Showing posts sorted by relevance for query branding commodity. Sort by date Show all posts
Showing posts sorted by relevance for query branding commodity. Sort by date Show all posts

Sunday, April 11, 2010

Marketing Strategy : How to Brand a Commodity

How to Brand a Commodity



First published here at Adclubbombay.com.

We are living in an era where brands are becoming commodities and commodities increasingly being branded. Commodity can be broadly defined as those products which are undifferentiated and consumers buy these products on the basis of the price. Price is the most critical factor that determines the choice of purchase of commodities.

Many product categories are becoming commoditized owing to the huge number of products that enter the market and the inability of marketers to find meaningful differentiation. Consumers do not see much difference between the products/brands and make their choice based on price. Marketers worried about this trend increasingly concentrate on cutting costs and selling products at the lowest possible price and thus effectively making the product a commodity. While marketers should prevent products becoming commodities, increasingly companies are looking towards branding product categories which was usually considered as commodities.

Indian market has witnessed lot of success stories of marketers successfully branding commodities like salt, atta etc.

Moving away from Price

One of the major challenges for marketers trying to brand commodities is to move away from price based competition. It is not easy to convince the customers to make choices independent of price while buying a commodity. The task for the marketers is to show more value that will justify the premium paid.

Tata Salt was a pioneer in branding salt. Tata had the backing of a strong brand name. Besides taking advantage of the strong brand equity, Tata Salt was one of the first iodised salt brands and the iodine content proved to be a great value addition. The launch of Tata Salt coincided with the Government of India’s initiative to promote iodised salt. Tata Salt positioned itself on the basis of purity and trust. Another player in the branded salt market Captain Cook tried to add value by promoting its Free Flow feature. The strong promotional campaigns and the very relevant value additions shifted the focus of consumers away from the price.

Differentiation

The most important determinant of a successful commodity branding is the differentiation. The marketer has to establish a very strong meaningful and relevant differentiation to the commodity if he wants to develop a brand in that space. Creating a successful differentiation is not easy in commodity marketing. There is a strong constraint of cost while searching for a meaningful differentiation. The brand will be targeting a price sensitive customer who may not be willing to pay a high price for a differentiated commodity.

Most of the marketers try to use Quality as the key differentiator. Quality is a strong differentiator but the brand has to establish a significant difference between the existing product and the brand to convince the customer about the quality. Parry’s sugar is India’s first branded sugar. The brand is trying to differentiate on the basis of purity and is positioned as a refined pure sugar.

Branding

The brands in the commodity space may have to grab a major share of voice for establishing itself in the category. The brands which have been successful in the commodity space have invested heavily in branding and promotion. Once the brand is established, the promotional spends can be rationalized.

While branding commodities, marketers have to use the various brand elements to the maximum. The colour, brand name, logo, mascots have significant impact on the consumer’s perception about the brand.

Packaging also plays a significant role in successful commodity branding. Brands like Pillsbury, Aashirvaad have caught the consumer’s attention through careful packaging. Parachute which has created a brand in the coconut oil category has put in lot of investment in packaging and brand promotion.

Celebrities also play an important role in building a brand in the commodity space. The use of celebrities creates an immediate impact on the consumers during the initial phase of branding. The disadvantage is that the use of celebrities can push up the cost for the marketers. BPCL used Narain Karthikeyan and MS Dhoni to endorse its Speed range of Premium petrol.

Brands should be innovative while entering the commodity space. Nightingale is a highly successful brand in the highly fragmented Notebook/Diary category.The brand was built on innovation. Nightingale introduced theme based notebooks and Diaries which became an instant hit. Parryware changed the entire sanitary industry with the concept of Glamourooms.

Branding a commodity is not an easy task. Marketers have a better chance of success in this market only if they are able to create a meaningful differentiation for their offerings.

Monday, October 26, 2009

Ambuja Cements : Branding a Commodity

Corporate Brand : Ambuja Cements
Company : Ambuja Cements Ltd ( Holcim Group Company)
Agency : Grey

Brand Analysis Count : 423

Ambuja Cements formerly Gujarat Ambuja is one of India's largest cement brands. The company came into existence in 1984. Ambuja Cements is a classic example of a successful commodity branding.
Indian cement market is different from the rest of the world because the largest segment of buyers of cement in India is the individual home owners rather than the institutions. Although this scenario is witnessing a change due to the boom in the organized realty sector, individual home owners form a significant segment that no cement marketers can ignore.
Although these individuals shell out the money to purchase cement, they are not the decision makers in the buying process.

The intermediaries like the contractors , masons etc take up the role of the influencer/decision makers in the purchase of this product. Since the consumers view this product as a commodity, the involvement of ordinary home owners in the purchase .

Ambuja Cements is one of the companies that realized the potential of brand as a differentiator. Even in the eighties, Ambuja cements started its activities for building the brand. Infact according to Superbrands report, Ambuja cements is the first cement brand to start advertising in television. Ambuja Cements also used the outdoors extensively to reinforce the brand image and enhance brand recall.
Ambuja Cements also focused on influencing the other players in the business like the contractors/masons and engineers through camps and meets.

These initiatives helped Ambuja to charge a premium over other brands. With the competition hotting up from Grasim + Ultratech, Ambuja Cements could hold on to its share because of the brand equity it had created over these years.

While branding the cement commodity,Ambuja Cements concentrated on its core brand promise of " Strength ". All through its campaigns, the brand was very consistent on reinforcing its positioning as the " Strongest " cement . The brand was also very clever in selecting a unique logo.

Commodities are boring products . But for smart marketers, this is also an opportunity to make a difference. Ambuja cements bought in lot of humor to this ( otherwise) boring product. Most of its campaigns are humorous which makes the consumers stick to the advertisements . The ad which I like most is the ad where the brothers ( Boman Irani) try to break the wall which they put up to separate their houses when they were fighting with each other.

Some other ads here : Ambuja 1,
Ambuja 2

These ads reinforce the core positioning of Ambuja as a strong cement. Strength is a very highly relevant attribute as far as customer is concerned.

While branding a commodity, the critical question is whether these ads can influence the consumers to change their commodity mindset towards this category. The answer is definitely affirmative. I have noticed many home owners directly procuring these products for their home construction because they don't trust the contractors. In these scenarios, high brand recall will give the edge for the brands.

