Brand Update : Maggi

Maggi has launched its product in the growing Pasta market recently. The variant called Maggi Nutri-licious Paazta is Maggi's major new brand extension in recent times. The Indian pasta market is still in nascent stage with a market size or around Rs 50 crore ( source) but growing very fast.

Maggi pioneered the noodles market in India 25 years back but was not the brand which created the pasta category. The credit goes to Sunfeast which first launched a National brand in this category.

Maggi decided to jump into this Pasta bandwagon for obvious reasons. There is a lot of customer interest in this category. Indian consumers are now more adventurous in their food habits. The Gen Y is mesmerized with the exposure to various cuisines thanks to the media. So there is no dearth of innovators in this segment. Once you get into the good books of these foodies, the flock follow.

Maggi's move was further endorsed when Domino's forayed into the Pasta market with their offerings . So this market is going to see lot of action.

Maggi is currently running a TVC for their Pasta variant : Watch it here

The ad is very similar to the Noodles positioning and both pasta and noodles are sharing a common tagline(with a slight variation) . Paazta uses the tagline " Health bhi, taste bhi, happiness bhi"

One marketing practice reader observed the risk of Maggi moving into a different product category ( brand extension) . He opined that the equity of Maggi will be lost because of this extension . Personally , I differ because Nestle had slowly but surely developed Maggi as an umbrella brand for their food products. They have launched the soups and sauces under this brand. And the brand is doing well in these extensions.


Maggi is currently addressing a category competition. The brand feels that pasta can have a negative impact on its noodles business. For consumers, they view these products as snacks. For such customers, Maggi needed to offer pasta choice otherwise they will move to a competing brand. The current brand extension will have all the disadvantages of brand dilution and cannibalization . But on a broader perspective, it is a matter of survival and category leadership.

Related Brand

Maggi
Sunfeast

Marketing Strategy : Celebrity Endorsement

The recent Tiger Woods 'confessions' opened a whole lot of debate on the role of celebrity endorsement as a marketing strategy. The issue of celebrity endorsements and its 'side effects' is one of the most widely discussed topic in the branding world. Every time there is a controversy involving the celebrity, these chatter arise and dies down soon .

In this context, it should be understood that celebrity endorsement is a powerful promotional tool . If used creatively, celebrity endorsement can propel a brand to a high growth trajectory. But like any strategy, this option too has its own share of disadvantages. The latest Tiger Woods episode again highlight the issues brands can face when their endorsers ran into trouble.

Will this episode refrain marketers from using celebrities any more ? Never. We will be seeing more of these endorsements in the future also. But there are lessons to be learned from this current developments.

The problems that brands face when their endorsers land up in trouble is more when brand depend heavily on the celebrity for equity ( common sense !). When brands use Celebrities as a pivot upon which the entire brand equity is generated, the risk is more and any adverse actions on the part of the celebrity will affect the brand's strategy.

In the case of Accenture, Tiger Woods was the axis for all their promotions. The brand was so closely associated with the celebrity that coming out of that association will cost both money , time and energy. But the silver lining for Accenture is that Tiger Woods was only a symbolization for the corporate brand. The current controversy is in no way going to affect Accenture's consulting business. Only issue is that the brand needs to find another powerful symbol to convey its message.

For other famous brands like Nike and Gillette too, there is only less impact of this controversy because Tiger Woods does not play a crucial role in their brand building strategy. Both these brands have other celebrities to bank upon.

Marketers should understand that using celebrities should only be a part of the big picture and not the picture itself. There are no short cuts to fame. If at all one is using celebrities as the main talking point, derisk by using more than one (if you can afford that). Otherwise run parallel theme based campaigns to help the brand stand on its own.

Indian brands tend to rely heavily on celebrities for equity. The brand owners should understand that this tendency is because of the focus on short-termism and lack of creative thinking. Celebrity endorsements should only be a part of the strategy not the strategy itself.

Related Brand
Accenture

Brand Update : Pulsar

Pulsar- the blockbuster brand from Bajaj has launched a new variant - Pulsar 135 LS. The new bike is a 135 CC 4 valve DTSI engine that delivers a power of 13.5 ps. The bike is being positioned as a light sport bike and the company aims to create a new category of ' light sport' bike in the Indian market. Pulsar 135LS is priced at around Rs 51,000.

Pulsar, when launched in the Indian market in 2001 changed the fortunes of Bajaj Auto. With its " Definitely Male " positioning and superior performance, the bike crafted a segment of ' performance bike' in the Indian market. Even after all these years, Pulsar has maintained significant leadership in the 150CC + market.

The launch of a less powered " light Pulsar" was a surprise to me. Why would a company stretch a performance bike downward into the executive segment ? Pulsar was having three models in the performance bike segment 150CC, 180cc and 220 cc. All these bikes were premium bikes and had similar chunky masculine look with exceptional performance.

There can be two reasons for the downward stretch for this brand. According to reports, Bajaj wants to create a new sports category in the executive segment. The company feels that there is a segment of consumers who want a commuter sports bike and Pulsar will fit the bill.

