Wednesday, December 08, 2010

Brand Update : Alpenliebe is no longer a candy its also an Eclair

Alpenliebe, the flagship candy brand from Perfetti VanMelle (PVM) recently launched Alpenliebe Eclairs.The brand which pioneered candy ( more specifically deposited candy) segment in India is no longer a candy brand.

PVM has been experimenting with Alpenliebe for a while now. Ever since the launch in 1995, the brand saw may product-line extensions and campaigns.
The brand over these years launched lollipops, different flavors of Alpenliebe and also extensions like Creamfills and Mangofillz Alpenliebe. Consumers willingly accepted these variants making Alpenliebe market leader in the segment.

Along with the extensions, PVM extended the equity of the brand to other confectionery segments through secondary associations. The brand launched Chocoliebe in the eclair category drawing equity from Alpenliebe.

The brand also saw some clutter -breaking campaigns in its life so far. The brand was launched with the positioning - Simply Irresistible. The brand used the messages like " Jee Lal Chahe ,Raha na Jaye " and finally to " Lalach Aha Laplap".

The brand then introduced Kajol as the brand ambassador and along with the animated alligator - Mr Munch began promoting Alpenliebe aggressively. In 2010, the brand launched another clutter-breaking campaign which saw Kajol doing a role reversal of sorts. The ad featured a theme where the role of human and monkey were reversed . Kajol took the role of a monkey and Madaari ( master) was a monkey ( detailed plot here)

Watch the campaign here : Role reversal

The latest move of Alpenliebe to launch eclairs was a complete surprise. First thing is that the launch of Alpenliebe eclairs completely changed the character of the brand. The brand now is no longer a candy. In a branding perspective, this is significant. It is just like Horlicks launching noodles. Horlicks no longer is an energy drink. So Alpenliebe has become a brand that endorses many confectionery products including eclairs, sugar filled candy, cream filled candy and lollipops.

Secondly, the brand now competes with Chocoliebe which is the eclair brand from the same company. So higher chance of cannibalization happening for PVM.

Although the core Alpenliebe brand has been consistent with the positioning of " Irresistible Taste", the product-line extensions were having different positioning. For example -
Lollipop has the tagline " Lagay Raho"
Creamfills has the tagline " Kuch Alagh"
Mangofills has the tagline " Mango ka Tinku".

This shows that Alpenliebe is not maintaining a consistency in the core positioning. For an umbrella brand, consistency of core brand message " Simply Irresistible " is vital and this message should run through all the campaigns of the extensions.

Eclairs however has maintained the irresistible taste as the positioning. But the launch campaign is horrible.
Watch it here : Alpenliebe Eclairs
I feel that the ad agency was told to create a funny commercial and they tried and failed miserably. Alpenliebe Eclairs has the tagline " Chocolatey Laila " which I think is a tagline that may not have much life in it.

Having said that, there is a business logic behind the launch of eclairs. Confectionery marketers are faced with the issue of consumer price- fixation. The market is highly price conscious. Candies are now priced at 50 paise and all efforts of marketers to make consumers pay more has failed. Alpenliebe Eclairs is an attempt by PVM to trade-up the pricing ladder. The Rs 1 eclair will add more profitability to Alpenliebe portfolio and eclair is a high growth category in this industry.

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Sunday, December 05, 2010

Brand Update : Sunfeast enters noodles segment with Yippee

Sunfeast is on its way to become a megabrand. This challenger biscuit brand launched in 2003, within a span of 7 years, has presence in categories like biscuits,pasta and now in noodles. Sunfeast made its first brand extension in 2005 when it launched Sunfeast Pasta Treat and created the pasta category in the Indian market.

In September 2010 , the brand launched its noodles brand extension- Sunfeast Yippee. Indian noodles segment has now become a huge market worth Rs 1200 crore . Maggi is the market leader with a whopping 70% market share ( Business Standard). A huge market with one major market leader is definitely an attractive one. That is one of the reason why so many players have recently launched their brand in this segment.


Sunfeast ( ITC) is a worthy player to take on the might of Maggi. ITC is a company that is not averse to taking risk and have a huge cash reserve to fight a marketing war with Nestle.
The Sunfeast brand already has built up sufficient equity in the biscuit business with its high profile campaigns featuring Shah Rukh Khan . The brand also occupied good shelf space in most of the large retail formats . Another aspect of the brand was its penchant for launching a series of new products and flavors which helped gain lot of consumer liking in the biscuit business.

Looking at the strategy behind extending the biscuit brand into noodles, there are pros and cons that has to be noted. The major advantage for ITC in extending the Sunfeast brand is that it may have saved lot of money through this extension. Building a brand in a sensitive category like food will take lot of investment and time. Since Sunfeast is already in food business, it makes economic sense to launch noodles under this brand.

