Friday, August 01, 2008

Brand Update : Rin

Hindustan Unilver Ltd ( HUL ) is a master marketer. The owner of some of the iconic brands in the Indian FMCG space, I used to look at the marketing practices of this company with a sense of awe and admiration.

And at the same time, this is a company known for getting the brands & consumers into a state of utter confusion. In the name of change, HUL brand mandarins experiment with their brands and some of the strategies can drive Philip Kotler to suicide.

Take the case of Rin. Rin is a power brand in the HUL's brand portfolio. This 500 crore brand is deeply etched in the mind of the Indian consumer with its strong association with whiteness.
Then there is the iconic Surf. The brand has remained in the top slot thanks to sustained product and communication innovation.

Now in the past two years, HUL has been trying to find out how to mess up these two brands in the detergent cake market.
In April 2007 , HUL had initiated a process to migrate Rin Supreme to Surf Excel bar. The brand migration was a high profile one. The ads screamed : Rin Supreme is now Surf Excel.

After a couple of months later, ads of Rin detergent cake began to pop up in TV. Now there is a high profile campaign featuring Bomman Irani for Rin Advanced Detergent cake. So Rin detergent cake is still alive ?

The new ad talks about Sabooth ( proof ) of whiteness. Now Rin Advanced comes with a whiteness chart which will prove to the consumers that Rin offers better whiteness than other cakes.
So what about Surf Excel bar and Rin Supreme ?

Well . I suppose I need to take a lesson on brand portfolio management from HUL .

Ok Lets go back to history of this brand . During early 2000, Rin had two variants Rin Shakthi and Rin Supreme. Shakthi was a low priced detergent cake and Supreme was the premium variant ( Product line extensions ). Some where down the line, HUL dropped Rin Shakthi . Then in 2004, Rin Shakthi was relaunched as Rin Advanced.
Then in 2007 Rin Supreme was migrated to Surf Excel.

For What ? Frankly speaking I am clueless. Is it a brand rationalisation or brand confusion ?

The result of all these is visible in the Economic Times' Brand Equity Survey results for the last 4 years.
Rin was featured among top ten brands in the list during 2004,2005 & 2006. In 2004, the brand was in number 8 , in 2006 the brand was in number 3 and in 2006 the brand was in number 9.

In 2008, Rin was not even in the top 20 list , it had the rank of 21.


As a customer I walked into a super market in 2000 to buy a detergent cake. I see two variants of Rin : Supreme and Shakthi. I take Shakthi and happily walk away.

In 2004 I walk into the store to buy Rin Shakthi and I find that Rin Shakthi is not there but there is Rin Advanced and Rin Supreme. I walk away with Rin Supreme.

In 2006 I walk into the store to buy Rin Supreme , I find that now Rin Supreme is Surf Excel . I walk away with Tide detergent cake.

In 2008 , I still buy Tide.

If your strategy cannot be explained in one minute, then your strategy is not worth considering.

Related Brand
Rin Migration to surf
Rin

Wednesday, July 30, 2008

Moti Soap : RIP

Brand : Moti
Company : HUL

Brand Analysis Count : 341

Moti was India's premium brand of soaps during the seventies. Now there is no trace of this brand. Moti originally was a brand of Tata Oil Mills Company ( TOMCO). In 1993, TOMCO merged with HLL.

Moti was a special soap which had certain differentiation. The first differentiation point was the Shape. Unlike other soaps which came in cake form, Moti was round soap. Moti is the vernacular term for Pearl . So the soap was also in the shape of pearl.

Another uniqueness was the size of the soap. Moti was a big soap. Often one gets bored of the soap and it never quite finish fast.

Moti came in popular fragrances like Gulab ( Rose) and Sandal.

Moti was promoted as a premium soap . The soap was expensive and during the eighties, the soap was priced around Rs 25.

Tomco also promoted this brand heavily. Most of the campaign had a signature brand imagery the soap surrounded by pearls. Those ads were in most of the magazines during the peak stage of this brand. Pearls formed an important role in the entire brand communication and pearl was an anchor which created an association with the brand in the consumer's mind.

