Nature Valley Granola : 100% Natural , 100% Delicious

Brand : Nature Valley
Company : General Mills

Brand Analysis Count # 452

Last day when I was shopping in a grocery store, a young guy came rushing in to the cash counter to tell the staff that he is going to consume a granola bar which is placed in front of the counter without waiting for billing because he is feeling very hungry.Welcome to a new way to satisfy your hunger pangs.

Granola bars is an emerging new category in the Indian market. Granola is a snack food made from oats, honey, nuts etc which are baked till crispy ( Wiki). Granola Bars are the bar form -packed like a typical chocolate bar. Granola bars are popular in Western and European markets as a convenient healthy snack food.

Nature Valley is a brand from the US Foods giant General Mills. The brand claims to be world's first granola bar brand with its origin dating back to 1975. The brand is said to have an iconic status in the US market.

Nature Valley was launched in India in 2006. The brand had a very soft launch and the distribution was restricted to certain markets. I think that now the brand has gone for a national launch.

Granola bars comes under the broad category of functional foods. The functional foods market in India is estimated to be around Rs 1700 crores. The bar form of functional foods emerged just recently.
Nature Valley is currently running a small campaign in some select TV campaign. The imported ad just shows a waterfall and a voice over explaining the nutritional benefits of the product. The brand has the tagline " 100 % Natural, 100 % Delicious ". The launch campaign is too small and basic that there is nothing much to talk about. The ad at best just introduces the brand name - nothing more, nothing less.

One would have expected some thing unique and creative from a marketing giant like General Mills especially when they launch an iconic product. But at present, nothing so far has been on air. Globally Nature Valley brand is pitching heavily on the " Natural " platform . Infact the name is a unlikely candidate for a snack food brand.

Brands like Nature Valley and Horlicks Nutribar have a difficult task of creating brand salience . Brand salience covers all aspects of brand awareness. Professor Keller describes two facets of brand awareness - Depth and Breadth of Awareness. Depth of brand awareness refers to the ease with which the brand elements can be recalled. Breadth refers to the awareness about the brand under various potential usage situations.

In the case of Nature Valley, Depth of Awareness refers to how easily a consumer can remember the brand. Breadth refers to the various usage situations and how easily the brand is recalled in those situations . For example, Nature Valley can claim breadth of awareness when consumers remembers the brand when hungry/ while traveling/ watching movies/ after a workout or a game etc. It may be easy to create awareness depth with high profile ads. To create breadth, marketers may have to convince the brand efficacy in various usage situations. So brands first must decide on the targeted usage situations and then device communication strategies to create the breadth of awareness.

It is interesting to see that both globally and in Indian market, the NatureValley pitches not on "hunger/food platform" but on the natural ingredient platform which is quite different. Even the global campaigns give a different view on the brand. Hopefully the brand will follow the same framework here also. It can work here because most of the functional foods including the brands that directly competes with Nature Valley like Horlicks Nutribar, talks about hunger . So the brand can stand out by taking such a different platform. The brand has priced itself smartly at Rs 12 for a single bar and Rs 20 for pack of two. This is significantly lower than Horlicks Nutribar.

Whether consumers will get hooked to the " green " nature of the brand is a different story altogether.

Related Brand
Horlicks Nutribar

Marketing Strategy : How to Create Brand Experience

Creating Brand Experience

Originally Published here in Adclubbombay

We are living in an experiential society. The consumers are moving towards selecting products based on experiential factors and marketers have the opportunity to sell products at a premium if the product is able to deliver the right kind of experience.

Bernd Schmitt in his book Customer Experience Management: A revolutionary Approach to Connecting with Your Customers; has defined customer experience management as the process of strategically managing a customer’s entire experience with a product or a company. Experiential marketing aims to engage the consumers so that he gets a complete experience of the product or service. Rather than depending on features, brands are looking at ways to deliver a holistic experience to the consumer.

There are many factors that drive this experience economy. Consumers are now armed with lot of information. This information has made many a differentiation irrelevant. Hence more than the product’s features, consumers tend to evaluate products based on their experience with the product and the company.

Marketers earlier had tried to create brand experience through standalone promotional activities. These activities were short-term and were intended to give a peek into the brand’s projected experience. But the situation now demands that the brand deliver its experience every time the consumer makes a contact with the brand or the company.

In this period where product feature based differentiation is hard to sustain, marketers must create a brand experience which can act as a sustainable differentiation platform.

Understand consumer’s world.

The first task for the marketer is to thoroughly understand the consumer’s world. Consumers live their experience from their own world. Hence when the marketers try to create brand experiences it should resonate with the consumer’s own world.