The disadvantage is the dilution of the equity of the brand in its core business- biscuits. Sunfeast is not now a biscuit brand but an umbrella brand endorsing many food items. Hence the personality of the brand has changed . This change has happened from 2005 itself when the brand launched the Pasta Treat.

In the branding of noodles, Sunfeast has adopted an endorsing structure where Sunfeast brand will endorse the Noodle brand "Yippee " . The look of the brand says that it is going to be positioned as a happy, vibrant, fun loving brand. I am yet to see any campaigns for this brand in any of the channels. Retail shops are displaying the brand with some POP promotions but not much on the message side.

Picture courtesy and an interesting take on the brand by Karthik - here

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Wednesday, December 01, 2010

Marketing Strategy : 10 Questions About Your Brand

Marketers are faced with a highly challenging task of balancing short-term and long-term strategies for the brand. In a highly competitive market, marketers often get deluged in activities which are tactical in nature. In doing so, brands may lose focus on pursuing its vision.

There are many reasons behind the manic run behind short-term gains for the brand. The major culprit is in trying to manage the brand from quarter to quarter. Pressured to show positive growth in every quarter, managers are seldom given time to analyze the long term implications of their marketing activities.

At some point in time marketers need to pause and take stock of the brand’s path to future. Great brands are never built in 3 months. It takes years of focused work and investments. Although marketers are willing to invest now, they expect a positive ROI within a short span of time.

Whether the brand is new or old, marketers need to periodically assess and evaluate the path towards the future. The following questions will help the brand managers to check whether the brand is treading in the right direction.

1. What is your brand vision?

It is critical for brands to have a long term game plan. The plan will help serve as a guideline that will help future managers to devise action plans and continue in the right direction.

2. What needs of customers that your brands satisfy?

Marketers must be able to clearly articulate the customer needs and wants that the brands aim to satisfy. These needs and wants may change over time; hence marketers need to periodically review whether the brand is currently relevant in the customer’s life. The brand should also be able to appeal to the new demands of the consumers. Regular evaluation of this parameter will keep the brand in tune with the changing consumer mindset.

3. What is your brand’s core strength?

Brands needs to have a “ WoW” factor if it is aiming for long run profitability. Marketers needs to constantly search for the “WoW “factor and keep inventing more and more of these “ WoW” factors.

4. What values does the brand represent?

Brand values represent the core foundation upon which brand strategies are made. According to Professor Kevin Lane Keller, Brand Values are those set of abstract associations that characterize the 5 to 10 most important aspects or dimensions of a brand. Brand values serve as the basis for brand positioning. Marketers have to identify and internalize these core values and periodically check whether the brand is aligned to these values.

5. Will the customers relate to those brand values?

Not only that the marketers should identify brand values, they need to check whether those brand values are relevant to consumer’s life. Sometimes consumers may not relate to the brand’s core mantra. It is in this situation where the brand may feel disconnected with its target audiences. Periodical review of the brand’s connection with the target market is critical to long-term survival.

6. Is the brand relevant to a customer’s life?

Successful brands stay relevant in the consumer’s life. Marketers should be able gauge whether the brand is relevant to the customer. Managers should constantly keep in touch with the customers to understand how the brand is helping them in their life.

7. Is the brand’s promise sustainable over time?

Markets are dynamic and consumer taste and preferences change drastically over time. Hence while developing the brand’s core mantra or promise, managers should also devise a process to determine whether the brand’s promise is sustainable over time. The brand also needs to evaluate its promise in comparison with its competitors.

8. Is your brand flexible?

There will be situations where the brand may have to reinvent itself. New opportunities may force the brand to venture into related as well as unrelated categories. Marketers should build some amount of flexibility in the brand architecture so that it is possible for the brand to venture into other categories.

9. Does the brand create excitement in the market?

Iconic brands are exciting. These iconic brands not only excite the customers but also the employees. A crucial question in the brand’s quest for excellence is whether the brand is able to create a sustainable level of excitement in the market. Creating excitement in the market is not easy and it cannot be done overnight. Marketers need to invest a lot if they want to create a high level of excitement in the market.

10. Is your brand engaging the customers?

The final question for the managers is about customer engagement. We are living in the experience economy. Consumers pay for experiences rather than for products. To understand the customer’s expectations and deliver those experiences, brands needs to constantly engage the consumers. Technology has enabled marketers to directly interact with the customers in multiple platforms. Managers should check regularly whether the brand is engaging with the customers through the various available platforms.

Originally Published in Adclubbombay.com

Thursday, November 25, 2010

Brand Update : No Idea then Get Idea !

There are times when a campaign thrills you with its simplicity and creativity. Idea's new campaign on number portability was one such thrilling moment.