Branding can change the perception of consumers towards commodity. The point is to create a compelling reason to do so.

Related Post
Ultratech

Wednesday, September 03, 2008

Suguna Poultry : Younger Tender Better

Brand :Suguna
Company : Suguna Poultry
Agency : R K Swamy BBDO

Brand Analysis Count : 346



Suguna Poultry is one of the major players in the fragmented poultry industry in India. Suguna is a classic case of commodity branding . Suguna Poultry started its operations in 1984. The company is based in Coimbatore in Tamilnadu.

The story of Suguna is interesting to a marketer for two reasons. First is obvious in that Suguna is branding poultry products which is a hardcore commodity business. Second is its unique business model.

India is the third largest egg producer and fifth largest poultry meat producer in the world. Indian poultry market is huge with an estimated market size of Rs 20,000 crore ( Business line) . According to Business Standard ( July 08), the size is estimated to be around Rs 12,000 crore.

The market is highly fragmented and dominated by local players. It is in this context that Suguna 's story becomes relevant.

Suguna came into a difficult market with a difficult idea. Branding chicken ! But through heavy investment in the media, Suguna was able to create a mind space for itself .
In the poultry market , the frozen meat market was around Rs 7500 crore. It was in this market where some amount of branding activity was seen.

The market further expanded with Godrej Agrovet entering the market with their brand Real Good.Suguna was promoting itself on quality and tenderness. I remember seeing lot of ads of Suguna during mid nineties. But in Indian market, consumers prefer live birds to frozen meat because of the easy availability of live birds. Suguna was able to make its brand prominent in this market also.

Suguna has sold live birds and eggs worth Rs 2020 crore in 2007 without owning a single poultry farm. That makes their business model interesting. The company pioneered contract farming in the poultry industry in India. The company source their produce through 12000 contract farmers across different states.

According to reports , Suguna owns the day -old-chickens , feed and feed medicine and the contract farmer is responsible for the day to day management of the farm. The farmer gets the assured income while the company takes care of the risk . In that way Suguna can channel its valuable resources to marketing and distribution.

Then the company entered into another lucrative market of selling branded egg. Each year India produces around 47 billion eggs worth Rs 10,000 crore.The market is growing at a rate of 15 % in an year ( Economic Times ).

Suguna has four egg brands and sells over one million eggs a month. Suguna launched these value added egg which is fortified with vitamins. This is done by feeding the laying hen with specialized nutrient feed.I am a regular customer of Suguna eggs.
The brands are
Suguna Pro
Suguna Active
Suguna Heart
Suguna Shakthi

Infact my wife started buying this brand of eggs for my child since she was impressed by the packaging which made the eggs look more hygienic and healthy. Priced almost 50% more than the usual eggs, Suguna had to show some differentiation in the product to justify the premium.

I closely looked at this simple product ( egg) for differentiation and it was evident. The eggs were clean , more shining and uniform in terms of size and shape. Another differentiation was in the packaging. In branding commodity, a marketer should be able to justify the premium and Suguna was able to do just that.

Suguna also has expensive range of eggs under the variant Suguna Heart which contains less cholesterol and rich in Omega-3 fatty acids.

Buoyed by the success of these businesses, Suguna has entered into front end retail by launching Suguna Daily Fresh retail outlets. Reports also say that the company is launching Ready To Eat Chicken products also.

Suguna is a case which proves that its possible to brand any commodity.

Thursday, April 22, 2010

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.

Saturday, November 04, 2006

Parry's Sugar : Branding A Commodity

Brand : Parry's Sugar
Company: EID Parry
Agency: JWT

Brand Count : 152

Indian sugar industry is worth a whopping Rs 25000 crore. Although India is the second largest producer of sugar in the world, the percapita consumption is low at 18 kg.Unlike the Salt industry which saw many successful branded players, the branded sugars were not that successful.

Sugar branding was initiated around 6 years ago by players like Mawana sugars and Dhampur sugars. The first movers got the advantage and these players now have a 30 percent market share in the branded sugar segment. November 2004 saw EID Parrys launching their brand Parry's Sugar in TamilNadu which is traditionally a big market for sugar.

Although the market size of sugar industry is large, 75% of the sugar is consumed by large buyers like bakeries, Soft drink manufacturers and confectionery players. Hence most of the marketing is business to business.

The sugar industry has two types of pricing models. One is the free market pricing and the other regulated pricing through public distribution systems. The sugar prices are monitored by the government which sometimes intervene in the market and regulate prices through imports ( if the price increases )

Sugar is viewed by consumers as a commodity and there has not been any initiative from the part of sugar companies to create a differentiation compared to what marketers have done with Salts. Parry's has launced its branded sugar with focus on its quality and purity. It is known fact that the best way to brand a commodity is to focus of these two attributes. Parry's claims to be better refined and pure than the unbranded sugar. Packed in attractive pet bottles, the brand sells at a premium of Rs 4- 6 over the unbranded ones.

The market for sugar is a highly price sensitive one. While in the case of salt, the presence of Iodine was a sufficient differentiation for establishing the brand. The Iodine deficiency could cause thyroid and customers were educated by the government and the salt marketers to prefer iodised salt . But in the case of sugar, those differentiation opportunities were absent. According to a report in Business Today there are different factors that caused the slow start of branded sugars . They are
a.Seasonality : sugar production is seasonal and the entire years productions should be completed within 5-6 months. Hence there is no time for product or process innovations.

b. The sugar play is high volume low margin game. Hence whether marketers are interested in exploring the value added game is another factor that slows down the growth of branded sugar market. While branding involves promotional costs, it will be a tough tradeoff since margin pressure will prevent aggressive brand promotions.
c. The large format retailers have also started selling packed sugar with a premium of 50 paise to Rs 1 making the consumers think that the packed sugars are better refined than the other one.

