Brand Update : Cadbury Dairy Milk

Cadbury has launched a new variant of Dairy Milk branded as Dairy Milk Silk. The brand is currently running two TVCs for this variant

Watch the tvc here : Dairy Milk Silk Dance

: Dairy Milk Silk Conference

The brand has been moving away from the celebrity endorsed approach it was following in the last few years. The new campaign is refreshing and brings back the memories of its earlier iconic campaign " Asli Swaad zindagi ka" . I liked the conference one than the dance one.

As I understand , Cadbury Dairy Milk Silk is a smooth and silky version of the original Dairy Milk. The brand is priced at a premium over the Diary Milk which makes it an Upmarket Stretch in marketing terms.

The ads are spot on the brand's core positioning of " enjoying the moments". The agency has conveyed the message in such a captivating manner that many adults who has forgotten about the original brand promise and experience will be attracted back to the brand.

I hope that the brand will scale new positioning heights and it is a learning experience to watch this brand evolving itself.

A related nice article in Afaqs.

Related Brand

Cadbury's Dairy Milk

Brand Update : Mango Bite

Kaccha Mango Bite is a product line extension of Mango Bite . But over these years, this flavor has caught the fancy of the consumers so much so that almost all the candy makers have introduced the Kaccha Mango ( Raw Mango) flavor in their portfolio.

Parle also may not have thought that this flavor would become a rage. Now the situation is that Kaccha Mango variant is more widely distributed than the original Mango Bite. The the variant has now the status of an independent brand.

The raw mango taste is very unique and different. It is this uniqueness that has created a lot of interest in the consumers especially the kid's mind. Child's mind loves uniqueness and is always looking for new experiments. When all the candies are sweet, a little sour taste gives the much needed break from the usual.

The variant was also promoted extensively by Parle. The brand really owned the taste by a smart positioning . Kaccha Mango Bite is positioned as " Xerox of Raw Mango". It has the tagline " Kaccha Aam ka Xerox " .

I remember two ads which was spot on the positioning.

Watch the ad here : Xerox Ad

: Animation ad

By positioning itself as the Xerox copy of Kaccha Mango, the brand literally created a strong position in the consumer's mind. I think that the brand has changed the tagline to " Kaccha Aam ka Copy " because Xerox is a tradename owned by another company.

The success of Kaccha Mango Bite made the competitor entering the fray with their own versions. ITC launched the Natkhat Mango variant and recently the brands like Alpenliebe launched the raw mango flavor.

Kaccha Mango now have a generic status in the market for this flavor. No other brands have so far been able to crack the equity of this variant.

Related Brand

Mango Bite

Marketing Strategy : The Family Brand Conundrum

Indian industrial scene is dominated by family owned businesses. It is common to see business taking up their family name /surname/patriarch's name as their corporate brand name. This phenomenon is seen globally.

The adoption of the family name as the brand name has the possibility of creating new problems in the branding context. All is well when the family stays together. But the branding problem starts when the family business splits. While the physical assets are split without much issues, often the family brand is also shared by the various groups. For example , family names like Birla, Bajaj etc are used by different business houses owned by different family members. Every group would like to take advantage of the equity of those renowned family name. But in a branding context, this can often means the dilution of the core brand equity.

While large industrial houses dealing with B2B markets are less affected by this dilution, it is the B2C brands that faces the heat most. Most of the family brands in the consumer space are now faced with a identity crisis . When the same brand name is owned by multiple owners, the brand loses its identity. Different owners will use the brand differently and in effect the entire brand will be pulled to different directions thereby diluting the core equity .

While after splitting, the family members use the same brand name to take advantage of the existing equity, they fail to see the long term effect of this multiple ownership and the dilution of the very equity which they tried to use. But when the realization dawns, they would have invested heavily in the current brand that traps them from developing a new brand.

Most of such business try to half heartedly develop a new identity by adding an additional initial or a name to the family brand . But the family name still is retained as the primary brand thus negating any chance of differential identity. Some times the brand owners try to create a new identity by some cosmetic changes like a color change or a logo change which is going to have no impact on the consumers.

In such a scenario, what is the way forward ?

In the branding context , there is no easy way. The parties involved should be courageous enough to embrace a new identity. The longer it takes , the more they invest on the existing brand and thus getting more deep into the branding trap.

The issue of the family brand name should be sorted ideally at the stage where the family business is split into different groups. One group can take the ownership of the brand and other groups can be compensated . But seldom such an agreement can be reached because every party will be wanting to take advantage of the existing equity.

Another option is to give the ownership of the brand to all the groups for a certain period of time within which they should be migrating to a new brand platform .

But it is the onus of every business groups to make sure that they have complete control over the brand upon which their business is built. The brand owners should not hesitate to create their own identity as soon as possible. The best way to do this is to create a migration plan from the existing family brand name to a new identity. One way of doing this is to change the brand name at one go. A revolutionary rebranding exercise can be undertaken.