Mobile number portability ( MNP) is on the verge of becoming a reality. It means that a consumer can switch their mobile service provider while retaining their number for a fee.The allowing of MNP will take away one of the most important switching cost as far as a consumer is concerned. Many consumers ( like me) had grudgingly stayed with a subscriber just for the sake of retaining the mobile number for the fear of losing contact with old friends and acquaintances. When MNP becomes a reality, that fear will go and consumers will be free to switch service providers.

For the service provider, MNP is both a challenge and an opportunity. Challenge because they cannot take a consumer ( subscriber) for granted. Consumers often are lazy and have inertia in terms of taking pains to switch service brands. One has to be too pissed off to take the trouble of moving to a different service provider and then messaging all contacts about the new contact number. This switching cost over the period of time has been lightened with the popularity of dual SIM phones and most of the subscribers are now open to carrying multiple phones with them.

It is in the light of these developments that Idea decided to take on MNP through their latest campaign - No Idea,Get Idea.
The ad uses the most commonly used slang - No Idea to drive home their point. It is an example of sheer brilliant creative which hits you right on target.

The campaign focuses on instances where non- Idea subscribers gets pissed off with their mobile service providers. They encounter network issues, over charging instances and bad consumer services and when Abhishek Bachchan asks them for the reason why they are being mistreated, they responds in the typical slang - No Idea. Abhishek Bachchan pitches with the punchline " Get Idea ". Simple but brilliant.

Watch the campaigns here :

It is clear that Idea has done some research on the burning problems that consumer's face with regard to mobile services. Network coverage , customer service and billing issues feature prominent among the key reasons for customer churn and complaints.

One will know which brand will gain more with MNP only after it is implemented but Idea decided to use this for yet another brilliant campaign. This preemptive campaign puts Idea in a advantageous position against competition. Now competitors will find it difficult to crate campaigns on these features and negate this first -mover advantage of Idea.

Another interesting thing I noticed about the campaign was that " Get Idea " term may have came late to the creative directors because if you notice the ads, Abhishek Bachchan says " Thats What " (not Get Idea) when the other character says " No Idea ". I think that " Get Idea" punchline was later incorporated into the ads.

Idea brand is on a roll . Aditya Birla Group should be applauded for the investment it is making on the brand. Telecom services over a period of time will become commoditized interms of tariff plans and other features.Once consumers are free to chose without switching costs, brand will play a big role in customer acquisition and retention.
A nice take on the current campaign from an adman - Bhatnaturally

Tuesday, November 23, 2010

Van Heusen : Evolve Yourself

Brand : Van Heusen
Company : Madura Garments ( Aditya Birla Nuvo)
Ad Agency : JWT India

Brand Analysis Count : #467

Van Heusen is one of the largest apparel brand in India. The brand which came to India in 1990 is on the verge of a new growth trajectory. The exciting new path for the brand is built on the rich heritage that this brand carries.

Van Heusen is a truly global brand. The brand has a rich heritage with a history dating back to 1881. The brand journey started in USA in 1881 when Moses Philip and his wife began selling hand-sewed shirts to local miners of Pennsylvania in a push cart. Later Philips and his son moved to Newyork and began selling shirts.

In 1910 John M Van Heusen from Holland found a unique process of fusing cloth on a curve thus created a comfortable self-folding collar. John Van Heusen and Philips' son Seymour Philips met in US and Philips-Van Heusen Company was created. The company also got a patent for the collar in 1919. ( source : Super Brands)

From there, the brand went on to become the largest selling shirt brand in USA. Now Philips-Van Heusen (PVH) which owns the brand worldwide is an apparel giant which owns iconic brands like Arrow, Van Heusen, Tommy Hilfinger and Calvin Klein.

This iconic brand was brought to India by Madura Garments. Madura Garments hold the right to market this brand in India. When Aditya Birla group acquired Madura Garments, the right moved to AB Group.

Van Heusen was a pioneer in the development of executive -wear segment in India. The brand positioned itself as one for the upwardly mobile executives. The brand positioned itself on the platform of Powerful + Fashionable executive formal wear. The brand introduced the concept of " Power Dressing " implying that the brand users are those who occupy the powerful places in the corporate world.

Along with the aspirational positioning , the brand appealed to the consumers by focusing on fashion.Fashion and Formal wear are seemingly opposite attributes and it is difficult to convince consumers that a brand can have these opposite attributes co-exist. Van Heusen was successful in doing that. The best way to impress the fashion conscious consumer is to innovate. Globally Van Heusen is known for its innovation in their clothing. The brand came out with concepts of Ice Touch, Dura Press etc which reinforced the positioning of Van Heusen as a fashionable executive wear.
The brand endorses the core values of modern, fashionable updated, minimalism and timelessness. The brand targets 25-45 year olds who are in the middle-upper class executives who have a penchant for understated fashion.

