the leadership of a whithering empire and the controlled aggression through which he tookover Corus and the way he came out of his initial failures at Nelco all makes him look attainable and inspiring . The dignity with which he handled the situation when his foray into starting an airline was torpedoed by the Government and now the one lakh car exemplifies the qualities that a young mind should aspire for.

The launch of Nano is a valuable lesson for all aspiring entrepreneurs. The brand is a symbol of VISION. In 1998 , Ratan Tata announced his dream of giving a car for one lakh. Many critics scoffed at the mention of the dream . Auto majors around the world questioned the business logic of the dream. Months back, the chairman of Suzuki Motors categorically ruled out the possibility of such a car at such a price. Now the product is now in front of all of us to see. In a sense this product is also a reminder of the vast potential of a human mind. Just like Roger Bannister who broke the four minute barrier, Ratan Tata has broken the one lakh barrier. Ofcourse he had the money but remember he is the first one to do so in the world. The words he spoke on the launch " A promise is a promise " makes a perfect tagline for this car.

The launch had raised thousands of questions about the quality of the car and the performance. But the look of the car silenced many critics. Tata proved that cheap does not always mean bad quality. Nano looks better than most of the small cars that are there in the Indian market. C K Prahlad in his pathbreaking book " Fortune at the bottom of the pyramid " reminds us that Indian consumers at the bottom of pyramid looks for value even at the low prices. Brands which focused only on low prices and produced junk products always have failed in the Indian market.

The new brand Nano will do two major changes in the Indian markets :
a. It will open up a new segment in the Indian Four Wheeler Industry
b. It will inspire many Indian entrepreneurs to have grand vision.

I think Nano will redefine the pricing in the Indian small car market. Either companies like Hyundai , Maruthi may have to cut the prices of existing small cars or they have to comeout with a similar priced car.

Nano will be making cars an affordable luxury for many Indians. To a limited extend it will affect the two wheeler segment but only to a limited extent. The reason is in the running cost and maintenance of four wheelers. At the current oil prices, Cars are still expensive to run & maintain. It cannot in the near future replace the functionality of a two wheeler until cars match the fuel efficiency of two wheelers.

So Nano will be the first car of many Indians who dream of a four wheeler . For those who travel less than 300 km permonth, Nano is definitely an alternative for two wheelers but more kilometers than that will burn a hole in the pocket of an average Indian consumer . Indian consumers will make a careful balance of usage of his two wheeler and Nano to make sure that his budget does not go out of control.There will also be many who could not buy Nano because their flats or houses didnot have parking space ( just joking! ).

Nano also will inspire many to think big. While Ambani brothers make us watch their progress with awe rather than inspire, the success of Ratan Tata will inspire us because he strikes a chord. The fact that Nano was put in reality within four years will also mark a significant turning point in the way we look at our engineering and design talent. The 1700 crore investment that Tata made in this project will be an eyeopener to many who are reluctant to put their money in R&D.

In the marketing front, Nano had the dream start . Infact Nano may need no ads but heavy dose of positive PR during the launch. The brand may have to counter the skepticism surrounding the performance . Another nightmare is managing the initial rush of the customers. Since this is a car for the common man, there is every possibility that the customers could be given a raw treatment at the dealership touch- points. Indian marketers are still to wake up to the possibilities of a good customer service. How Tata and its dealers handle the initial euphoria will be something to watch for in the Customer-relationship perspective .

Whether the car performs or not, Nano is set to change the dynamics of an Industry. I am happy that my favorite business leader is making that change.

Marketing Funda : Building Brands in India

Brands need to have an Indian heart to win the Indian customers. My article on building brands in India was published in 'The Strategist ' of Business Standard on 08/01/2008.
Read the article here : Having An Indian Heart

Brand Update : Parachute

In December 2007, Marico entered the kid's personal care market with the launch of a sub-brand " Parachute Advansed Starz" . Marico believe in extending its brands to new categories. It has done that for entering Men's haircare market by launching Parachute Aftershower . But once these new brands reach a position of awareness and recall, the sub-brands take up the position of a primary brand. Now Aftershower has an independent existence from Parachute.

By launching Starz, Parachute is entering the Rs 2000 crore shampoo market which is dominated by HUL brands. Parachute AdvansedStarz is not restricted to shampoos but positioned as a haircare brand that offers different haircare solutions.

Currently the brand offers
Shampoo
Hair Oil and
Hair Gel.
The brand is taking on a demographic segmentation and is targeting the kids of age group 4-12 Yrs. The Indian shampoo market has not seen a brand focusing specifically on this segment.