The main factor behind the branded sugar becoming less popular is the lack of differentiation. The reasons are not compelling for consumers to shell out a premium for branded sugars. Even though Quality and Purity is an issue with the unbranded sugars, even affluent consumers are shying away from paying a premium for branded sugars. More over some branded sugars use sulphur dioxide to refine which is harmful and this type of refining is banned in European countries. It is said that in the west, marketers try to value add this commodity by enriching it with vitamins .
Branding a commodity always has been a challenging task for marketers. Parry's Sugar is a brand to watch and it will be interesting to see how this brand breaks into the consumer psyche.

source:magindia,eidparry,businesstoday,chennaionline,jimtrade,agencyfaqs

Tuesday, February 12, 2008

Hindalco Everlast : Branding a Commodity

Brand : Everlast
Company : Hindalco

Brand Analysis Count : 309

Everlast is the brand of aluminium roofing sheets from Aditya Birla Group. Hindalco from the Aditya Birla Group is India's largest manufacturer of aluminium products in India.
Aluminium is a commodity driven basically by the price. While there are many marketers who brand the consumer products made of aluminium like vessels and utensils, Everlast can be called the first branded roofing sheet.

Everlast was launched in 2002 after much research. The purpose of launching a brand in this commodity business is to add value. Branding a commodity is a difficult task especially when the customer does not see any significant differentiator between products from different manufacturer. But for a marketer, Brands often translates into more premium and also insulates the company from price competition.
Aditya Birla group is not new to branding commodities. We have seen the high profile rebranding of L& T cements to Ultratech which showcased the branding ability .

Everlast had two pronged approach towards building the brand . First task was to establish the brand name by increasing the awareness. This was done by extensive campaign through print media and hoardings. The brand also was positioning itself as a durable product. Television commercial was used to promote the positioning of the brand which was further reinforced by the brand name ' Everlast'.
Second task was to increase the popularity of aluminium roofing sheets. Now Everlast is running a series of campaigns highlighting the various benefits of having an Everlast roof. The brand is now targeting the urban households.
The campaign of Everlast is interesting because the brand recognizes that it cannot replace the RCC roof. Hence the brand aims to popularize itself as a roof over RCC terraces. The new campaign tells the customer that by covering the open terraces using Everlast, one can use that space for various purposes like Party Area, Garden, Exercise , drying clothes etc. Infact the biggest use of Everlast roof is that one can use the terrace for drying clothes especially during rainy season.
The consumer also gets the benefits of additional closed space without spending too much money on building another roof.
Everlast comes in various colors and hence does not compromise the beauty of the house. The brand highlights the following qualities like
Durability
Corrosion Resistant
Easy to Maintain
and also the trust of Hindalco.
Along with the consumer promotion, the brand also had below the line promotion aimed at the influencers like masons, contractors , architects etc.

Everlast rightfully is reaping the benefits of the first mover advantage in this commodity business. Through heavy promotion, the brand had already established its presence in the market and is in course of establish a strong presence in the market.

Wednesday, April 24, 2013

Monkey 555 Brooms : Branding a Commodity

Brand : Monkey 555 brooms
Company : Vibhava Industries, Hubli

Brand Analysis Count : # 523



It takes lot of guts to venture into branding a commodity. It requires more than guts to brand your product as Monkey 555. Meet a unique brand " Monkey 555 " - brand of broom sticks which the company sells nationwide. 


I was surprised to see the ad of a grass broom brand on the back-page of a leading Malayalam weekly . The brand name was too loud to be missed by anyone. The offer was buy a broom and get a dust-pan free. This evoked lot of laughter from the ladies at home.

The brand name of Monkey555 is very unique and I am sure there will be some story behind that name however when one starts advertising this brand, it evokes some amount of laughter.There was a period in Indian branding scene where companies used the name of animals and birds as brand names. Eg: Robin Blue, Camel, Kiwi, Lion Dates. Even now firms use such names as Mango , LMN etc so why not Monkey !
Probably this Quirky name may benefit the brand in creating " stickiness" or awareness.The logo of the brand is a monkey sitting on a brand with a broom .  The picture of the ecstatic lady with the broom adds to the fun.All these, although seems funny, makes this brand a little different. Sometimes being funny or quirky is the best way to break the clutter.

Brooms are a  commodity. No one really cares what brand of brooms that they buy. Although I have heard ladies at home complaining about the broom's quality, purchase of brooms were never on brands. Ofcourse, there is a new set of household mops from the likes of 3M which is carving a niche in the market.
In my home state Kerala, the popular brooms were made from Coco- sticks. But increasingly the coco-stick based brooms are being replaced by the grass brooms especially for use inside the home.
Monkey 555 brooms are priced at around Rs 55 which makes it expensive compared to other brooms. The brand has tried hard to convince the customer about the quality of the broom through the copy in the packing. One blogger has written a funny piece on the same ( read here)
Monkey 555 boasts that it is made of the finest " Garo Hill Grass" which refers to the place in Assam and North-East where these grasses are cultivated in plenty. Secondly the brand talks about quality handle which is perfumed !. Monkey 555 also claims to be the largest selling grass-broom brand in India .
What ever said and done, Monkey 555 is a bold move indeed. The brand may be releasing one or two such campaigns ( or ads) but it is sufficient to create the awareness and probably the consumer may chose this brand from the market when the need arises.

Sunday, August 19, 2007

LG Asafoetida : Branding a Commodity

Brand : LG Asafoetida
Company : Laljee Godhoo & Co

Brand Analysis Count : 263

Laljee Godhoo (LG) Asafoetida is yet another offbeat heritage brand . You may have never seen an advertisement of LG asafoetida in any of the media. But check out your kitchen, there is a chance that a pack of this brand has been there for a long time.

LG brand is almost 110 years old. The company started its operations in the year 1894. Today this brand of asafoetida commands a market share of over 70% in the Indian market.
Asafoetida is a a resin like gum extracted from the dried stem and roots of a herbaceous perennial plant Ferula Assafoetida found abundant in Iran. Laljee imports the raw latex from Afghanistan and prepares the compounded Asafoetida which is adding spice to the popular dishes across the country. Asafoetida is a popular spice used in many Indian dishes.
For ninety years, LG was selling Asafoetida in the lump form later, the brand began selling the powder form of asafoetida. This is a brand which became a dominant player through word of mouth. Asafoetida was earlier selling as a commodity. LG differentiated by a unique package and the emphasis on quality. More over this was the first brand to bring this product in the powder form which increased the popularity of the brand.
But the brand faces certain issues because of the commodity nature of the business. The major issue that this brand faces is the counterfeit threat. There are innumerable brands which mimic the logo and package of this brand. Since it is a commodity , many a times customers take other brands which looks similar to this brand. The second threat is from the private labels. Now most of the organized retailers have their own Private Label brands of spices. Since LG has not developed any point of differentiation, there is a chance that its share will get hurt by private labels.