Brands which target children practice this principle very effectively. Take the example of Cadbury’s Diary Milk Wowie. The brand takes the kids through a chocolate world where the hero Mickey Mouse helps the kids to enjoy the chocolate world and protect them from harm. This fantasy world appeals to the kids intensely and the level of involvement of kids in this campaign is very high.

Be Relevant

Another critical factor for creating effective brand experience is the relevancy of the experience. For creating relevant brand experiences, marketers must get inside the life of a customer. In the highly insightful book “The Game Changer” P&G CEO: A G Lafley describes the importance of understanding the life of the consumers. P&G made it compulsory for its marketing team to involve deep into their consumers life so that they could come out with products that made their life easier.

Credible

The brand experiences that marketers create should be authentic and credible. Fantasy works best for children but for adults, the experience must be based on realism. The promise has to be delivered. This calls for the organization to be highly customer centric.

Kingfisher Airlines created a very meaningful credible experience by making the most of customer touch points. The ushers who helps the traveller at the entrance of the airport to the cabin services and food served created a new brand experience for the travellers.

Memorable

Consumers should cherish the experiences created by the brand in their memories. The experience should appeal both to the rational and emotional mind of the consumer. Catering to the emotional self of the consumer will help the brand to build attachment with the consumer. Appealing to the rational self will enhance the credibility.

Asian Paints in its clutter breaking campaign “ Har Rang Kuch Kahta Hain “achieved both these objectives. The campaign touched the emotional chord with the consumers and also appealed to the rational mind of the consumers. The brand made the experience more rational by launching sample packs where the consumers can paint a portion of the wall to see how the colour will actually look like.

Involve

It is absolutely important for a brand to involve the consumers in any brand related activity if it wants to create a complete experience. The popularity of internet has opened many opportunities for the brand to involve the consumers. The brand can motivate consumers to sign up in an online community, visit the website or play games, share experience etc.

Brands can create involvement offline too. Kinder Joy has a unique method of creating a brand experience by bundling its chocolate with a surprise gift. Kids eat the chocolate and play with the toy and it created a unique brand experience for them which compel them to buy more.

Brands can create involvement by devising interesting brand rituals. Kitkat smartly taught its consumers a unique ritual of eating KitKat. Consumers willingly adopted this brand ritual making the experience of eating Kitkat unique. Brands can extend the involvement with the consumers by introducing memorabilia and collectables which will further enhance the brand experience.

Brand Update : LMN - Changing Brand Positioning

After the high profile launch last year, the brand is back with the latest campaign this summer. And sorry to state that it is a big let down from the last year's campaign. The new series of ads now running in the channels features two African Natives as the protagonists. The entire campaign revolves round the antics and comedy of these thirsty guys in search of water.

The brand had come out with a critically acclaimed launch ad last summer. LMN quickly captured the viewer's attention with its smart tagline " Emergency Lemon Refresher". The ads were based on the insight that people will have a 'shrinking feeling' when dehydrated.

The new campaign has changed the " Emergency Lemon Refresher" to " Thirsty - Lemon ". The new campaign seems to establish a strong association between the brand , thirst & lemon. The thinking is very good but the execution is nothing but miserable. I think the brand lost track while attempting to be Funny.

Watch the ad here : LMN new Ad

This summer is witnessing lot of competition between lemon based drinks. Nimbooz, Minute Maid, etc are running campaign aimed at creating association between " Home made Lemon Juice " and the brands. To be fair with LMN, the brand is trying a new path of relating Lemon + LMN + Thirst which is more powerful than competitor's pitch on home-made lemonade.

LMN has a strong brand name, and with initial brand familiarity has already established, it could have milked the initial tagline a little bit more than suddenly changing the entire brand theme.

The current ads does not establish the brand and the ad theme. There is no connection between the two characters, thirst,LMN and positioning. I personally think that LMN does not need campaigns to establish association with Lemon because the name itself does that job.

If the brand's aim is to just create some noise, any ad would serve the purpose .

Related Brand

LMN

DelMonte Sauce : Taste Like Never Before

Brand : Del Monte
Company : FieldFresh Foods
Agency : Contract Advertising

Brand Analysis Count #451

Del Monte brand is making lot of noise across various channels as well as marketing blogs these days. The brand is in news because of the launch of its range of sauces in the Indian market.

Delmonte sauces launched recently is bought to India by FieldFresh Foods Ltd which is a joint venture between Bharti Group and Philippines based Delmonte Pacific. The JV was formed in 2007 and the Del Monte products were available in select cities. I presume the company has decided to launch the products nationwide in 2010.

Del Monte is a global brand with a rich heritage of over 118 years. The Del Monte brand architecture itself is very confusing with different brand owners/licensees across the globe. The brand Delmonte is originally owned by US based Del Monte Foods and licensed to other firms across the globe. The detailed brand ownership details can be accessed here ( Wiki). FieldFresh Foods have the JV with Del Monte Pacific which has the Del Monte brand license for this part of the world.