Clinic All Clear is a brand that has targeted this segment but the brand is also used by adults.Clinic All Clear has used campaigns to target both adults and kids. For example the Chulbulli campaign is targeting Kids but the Bipasha + John campaign targets the adults. The product is the same. The new brand of Marico is different because it is designed especially for kids.The product, the packaging and the promotions are directly targeting the kids.
Parachute Advansed Starz comes in attractive Pink bottles and features cartoon characters. The brand takes up the tagline " Gentle care for young hair " . Starz takes strength from Parachute and relies on the goodness of coconut to differentiate. The brand also claims advantage of Vitamins , Proteins and Strawberry. The brand essentially takes up Nourishment as the main brand benefit.

has used two "cool" characters whose names are not yet publicized. If properly used , these characters can become powerful brand ambassadors.They look smart enough to appeal to the younger ones. I liked Starz because it shows the use of brand elements to the fullest. Starz. ( infact they remind me of Archies comic characters ). The brand is priced Rs 54 for 100 ml for the shampoo.

Marico intends to develop a new category of specialized hair care solutions for the kids aged 5-10 and even the tweens. This is the age where kids develop lot of hair related problems because of their active & careless lifestyle. So far, Mothers used their own brand of shampoos or may have used Johnson's shampoo for this age group. The success of Starz may seen a new category opening up for marketers.

The question that comes to my minds is whether there is a need for a kids-only haircare products ? The answer lies in the increased exposure of kids towards brands. The new NUF ( Nuclear Urban Family ) structure gives marketer an opportunity to target these segments. The success of Starz will depend on how Marico motivates the younger ones to pester their mothers to buying these products and also on how the brand captures the trust of the mothers. The first task is difficult because mothers are already convinced about Parachute.

Parachute has done a smart work is positioning the brand as a haircare brand and not limiting itself to shampoos of hair oil. This gives more leverage and flexibility to the brand from the start itself.

Related Brand
Parachute

Parle Golgappa : Goli Mein Golgappa

Brand : Parle Golgappa
Company : Parle
Agency : Grey Worldwide


Brand Analysis Count : 302

Parle has launched a new unique confectionery : Parle Golgappa. Parle these days are very active in the confectionery business. Along with Mintrox, Parle has launched Golgappa . Golgappa is a traditional chaat dish which is very popular in North India .
Golgappa otherwise known as Paanipuri is a crispy dough "puri" filled with a watery mixture of potato , tamarind and chilli. This is a famous street snack in the North.
The launch of this flavor is a move by Parle to take on the ethinic route to increase its share in the confectionery market. As we know, confectionery is a low involvement product and often customers make spontaneous decisions rather than a planned purchase decision. Hence to survive in the market, one has to innovate in taste and come out with new flavors at regular intervals. Parle has been successful in its experiment with flavors like Kacchaa Mango ( raw mango).
It is a common trend among marketers to introduce traditional flavors in the market to attract the customers. Maggi introduced Sambar masala flavor for its noodles while Mcdonald also adapted to suit the Indian palate. Lays and Bingo build its popularity around ethnic flavors.

What I liked about this new product is its commercial.
Watch it here : Parle Golgappa TVC

This TVC is a simple one with powerful execution. The message is perfectly delivered and I am sure that the ad will prompt trial purchases. The tagline " Goli Mein Golgappa " ( Golgappa in the candy) also is simple funny and descriptive.
Since the flavors can be easily copied by the competitors, Parle Golgappa if successful will see many competitors launching similar tastes. For example Parle Mangobite Kacchaa Mango saw immediate competition from Candyman who launched a similar taste in no-time The fact to look for in this paanipuri flavor is whether the customer will buy this flavor repeatedly. But it is good to see Parle building its lost glory in the Indian market.

Brand Update : Close Up

Close Up has come out with a unique set of variants with a unique brand name Flavalicious. Close Up was concentrating on its parent brand - the ordinary Red Close Up and was trying to build the core brand. In 2004, the brand had made a decision to limit the variants. It even cut down some of the variants like Tingly red and Eucalyptus blue.

Close Up has been positioning itself on the Freshness + Tooth whitening platform . The latest commercials talks about the brand giving confidence to young people to smile freely ( without thinking about their teeth or bad-breath) .
Close UP Flavalicious - as the name indicates focuses on the flavors . The new variant comes in two flavors : Tangerine Burst and Luscious Lyche .
These variants are launched as Limited Edition products. That means these products will be available only for a limited period of time.

These two flavors are new to the Indian consumer. The packing are also different and more flashy. The brand is targeting the young ones and those who are bored by their usual toothpaste flavors.
The Flavalicious variants were launched in Indonesia by Unilever in 2005. In Indonesia, one more variant is available i.e Chocolate flavor. That has not being launched in India.
According to Businessline,the product is priced at Rs 30 for 80 gm. But I found only bigger pack in stores that costs Rs. 50 .
The new launch is aimed at bringing in the young customers back to the Close Up portfolio. The brand has been facing stiff competition from the market leader- Colgate who has launched successful variants like MaxFresh. Colgate ( Gel variants) also gave itself a younger look by using Saif Ali Khan and Asin as the brand ambassadors.