I was searching for an ad of Moti and thanks to Saumyadip's blog, I got a vintage ad of moti.

Moti then moved to HLL following the merger. That marked the end of this brand.
I am not sure why HLL decided to sideline Moti soap. The brand was never promoted and slowly the brand faded into oblivion.
The reason for this brand's death may be because it did not fit into the brand portfolio of HLL. While Hamam ( another Tomco brand ) thrived, Moti was never in the picture.
Then with the Power Brand strategy, brands like Moti never had a chance to survive.

The brand had prospects if HLL had done some serious product development. In the branding perspective Moti had certain assets. The name and the imagery were wonderful assets for a marketer. Moti had both these assets.

The problem was with the product. There was something missing in the soap which ultimately lead to the death of this brand. Another factor was at the segmentation side. Now also the market for a premium soap is abysmally low in India. Now also there is no successful premium brand of soaps in India ( Essenza de wills is trying hard ).

So it was also a tough choice for HLL. The company may have felt that Moti did not have a future as a premium soap. And it may cannibalize some existing brands if the prices are rationalized. Moti may had to be repositioned if it had to survive . But HLL was not prepared to invest in a brand which had a minuscule 2% of the market. So the decision was to slowly kill the brand.

Monday, July 28, 2008

Logan : The answer is Here

Brand : Logan
Company : Mahindra Renault
Agency : Saatchi & Saatchi

Brand Analysis Count : 340

Logan was launched in India in 2007. With in a year's time, this brand has achieved reasonable success in the tough Indian auto market.

Logan is a brand from Mahindra Renault , the joint venture between Mahindra and the French auto major Renault. Renault is a global auto major known for innovation ,technology and racing. Mahindra is our very own company who hit a jackpot with the Scorpio.

When the Jv was announced, the entire auto enthusiasts were looking forward to a new experience to be delivered from these celebrated manufacturers. But soon the company made it clear that the product that they envision will be an affordable sedan rather than a premium one.

In 2007, Logan was launched. The brand was able to get good PR during the launch. The PR was there because of two reasons :
a. It was a launch from Mahindra who claimed lot of appreciation for the success of Scorpio. Hence every media was expecting a similar successful product.

b. The price of Logan was a major driver of the PR. Logan was to be sold at around Rs 4,50,000 which made it one of the cheapest sedan on road.


The initial hype created a huge flow of booking orders for Logan. There was 3000 bookings in the first three weeks itself.

Then came the commercials. In my personal experience, the campaign was a big let down. It was a meaningless ad which showed a foreign lady in some James Bond type plot and blah blah....
The car was initially positioned on the basis of the benefit of space. The slogan talked about Logan as a ' Wide Body ' car.

Although I did not understood what a wide bodied car is , commonsense told me that it is a more spacious car.

Logan has been a success so far . With in one year of launch, it has notched up 12% marketshare in the respective category . At one point of time, it surpassed the veterans like Honda City in sales.

Logan is yet another example of a brand understanding the value proposition of Indian consumers. When the brand was launched, many pundits decried the poor looks of the car. They wrote off the car saying that Indian consumers will vote out this ugly duckling.

But Logan survived. Survived because the product delivered. It was a spacious large well built car which came at a mouth watering price of less than Rs 5,00,000. The surprise came when Logan delivered big on mileage. Consumers began to see beauty in the beast .
In India, consumers give weightage to functionality than design. Toyota showed to us with its Qualis.

In June 2008, the brand went for a repositioning. Infact the brand has took a serious take on the image aspect. Kunal Kapoor was roped in as the brand ambassador and new campaigns were aired.

The brand also has repositioned from a functional angle to a mix of functional and emotional framework.
While the presence of Kunal added some spice to the image, the brand still talked about the deliverables like more mileage , better handling and great value for money . The new campaigns are far better than the initial ones and Kunal Kapoor gives some push to the image aspect.

The brand now tales the slogan " The answer is here " . The brand also has an interactive interesting site butwhy.in where readers can post questions that usually does not have a typical answer. For example : Superman and Batman wears underwear outside. But Why ?.