Another larger reason is the volume game. Bajaj so far has not been able to break the leadership position of Hero Honda either in the Executive segment or in the commuter segment. The experiments on Discover and XCD so far has not been successful in displacing Hero Honda. Since Pulsar have an excellent brand equity, it is easy to leverage it for the sake of volume.

Whether 135 LS will be successful or not depends heavily on the bike's performance. But I am sure that the premium positioning and equity of Pulsar will take a hit with the launch of this lighter version. The new 135 LS is not a Pulsar but something in between XCD and Pulsar 150.

In news reports, the company officials had commented that customers doesn't look at CCs while making purchase, they look at brands. But launching a lighter version of a performance bike is not going to boost the equity of the parent brand. On the contrary , if the lighter version fails in the performance, it will have an effect on the equity of the parent brand. Secondly if the lighter version works well, why should one go and buy the larger version ?

Pulsar 135 LS also cannibalizes the existing models of Bajaj Discover and XCD in the executive segment and there is a possibility of any of these brands being withdrawn from the market.

Pulsar 135 LS is a high risk brand from Bajaj. In the search for volumes, the company is risking one of its best brands in the line of fire. On one hand the brand is being stretched downwards and on the other hand, the parent brand is neglected. Except for occasional ads, Pulsar was never aggressively promoted these days. Taglines keep on changing and share of voice is very very minimal for Pulsar.
The only solace for Pulsar is that so far no brand has been able to match the standards set by this brand. But having no competition does not mean that one can mess up a brand.

Related Brand
Bajaj Pulsar

Hettich : A Home in All Furniture

Corporate Brand : Hettich
Agency : Crescent Communications

Brand Analysis Count : 433

It is not every time that you see a hardware manufacturer endeavoring into branding and above - the - line promotions. Hettich is one such brand that is now ventured into a national launch of their kitchen and furniture fittings.

Hettich is a German company with a rich heritage. The company was started by Karl Hettich in 1888. This $1.1 Billion company is one of the major players in the fittings market. Hettich was launched in India in 2000. The brand had a very soft phased launch and was available only in Mumbai, Kolkatta, Delhi, Gurgaon and Bangalore. Now they have started advertising in the national media which indicates their intention to grow further.

Fittings and accessories were never in the public media space. These were regarded as a b2b product and the major customers were the architects, contractors,builders , designers , hardware distributors etc. But even for the players in this category, branding became important because of the clutter and competition. No consumer was directly involved in the purchase of such items. But things are changing .The growing affluent Indian consumer class also brought in the need for a more differentiated offerings from the players in this category. Hettich is trying to cater to the need of the modern Indian homemaker who desires to have a very smart kitchen.

What is interesting about the brand is its attempt to create excitement in a category of boring products. What is so exciting about hinges, drawers, runner systems, folding and sliding doors. How can one expects customers to think about such products that he is not going to see in a cupboard or a door ?

It is exactly that brands like Hettich is trying to do. Take the case of modular kitchens. Usually consumers give less attention to the hinges and doors . Their attention is more on the look, durability , design and aesthetics. Hettich is trying to change the perspective by educating the consumers about the importance of having a smarter kitchen.

Hettich is running a very rational campaign aiming at introducing the Indian consumers about having a planned kitchen & wardrobes which utilizes maximum space and also maximum convenience. In the brand website, there is a download-able recipe which gives the homemaker fresh ideas about planning their kitchen ( download link here) .

Hettich is not without competition. Brands like Vineta Cucine and Hefele are also looking for this space. And convincing the customer to pay a premium for products like these is a tough task.Hettich's approach to slowly build the market is the right decision. The strategy is to educate, provide experience and convince. The brand has opened lot of such experience shops where customers can see the value for going for a little expensive brands like Hettich.

Mont Blanc : A Story to Tell

Corporate Brand : Mont Blanc
Agency : Meridian

Brand Analysis Count : 432

Mont Blanc is an iconic brand. This luxury iconic brand is now making waves in India. Mont Blanc has a very rich heritage. Created in 1906, the brand was born in Germany. Mont Blanc was founded by stationer Claus Johannes Voss , banker Alfred Nehemias and engineer August Eberstein in Hamburg. The company was earlier christened as Simplo Filler pens but was later changed in to Mont Blanc in 1910.

Mont Blanc which started off as a writing instrument brand soon became an iconic accessory brand selling wallets , watches, jewelery, eye wear and fragrance. This brand thrives on luxury and exclusivity. More than a writing instrument, Mont Blanc is more of an art item, something to show off your success than a functional instrument.
The brand is also carefully crafted. Mont Blanc takes special care in ensuring that the brand communication is reflecting its exclusivity and premium positioning.

Mont Blanc entered India in 1995. The brand has adopted the strategy of slow skimming was initially available in premium boutiques at places like Taj Hotels.
Globally, Mont Blanc built its brand through print media. The brand crafted exquisite ads in the premium lifestyle magazines. This year, the brand deviated from its time tested media strategy and launched its first Indian TVC featuring Bollywood Actor Anil Kapoor and his daughter Actress Sonam Kapoor.

