Wednesday, April 22, 2009

LMN : Emergency Lemon Refresher

Brand : LMN
Company : Parle Agro
Agency : CreativeLand Asia
Brand Analysis Count : 395
This summer is special . Special because this summer , Indian softdrink/beverages marketers suddenly found that Indians love lemon flavored drinks. They realised that despite Shahrukh, Aamir and host of celebrities endorsing cola brands, large section of Indian consumers quench their thirst with nimbu paani.
And surprisingly the revelations came to Indian marketers all at once and this summer everyone is after NimbuPaani-- our very own lime juice or in malayalam (my native language)- Naaranga vellom .
Ofcourse marketers are forced to go after numbers. Even if their friends and relatives chose lemon juice over bottled drinks, marketers are forced to look at numbers, trends and statistics. This summer statistics have told them that the market for lemon based drinks have a potential.
According to a report in Business Standard, out of the Rs 7500 crore sparkling drinks market,colas comprise of only 38% of the total market while flavors comprise of 54%. The realization came only after Sprite dethroned Pepsi to become the number two selling beverage brand in India.
What marketers did not see was the big picture. Business Standard estimates that out of 120 bn litres of beverages consumed in India, packaged drinks account for only 5%. Marketers failed to look at consumers but too focused on categories and micro segments. It is not this summer, every summer, Indian consumers were taking lots of lemon drinks but marketers failed to see the bigger picture while spending their energy on outsmarting competition.
The fire cracker in the lemon based drink segment was started by Pepsi with the launch of Nimbooz . Soon to follow was the brand LMN.
LMN is from the house of Parle Agro. This summer Parle Agro is in an over drive with new launches like Saint Juice, LMN and Grappo Fizz. It is encouraging to see an Indian company aggressively taking on the Cola majors.
When I first saw the ad of LMN, what striked me was the brand name. It is one of the best brand names I have seen in recent times.Pepsi has done a masterstroke by taking in the generic name Nimbu by launching Nimbooz. I thought Nimbooz will score because of the powerful brand name. But LMN proved to be a equal worthy competitor for Nimbooz.
Having a brand name which is generic has many advantages. It is easy for consumers to understand what the brand promise is and what the product will do for them. The downside is that the generic name restricts further brand extensions. There cannot be an Orange flavored Nimbooz or Orange LMN.
LMN is indeed a powerful brand name and the brand benefits out of that. While Nimbooz is desi LMN is modern. So the brand is aiming more at the younger crowd by the way the packaging is designed and also the way the brand is positioned. Having said that even Kids may like the brand because it is very simple and easy for them to understand what it is.
While Nimbooz is directly taking on the ordinary nimbu paani ( generic lemon drink), LMN is positioned as a refreshing drink little away from being pitched right against the ordinary lemon juice.
LMN is running the launch television commercial across channels. The brand is being positioned as a refreshing lemon drink and has the tagline " Emergency Lemon Refresher ".
Watch the TVC here : LMN
LMN compete with brands like Limca, Sprite, 7 Up and Nimbooz. But the interesting fact is that all these brands represents different categories.The basic difference between LMN and Sprite is that Sprite is a carbonated beverage while LMN is not.
Limca is a cloudy drink while 7 Up and Sprite are clear drinks. LMN and Nimbooz are non carbonated drinks while others are carbonated.
But am not sure whether Indian consumers are aware of these categories . But the situation in the beverage market is that marketers are too much focused on categories and micro categories. We have juices ( 100%,85% 50% ), fruit drink,fruit juice,nectar, artificial,carbonated,non carbonated and what not.. What consumers want is a very simple solution- quench the thirst. Brand that do it with style wins.
LMN has tried to innovate interms of its brandname and also its packaging. It has comeout with a 110ml package that costs only Rs5. This sounds attractive and many consumers would try out this mini tetra provided the quantity satisfies their thirst.
The primary issue for the Indian beverage players is the distribution reach. Pepsi and Coke had built a robust distribution reach. The power of distribution is evident in the case of Kerala. Here Pepsi rules the market with over 80% because of robust distribution strategies. The key to LMN success is how well Parle Agro is able to leverage its distribution reach for this brand.
LMN has a headstart with a good brand name and a cool packaging. The brand has a potential to be a serious player depending on the investment that the company will put in for the brand. To build a brand in the highly competitive beverages market, one should invest continuously and consistently. Hope that LMN will get refreshers from the company interms of brand building investments.
Related Brands

Monday, April 20, 2009

Brand Update : Western Union

Western Union has launched a new global branding campaign. This is the first global branding campaign by Western Union in its 150 year history. The new branding campaign gives a fresh new perspective to the brand.