The brand captured the attention of Indian corporate through is heavy brand promotion and rich heritage. Van Heusen is now a Rs 400 crore brand with strong presence across the country. The brand which initially promoted itself using the tagline " Power Dressing " evolved over a period of time. The tagline was changed to " Power . Evolved " which communicated that the brand user has arrived to a position of power. Now the brand is sporting the tagline " Evolve Everyday". The brand also successfully ventured into women-wear.

The highly competitive Indian executive wear industry has prompted the brand to devise new ways of growth. The brand launched its range of casual wear under the brand VDot and has now roped in Actor John Abraham as the brand ambassador. ( VDot will be dealt in detail in a future post).

The strong point of Van Heusen is its ability to lead the market with its fashionable range. The high quality , never compromising premiumness ( exclusivity) and understated image has contributed a lot to the growth of this brand. The campaigns of Van Heusen (except for the early ones on Power Dressing) were never clutter-breaking but was enough for the discerning customers to patronize the brand.

Saturday, November 20, 2010

Marketing Strategy : Harnessing the Power of Brand Elements

American Marketing Association defines brand as a name, term, sign, symbol or design or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. According to Professor Kevin Lane Keller, Brand Elements are trademark-able devices that serve to identify and differentiate the brand. The most common brand elements are brand names, logos, symbols, characters, spokespeople, slogan, jingle, imagery, packages, colour, imagery, signage etc.

It is important for marketers to realize the potential of using all the brand elements while endeavouring to build a brand. Most marketers tend to concentrate their resources only on brand names and logos and thus losing an opportunity to create and develop other brand elements which can act as a powerful differentiator. Successful brands take advantage of all their brand elements there by creating various points of impact in the mind of the consumer.

Take the case of Absolut Vodka. This is a brand which used its simple trademarked Vodka bottle as a powerful brand element. Through consistent campaigns, the Absolut Vodka bottle was developed as a powerful differentiator for the brand. The trademarked bottle has become the most remembered and visible brand element for Absolut creating a distinct identity for the brand. The brand created lot of awareness, loyalty and consumer interest through the clever use of the vodka bottle in all of their campaigns.

Marketers should be able to identify unique brand elements that can break the clutter and create an impression. While most of the brands chose to invest in common obvious brand elements like the name, logo etc, it would be wise to look for something different. A classic example of that can be seen in the branding of Vanish – which is the stain removing detergent brand of Reckitt & Benckiser. The brand used colour Pink as the main brand element. Vanish uses the tagline “Trust Pink, Forget Stains “to promote the brand element. Vanish product is not pink in colour but the brand comes in a pink pack. The use of the “Pink” colour as the brand element acted as a powerful differentiator for Vanish. The association with Pink also increased the brand awareness and brand recognition in a highly cluttered detergent market

Another important criterion for effective use of brand element is that it should be easy to memorize. The brand elements should be easy to remember and recall. The consumer should be able to remember the brand element and the element should aid in the recall of the brand during the time of purchase.

Intel’s famous tagline “Intel Inside” is one such brand element which is easy to memorize and recall. The brand used this tagline and its logo very effectively in their promotions. ‘Intel Inside ‘tagline together the logo became a powerful brand element that created lot of brand recall and identity. Intel is also one brand that used its jingle (melody) as a powerful element. The five note melody has now become an indispensable part of the Intel branding. Intel carefully developed these brand elements through a 3 second animated jingle ( known as a signature Id, audio visual logo) which consisted displaying the logo and the five- note melody after every Intel ads ( Source – Intel Website). Over a period of time, these brand elements became so powerful that consumers will recall the brand once this melody is played.

The brand elements thus created should be protected by the brand owners. Trademarked brand elements become powerful differentiators over time. Since these brand elements are protected, there need not be any fear about competitors copying those elements.

Marketers should try to identify all possible opportunities to create brand elements. And while communicating the brand’s message, all these brand elements should be present in the communication. For example, Idea Cellular uses a wide range of brand elements in its communication. The brand uses its signature Yellow Colour, Taglines and slogans, brand ambassador and its signature melody in all their multimedia campaigns. All these brand elements have become popular over these years that consumers are now recognizing Idea Cellular when they see or hear any of these brand elements.

Having a basket of strong brand elements also helps in tapping in the various promotional mixes more effectively. For example a popular character or a mascot can open up opportunities of promotion through merchandising. A popular jingle or a melody can help to promote the brand through radio, TV or even mobiles. So it is the job of the marketer to constantly look for creating new brand elements and thus giving new promotional opportunities for the brand.

Brand elements have lot of strategic importance in branding. Marketers should take responsibility in identifying, creating and developing unique brand elements. Once created, these elements provide the brand with a powerful identity at a time when features and attributes are increasingly becoming commoditized.

Originally published here at adclubbombay.com