Flipkart : The book store at your door

Corporate Brand : Flipkart.com

Brand Analysis Count : 430

Flipkart is an Indian online bookstore modeled around Amazon . The site was started by two IIT graduates Mr Binny Bansal and Mr Sachin Bansal. The site became operational in 2007. Within a short span of time, Flipkart has created a lot of buzz among the book lovers.

I am a book lover and my job as an academician demands that I read a lot of books. I came to know about flipkart quite accidentally. I used to buy books from another famous e-commerce site where I was a loyal customer with a gold level book club membership.

Marketers know that it is very difficult to poach loyal customers from a competitor. Lot of factors cause customers to stick to a familiar brand. Inertia, trust , averse to risk are some of the factors that prompt customers to stick with their old way of doing things. I was also of that type.

One friend suggested me to check out flipkart and and when I did, it split my loyalty instantly. One of the main USP of flipkart is the ease of use. Unlike other e-commerce site, flipkart is very very easy to use. Searching books was very easy and the site was also minimalistic. During that time, my earlier bookstore revamped its interface and it became very difficult to search books in that site which prompted me to look for alternatives. The simple interface of flipkart and their fast delivery also inspired my colleague ( who is a voracious reader) to switch to this site.

In services marketing theory , often we teach that " high level of performance " is an attribute that can cause delight in customers. Flipkart is an example of a site that differentiate itself on its performance rather than low price.


According to reports, Flipkart 's USP is its simple interface, fast searching and free shipping. The owners have rightly identified the critical differentiating factors and their service delivery is also quite fast. According to the brand owners, the market for online bookstore is around Rs 25 crore out of the total market size of Rs 4000 crore ( source). Competition is slowly hotting up in this space also.

What is interesting about flipkart is that the brand does not rely on above the line promotions. Rather, the brand depends on SEO and word of mouth publicity to drive customer traffic to the site.

Not all things are perfect for this brand. I still buy from my old store after comparing prices. The lack of a loyalty program is a big minus for an e-commerce site like flipkart. I feel that bookstores' cashcow will be the loyal customers rather than unique visitors.

For a startup, flipkart has really succeeded in getting basics correct. The brand has the potential to lure or poach customers from other similar competitors because it can deliver its promise faster. But when the customer base grows, it is a challenge for the brand owners to keep the high level of performance intact.

Kudos for the flipkart team.

Brand Update : Rexona (Reborn November 2009)

HUL never ceases to surprise me. One year back , HUL decided to kill Rexona and migrate the brand to Hamam. The brand also launched a high profile campaign announcing the migration of Rexona to Hamam. It created a Hamam variant named Hamam Abhyangasnanam and all the ads screamed - Rexona is now Hamam Abhyangasnanam .
Yesterday , I was surprised to see a television commercial of Rexona. So the brand has been resurrected after one year. I am not sure why a company like HUL has such a complicated brand strategy. How can a company decide on killing one brand, spent crores of money in promoting the brand migration and after one year decide to bring back the killed brand??

If the company doing this is an amateur firm, then it can be seen as a learning experience but when the company is HUL, no logic can explain this. Can a company like HUL misjudge consumer mindset like this ?

The only reason I see is that there is some serious brand vision issue with HUL. The company has lost its vision for the brands. There is a discontinuity in the strategy for the HUL brands and this is evident in the way HUL has dealt with the brands in recent times. I have a feeling that the brand managers have lost a long term focus on the brands. They are now driven by the ROI and short-term profitability which is driving them in unnecessary brand extensions and migrations.
At the deo front , Rexona deo is a neglected brand . The promotions are not good enough and nothing exciting is happening at that domain. It is time that HUL devise some longterm brand vision for its brands before it is too late.

Anyways , as a customer, I am glad that Rexona is back. This is a sensible brand and have a potential to be a good simple family soap.

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Snack Break : Creating new Category

Brand : Snack Break
Company : Agrotech Industries ( ConAgra )
Agency : FCB Ulka

Brand Analysis Count : 429

There is a new kid in the market for snackfoods. Agrotech Industries, which is an affiliate of the US food giant ConAgra, has launched Snack Break brand of snackfoods.
There are two interesting things about this new product. The first one is the category. Snack Break is the first major brand that has introduced "pudding " as a snack. Although Indians love pudding, no one has so far ventured into launching a branded pudding.

Snack Break is inspired from the Snack Pack brand from ConAgra. The Snack Break brand shares the same brand /product characteristics as the parent brand.
Snack Break is positioned as a tasty snack with the goodness of milk. The brand has three variants - Chocolate, Butterscotch and Chocolate Mud-Pie. The brand is priced at Rs 25 for 99gm and Rs 100 for a pack of 4.

The brand is currently running a campaign highlighting the " taste " factor and the nutrition. The brand has adopted the tagline " Simply Irresistible".
Launching a pudding brand is definitely a good idea. The brand is aiming youngsters and kids alike and the nutritional value makes a good reason to indulge.

The second interesting fact about this brand is that Snack Break is endorsed by Sundrop. In theoretical terms, Sundrop is the endorser brand for Snack Break. Sundrop is the popular cooking oil brand from Agrotech. It was surprising that a cooking oil brand is endorsing a pudding brand. Frankly it does not make sense. Oil brand and a snack brand doesn't go together . More over it can be dangerous association since Oil is considered unhealthy and so do snacks.
One reason that prompted Agrotech to endorse Snack Break with Sundrop is to familiarize the brand. Since Snack Break is new and the category is also new, the brand owners felt that a stand alone brand will not be able to make consumers try it. By endorsing it with the popular Sundrop, there is an increased chance of trial by the consumers.