Money transfer is not a glamorous business like selling Softdrinks or Soaps. But creativity can make this service a worthy glamorous brand. The new campaign has done just that for Western Union.

Created by Publicis Hongkong, the new campaign has given a new tagline for Western Union - YES!

This simple small three letter word is one of the most powerful taglines a brand can get. Kudos for the brand to catch this small Big Word. The new branding campaign is based on hope ,optimism and can-do attitude.

Watch the ad here : Western Union

What I liked about the ad is its universal appeal. The Yes tagline has a universal appeal across the markets which the brand serves. The brand rightly captures the essence when it says " Say Yes to Brighter Future".

Related Brand
Western Union

Friday, April 17, 2009

Brand Update : Boomer

Boomer has launched a unique variant Boomer Gumlairs. Gumlairs is the chocolate eclair bubblegum. The company claims that it is a new category which is being created by Gumlairs. The brand is trying to combine the taste of chocolate eclairs and chewing gum together. Eclairs for a large part of the confectionery market and Boomer wants to attract those eclair lovers into chewing gum category.

Chewing gum brands has been experimenting a lot with taste . The brands till now was concentrating more on fruit based flavors. It is the first time that a chewing gum brand is experimenting with chocolate flavor.

It is important for brands in markets like confectionery to constantly bring out new flavors to keep the excitement going. Consumers of this category are very fickle in their choices and they keep on experimenting with new brands and flavors.In that perspective, Gumlairs is a smart move by Wrigley.

I have a mixed opinion about the taste of chocolate in a chewing gum. These are perceived to be two extereme categories and the concept of both the categories coming together is truly unique.Kids are obviously going to be excited since there is something new and they truly love to experiment.
The claim of creating a new category will fully depend on whether kids like the taste or not. My personal take is that Gumlairs will remain as yet another flavor. Nothing more , Nothing less.


Related Brand
Boomer

Wednesday, April 15, 2009

Arrow Shirts : Now You Know

Brand : Arrow
Company : Arvind Brands
Agency : Rediffussion

Brand Analysis Count : 394

Arrow is one of the leading premium readymade brand in India. This international brand has a rich history dating back to 1851. Globally Arrow brand belongs to Cluett Peabody . In India, the brand is manufactured and marketed by Arvind Brands.
Arrow is predominantly a shirt brand. This American brand was made famous by JFK is a preferred shirt brand of Executives.

Arrow came to India in 1993. The brand which was known for its American heritage was an instant success in India too. In 2000, the brand clocked a turnover of Rs 55 crore fighting for the market with Louis Phillipe and Van Heusen . This premium brand thrived on the International image and Arvind Co nurtured this brand by making the brand exclusive and through restricted availability.

The brand was expensive and had the quality and finish. Arrow was famous for its ultra- formal shirts. Consumers liked to show off the brand and the famous Arrow brand mark near the cuff.The brand used to promote itself using print media.

Arrow had tried to build its brand using its American heritage. The brand had the tagline Authentic American and used foreign (American) models to reinforce the association.

Arrow was popular among the older business class. The company felt that the brand is losing its position among the emerging young turks . In 2008 the company designed to reposition itself to target the youth. The brand adopted a new tagline " When You Know ". The target segment was identified as SEC A male aged 25-35 years. Print campaign highlighting the new positioning were released across the market.

Arrow offlate has been a laidback marketer. I havn't seen any ad of this brand for years. Or may be no ads of this brand has caught my eye. This is the problem with brands which have an established position in the market. Since there is a huge equity and awareness, these brands feel that there is no need to promote. Zodiac , Color Plus ,Park Avenue and Louis Phillippe has been consistently investing in brand promotions but not Arrow.

Arrow had established itself in the market not because of its campaigns but because of the quality,premiumness and exclusivity. The question is whether the brand still retains those value elements in the mind of the consumer. With readymade brands entering the market in dozens,no brand can rest on its laurels. Atleast for now....

Monday, April 13, 2009

7 Up : Bheja Fry, 7 Up Try

Brand : 7 Up
Company : Pepsico
Agency : BBDO

Brand Analysis Count : 393

7 Up is a neglected brand. This brand despite being a Pepsico brand had failed miserably in the Indian market. Sadly it is not because of the product that the brand failed but because of the marketing mismanagement.

7 Up was launched in India in 1992. According to reports, it had a wonderful start becoming the largest selling brand in the category by 2002 . 7 Up is a lemon drink similar to Limca.

