Otto : The Symbol of Success

Brand : OTTO
Company : Pothys Group

Brand Analysis Count : # 493

Otto is the readymade brand from Pothys Group. Pothys is one of the most reputed textile retail group in South India. The brand Pothys is a known name in Silk sarees and commands tremendous brand equity across South India. 

Otto brand of men's wear started off as a private label has now moved to become a brand ( theoretically). The brand which was available at various retail stores in TN has now moved to other markets as well. Advertisements of this brand has began showing in various media across markets other than its core TamilNadu market. 

What is striking about the current campaign of OTTO is its celebrity driven brand strategy. OTTO although was in the market since 1997 is now upping its ante across various markets this season. The brand has roped in the Tamil Superstar Vikram as the brand ambassador. Print ads featuring the star is now running across Kerala where the shopping season has started coinciding with the Onam festival.

Watch the television campaign here : OTTO shirts

First it is one of those rare instances where a retailer upgrades a private label to a brand and puts that brand through other retail outlets.In that way Pothys deserves to be appreciated for the risk it has taken to build a brand in the hyper competitive readymade market. 

Having said that , the brand had fallen prey to the celebrity endorsement trap where more than anything, celebrity over shadowed the brand. It is true that celebrities like film stars command huge respect and credibility in markets like TN, AP etc and the endorsement by a star like Vikram will take the brand to new heights, in the long run it is not a good strategy for the brand.

The brand seems to be heavily depended on Vikram to deliver results. There is no mention of product features, USP, positioning or differentiation. The brand also did not try to leverage the equity of its parent Pothys. By not addressing these critical brand building basics, OTTO has lost valuable opportunity to build an image for itself that would sustain even after the contract with the celebrity is over. The brand name OTTO is a German term meaning Wealthy. 

The brand has chosen a positioning loosely on being a success symbol. The brand has the tagline  " Symbol of Success " and uses the celebrity as the proof. But given the power of the celebrity, OTTO could have done better if it had a proper brand building strategy aimed at long-term. Ideally the brand should have done these things 

• Identified a strong sustainable USP 
• Positioning statement 
• Endorsement by parent brand Pothys
• Campaign combining product feature + Positioning 

But the current campaign focus on earning short-term brownies riding on the popularity of Vikram.

Velocit : First Joys of Motherhood

Brand : Velocit
Company: Dr Reddy's

Brand Analysis Count : # 492

Velocit is a unique brand. The product belongs to Rs 1000 crore Indian diagnostic market. Velocit is a Pregnancy Diagnostic Kit launched by Dr Reddy's in 1998. The brand had grown the category and  has built a leadership position in the market.

There has been a significant growth in home diagnostic kits due to the larger incidence of diseases like diabetes, BP etc coupled with increasing awareness among the public about detection and monitoring of such diseases. Doctors also began recommending such home based diagnostic kits which further resulted in the growth of the market. This category of products are called Point of Care ( POC) testing market. POC refers to any testing made outside the traditional testing centers like labs, hospitals etc.

Home pregnancy kits gained popularity in India owing to the convenience and confidentiality it offered regarding testing pregnancy. Gone are the days when pregnancy was guessed with symptoms like Vomiting. Doctors also began advising women to test their doubts using such kits.

Home pregnancy kits like Velocit uses the presence of a hormone called Human Chorionic Gonadotropin in the urine to confirm pregnancy. 

Products like Velocit marketed itself through recommendation from doctors during the launch phase. The ethical route to promotion was adopted since consumers was unsure about the efficacy and accuracy of such products. The emergence of competition and the growth of the category prompted these brands to promote itself aggressively through advertisements.

Velocit started its branding focusing on functional benefits. It was positioned as  "3 Minute Wonder " referring to the speed with which the consumer will get the result. Now Velocit has moved to a higher positioning platform focusing on " First Joys of Motherhood ".  The brand says that the news or confirmation of pregnancy is the first joy of motherhood and the campaign puts the brand right at that first moment of joy.

Watch the ad here : Velocit

The brand also runs a print campaign along the same lines in major women's magazines. This emotional positioning will work well for the brand. The insight behind the " first joy of motherhood " should be appreciated since it strikes a chord with the consumers.

The increased number of competitors has made promotions crucial in category like that of Velocit. Most of the sales happen through word of mouth /referrals. But that WOM should be reinforced and complimented using ATL campaigns. Velocit has done this effectively.  

Brand Update : Amrutanjan wants to be Sexy

It has been a long time since I updated about Amrutanjan. A lot has happened with this brand including a rebranding exercise and launch of various variants. Amrutanjan which once had a generic status in the pain balm market is now the third largest player in the Rs 1700 crore pain balm/rub market with a market share of around 10%. The balm which was projected as a one-stop solution for all kinds of pain found it difficult to position itself in the increasingly fragmented market. With more and more specialized brands entering the market, Amrutanjan's positioning of an all-purpose brand became largely diluted.