The logic behind the new slogan is that Logan is the answer to most of the questions asked by the customers . For example : Why can't a sedan give more mileage than a small car ?


A typical issue that most of these value for money brands face is on tackling two segments : the tour taxi segment and the individual segments. Brands like Indica, Indigo , Qualis and now Logan face the issue of the use of these brands as Taxis.

Brands worry that the popularity of a car as a taxi will tarnish the image of the brand. Indica and Indigo have the issue of being popular as a taxi thus repelling some customers from owning it.

Logan also have the same issue , go to Hyderabad, you see a lot of Logan as taxi cars. But will it really hurt the brand ?
I think popularity as a taxi car will be helpful to the brand if its able to provide some distinction to the individual owners.
Being popular as a taxi car means that the car is good. As we know , the taxi's cannot afford to have a car which is expensive to run and maintain. So if taxi owners are buying it, it must be good.
Second, more number of taxi's the more affordable will be the spares.

The major downside is about the image of a taxi car. My question is whether image is a significant factor when one decides to buy an Indica or a Logan . My take is that although image is important for these customers, the main driving force will be on functionality and cost of ownership. People buy Indica because it is the most value for money car in that segment.

But bad image can act as a repellent. So what can a company do about it ? .

I think that the brand should bring some distinction to the non-commercial cars by adding some feature that makes Logan ( or Indica ) different from taxi car . Either it can restrict these commercial cars in to one color or add some thing like graphics so that private Logan is different from the Taxi Logan .

To give the brand a boost. Logan recently launched a limited edition Logan Edge for those who wanted more from Logan. Edge also is aimed at repositioning the brand as an aspirational product to all those who are looking for an upgrade to a sedan.

Logan is not without threats . Tatas are on a marketing offensive now and has launched Indigo CS to take on the price competition. The compact sedan from Indigo has been a success since it made the sedans more affordable.
Service is another area for concern. Although Mahindra has excellent network of dealers, whether it can give excellent service to Logan customers is something to wait for. From the market feedback, Mahindra is not known for excellent service delivery compared to peers like Maruti. Renault has to work closely on the service front .

Logan has yet again proved that there is always a space for a product that functions well and priced reasonably. The success of Logan has prompted the parent company to explore more categories in the Indian auto market. Logan also has raised the bar for most of the car marketers. Now consumers are truly pampered.

Related posts
Indigo CS

Saturday, July 26, 2008

Update : Randy Pausch

The inspiring Carnegie Mellon Professor and the author of the book - The Last Lecture ,Dr Randy Pausch passed away on July 25th Morning.
The ailing professor has inspired millions through his lecture and through his book. I hoped for a miracle recovery but god had other plans for him.

See the news update from Carnegie Mellon : Here

To quote his words
" We cannot change the cards we are dealt, just how we play the hand ".

Randy played his hand very well and left a legacy. He reminded me of living the life to the fullest and achieving your dreams.
Thank You Professor.

My condolences to Jai, Chloe, Dylan and Logan.

Watch the last lecture : here

Related Post
Book Review of Last lecture

Friday, July 25, 2008

Dip Trix : Just for Kids

Brand : Dip Trix
Company : General Mills

Brand Analysis Count : 339


Dip Trix is a unique brand. This iconic US brand debuted in India in 2005.Already the brand has become a hit in the Indian market.

Dip Trix is a snack food targeted at kids aged 4 - 12. The product is a Cookie and Cream snack which consists of fun shaped cookies and Cream.

Trix brand was launched in US in 1959. The brand has an iconic status in US with a range of products like cereals and yogurts. Dip Trix is the Indian avatar of Trix.


Dip Trix is a result of a careful consumer observation . The brand found that the users ( Kids ) wanted to play with food . But parents usually does not permit their kids to play with food.

Thus born this product which allows kids to play with the food with out getting rebuked. Dip Trix satisfied this need in a most simple way. The product comes in a unique tray pack with two compartments. The product comes with fun shaped cookies in one compartment of the pack and there is a cream in the another compartment.
Kids can then eat cookies either by dipping it in the cream, make sandwich , dunk or lick thus making the whole process fun-filled.