Seven Up globally is closely associated with its mascot Fido Dido. When launched in India, 7Up also bought in the famed mascot. Fido came to India in 1992 along with the brand but had a very erratic relationship with 7 Up.

Despite being in the Indian market close to 19 years, 7 Up was not a successful brand. The fault lies in the confused marketing strategy adopted by Pepsico with this brand. Pepsico is one of the world's best marketers. But when we look at individual brands like Mirinda and 7 Up, we see a confused product mix strategy from the company.

Pepsico never had a long term plan for 7 Up. When the brand was launched, the lemon flavored drink segment was perceived to be a small market with the market leader Limca ruling the market. But both Coca Cola and Pepsi was not interested in developing the category or the brand for a long time. Limca was killed by Coca Cola while Pepsi after the initial enthusiasm dropped investing in 7 Up.

The problem with 7 Up was two fold. First was the company's lack of interest in the brand and the category and second was the positioning confusion.

When launched, 7 Up was positioned as a cool drink. The brand used Fido Dido and certain imported commercial to position the brand as a cool drink for the youngsters. But the mascot and its international style failed to impress the audience. Every one liked Fido Dido but there was no connect with the mascot and the Indian audience. The company was in a dilemma because 7 Up had a strong association with Fido Dido but Fido Dido had a disconnect with the Indian audience.
This is a typical problem faced by those brands that import their foreign mascots to India . Pillsbury had a mascot Doughboy which is very famous in US but less popular in India . Fido Dido was a foreigner and hence the lack of connect was evident.The brand was really confused on how to use Fido Dido in the Indian market.

Fido Dido has an interesting background. The character was born in 1985 in a cafeteria napkin T he founders Susan Rose and Joanna Ferrone was in a discussion during which Susan Rose scribbled a figure in the napkin which later became Fido Dido. Fido became the brand ambassador for 7 Up in 1989. Another interesting fact is that Fido Dido trademark does not belong to Pepsi but belong to the founder Joanna. Hence the mascot is highly controlled by the owner and not the brand.

This lack of control has prevented Pepsi from Adapting Fido to Indian audience. It does not have the freedom to change the mascot's personality. This is an absolutely awkward situation for the brand where it had a wonderful mascot but could not change anything about the mascot.

Another factor that aided for the failure of 7 Up was the thinking among Pepsi marketers that taglines and positioning statements should not remain constant. So they keep on changing taglines and statements. One of the highly popular taglines for 7 Up was " Keep it Cool ". But the marketers at Pepsi wanted to change it for the sake of changing it. " Keep it Cool' was perhaps one of the apt and best tagline which could have lifted the brand to new hieghts had Pepsi invested in developing it.

Seven Up and Fido Dido had a short affair. In 1995 Pepsico globally stopped using Fido Dido and in India too the company stopped using the mascot. Later in 2003, the brand began using Fido Dido but again it was a half- hearted approach.

The investment of Pepsico in 7 Up was no where consistent. The brand tried some marketing gimmicks like launching a curvey bottle named 7 Up Curvey in 2006. The brand took the hot bollywood Diva Mallika Sherawat as the brand ambassador since she had those curvey look. There was an initial hype behind this launch but later it died a slow death. Beyond such stunts, there was no marketing thinking for this brand.

The brand also faced competition internally from Mountain Dew. Pepsico launched its iconic brand Mountain Dew and put lot of investment behind the brand. As a consumer I do not see any difference between Mountain Dew, Sprite and 7 Up. Limca was perceived a little different because it was cloudy. Pepsico was also confused on how to clearly differentiate Dew and 7 Up when consumers perceived both as similar.

The easiest way to end the confusion is to sideline the brand. 7 Up was thus sidelined for almost 8 years. In 2007-08, the company began to look into this brand. A new theme was prepared to take the brand away from Fido Dido and focus on another theme. The brand took the tagline " Bheja Fry, 7 Up try " which talked about the refreshing feeling of Seven Up . The campaign featured many Bheja Fry situations and how 7 Up can lift your spirits in those occasions.

This summer saw the extension of this theme. Pepsico realized that Lime Juice was the largest selling drink and most favorite flavor among Indians. So it started to pitch 7 Up as " The Lemon Drink " . The brand had the new tagline " Mood ko do Lemon ka Lift ".

