Brand Update : Axe in deep trouble

The Times of India ( 23/05/2014) has a disturbing news for all Axe ( brand) fans. According to the report, the brand which had an iconic status and which was a market leader in the Rs 2100 crore Indian deo market has slipped into 3rd position. ( Source)

According the newsreport, Fogg is the leader in the deo market with a share of 17% and the second player is Park Avenue with a market share of 8%. Axe has been relegated to third position with a share of only 6%.

The reason is very simple. Axe failed to differentiate !

How ironic isn't it ? The brand which virtually built the deo market in India and ruled for many years but then fail at marketing ! 

To top it , the brand comes from one of the best marketing companies in the world - HUL .

The brand should have seen the writings on the wall . There were a plethora of brands copying the " seduction" theme . But the brand put up a brave face and refused to react . Soon Axe lost its mojo . 

I am not saying that Axe should have changed the basic proposition but it should have drove the agency guys to come up with break-through campaigns ( I know its easy to say) But rather than reacting strongly at the competition , the brand steadily imported its global advertising to the Indian market and watched its share go down the drain. 

Usually when I criticize the HUL, I get nasty comments about being an armchair critic . But let me stick out my neck and say that Axe failed in marketing and that is sad !

Philips Aquatouch : Shaver for the modern man

Brand : Aquatouch
Company : Philips

Brand Analysis Count : # 542

Philips has been recently pushing its electric grooming products aggressively in the Indian market. The company has been seriously building its product portfolio in the Indian market with focus more on small appliances, LED , audio devices and personal grooming products.

The big push came in 2012-13 when the company launched ad with the celebrity John Abraham for the Philips Men grooming range. Watch the ad here 

The company estimates that the men's grooming range would be around Rs 1500 crore and the market especially the young consumers are moving towards the more convenient electric devices. 

The company cites several market research studies which show that youth views these shavers to be convenient and consumers are worried about the cuts and nicks which they get by using traditional shaving products.

Although Philips' electric shavers are in the market for the last ten years, the bigger marketing push has come during this season. 

The company is now pushing the wet shavers branded Aquatouch primarily because Indian consumers are habituated using the shaving cream + water combination. The brand is running as series of ads featuring the benefits of the Aquatouch.

Watch the ad here

The brand is rightfully positioned itself as the " Shaver for the Modern Man " and the product directly attacks the traditional shaving razors. This is indeed a warning signal for Gillette. 

What is interesting about the product is not the strategy of Philips but the silence of the competitor - Gillette .

The pioneer and innovative powerhouse of the grooming market is surprisingly silent about electric shavers and trimmers.

Let me pen down my take on the Philips' thrust on the electric shavers. 

My prediction is that there is a high possibility of electric shavers and trimmers becoming a large category. The combo products which enables men to trim and shave will be a very profitable category and will dominate the higher end of the market. This is going to have serious problems for Gillette brands like Mach range and the Fusion range. 

The reason is the increasingly the consumers are now experimenting with their facial hair. Especially the younger market. They have now all types of mustache and beard and the conventional shaving razors are not flexible enough to cater their needs. 

Now many dabble with a trimmer and the good old razor. But soon time will come when these convenient electric shaver + trimmer will capture the upper end of the market. This can drive the expensive Mach and Fusion brand to be irrelevant to the Indian consumer. Looking at the economics , electric shaver is more economical than the expensive cartridges of Gillette . 

Wondering why Gillette which practiced " Planned Obsolescence " to the core by cannibalizing the existing products with innovative new ranges silent on the direct attack by Philips ? Are they practicing Marketing Myopia ??

Marketing Insight : What drives brand trust ?

Last day, I went to buy a small appliance as a gift, there were two brands- one was an instore brand and another a very well known brand. The in-store brand product looked very good with more features than the national branded product. At the similar price point , the instore brand looked a very good buy.  

When my wife asked my  " expert" opinion, I urged her to go for the national brand despite the fact that I knew that the private label brand would have been a better choice. 

On introspection, I found that what I was doing by choosing the national brand was risk-reduction. That is what branding is all about isn't it ? The national brand offered a much less featured product so on a value calculation, the private label offered more value. But as a consumer, the national brand offered less perceived risk.

So why did I as a consumer felt that the national brand offered less risk compared to the private label ? 