Another option is to have a very slow migration plan.The first stage of migration will involve campaigns where the new brand name will be created as a sub-brand of the existing family name. In the campaigns, the family brand name will be prominent. The second stage will involve the transformation of the family name into an endorser brand and the new brand identity to take the center stage.

It will be difficult for the brand to retain its core equity or identity when owned by different players . The sooner the owners realize, the better their brand architecture will be in future.

Brand Update : Logan

It is sad to see a good product struggling in the market because of a messed up strategy by the brand owner. Logan is a brand which failed to realize its true potential because of a flawed strategy by Renault. Logan also is an example that shows how marketing is intimately blended with corporate strategy.

I was reading reviews about Logan in many magazines. All reviews unanimously praised the car on all parameters except the looks. At a price range of Rs 5,00,000 to Rs 7,00,000, the brand offered unmatched value for money for the consumers. But despite every thing going good for this brand, Logan is no where in the Indian market. Recently there were rumors about the brand being withdrawn .

What went wrong ?

The strategy ...

Renault bought this brand through a JV with Mahindra & Mahindra. JV is supposed to be the best market - entry strategy when entering into a new international market. The local partner is expected to give insights into the market and also the distribution reach. But history has shown that JVs in the Indian automobile industry has not always been successful ( Hero Honda being an exception). The success of JV is depended on the mutual trust, respect, clarity of roles of the partners etc.

Renault - Mahindra JV began to face issues within a short time mainly due to the policies adopted by Renault. Renault announced a series of JV with Bajaj f0r the small car and initiated talks with other players which upset M&M. Is it common sense to have different JVs with different players for different type of cars in the same industry/market ???

When you have a JV with a player who has similar product , can you be sure that your product will get the same level of attention ? Mahindra's focus will be towards Scorpio and Logan will always be get a step motherly treatment in the dealerships. That is happening with most of the such JVs including Tata Fiat JV. ( I am sorry to generalize but many of my friends talk about the lack of interest shown by the dealers in pushing such step son brands).

Renault did a big mistake in its blind pursuit of growth through multiple JVs in the same industry. If Renault was serious about Logan, it would have built its own network of dealers and service centers even though it would take a couple of years to create such a network. But Renault chose the easy way and it flopped. After three years, Logan is not a brand to reckon with but a brand whose future is a question mark ?

Renault should have learned a lesson from Skoda India. Skoda which is a highly successful brand in India took time to develop its own sales and service network in a slow and steady manner. It is now giving the brand unmatched reach and success in India market.

Logan also had a marketing issue. The brand was never promoted aggressively. There was little or no promotions except some bland discount ads by the local dealers. The brand was not built after the initial launch phase. The lack of customer- pull added by the lack of dealer-push made sure that Logan remained in the dealership rather than at the consumer's garage. The news about rocky JV also ensured that potential consumers steer clear of the brand because of worry about future service.


If Logan fails, it is going to be a sad story of a good product killed by a flawed corporate strategy.


Related Brand
Logan

Infibeam Pi : Indian Kindle ?

Brand : Infibeam Pi
Company : Infibeam.com

Brand Analysis Count # 442

It is very risky to write about a product before it is launched in the market. Many marketing commentators have failed in predicting the success of a product before being practically launched in the market.

Infibeam Pi can be termed as India's answer to Amazon Kindle. Pi is an e-book reader from Infibeam.com . Infibeam is one of the largest Business to Consumer portals in India. The company which was launched in 2007 also has one of the largest inventory of books. Infibeam is promoted by Mr Vishal Mehta who chucked his juicy job in USA to pursue his entrepreneurial passion .

Pi is a product like the world famous Amazon Kindle. This e-book reader comes with the same technology of E-ink that the Kindle uses. The form factor also is strikingly similar. But what comes as the biggest coup of all sorts is the price. While Kindle is shipped to India at a price of about Rs 18,000, Pi is priced at Rs 9999 ( introductory offer).

In one of my earlier posts, I had written that the aggressive high pricing of globally successful brands in India can lead to opening up opportunities that other players can grab. Pi is one such striking example.

Amazon had to price its Kindle at Rs 18,000 + because of duties and taxes .Such a globally famous product launching in India created enough buzz and virtually created a market for e-readers in India. Infibeam Pi became the first Indian brand to take advantage of that buzz. To add to the buzz, the launch of iPad also has significantly increased the consumer interest in the market for e-book readers in India.

In that scenario, the launch of Pi is very significant. Although Pi definitely have a first mover advantage, the path is not so smooth. The product is impressive. Pi comes with an expandable memory slot and also can play music. The company claims a battery charge life of 7 days. The brand can read a wide range of formats like Pdf,Mob, Doc etc . ( Read specs here). To complement the reader, Infibeam also has an e-book store which has a good collection of books in the electronic format.

The major marketing issue for Pi is to develop the market for e-book readers. Even though Indian consumers are aware about such a product, Pi needs to change the reading habits of the consumers to a certain extent. It starts with the purchasing of e-books and the first convincing is that e-book which is non-physical offers the same value as the book ( physical). Second convincing is about the reading habit. Consumers need to experience the product first inorder to understand the convenience of using an e-book reader. He needs to feel that he gets the same effect when he reads a physical book.