In 2009, Pepsico launched another brand Nimbooz which is a drink having the original lemon juice taste. Nimbooz is launched as a brand endorsed by 7 Up.Nimbooz has been launched with the tagline " Ek Dum Asli Indian ". The brand is trying to compete with the ordinary lemon juice which is one of the favorite thirst quencher of Indian consumers. The question remains as to why a unsuccessful brand is used to endorse a new brand ?

The new launch is going to be further problematic for 7 Up. 7 Up has recently pitted for associating itself with Lemon Flavor. Now Nimbooz is saying that it is the original lemon drink. One is artifical and other is original .

What ever be the argument of the marketers, consumers seldom see the difference between a cloudy drink, a clear drink, artifical, flavored etc etc. These micro segmentation actually confuses consumers and force them to go for the simplest solution. Sprite became the largest selling beverage brand because it was simple for consumer to understand what that brand did.

Keep it Simple please.....

Friday, April 10, 2009

Orient Fans : More Air, Everywhere

Brand : Orient
Company : Orient Paper Industries Ltd
Agency : Mudra

Brand Analysis Count : 392

Orient is a very interesting marketing case study. This is a brand that shows how to create a sustainable differentiation in a market which is highly commoditized. Orient is a brand which has a long history. The company was started in 1940 
as Calcutta Electrical Manufacturing Co. In 1954, the company was taken over by CK Birla group.

Orient is one of the largest fan brand in India. It is also the largest fan exporter in the country. The Indian fan market is huge with an
 approximate size of 2 crore units being sold every year. But the market is dominated by the small industries which account for about 55% of the total market. 

The organized market is dominated by players like Usha, Crompton, Orient and Khaitan.These players are facing stiff competition from the local players who compete on the basis of price. The organized players try to defend their position banking on their brand equity.

The price competition was so huge that at one point of time all major brands launched a lower priced product range to compete with the local players.

Fan is an important consumer durable. It is one of the largest selling consumer durable category in India . Although the category is the largest selling one , consumers perceive the product more as a commodity with little or no differentiation among the various players.

In a way consumers were indifferent towards the brands. Urban and upper SEC segments preferred brands because of quality but lower SEC segments were more price oriented and preferred the local brands. Local brands had high equity because they advertised heavily in their market, gave more margin to the retailer and was significantly lower priced. As a consumer, one really could not evaluate the difference between a local made fan and a branded one. There was no compelling differentiation among the fan brands.

What Orient did was a masterstroke.

1993-1994 was a bad year for the brand.Faced with dropping sales, Orient had to do something to defend its position. The brand rightly identified the need for a clear differentiation. After a thorough research on the consumer, the advertising agency Mudra suggested that the brand focus on three core areas

Air Delivery
Sweep Area
Electricity Consumption

Thus born the famous acronym PSPO. PSPo stands for Peak Speed Performance Output. 

The brand has a formula for PSPO 
PSPO = [Total Air Delivered /Electricity Consumed] X incremental factor
Increment factor = Significant Air Speed X Specified Sweep Area Plan

In simple terms, this is a design which can deliver more air to a large area . Orient has designed its motor and blades in such a manner that the fan can cover more area and deliver more air.

More than the technology, the brand was smart enough to brand this new feature as PSPO. This is a classic case of Ingredient Branding. The brand had found its differentiation. According to marketing theory, a good differentiator has to be meaningful, sustainable and not easy to copy. PSPO was a meaningful differentiator. By branding it , Orient had made it proprietary and its competitor could not copy that.

Next came the challenge of communicating this proposition to the consumers. Orient used its resources to bombard its consumers with PSPO and its meaning.There were lot of TVC which continuously conveyed the acronym PSPO and its benefits and there was a strong recall and association with Orient & PSPO.

In 2004, Orient Fans was chosen as a supplier for Walmart which gave the brand an entry to the US market.
Despite the success, Orient continued to invest in the brand. In 2006 , the brand roped in the Ace Cricketer MS Dhoni to endorse the brand. A cricketer and a fan have no connection with each other but the purpose of the brand was to reinforce its brand and its association with Dhoni gave some brand recall. The association continues even today and recently there was an ad campaign featuring Dhoni . The new campaign is also focusing on the USP of PSPO. 

The brand has the tagline " More air, Everywhere " and its core proposition has remained the same all these years. This benefit proposition  or More Air, More Area and less Electricity is still relevant for the consumer. 

Orient and its PSPO is one of the most consistent brand campaign India has seen. The theme is running for almost 15 years and the brand managers are intelligent and wise not to tamper with the winning formula. That is the power of the big idea. When you have one , use it to the maximum.

Related Brand 

PS: There is  an interesting case on Orient PSPO by Mudra. Read it here