Realizing this, the brand came out with a slew of variants and a change in the positioning. The brand also rebranded itself with a change in the logo to make it more contemporary and appealing to younger generation. Amrutanjan launched a sub-brand Amrutanjan Relief specifically for Cold management product range. The brand also introduced Roll-On variant positioning it on the basis of convenience in carrying.

In the promotional front, the brand changed its famous " Its Gone " ( Fast Relief) positioning and experimented with various other positioning platforms. In 2010,the brand roped in celebrities like Asin to endorse the brand. 

Another experiment in promotion was the " Be Ready " campaign where ten  ' slice of life ' situations were shown in the TVC where people accidently  got injured. The campaign wanted consumers to be ready with Amrutanjan because one never know when injury will happen. The campaign further asked consumers to share their own videos of such instances. 

When its main competitor Zandu Balm sizzled the market with Malliaka Arora , Amrutanjan followed suit with an attempted sizzling ad for its roll-on variant. According to Soumyadip of Cutting The Chai blog, the ad is inspired by the (in)famous Savita Bhabhi . 

Watch the ad here : Amrutanjan Roll on

The ad also gives a new tagline " Kick Out Pain " for the variant.

In my opinion, the new campaign qualify for one of the worst brand campaigns in India. The ad which is of poor taste neither talks anything sensible about the brand nor it is interesting. The brand thought that this campaign would become viral but that also did not happen. Overall it was a mega flop campaign.

Amrutanjan never found a strong positioning ever since it ditched its " Its Gone " ( fast relief)  platform. There was no reason for the brand to ditch such a strong memorable positioning. Now it is paying price for that mistake. 

Related brand

Amrutanjan

Wella Kolestint : Deep, Longer Lasting Color

Brand : Kolestint
Company  : Wella ( P&G)

Brand Analysis Count : # 491

Competition is hotting up in the Rs 1200 hair color market in India. World's leading hair color brand Wella's Kolestint is upping the ante in the fast growing premium hair color segment in the Indian market. Wella is World's biggest cosmetic company based in Germany. Wella has a rich heritage dating back to 1880 and was  created by Franz Stroher. 

In 2003, the company was acquired by P&G.

Kolestant is the premium hair color brand from Wella. The brand was launched into the Indian consumer market in 2010. The brand is currently on a promotional overdrive with a series of campaigns across the media.

Indian hair color market has seen significant shift over these years. The segment was pioneered by Godrej Ltd with its hair dye products. From hair dye targeting the greying Indian consumer, the category has seen a remarkable shift in the last few years. Hair coloring has now become a part of  urban Indian consumer's personality. From a product used to mask ageing, hair color has become a part of fashion . While hair dye was predominantly used by the greying consumers, hair color has found tremendous acceptance across various age groups. Hair Colors infact has consumed the hair dye market atleast in the urban market.

This product category has found so much acceptance that ET puts the urban hair color market at Rs 600 crore growing at the rate of 25% per annum. This stupendous growth has got the attention of all major cosmetic brands to enter into this segment.

Kolestint is a premium hair color brand directly competing with the market leader Loreal. Hair color market is classified into three product categories - powder/cream/henna. Powder form is popular in the economy segment while premium segment prefers the cream product form. The top end brands target the SEC A segment of the Indian consumers.

The market leader Loreal is positioned on its brand equity and premiumness while the new entrant Kolestint is taking the benefit positioning. Kolestint's USP is that the hair color lasts much longer compared to competing brands. The brand had a consumer insight that most of the time, hair coloring goes unnoticed.Consumers complain that even after spending lot of money on hair coloring , the effect is not noticed and the coloring lasts only for a few days . Kolestint has used this insight to position the brand as a hair color that not only lasts longer but also will get you noticed. The brand has used this proposition very effectively using celebrity testimonials.The brand has used Noticability Attribute in its launch ad with John Abraham and Bipasha Basu.

The brand used popular television/bollywood celebrities like Shruti Seth , Ragini Khanna etc in the subsequent campaigns which talked about their own experience with the brand. In the follow up campaigns, the brand focused on Long Lasting Color benefit as the USP.

Watch the campaigns here : Shruti Seth

Here the brand is using the same strategy of Loreal to break into the market leader's position. Loreal have also used celebrity testimonial ads to boost its image.  Kolestint was wise enough to not to chose high profile celebrities for the testimonial ads because most of the time consumers discount those testimonial ads. The choice of popular cine/television artists like Shruti Seth gave more authenticity to the testimonial ads compared to high profile celebrities. 