Snack Break is priced a little high compared to the competitors. This high price can be a deterrent for regular purchase for this brand. Once in a while indulgence will be what a middle-class customer will feel about this brand. But for the affluent youngsters, Snack Break offers a new product category to indulge.

Brand Update : Sony Vaio

Sony Vaio is currently running a campaign featuring Kareena Kapoor as the brand ambassador for its Vaio range of ultra-portable laptops.

The brand is now running a campaign featuring Kareena.
Watch the tvc here : Vaio

My first question is whether Sony need a brand ambassador for the Vaio brand ?. Vaio had some brilliant commercials and had built in a premium image without the help of any stars. So why now take the help ?

Sony is positioning Vaio not as a netbook but as the ultra-thin laptop and also as a lifestyle accessory. But a discerning consumer will think twice before splurging Rs 85000 for such a product. The brand is fighting for the market along side the competitor Mac Air.

The ad is also not very impressive because the focus is more on the brand ambassador than on the product. According to reports, the brand is trying to cash in on the " Size Zero " rage popularized by Kareena. The brand is feeling that consumers will find a connection between the " thin " Kareena and the " thin " Sony Vaio.

But I think that for a brand like Sony, it could have depended more on the creativity of the ad guys to make the brand popular than piggybacking on some thin stars



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White Ice : Play It Cool

Brand : White Ice
Company : Midas Care Pharmaceuticals.

Brand Analysis Count : 428

The list of deo brands that promises raving girlfriends is endless. We have one more to add to the list - White Ice brand of deos.Like any other brand in this category, White Ice also promises men of girls falling for them and attaining the " Nasal Nirvana".

Frankly I am at loss. Either it is true that girls do get easily seduced by the deo fragrances or men believe that deos work magic with girls. Either way, brands that take on this most "raped" theme of " girls chasing guys" are increasing day by day.

When I wrote a critical post on Denver (another deo with same positioning) , a reader pointed out that the sale of Denver increased many fold after their campaign. In that case , I assume thatthe number of frustrated Indian men is increasing at an alarming rate.

White Ice is a brand from Midas Care pharmaceuticals. Midas Care is a company that specializes on aerosol products and is famous for brands like Climax and Relispray.

White Ice is running a TVC in most of the channels highlighting its positioning as the ultimate women attractor ...

Watch the TVC here : White Ice

The brand joins the bandwagon of Axe, Denver,Setwet and Wildstone in harping on the same promise . I wonder whether there is any relevance in the concept of differentiation ???

It may be true that when a brand advertises, there is going to be a visible spike in the sales. But this may not be sustainable over time if brands doesn't care to differentiate. For example , a consumer may try out this brand after seeing the ad, but if the brand wants him to come back, it should create a distinct place in the consumer's mind. A marketer will not be able to spend huge amount of money in advertising to keep the high brand recall. A highly differentiated brand enable to reduce the advertising expenses over a period of time.

White Ice adopts the tagline " Play it Cool" which is the same tagline of John Players. I wonder if the ad agency ever bothered to check the tagline before making it public.

Most of the challenger brands fail in realizing the importance of investing in the long term. They are happy with the immediate spike in the sales and profits. Brand building can be possible only if the brandowners realize the need for proper differentiation. The more time they spent in identifying or creating differentiation, more sustainable the brand will be.

Bigger is the problem for Axe deo. Its famous and once unique positioning platform is now killed many times. It cannot wish that when other brands use the same positioning, Axe benefits. More than the new entrants, Axe is in a dangerous position and desperately needs to reinvent itself. It will be interesting to see how HUL takes on this ultimate positioning challenge.

Brand Update : Gems

Cadbury Gems is currently running a new series of interesting commercials. The brand has chosen a Giant Panda as the main character in the new set of ads.

Watch one commercial here : Rangeen Panda

Gems has been very consistent in associating with the attributes - color,fun and excitement. Over the last few years, the brand has been concentrating on associating " color" with Gems. The current campaign is trying to further reinforce the association.

Frankly , when I first saw the new Gems ad with the colored Panda, I did not understand any bit of it. Only thing I understood was that Panda became colored when it ate Gems. But my kid seems to enjoy watching the Panda.
Gems now have the new tagline " Rangeen Panda ka Rangeen Pasand". The earlier tagline of Gems was " Meri masti ka Partner ". The new tagline seems to be too tactical in nature focusing more on the Panda rather than the brand.

Gems is targeting the kids of age 8-14 yrs.(source) The way kids look at these messages are way different from how we adults look at the campaigns . Hence I am not venturing into analyzing the new campaign using my adult lens. However I think that the ad could have been more clear so that adults will also understand the essence of the message.

Having said that, the choice of Panda as the main protagonist is a very good idea. The animal evokes a sense of cuteness and stickiness to the ad. When marketing to kids, the presence of such a character will add more punch to the brand. The association of the attribute "color" to Gems also is a class act because it makes Gems unique compared to other brands.

Even though Gems does not have a competitor with similar product properties ( color candies), the consumer does not think in terms of categories while making a confectionery purchase. Most of the purchases are spontaneous and marketers can only wish that their brand is on top of the mind during that moment of truth. Let me hope that the Rangeen Panda helps Gems to capture that moment.

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