Infibeam also has a tough task of establishing trust in the potential users. Many consumers are not aware of such a company existing. The launch of Pi gave the Infibeam lot of PR but Infibeam needs to establish its credentials because consumers look for trust while purchasing a durable item like a e-book reader.

Since this is an electronic device , there will be lot of apprehensions about the quality , durability and servicability of Pi. Infibeam, being a portal, will have to convince the customer that it will be able to provide service support in case something goes wrong. If the consumer has to ship the product to avail the service, it is not going to help the product to get accepted fast. Infibeam should convince the consumer about the battery life and whether this product can be serviced/repaired in the event of a complaint. I am sure that the product will work fine for the first year but after that ? The best way for Pi is to give a 5 year warranty that will add lot of value for the brand. This will prompt those doubtful consumers to free up their purse strings without waiting for reviews or peer feedback.

Being a platform like a e-store and selling a device are two different ball game. Google recently understood that when it launched its first device Nexus One. Durables needs a channel which can sell and support the product . Otherwise it will be the consumers who will feel stranded when they face product related issues. In the case of Infibeam Pi also, the brand has to create a proper service network before venturing into selling Pi in a big way.

Infibeam has introduced the right product at the right price. As a consumer , I would be happy if the price comes down by a couple of thousands. Now what Infibeam has to do is to build a business architecture around this device. If the products performs well and the service is accessible and good, Infibeam has a winner in hand and Kindle will have to forget the Indian market.

Mahindra Gio : Potential Category Killer

Brand : Mahindra Gio

Company : Mahindra & Mahindra

Brand Analysis Count # 441

This is the decade of Mahindra Group. Ever since the success of Scorpio, Mahindra is on a roll. Lead by the dynamic Anand Mahindra, Mahindra group was quick to spot market opportunities and to tap them. The Satyam acquisition and Kinetic motors buy were all efforts to plug those gaps they found in the market.

Gio is one such initiative of M&M to cash in on a latent demand in the goods carrier market. Mahindra Gio is a 0.5 tonne four wheeler goods carrier. Infact Gio is India's first 0.5 tonne four wheeler goods carrier. This product is a classic case of a successful product development in the Indian context.

Gio is a potential category killer. This brand is going to burn the three wheeler goods carrier market . The three wheeler category will slowly shift to the new category since Gio is addressing a latent demand in the category for a better looking & comfortable goods carrier.

The 0.5 tonne goods carrier market is basically a three wheeler market dominated by Bajaj and Piaggio . The category is discarded by the players who focused only on volume and not on product development. The three wheelers lacked the comfort and was rustic. The brands competing in the segment was suffering from marketing myopia. They thought that the competition can come only from three wheelers. So we see the same type of noisy shaky rustic three wheeler goods carrier. Its time to change.

Gio is going to be a winner from the word Go ( Just like Maruti Eeco). The product is a four wheeler and that makes a big difference for the existing three wheeler users. One factor that is going to make Gio a winner is the price. Gio is priced at Rs 1,65,000 which means by paying a premium of Rs 20,000 , a potential three wheeler buyer can own a mini truck. Aspirationally, it is a big leap to the buyer.

Tata Ace is priced at around Rs 2,50,000 + and three wheeler goods carriers are priced at Rs 1,45,000. There is a significant price gap between these two product categories. Gio is aiming at filling this price gap. Also more than price gap, the brand is filling the need gap for a better goods carrier. Ace showed the need for a 1 tonne carrier and Gio took a lesson from Ace in this new segment.

According to the brand website, Gio name was derived from the Hindi word " Jeeyo" which means long and happy life. The brand is targeting the last-mile market where the intra-city transport of fmcg,durables, agriculture produce etc are involved.

Gio looks strikingly different from the existing vehicles that ply the Indian road. Gio has a peculiar look which looks little odd for a goods carrier. There is a reason for such a look.M&M wanted to make Gio look trendy and different which is another way of adding value to the product. The brand is breaking the myth that goods carriers should not be glamorous. Another vital marketing lesson from the brand. The brand sports an engine from the American Engine maker Kohler. The brand claims a mileage of 27 Kmpl which is equal to that of a three wheeler.

Another interesting fact is that M&M has developed a good website for Gio . It is unusual for such a goods carrier brand to have a significant presence in the web but Gio feels that there will be business owners who will look for information about the brand in the web. Another interesting move by the brand.

Gio has the looks and a mouth watering price that makes it a potential winner. A lot of marketing thought has gone into the making of this product. It is surprising to see that Tata was not able to identify this gap. Tata Ace is a highly successful product which virtually created the sub 1 tonne goods carrier market. I expected that Tata Motors would think about replicating the success of Ace in the three wheeler category. But instead of Tata, M&M grabbed the opportunity with Gio.So it is an opportunity lost for Tata Ace.

Kudos to Gio and M&M.

Related Brand
Tata Ace