For a heritage brand like LG asafoetida, the future offers lot of challenges. The brand has never invested in brand building except for occasional ads cautioning customers about counterfeits. The threat from private labels is real and huge. The brand has no option but to spent more in reinforcing its equity built over these years.

Friday, February 10, 2006

Nightingale : Experience The Finest In Paper

Brand : Nightingale
Company : Srinivas Fine Arts

Nightingale is a super brand ( my choice). There has been lot of debates and thinking about how to market a commodity. Want an answer? Study this brand. Nightingale has carefully built one of the best brands in an industry dominated by unorganized sector.Nightingale is the brand owned by Srinivas Fine Arts (SFA). SFA had a humble beginning. Started in 1964 by Chockalingam and Brothers, as a print trading company in Sivakasi, SFA have now become a global player with a presence in 5 continents. SFA later expanded their business from print production of textile labels to maps and graphs. In 1974 SFA started its own paper trading business. In 1992, it expanded to packaging, soaps and matches.In 1990's SFA introduced the Nightingale brand to the world.

The Indian stationery market is estimated to be around 5000 crores with the organized market accounting to around 500 crores. Nightingale now produces a wide range of products from Diaries to notebooks and journals.

Nightingale right from the beginning carefully positioned itself as a premium brand. The market for diaries was not hot and no effort on branding was visible. I remember only one player : Eagle brand for diaries and notebooks.

Nightingale changed all that. It has created and now owns the premium end of the diaries and notebooks with a clear market and product strategy.
Nightingale brand is built on Innovation , Quality and Image. The brand has carefully segmented the premium segment of the Diary market. IT has also ensured that the quality will be the major focus. During the early days, there was not much focus on the quality aspect for these kinds of products. It was basically a functional or utility product. Nightingale changed that perception and positioned the diaries as a lifestyle product.

Besides quality, Innovation was the factor that was crucial in branding a commodity. Nightingale based its product not only on functionality but also on concepts. The diaries and notebooks are concept oriented. For example, there are Nightingale diaries like Religious diaries (Nightingale was the first one to come out with a Christian diary), Environmental Diaries, Notebooks which are based on personalities, Diaries that have cartoons and quotes, Vedic diaries etc. Altogether there are 264 varieties of diaries from Nightingale.
Nightingale was the first brand to have diaries for various professionals like engineers, doctors which had special sections useful for these professionals.
Nightingale also markets its most expensive diary “ Silver Oak “ which is priced at Rs 57000. This undated diary has 140 gm silver ornamentation and designed by David Sarac. Already the corporate have grabbed this product for corporate gifting.

Let us look at how carefully Nightingale crafts each of the products. Take the case of a product called Layflat notebook. The product have long durability , It maximizes the use of space and have a special ruling and comes with a page marker. Each of the products has some qualities that make it worthy of a premium.

Innovations like a five year diary, undated diaries, theme based diaries personal journals like journal to write about your dreams, and Fashion diaries have made this brand a lifestyle brand.

With Nightingale , experience the finest in branding....

Monday, December 04, 2006

Nestle Fresh N Natural Dahi : Branding A Commodity

Brand : Fresh N Natural
Company: Nestle
Agency : O&M

Brand Count : 172

Nestle Fresh N Natural dahi is a bold step by Nestle to brand the commodity called Dahi( curd). 2006 saw the high profile re-launch of this product . Nestle dahi was launched in 2001. The reason behind this move to enter into a tough commodity business is prompted by the size of the market. Dahi ( Hindi term for Curd) is the second largest form of milk usage following tea and coffee usage in households. The estimated consumption of curd is a whopping 2200 MT a day i.e. in revenue terms Rs 4.5 crore a day . That makes the market worth Rs 1600 crores. The market is largely dominated by regional players and more than that households make their own curd using milk. The business sense that prompted Nestle to enter this segment is that there is no national player in the market, although Amul has serious plans for the segment.
Nestle has launched the brand with a positioning based on the taste. The tagline was ‘ Jumm gaya Taste” meaning “ Great taste. The launch was a soft one and was concentrated on Delhi. The competition was in the form of Mother Diary and Amul.In 2002 Nestle launched a value added variant in the form of Fruit n Dahi.
2006 saw the relaunch of this brand on a different positioning. The brand is positioned as a calcium rich and creamy product with lot of emotions added to it. The brand is following the typical technique of differentiating by value addition ( rich creamy and calcium rich) and emotion ( pure, love ). The brand is also having raita ( another common Indian curd based dish).The relaunch is also limited to metros because of supply constraints.

This is a bold move by Nestle to enter into a highly commoditised market. Here the brand faces stiff competition from tradition rather than other companies. The changing psychographics of the Indian consumer may aid the brand. The lack of time to prepare the perfect dahi may prompt Indian consumer to stock this brand in the house. The longer shelf life of this brand may also come to help. But the task is not enviable in the sense that it takes lot of money and patience to change Indian consumer’s habits.

Source: magindia,nestle.in,agencyfaqs,businessline

Friday, January 01, 2010

Binani Cement : Sadiyon Ke Liye

Corporate Brand : Binani Cement
Agency : By Design India Pvt Ltd

Brand Analysis Count : 436



Binani Cement is one of the mid-sized cement brands in the highly competitive Indian cement industry . Binani cements belongs to to Braj Binani group. The group ventured into cement manufacturing in 1997 . Binani Cements is now a 1900 crore company with significant presence in states like Rajasthan ,Delhi, Punjab , Haryana and Gujarat. The company also has presence in foreign countries like Middle East and China.

Indian cement marketers has long been trying to brand this commodity. Binani is one such player who has taken up branding in a serious manner. The brand is relying on the celebrity power to build its equity. Binani Cement used the cricketing master Sunil Gavaskar to promote its brand during the launch phase in 1997. After a long period of silence, the brand began to invest heavily in brand promotion from 2007.