Close Up off late was not getting its communication acts together. Most of the campaigns are far below average in terms of execution . The brand is now trying to bring back the excitement with these new variants. The campaigns are not yet started in the mass media while instore promotions have already began.

Related Brands
Close Up

Limited Edition : Funda

Hit : Quit India Movement with a Difference

Brand : Hit
Company : Godrej Sara Lee
Agency : Publicis


Brand Analysis Count : 301

Hit is a major brand in the Rs 900 crore home insecticide market in India. The home pesticide market can be divided into two segments : one that is used as repellents like cream ,coil, lotion ,liquidator etc which does not kill the insects and the other category is the Insect Killers which consists of aerosols, chalks, poison etc. Hit belongs to the insect killer category.

Godrej Sara Lee are considered as pioneers in creating and developing the home pesticide market in India.Brands like Goodknight, Jet, Banish ,Hit makes the company the industry leader.
Most of the marketing action takes place in the repellent segment where there is war between brand like Goodknight , Mortien, Allout etc.

Insect killer category is minuscule in size compared to the other segment. According to a report in Equity Master, the insect killer segment is only 15% of the total market. Hit is a major player in this segment especially in the aerosol category.
What is interesting about this brand is the effort that the company has put to develop the aerosol category and also to build this brand.
Hit was launched in 1991. The brand came with two variants : one for killing flying insects and another for killing cockroaches. The brand separated these two variants by using two different colors : one red and another black.
Hit was well received in the market but there was issues regarding the price. The aerosols were too expensive costing around Rs 120 for a pack. Consumers found it less value-for-money and this severely restricted the popularity of aerosols. Only large 350 ml cans were available which again inhibited customers from buying the product. The use of aerosols were restricted to households which had grave insect/cockraoch problems and other households managed with crude methods . Within the two variants, the Cockroach killer was more popular among households.

Hit was marketed heavily by Godrej Sara Lee. This brand is in a product category that is less glamorous. But Hit was promoted smartly by the company. The brand was giving an important promise of a "Pest Free Home " to the homemaker. The brand was essentially targeting the homemakers.

Hit started a series of ads with the theme of a smart homemaker killing all the cockroaches and making her home ' pest free' . The homemaker after killing the cockroaches said " Kyonki ye mera Khar hain " ( This is my house ! ) . That was a perfect tagline for a pesticide. The ads were very effective in positioning Hit at a place above the functional utility of the product.

Another interesting campaign showed the homemaker in a James Bond style chasing and killing cockroaches. The idea was communicated effectively and humorously by these campaigns. The consumer insight is very simple : We feel that pests are intruders. So when the house is infested with pests, we feel that our house is taken over by them and by killing them we take back OUR house.Unwelcomed guests/pests are not allowed.

Despite these campaigns , the category did not grew because of the higher price. Then came the price reduction. Along with the price reduction brand also came out with smaller cans of 250 ml .The price of Hit was dropped drastically . The brand launched smaller SKUs and when the price went below Rs 50 , customers began to look at this product category.

In 2007 Hit ran a very interesting commercial to announce the price cut. It talked about a QUIT INDIA Movement with a twist. The news-like commercial showed a Chinese news reporter reporting an insect invasion of China. Lakhs of insects invading the country. In the climax , it is shown that because of the price of Hit being reduced to Rs 49, insects from India are fleeing to neighboring countries.
Watch the ad here : Quit India

The ad is aimed at bringing the customers into the category of aerosol and thus developing this category as a preferred solution for the problem. The brand also has a cockroach- killing chalk which is highly popular solution for the cockroach menace .
Besides these campaigns, the brand also improved upon the product by introducing a unique applicator which can reach many places where the cockroaches hide.

Hit faces competition from Baygon brand from Bayer. Baygon is not as aggressive a marketer as Hit so not much problem in that front. But a threat is brewing in the form of some new brands that has hit the market. One brand is STOP and another is Quitmos. Stop is running a campaign in the visual media highlighting a major differentiating factor : Non Pesticidal.

As a consumer, I have a strong belief that all these pesticides are harmful to humans. Since it kills insects, some harm is done to us also. But the problem force us to take the risk of using such products. STOP promotes itself as a safe insect protector ( especially flying insects) . On a closer look at STOP reveals that it is not an insect killer but a repellent. I bought it because of its non- pesticidal property which I found a compelling reason to choose it over other aerosols. There is a possibility that such 'safe' aerosols can eat away the market share of the Hit Fly Killer variant.

However there is going to be a huge potential for brands like Hit because the insect menace is going to stay . Consumers like fast and effective solution of such menaces. Hit has rationalized the price making the category more affordable. The heavy investment that Godrej has made on this brand is definitely going to take this brand to new heights.