In the hair color market, longer lasting colors and noticability are two major attributes that consumers look for. Kolestint has made a major marketing gain by focusing on those two important attributes. The brand has followed up its brand campaigns with a below-the-line activity of running a Switch Event across the markets. Consumers are asked to bring their unused non-Kolestint hair color packet and exchange it with Kolestint hair color. Since hair color products are experiential in nature, getting consumers to try the brand is very essential. These switch events aims at encouraging the users of competing brands to switch to Kolestint.

The premium hair color market is going to witness huge competition in the coming months. The market leader Loreal is not going to wait in the sidelines and will rather fight Kolestint directly . It will be a category worth watching.

Brand Update : Jazz Gets Reasonable

Finally common sense prevails over Honda Jazz. The brand is relaunched with a significant reduction in price marking the end of aggressive market posture by Honda. Honda have a terrific brand equity in the Indian market with its City being one of the most successful product which lead the premium sedan market in India. But with the aggressive product launches from Volkswagen, Toyota and others coupled with Honda's over confidence led to the situation where the brand was dislodged from its market leadership. This over - confidence has blinded the company from understanding the competitive landscape in the market which it operates. Even Honda is not immune to marketing myopia.

This attitude of aggression and over-confidence was evident in the company's attitude towards Jazz. Jazz was launched at a price of Rs 7-9 lakh INR and the attitude was Take It or Leave It. Indian consumers choose to leave the brand and sales floundered. But all through these years, the brand maintained its stance on not reducing its price and depending on the brand's strong image to lure customers towards expensive Jazz.

The sharp decline of the sales of Honda City  in 2011 was a wake up call for Honda. The company realized that a positive brand equity may not guarantee sales. The brand needs to make sense to the customer. It is a surprise that a reputed company like Honda was not able to understand the Psyche of Indian consumer . Honda also failed to see the changes that were happening in the Indian passenger car market. The entry of new players and the shift of consumer interest towards diesel paved the way for the Honda City's dethroning from the leadership position. These factors also made Jazz irrelevant in the Indian market. 

It is in this light that Honda decided to reposition Honda Jazz at the price point. The brand has reduced the price by almost 1.5 Lakh INR and Jazz is now available at price range of 5.5 Lakh to 6.5 Lakh INR . I think this price rationalization is too late too little for Jazz. The market is too negative for a premium priced petrol hatchback. Even at the current reduced price, Jazz is expensive compared to Toyota Liva and even Etios.

Having said that, the brand should be credited with an attempt to create the premium hatchback market in India but the timing was wrong and value proposition of Jazz was not good enough to justify the steep price.

Consumers may adore the brand but to make him purchase , the brand needs to make sense.

Related Brand

Honda Jazz

Brand Update : Horlicks Goes Premium With Gold

GSK's megabrand Horlicks has launched a premium variant - Horlicks Gold in select cities. The new variant is priced around 30% premium over the regular Horlicks. The new variant's USP is the presence of double nutrients and a premium looking packaging.According to news reports, Horlicks Gold has better taste and aroma compared to regular one.

Horlicks has been on an extension spree in the last couple of years launching both product-line extensions and brand extensions. The brand touted itself to be a megabrand which endorses a wide range of products across categories. The latest is the foray of Horlicks into Premium Health Drink market.

Infact there is no such category in the Indian market. Most of the brands are priced in similar lines and it is the first time that a brand is aiming to create a premium segment in the Malted Health Drink market. The move also marks a shift in the segmentation strategy of Horlicks. Horlicks has used predominantly Age based segmentation for all its product development . It used gender as a segmentation when it launched Women's Horlicks. Now the brand has used Income as a segmentation variable. Although Age, Gender , Income etc comes under Demographic segmentation, using Income as a segmentation is first in this category of products.

The challenge for this variant is to convince the customer to pay a premium for Horlicks Gold. In the store shelf both Horlicks regular and Horlicks Gold will be dispayed and what will prompt consumer to chose Gold over Regular is the critical question. I don't think that double nutrients or packaging is a strong enough reason for consumers to pay a 30% premium. Does that mean Regular Horlicks is inferior product to Gold ? Is the brand targeting first-time users or expect the regular users to switch to the premium brand ? These questions will be cleared once the brand starts communicating. 

Horlicks is now in a extension trap. The brand in pursuit of market share is using extensions as a strategy . Too many extensions are bound to confuse the customers. As I understand, Horlicks Gold is aimed at the entire family . But this Premium variant so far fails to offer a very powerful differentiation to justify its premiumness over its own Regular variant. That can be a problem for Horlicks. Its too early to make a prediction but in the store both these variants looks the same except for the price. It is now upto the brand communication to do the convincing.