The brand chose the ever green Amitabh Bachchan as the brand ambassador in 2007. There was lot of buzz during the time big B was chosen to endorse a cement brand.

Binani Cement started using Big B in the television commercials in a dignified manner. This is one of those brands that tried to make use of Bachchan's charisma to the brand's advantage. The ads were laden with subtle humor and according to the reports, Binani cement's sales surged during these campaigns.

Watch the campaigns here : Binani Cement 1, Binani Cement 2

The brand did a smart move by taking advantage of the fact that both the brand and the brand ambassador name starts with B. The cement brand began to call itself Big B. While the brand gains by the association, there were many critics who argued that now Big B will be associated with cement rather than celebrity.

Binani cement has the tagline " Sadiyon Ke liye" which means " for centuries ".

Although the ads featuring Bachchan was well made, I felt that it lacked a punch. The brand lacked a powerful message . I would even say that the brand is not able to convey its brand manthra to the consumers. That may be the reason why those ads did not stick with the consumers.
When trying to brand a commodity, the brand should stand for something significant. It should be either strength , quality , trust , heritage, etc. Although Binani Cement has a good tagline, the emphasis was not there on any significant USP. The brand could have done much better if it had focused on a key strength of the brand and used the celebrity to emphasis that strength. For example Gujarat Ambuja has owned the USP of Strength and Ultratech is taking the positioning as Engineers Choice. So when comparing with these competitors, Binani Cement does not have a clarity in its positioning. It seems that it is trying to derive some strength through association with a celebrity. Such a celebrity dependent positioning strategy is not advisable for the brand . Ideally Binani could have identified its strength and used celebrity to highlight that strength.

To be fair to the brand, it has to be highly appreciated to venture into investing money in building a brand in the commodity space.
Related Brands
Ultratech
Gujarat Ambuja

Saturday, June 02, 2007

Popy Umbrella : Dancing In The Rain

Brand : Popy
Company: Popy Umbrella Mart
Agency : Jelitta

Brand count : 237

Popy is the market leader in the fiercely competitive umbrella market in Kerala. Looking at the number of umbrellas it sold every year, I think that Popy is largest selling umbrella brand in India. Annually this brands sells more than 2 Lakh umbrellas.

Popy has a legacy that is associated with the rise of the product umbrella from a staid ugly accessory to an interesting product. The brand comes from a family that is credited with branding a product that once was considered commodity.
In 1954 Mr Thayyil Abraham Varghese established St George Umbrella mart with its base in the Alleppy District of Kerala. Soon the brand St George began aggressive marketing which made the brand number one in the market. In 1995, the family business split into two : Popy Umbrella mart and John's Umbrella mart. The competition between these two companies marked the umbrella market in Kerala - a haven of innovation and smart marketing.

Umbrella market is a highly seasonal one ( not a big discovery from my part !) and selling a seasonal product is any marketers nightmare because he may have to sell all the inventory during the season and also device methods to tide over the seasonality factor also. On the top of it, the product category was considered a commodity.
But Popy and Johns did wonders in the market. These brands made brands out of commodity through sheer innovation. But Popy got a headstart with its successful campaign that caught the attention of the consumers. The popular malayalam jingle " Mazha mazha kuda kuda mazha vannal popy kuda" became an instant hit in the market.

The brand Popy ( also Johns) is more interesting because it was able to make the product from a lousy dull product to a lifestyle product through sheer innovation. The brands made innovations that are aimed at all segments of customers be it kids, young customers or older ones. Some of the innovations are include auto-open/close umbrellas,walking stick like umbrellas,5 fold ones, umbrellas with steel rims water gun umbrellas for kids, umbrella with torch, umbrella that is too small in the size of a Ray Ban?,umbrella that has UV protection,umbrella in different colors etc.
If I have to write all the innovations, it will take two blog posts because that is the extent of innovations that these brands have done.This season the brand has come out with a Laser umbrella aimed at kids.
On the marketing front also the brands have carefully segmented the market according to the age and demographical variables and innovated to suit their needs. For example, one of the common problems faced by lady commuters is the problem they face with the closing of umbrella when they board a bus. The auto-close umbrella will close the umbrella with the click of a button. Also the brands come out with another umbrella that will resist heavy wind. For the older ones, the brand has umbrella that double as a walking stick.These small but customer centric innovations have kept the product an exciting one.
These innovations also has helped the brand to command a premium over the usual black ones.The brand comes in different price range from Rs 59 to Rs 35000. Popy has tie- up with Futai umbrellas of Taiwan mainly for the sourcing of cloth. The brand has more than 140 varieties of umbrellas in the market.

Despite these innovations and smart marketing, the brand faces issues from the entry of cheap umbrellas from China.These can take away the mass market from Popy because mass market is price sensitive and the product is seasonal. The life of umbrellas are less than 2 years and customers may not be brand loyals. Both Popy and Johns are on an overdrive to build the brand equity so as to sustain the imminent price war.

Tuesday, October 24, 2006

HP : Computer Is Personal Again

Brand : HP computers
Company : HP
Agency : Publicis

Brand Count :146


The Indian computer hardware industry is huge and growing. The sheer size of the Indian middleclass is an ample evidence of the huge potential for personal computers in the country. The computer penetration in India is barely 1 percent that makes the market more challenging and attractive.

Although the numbers present a rosy picture, the reality is not as rosy as it seems. The market is dominated by unbranded players and the computer today have a commodity status with brands losing its relevance to a home computer buyer. This has put lot of pressure for the organised player to reduce margins and cost to compete with the unbranded players. In the earlier stages of the evolution of this industry, the factors like reliability and service had given the organised players significant advantage over the unorganised sector. But with the standardisation of products and the outsourced service elements becoming popular, the branded computers lost their edge.
Even with the price war raging , the branded version costs anywhere between 20-30% premium over the unbranded ones.The rate at which the processors and technologies becoming obsolete is forcing the customers to look for cheaper options. The rationale for the customer is simple " The system I buy in 2006 is going to be obsolete in 2007, hence why invest in a branded one?".