In India the brand has been doing pretty well. Going by the rate in which I buy it for my kid, Dip Trix has achieved its share of success.

Even before Dip Trix came to India, HUL has tried its luck on a similar product branded as Bistix. But the brand failed to took off.

There are two main reasons for success of Dip Trix. One is the smart pricing. Unlike other foreign snacks , Dip Trix is priced reasonably at Rs 5 . This is a magical price point which allows the parents to buy it because its perceived to be affordable. The fact that one pack can keep the child occupied for 10 minutes add more value to the product.

Second success factor is the marketing strategy adopted by General Mills. The brand has adopted a 360 degree marketing effort to capture the consumer mindset. It has successfully aligned the brand with films like Krrish . The brand gave away Krrish masks along with the product thus increasing popularity many times. Last year the brand has promoted itself through Spiderman 3 by giving away goodies.

The brand also have a highly interactive site at diptrix.com where kids can log in an play games. According to reports, the brand site has tremendously enhanced the brand's salience among the target group.

The brand also have a mascot. The mascot is the Trix rabbit which is always in the lookout for the creams. The cookies usually comes in the shape of the Trix rabbit.

Selling snacks to kids is a tough job. To catch the attention and loyalty of kids is a marketer's acid test. In a way Dip Trix has achieved that.

From my experience, I have observed that kids are also influenced by the peers. For instance, when I first bought Dip Trix, my child was not impressed. But when she saw one of her friends eating it, she also began to ask for the product. So these sales promotions help the brand to get into those 'little' opinion leaders and thus breaking into the rest of the TG.

Wednesday, July 23, 2008

Consumer Insight #1 : What are your customer's expectations ?

I just put down my telephone after some heated exchange with my traveling agent. The reason as always about refunds. I canceled my air tickets a couple of weeks back and after a dozen phone calls I still wonder about the possibility of getting my refunds in the near future .

Much has been written on customer service . Researches, articles, books and what not. But still we see the same pathetic management of customer service.

Last week, while visiting my new generation bank which boasts about being the most tech- advanced bank, I had to wait for 45 minutes for getting a Demand Draft. That too in a bank which have an automated queue handling system. The manager was helpless and surprisingly the bank does not have a formal complaint's handling mechanism. I was amused to see that the link for registering complaints in the bank's website does not work !!!!! Hum Haina ???

So is it about meeting expectations or managing expectations ?

Today's Economic Times ' Brand equity has a great piece written by Ms Janelle Barlow titled " Take your customer's complaints seriously ". She is the author of a very relevant book " Complaint is a gift ".

Read the article here : Take your customer complaints seriously

I strongly believe that a firm's customer service quality will reveal only when there is a complaint.How a company handles the complaint is the true determinant of its customer service quality.

Coming back to my experience with my traveling agent, I had certain expectations regarding the service to be provided by the agent. The service provider was not able to understand those expectations. The company may have systems and processes which can delay the refund, but as a consumer, I am totally unaware of what happens inside the company.

The entire issue would not have happened if the service provider gave me the information about possible delay at the point of cancellation. But that did not happen. So marketers should learn to be truthful to the customers while setting expectations.

Its common sense that no marketer can satisfy all the expectations of the customers. But what he can do is to try and manage those expectations.

In the case of the bank , it had built a series of expectation in the consumers through high profile celebrity endorsements and ads. Then at the consumer touch-points it fails miserably . For example the 'service request receipt ' generated by the machine sets the expectation by giving the time taken to attend my request. The time given to me was 90 seconds. Then everything went offtrack .
Marketers often fail to practice the wisdom of Understate and Overdeliver. Most of the time you bring in the customer promising him many things that you are not able to deliver.

Seth Godin has written a good post here : Seth on customer expectations

For the consumer : Never pay for your service in advance. If I hadn't paid my tour operator in advance, things could have been much different. He would have made calls to me and I would have been the king. So if there is an option for taking the service on credit, do it. Because marketers have a bad habit of forgetting their customers after being fully paid.

Please share your views and experiences on the customer service you have encountered.