FieldFresh Foods has launched a series of food products under the Del Monte brand name. The product range include Packed Fruits, Fruit Drinks, Ketchup and Sauces, Olives, Pasta and corn. I presume this is the first time that Del Monte brand has been promoted heavily in the media.

FieldFresh has launched two sauce brands under the Del Monte brand - Twango and Zingo. Twango is a fruit based sauce and Zingo is the traditional eastern style sauce with garlic, ginger etc. The brand is running the launch campaign for these products across various channels.

Watch the TVC here : Del Monte Sauce

The sauce product range has taken the tagline : Taste Like Never Before. The brand has taken the taste as the USP. Delmonte is promising refreshing new tastes for its range of sauces. The launch ad is at best amusing with the brand using hyperbole to drive home the taste USP. The histrionics of the lady in the ad and the theme has nothing new to talk about. I wonder why the brand chose to use one of the most common themes for the first major brand campaign. The Indian Ketchup/Sauce market is worth around Rs 220 crore and is dominated by Maggi.

Another interesting fact is that the company decided to focus on the Umbrella brand Del Monte instead of the sub-brands Twango and Zingo. Most of the viewers may have missed those sub-brands in the ads. It is very difficult of build and sustain individual brands in the foods business. Hence umbrella branding is the only sustainable economical branding solution. The company may use Point of Purchase promotions for pushing the sub-brands.

Although Del Monte has used " Taste Like Never Before" tagline, it may be used only for the sauce product line. As far as the umbrella brand Del Monte is considered, the brand mark resembles a Quality Seal rather than a Logo. Hence Del Monte does not really need a tagline for itself.

Del Monte will be an interesting brand to watch because it has the backing of two big companies - Bharti and Del Monte. It will be tough for these brands to break the stronghold of established brands like Maggi, Heinz ,Kissan etc. Distribution and retailer support hold the key for any such brands in cracking the Indian market. Bharti which has big plans to establish retail chain may be looking for pushing the brands through its own stores in future.

Marketing Strategy : The Difficult Task of Differentiation

The Difficult Task Of Differentiation

Originally Published here in Adclubbombay.com

Marketers are a worried lot. The market is flooded with similar products and offerings which has created a huge clutter of brands and products. The situation is worse in markets where the entry barriers are low. Added to this is the entry of private labels by retail giants to cash in on the consumption opportunity.

Take the case of the soft drinks market in India. The market is flooded with desi and foreign brands with similar flavours and product properties. This summer is witnessing fights over mango and lemon flavours. The brands are segmenting and micro-segmenting the market with every possible variable.

For a marketer, this situation has multiplied his marketing expenditure. The focus is on outsmarting the competition by grabbing more share of voice. To standout from the crowd, marketers are using every tricks of trade. Instead of one celebrity, now a team of celebrities are endorsing brands. Consumers, on the other hand, are overwhelmed by this plethora of brands. Instead of simplifying the purchasing process, brands are now confusing consumers by choices.

For brands, the abundance of choices creates a huge problem of differentiation. Differentiation based on product features has become a difficult task with competitors taking no time in copying /adopting that feature. Differentiations based on incremental product improvements /features have become difficult to develop and sustain in the market.

In an era where companies expect brands to be successful with in three months (quarter) and brand managers being evaluated on their quarterly performance, creating sustainable long-term differentiation strategies are not in vogue.

The current economic situation has now forced many marketers to rationalize their portfolio and cut the flab. It is time for Indian marketers to go back to the basics of creating sustainable differentiation strategies for their brands.

Invest in R&D

India is a R&D and product development hub for most of the MNCs but seldom Indian marketers were able to create breakthrough products for the Indian market. Tata Nano has shown the world what Indian minds can do when inspired. A project which was labelled ‘ Impossible’ by many analyst is now a reality. Nano is a lesson to all marketers. This product was created from a need and backed by conviction and support from the top management.

It is not easy and the Nano example shows the myriad of issues one can face when venturing into creating something original. But the effort is well worth the results. The market is moving in a direction where only those brands will succeed who can innovate.

Protect the Differentiation

An important determinant of a successful differentiation is the brand’s ability to protect the differentiation. Patented features are powerful differentiators. But it is very expensive and time consuming process to patent features. In the case of FMCG products like soaps , such kind of patents are not a viable proposition.

Smart brands use ingredient branding to protect their key differentiators. Ingredient branding is where a particular product feature or an ingredient is branded by the company. There are two kinds of ingredient brands.

One type is where the ingredient is owned by another company. Intel is a pioneer in ingredient branding. Intel has built ingredient brands like Pentium, Celeron, Atom etc .These are not standalone products but ingredient of computers. By creating powerful ingredient brands, Intel has successfully created a space for itself in the consumer’s mind.