HP ( Hewlett Packard) is one of the major players in the organised market in India. This multinational giant have around 20% share in the desktop market. Reports suggest that HCL-the domestic player is leading the market.
In this market which is typically fragmented with chances of differentiations are slim, it takes lot of innovation and marketing skill to survive. That is what HP is currently doing. In June 2006, HP launched its global marketing campaign to reinvent the personal computer industry. The campaign with the tagline " The computer is Personal Again" is an attempt to brand a commodity again. Personal Computers or PC was what we used to call the desktops but later the term lost its charm and we began to use the terms like desktops, laptops and notebooks. These terms were technical terms and was a result of the market becoming more mature and as a result more commoditised.Most of the campaigns by computer manufacturers were focusing on technical specifications and price offers. There were little branding efforts and most of the campaigns were dealer ads funded partly by the manufacturers. Branding was slowly dying and sales promotions were gaining prominance.

HP's new initiative is to bring back the personal nature of the computers. Business Week in a report has detailed that this campaign is intended to position HP as a company that truly understands how central PC's has become to most people's life. The campaign features a " Hand drawn graphic of a Hand" in every ads. Only select products will be highlighted in this campaign and these products will be promoted using only their striking feature. That means that the company is going back to the marketing basics of USP, Positioning and Differentiation. The campaign has also roped in MTV for a Advertiser Funded Programme titled " Meet or Delete" reality show as a part of its 360 degree brand campaign.

The print ads featuring celebrities stand out intheir designs and communication. The sheer beauty and depth of campaign makes it one of the most memorable marketing efforts of recent times. The campaign globally is conceived by Goodby, Silverstein and Partners for the Personal Services Group of HP.
Another beauty of the current positioning platform is the flexibility and creativity that it offers to the marketer. There is ample scope for extending this positioning to all product ranges, new products and across segments.The campaign also gives the marketer an opportunity to experiment with the product, change its design and sometimes make mistakes all in the name of reinventing PC.

With regard to the current theme and its execution in Indian market, the ads mainly is targeted at the affluent middleclass tech savvy customers. The ordinary lot will not understand this communication because the execution of this ad is too complicated for an ordinary buyer to understand. I am not sure whether HP is only aiming at Premium customers ?The success of this campaign will depend a lot on how this strategy is being executed at the customer moments of truth or touchpoints. Is he going to get a personalised attention at the retail level? Will the company follow this strategy with new product ranges and extend this campaign to a mass level?

Whatever be the outcome of this campaign, this will be rated as a classic marketing initiative . As a marketer, I am happy because " Marketing is personal again"

source: businessweek, bbc,expresscomputers, agencyfaqs

Monday, January 08, 2007

Speed : High Performance Petrol

Brand : Speed
Company: BPCL
Agency: Saatchi & Saatchi

Brand Count : 187

Speed is India's first branded petrol.Launched in 2002 by Bharat Petroleum Corporation ( BPCL) , the brand assured in the concept of positioning and differentiation in the Petroleum marketing which was by nature a commodity.
Speed is marketed as a high performance petrol. Speed is the blend of petrol with high speed additives sourced from Chevron Texaco. The additives are expected to increase the performance of the vehicle.
The branding of petrol is more difficult than any other products because of the following reasons:
a. The customers are very price sensitive. With the petrol prices moving upwards always, spending a premium for branded petrol is a tough call for a customer.
b. There is no tangible benefit that branded petrol can offer to the customer. The advantage of using Speed will not be visible to the customer at the outset. The change may have to be noticed on the performance of the vehicle .

In that sense, Speed has been very successful in creating a niche in this market. The brand is said to be contributing 25% of the total petrol sales of BPCL. Speed is said to have 50% share in the branded petrol segment.
BPCL has carefully nurtured this brand. The brand name itself gives a headstart to the acceptability for the brand since Speed is linked to Performance. Speed is positioned as High Performance Petrol. The company has roped in Narain Karthikeyan as its brand ambassador. The TVCs and the print and outdoors reinforced the positioning of the brand as a performance booster. Narain's was a right choice for the brand since he personifies performance driving in India.

Speed has competition from Indian Oil brand: Extra Premium. Besides using Narain as its brand ambassador, BP also has other campaigns promoting the brand on performance . Speed also extended itself to include Diesel fuel under the Hi-Speed diesel brand.

Even before the launch of branded petrol, BP had initiated a corporate campaign " Pure For Sure" to position the company as one that provides the Purest Petrol/Diesel.The campaign was aimed at promoting retail outlets selling fuels. Another corporate campaign was " Energising Lives" aimed at raising the corporate image beyond fuel retailing. These moves were to preempt the competition arising out from private players like Reliance Industries entering the fuel retailing segment.
With fuel prices touching new heights and with customers looking for alternate fuel options, it will be tough for Speed to convince the customer to pay a premium for the brand.

Related topic
Branding a commodity

Source:agencyfaqs,businessline

image source: agencyfaqs

Tuesday, January 10, 2006

Parachute : Branding a commodity.


Brand : Parachute
Company: Marico
Agency:Ambience Publicis

This is a success story of branding of a commodity. Hair oils and its use are deeply ingrained in to the Indian Psyche. This is a 1500 crore industry which is dominated by unbranded oils. The branded category accounts to around 600 crore. The majority of the hair oil segment is occupied by Coconut oil.

This is a market that have very low entry barrier and that is the reason why the market is dominated by unbranded oils. Marico in early 1990's made a bold step in launching a brand in this segment. Paracute manufactured by Bombay Oil Mills was acquired by Marico in 1990's. Marico was a sister concern of Bombay Oil Mills.

Parachute is the market leader in the branded hair oil market with a market share of around 53%. Marico has positioned Parachute in the platform of purity. This focus on purity clearly differentiated the product from the rest of the unbranded oils .The purity was reinforced by careful packaging and communication. The brand was established emphasising Caring and Mother - Daughter relationship.Parachute knew the pulse of the urban market and emphasised that the oil is non greasy and prompted the TG to experience the brand

During the early 2000's the market witnessed a shift. Marico found that the market for hair oil is degrowing, because the consumer preferences are changing. The youth now didnt want to have Oil - on- their hair look. This prompted Marico to look into the Value Added hair Oil market which was dominated by Dabur Vatika. Parchute's mother brand was also facing competition from Nihar of HLL stable.