Firstly, the brand was reputed ( familiar) and its legacy gave me comfort that it would not fail me in terms of performance. Secondly, as a consumer, I had a positive experience with the brand which made me trust the brand more than the private label. Thirdly since the product was an electrical appliance, the perceived risk is more compared to another product category. 

So for marketers, creating trust for a new brand is not easy especially in product categories have high perceived risk ( common sense !) . And brand's role is that of risk-reduction. And as a consumer, I can say that for me a brand would be trusted if it is familiar and has perceived product expertise. 

What do you think are the drivers for brand trust as a consumer ?

VWash : Creating Intimate Hygiene category

Brand : VWash

Company : Glenmark

Brand Analysis Count : # 541

After making the face and under-arms of the Indian consumers fairer, marketers are moving to uncharted territory. Indian market is witnessing the development of Intimate wash category in the Rs 1500 crore female hygiene market. This category came into public domain with the brand " Clean & Dry " from Midas Care. 

Clean & Dry with its very explicit campaign raged lot of criticisms owing to the way the brand message was executed. 

Watch the ad : Clean & Dry

The controversies helped the market to notice this category but I have a negative opinion about the way the brand executed its communication message. 

VWash is the competing brand in this category from the pharmaceutical major Glenmark.Unlike Clean& Dry, the brand has took the positoning in a much more subtle way.

Watch the ad here : VWash ad

While Clean & Dry focused on the fairness which repulsed many opinion ( also opinionated) leaders, VWash chose to take the less controversial hygiene route. VWash is positioned as a hygiene product and talks about common issues like irritation and itchiness. 

So VWash in my opinion was able to take the category out in the public domain in a much more civilized fashion than the category innovator.The health pitch would also prompt the Indian consumers to buy these products without any inhibition. 

 And interestingly the company was able to put the product displayed in prominent places in the chemists shop owing to the brand's relationship with that channel.  

Increasingly Indian market is seeing lot of new products and pitches which raises the question whether marketers are testing the " Line of Control " . Similar question marks were raised when Nivea launched the Under-arm fairness deo. But now many brands including the likes of Dove has a variant for that purpose. 

May be this category of intimate wash products may become a part of the female hygiene market in India too. 

Market Statistics :Soaps

According to Business Standard ,Indian soap market is worth INR 10000 crore. HUL's lifebuoy is the largest selling soap with 15%share.
Lux market share is 13-14 %
Dettol at 8.5 % and Santoor at 8.2%.

Brand Update : Cadbury India to be rebranded as Mondolez India, What it means to brand Cadbury

According to Economic Times report, Cadbury India is going to be rebranded as Mondolez India. This was predicted after the iconic company was taken over by US based Mondolez International. It is interesting for a brand enthusiast as to see how this affect the iconic brand - Cadbury.

Cadbury has a huge equity in India and is consistently rated high in most of the brand ratings in terms of trust and popularity. So what happens to Cadbury after the company is renamed to Mondolez.

Firstly, Cadbury after the re-naming of the company will no longer be a corporate brand. Then what will it be ?

If one looks at the brand architecture of products from Cadbury India, Cadbury acts as the brand endorser for most of the products - whether it is 5 star or Dairy Milk or Shots. Cadbury thus extends its powerful equity to all the chocolate brands from its stable. So powerful is the equity that when Mondolez launched its Oreo biscuits, it chose to endorse the brand with Cadbury .

Cadbury had its equity derived from the rich heritage dating back to 1824 . The brand has grown to an iconic status through the brands like Dairy Milk. So this is one of those family brands which derived its equity through the success of the brands it endorsed and also as a leader in the chocolate category. As a corporate , Cadbury became strongly associated with chocolates and became the world's second largest confectionery company. 

In my opinion, although the Cadbury has lost its status as Corporate brand, it will be retained by Mondolez India as a family brand which endorses the chocolate products from its stable. 

While earlier, Cadbury earned its equity in the capacity of a corporate brand ( being the largest, most respected confectionery company) that source is now lost because it is no longer a corporate brand. So from where will the brand gets its equity from ?  Now since Cadbury is no longer a corporate brand, Mondolez needs to create new sources of equity for this iconic brand. Cadbury needs to be nurtured as a family brand and the company no longer can take the strength of this brand for granted. If it is going to be relegated as logo on the pack of the products, that will be  a sad state for an iconic brand.