Another type of ingredient branding is where the feature/ingredient is owned by the company itself.Bajaj has a powerful ingredient brand DTSI ( which is also a patented technology) which it now uses for all of its two wheeler brands.

The ingredient branding strategy helps firms protect their critical innovations or even benefits. These ingredient brands can be copyrighted which will prevent competitors from copying these innovations.

Connect to a Relevant Need

Creating a sustainable differentiation is possible only when brands become customer focused. Most differentiations that we see in the market are product oriented. When products become standardised, it is important for marketers to create differentiation focusing on consumer needs.

Brand laddering is a strategy that can be used by marketers to create differentiation on a need rather than on a product feature. Raymonds is a brand that has created a space for itself by effectively laddering up to a customer need ( Complete Man). The benefit of such a strategy is that competitors will find it difficult to copy the differentiation since it is based on an intangible attribute. The brand has created a unique powerful image which is sustainable over time.

It is also important for the differentiation to be relevant to the consumers. When connecting to a need, marketers should ensure that the need is highly relevant and will fill in a very important gap in his life.

Long Term Vision through Brand Charter

Brands will take time to establish and marketers should be able to give some breathing space for the brand to discover itself and connect to the consumer. It is important for marketers to create a brand charter which will spell out the long term vision for the brands, its differentiation and positioning platforms, guidelines and strategies.

Such a brand charter will guide the future brand managers to create tactics which are in line with the overall brand vision. If a brand chose to create intangible differentiation opportunities, there has to be a consistency in the brand’s positioning and differentiation strategies. Brand Charter will help bring consistency which will inturn facilitate create a sustainable differentiation.

K Series Engines : Leaner Meaner Fitter

Brand : K Series
Company : Maruti Suzuki

Brand Analysis Count #450

Marketing Practice Blog has reached another milestone of 450 brand analysis. Let me take this opportunity to thank my readers whose constant feedback was a source of inspiration for me. The next obvious target is 500.

I am happy to mark this achievement with a very interesting brand - K Series Engines from Maruti Suzuki.

K Series is a classic example of Ingredient Branding. Professor Kevin Lane Keller defines Ingredient Branding as a special case of Co-Branding which involves creating brand equity for materials, components or parts that are necessarily contained within other branded products.

Although Professor Keller defines Ingredient Brands as a brand from one company which is an ingredient/component in a host brand from another company.But recent marketing practices has shown that ingredient branding can be done by the host company itself .
So ingredient brands can originate from the same company or from different companies. For example HP computers powered by Pentium Microprocessors is where ingredient brand Pentium is owned by a different company ( Intel) . Hence it is a case of co-branding.

In this case of K series, the ingredient brand is owned by the company itself. So theoretically it cannot be termed as a case of Co-branding.

K Series was launched in 2008 . The launch was to counter the much touted Kappa engine to be launched by Hyundai. K series engines also conformed to the tougher emission norms that came into force from April 2010.

Branding engines is not new in the Indian market. Bajaj Auto was a pioneer in branding its DTSI technology and reaped tremendous benefits in terms of differentiation. Maruti is trying to replicate Bajaj's success in the four wheeler market.

K series has been a success and the company has produced more than 3 lakh units in 18 months time. K Series engine is fitted in the new generation models like Swift, Swift Dzire, Ritz ,A star and new Wagon R. The first model to come out with this engine was A Star.

K Series engine is claiming to be more fuel efficient offering better control and ride quality. Maruti has invested some amount of money for the promotion of this ingredient brand. This is rather unique marketing practice seen in India because most of the other car makers having ingredient brands does not resort to exclusive ingredient brand promotion. There will be mention of the engine in the product ad but no campaigns exclusively for the engine.

The brand was launched with the ad featuring the marathon runner. Watch the ad here : K Series ad.

The ads could have been much better and more creatively done. The campaign lacks the " Aha " factor and only helps to create a brand awareness .How ever the company needs to be applauded for this type of branding. K series has adopted the tagline " Leaner, Meaner, Fitter" which sums up the brand promise.

The reason for Maruti going for ingredient branding is simple. Engines are now largely becoming commoditised. Now we see same engine in different car brands from different makers. For example, some models of Tata Motors, Fiat, Swift carry the same engine. When engines become a commodity, marketers have to look for other powerful differentiators. Hence ingredient branding comes to help. Ingredient brands are protected by the firm and creates its own identity in the mind of the customers. So K Series engines provide the much needed sustainable differentiation for Maruti.

According to reports, Maruti is planning to have K series engines for all its models. When the competition in the market has increased substantially for Maruti, such smart moves will help retain its leadership position in the Indian market.