Marico decided to depend less on the basic Parchute oil and we saw a series of new product launches. Marico launched Parachute with jasmine fragrance which was well received by the market. Also came Parachute Advansed and Parachute Sampoorna. Parachute Advansed account is with McCann while others are handled by Ambience.

2005 saw a Bold ( or foolish) step from Marico . We saw the launch of Parachute Aftershower hair cream. This is the first non oil product from Parachute . Marico roped in Yuvraj as the brand ambassador . The product is positioned as a Non sticky and with Zingy perfume. The product is launched with the base line " style on every day".


People in Marico and Ambience are better marketing minds than me. But I have doubts about this brand extention. Parachute has been a category leader & almost generic to coconut hair oil. Extending this brand to men's toiletories seem totally out of box or should I say out of mind?
As one of my readers pointed out " there are many financial pressures that outsiders cannot understand" . I do agree to that also.

But when a brand known for its coconut oil, targeted at women and positioned along the mother - daughter relationship, extends it to a men's category, will it survive?

Will men accept a feminine brand? If Marico advertises Parachute for men, will women accept that brand?

Then what is parachute? a coconut oil, after shower for men ? hair oil?
The price is attractive , so men may buy it.
I am confused.......... Am I a target consumer?

Tuesday, March 09, 2021

Astral Pipes : Who thinks about a Pipe?

 Brand: Astral Pipes
Company: Astral Pipes Ltd

Brand Analysis Count: #608

Astral Pipes one of the leading player in the CPVC pipes category. The company has around 25% market share in this category. The plastic pipe market in India is estimated to be around Rs 21500 Crore. Astral pipes came into existence in 1998. At that time, the market was dominated by GI pipes. After many attempts, Astral pipes were able to pivot the market towards CVPC pipes which now has become a mainstream choice.

It was not an easy task for the company to change the market's preference. It found that although the engineers and supervisors were convinced about the superiority of CVPC pipes, plumbers who were the major influencers were not taken aboard. Since the CVPC pipes were expensive, the company approached this issue on two fronts. At the influencer level, it pursued an outreach program for the plumbers convincing them about the product superiority and at the product level, the company made efforts to reduce the price differential betting on the volume play. 

Then the company did the impossible, it ran a very striking branding program. Just like what Asian Paints did to the paint market by branding, Astral tried the same in the pipe category. For that, it chose two platforms- Bollywood and Cricket. Astral in a way behaved like an FMCG company trying to associate with movie stars. And success came with the product placement in the hit Salman Khan movie- Dabangg. The product placement in the movie earned the brand a nickname- Dabangg pipe. Buoyed by the success, the brand went on to associate with many Bollywood blockbusters thus increasing the awareness of the brand. Along with this, Astral pipes roped in Salman Khan to endorse the brand and there was no looking back. 

On the cricket front, Astral Pipes associated with IPL by sponsoring teams like Rajasthan Royals, Sunrisers Hyderabad which further helped the brand in building awareness. As we all know, one of the fundamental building blocks of brand equity is brand awareness and Astral Pipes were able to create a strong foundation. 

In 2020-21, the brand has roped in Ranveer Singh as the brand ambassador. The brand is currently running a very interesting campaign themed " Who thinks about Pipes? "


What is interesting about this campaign is the thought process and the issue that the brand is trying to address. The theme " Who thinks about pipe" rightly captures the issue that Astral pipes try to address. Actually who think about pipes anyway?
For a brand, this question is a make or break for brand. If the consumer doesn't think about pipes, then the purchase will be a commodity purchase with price as the deciding factor. So the current campaign in a way urges the consumer to think about this product category. Further, the brand assures the consumer that as a company, they are constantly thinking about building excellent pipes hence the consumer can trust the brand. With a touch of humour, the ads deliver the message very effectively. 

Astral has also explored various promotional options other than ads. In 2017, it launched a much-acclaimed video #Everywomensright promoting the concept of toilets in every house.

The types of above-the-line marketing efforts are rare in a product category like pipes where the energy and investment are more on dealer relationships and margin management. Astral has paved a new path of marketing in this otherwise dull category. 

Friday, April 10, 2009

Orient Fans : More Air, Everywhere

Brand : Orient
Company : Orient Paper Industries Ltd
Agency : Mudra

Brand Analysis Count : 392

Orient is a very interesting marketing case study. This is a brand that shows how to create a sustainable differentiation in a market which is highly commoditized. Orient is a brand which has a long history. The company was started in 1940 
as Calcutta Electrical Manufacturing Co. In 1954, the company was taken over by CK Birla group.

Orient is one of the largest fan brand in India. It is also the largest fan exporter in the country. The Indian fan market is huge with an
 approximate size of 2 crore units being sold every year. But the market is dominated by the small industries which account for about 55% of the total market. 

The organized market is dominated by players like Usha, Crompton, Orient and Khaitan.These players are facing stiff competition from the local players who compete on the basis of price. The organized players try to defend their position banking on their brand equity.

The price competition was so huge that at one point of time all major brands launched a lower priced product range to compete with the local players.

Fan is an important consumer durable. It is one of the largest selling consumer durable category in India . Although the category is the largest selling one , consumers perceive the product more as a commodity with little or no differentiation among the various players.

In a way consumers were indifferent towards the brands. Urban and upper SEC segments preferred brands because of quality but lower SEC segments were more price oriented and preferred the local brands. Local brands had high equity because they advertised heavily in their market, gave more margin to the retailer and was significantly lower priced. As a consumer, one really could not evaluate the difference between a local made fan and a branded one. There was no compelling differentiation among the fan brands.

What Orient did was a masterstroke.

1993-1994 was a bad year for the brand.Faced with dropping sales, Orient had to do something to defend its position. The brand rightly identified the need for a clear differentiation. After a thorough research on the consumer, the advertising agency Mudra suggested that the brand focus on three core areas

Air Delivery
Sweep Area
Electricity Consumption

Thus born the famous acronym PSPO. PSPo stands for Peak Speed Performance Output. 

The brand has a formula for PSPO 
PSPO = [Total Air Delivered /Electricity Consumed] X incremental factor
Increment factor = Significant Air Speed X Specified Sweep Area Plan

In simple terms, this is a design which can deliver more air to a large area . Orient has designed its motor and blades in such a manner that the fan can cover more area and deliver more air.