Watch the TVC here : Mont Blanc

Mont Blanc has the tagline " A story to Tell" . This is a positioning that takes the brand from a functional perspective to a higher level positioning. The brand talks about pen as a power to write one's own destiny. This is one of the best positioning statement I have seen in recent times.
In India, Mont Blanc is trying to tell stories of successful personalities who had achieved success not because of heritage but hard work.

The television commercial surprised me because of the choice of Anil Kapoor as the brand ambassador. Even though Anil Kapoor fits well in the brand's positioning based on " story to tell" and rags to riches kind of stuff, Anil Kapoor does not really gel with the over all brand personality of Mont Blanc.
He is an actor who has now virtually retired . Even during his hay days, Anil Kapoor was never considered as an iconic star. So by choosing a star who has faded from limelight seems to be a wrong choice for the brand.
Another question that came to my mind is whether Mont Blanc really needed a brand ambassador ? In the Indian advertising world, stars have become a commodity. These stars only give some 'stickyness' to the ad and other than that there is virtually no value addition to the brand equity.
In my personal opinion, Mont Blanc lost some its premiumness by choosing to get help from a celebrity.

Mont Blanc also was in limelight in India as a part of a controversy. The brand launched a limited edition Pen inspired by Mahatma Gandhi. The pen which was priced at around Rs 12 lakh generated enough controversy for the brand ( worth millions of dollars of free publicity).
The limited edition pen had Gandhiji's image engraved in the nib and also the top of the cap and cone was inspired by the spindle which Gandhiji used to spin cotton.
The limited edition pen with its huge price tag quickly captured the imagination of media and politicians who began a high profile debate on " commercialization of Gandhiji".

As an individual , I was happy that Mont Blanc chose to celebrate one India's finest son with a special edition product. I was more happy because they chose to price this special product with an exorbitant rate. I believe that Gandhiji is not cheap. He lived a humble life does not mean that everything about him should be cheap or priced low. If politicians can choose to use Gandhiji for furthering their goals, why can't brands ? And marketers are not fools to mess with a highly revered icon like Mahatma.

Mont Blanc is a brand that changed the way pens were looked at. The classic white flower-shaped symbol that adored the cap of this pen is considered an ultimate symbol of success. Mont Blanc does not need someone to make it a success it is the other way around.

Turtle : A Little Deeper

Brand : Turtle
Company : Turtle Ltd
Agency : RK Swamy BBDO

Brand Analysis Count : 431

Turtle is an interesting brand story. This is the story of a small brand metamorphosing to a national brand. The brand is from Ladsaria family. The brand was born in 1995 in Kolkatta. The brand is the brain child of Amit Ladsaria who teamed up with his uncle to start a small shirt manufacturing unit with an initial capacity of 20 shirts.

Amit Ladsaria saw a big opportunity in readymade dresses at that time and wanted to cash in on that opportunity. The brand name Turtle was inspired by the movie Teenage Mutant Ninja Turtles. (source)

The brand which started with a capacity of 20 shirts is now a 60 crore brand poised for the big league. In May 2009, Future group took a strategic stake in the company. The backing of this retail giant is set to take Turtle brand to a much higher level.

There are many interesting facets of this brand. Although a small brand, Turtle was very careful in building its brand. The brand has been consistently investing in print and TVCs and the quality of communication was also very good.

Although the brand name was derived from a movie, the brand owners was wise enough to attach a meaning to the brand. Turtle brand is a Turtle lover. The brand has tied up with World Wildlife Fund and The Wildlife Society of Orissa for conservation of rare turtles. The brand contributes an amount for every product they sell. According to reports, the brand has already given more than 18 lakhs to these organizations.

Another interesting feature of this brand is the website . Turtle brand site is one of the best brand sites I have seen in recent times. The brand has been very careful in cultivating a sense of style around itself.

Turtle is targeting the young urban professional. The brand is on the premium side of the price band with the price ranging from Rs 695 - 995.

The brand is being positioned on an emotional platform . The brand persona is a successful goal oriented individual with a softer core. The brand has adopted the tagline " A Little Deeper " to emphasis the different side of the personality. Most of the campaigns are highlighting the soft touch persona of the brand.

Watch the tvc here : Elevator


Although the positioning theme has similarity with Raymond's, the theme offers opportunities to present the brand differently from Raymonds. Although the brand has been consistent in their communication highlighting the emotional positioning, it is necessary for the brand to communicate rational benefits also. This is important when addressing the first-time customers. I would love to see some more information about the quality of fabric and craftmanship in their ads.

Turtle is a strong brand from the East. The brand has slowly but steadily capturing various markets. The strong support from a partner like Future group will increase the brand's reach.
Turtle is a brand with a vision. The brand owners have followed it up with consistent investment and let us hope that the brand will reach its desired destination.