More than the technology, the brand was smart enough to brand this new feature as PSPO. This is a classic case of Ingredient Branding. The brand had found its differentiation. According to marketing theory, a good differentiator has to be meaningful, sustainable and not easy to copy. PSPO was a meaningful differentiator. By branding it , Orient had made it proprietary and its competitor could not copy that.

Next came the challenge of communicating this proposition to the consumers. Orient used its resources to bombard its consumers with PSPO and its meaning.There were lot of TVC which continuously conveyed the acronym PSPO and its benefits and there was a strong recall and association with Orient & PSPO.

In 2004, Orient Fans was chosen as a supplier for Walmart which gave the brand an entry to the US market.
Despite the success, Orient continued to invest in the brand. In 2006 , the brand roped in the Ace Cricketer MS Dhoni to endorse the brand. A cricketer and a fan have no connection with each other but the purpose of the brand was to reinforce its brand and its association with Dhoni gave some brand recall. The association continues even today and recently there was an ad campaign featuring Dhoni . The new campaign is also focusing on the USP of PSPO. 

The brand has the tagline " More air, Everywhere " and its core proposition has remained the same all these years. This benefit proposition  or More Air, More Area and less Electricity is still relevant for the consumer. 

Orient and its PSPO is one of the most consistent brand campaign India has seen. The theme is running for almost 15 years and the brand managers are intelligent and wise not to tamper with the winning formula. That is the power of the big idea. When you have one , use it to the maximum.

Related Brand 

PS: There is  an interesting case on Orient PSPO by Mudra. Read it here 

Saturday, April 07, 2007

Idhayam oil : Banking on Health

Brand : Idhayam Oil
Company: Idhayam Group
Agency: Lekha

Brand Count : 219

Idhayam is a strong regional brand in the hugely diverse and unorganised edible oil market in India. Indian edible oil market is huge with a consumption of 360,000 metric tonnes per year. The market is wide and varied with regional preferences diverse across India. For example ,the preferences goes something like this:
Ground Nut oil is preferred in the West, Coconut oil and Sesame oil is preferred in the South,Mustard Oil in East and North, Soyabean oil in Central and North/West and sunflower oil in most parts of the country ( source: superbrandsindia.org).

Idhayam is the biggest brand in the sesame oil (Gingelly oil) segment . The brand has a rich heritage of over 60 years. The company came into existence in 1943 and over these years the brand has grown to occupy a major share in the South Indian market. Idhayam sells over 13 lakh liters per month .

Although in my house, traditionally we use coconut oil, Idhayam is a familiar brand because of the intense promotion by the company. The brand is promoted heavily through television and magazines. The brand uses the famous South Indian Diva Jyothika to endorse the brand.Although the ads are dubbed from Tamil in Malayalam , the heavy and constant bombardment of ads never misses the audience.
What is more interesting is the message of the ad. Idhayam means Heart. The brand has its basic values rooted in health platform. I think the brand had this even before the Sunflower brands took over the health positioning.
Idhayam is positioned as an all purpose edible oil. The brand talks about low cholesterol content and great taste.The ad also reminds you that the oil is best to apply on hair too. Health + Taste has been the positioning of Idhayam for years now.
The company later entered the groundnut oil market with a brand :Mantra Groundnut oil.
The success of Idhayam lies in the ability of the company to built the brand. It had been a commodity business but Idhayam added value and now rules this segment. The brand over time has now come out with an innovative marketing strategy " Oil Pulling". This is an initiative of the company to pioneer the concept of Oil therapy in the country. Oil Pulling is the method of rinsing the mouth with oil for Twenty minutes by Swishing the oil between the teeth. According to the company reports, this process effectively cures glaucoma and gum diseases. ( check out the website & doctor before trying it).

Idhayam is a classic example of branding a commodity. The brand is now trying out new markets for its Sesame Oil. Whether it will be successful or not, time will tell

Source:idhayam.com,hindubusinessline

Thursday, November 22, 2007

Transitions : Healthy Sight in Every Light

Brand : Transitions
Company : Transitions Opticals


Brand Analysis Count : 292


Transitions is a niche brand in the 1200 crore Opticals market. Transitions is a pioneer in plastic Photochromic lens market worldwide. The company launched the first commercially viable plastic photochromic lens in 1990 . Transitions optical is a Florida based company formed as a joint venture between PPG Industries and Essilor. The company besides selling Transitions brand of lenses also supplies the technology for leading eyecare marketers across the world.

Transitions lenses are plastic photochromic lenses that automatically adjusts with the changing light conditions. It becomes dark as sunglasses when there is bright sun and become plain when the light is low.
Transitions began its operation in India in 2006 and this year the brand has decided to become aggressive in the Indian market. India is predominately a glass lenses market with a market size of over 75 mn pieces sold every year. The market is moving towards plastic lenses which offers a huge potential for a brand like Transitions.
Transitions is running a campaign in the visual media these days. The brand is positioned on its UV blocking attribute. The ad talks about the danger of exposing to ultra-violet rays and highlights the flexibility of usage of Transitions in various light conditions.
Watch the Tvc here : Transitions
The brand is positioned as an everyday eyewear and helps the customer to do away with having two spectacles ,one for indoor and another for the outdoor. Transitions use the tag line " Healthy sight in every light " true to the positioning of the brand. Priced upwards from Rs 1800, the brand is targeting the premium segment of customers.
The brand is facing an interesting problem in the consumer behavior front. A research by the company showed that Indian consumers spent 65% of the time selecting the frame and only 35% in choosing lenses. Hence the buyer behavior focuses very much on the style rather than the lens. There is again an issue with the branding of lenses. Lenses is still a commodity business and the branding only have just started.
What is making Transitions excited about Indian market is the growing population of IT professional who work across different time zones . The growing cases of VDU syndrome , Computer related eye problems have opened up a huge market for such lenses. These new work related diseases have increased the demand for anti-glare and photochromic lenses.
Transitions has been able to identify the emergence of a new market for branded photochromic lenses in India. The brand faces the competition from unbranded lenses but thee opportunity is too good to resist.
source : FE, Businessline