Thursday, January 19, 2006

WoodLand : Are you a Woodlander?


Brand : WoodLand
Company: Aero Club
Agency : Karishma Advertising

Indian shoe market is one of the most dynamic markets in the world. India's production capacity ( not only kids but shoes also) is second only to China. Although there are different valuations about the Indian Shoe Market. It is estimated to be worth around Rs 11000 crores. Some media reports say that it is worth Rs. 93 billion . Any way it is huge.

The market is traditionally price driven and dominated by the unorganised sector. The organised shoe market is dominated by Bata with a market share of 35-40%

Woodland is an Indian Brand ( and am proud of it ) . Launched in 1992-93, this brand has carved a niche for itself. Like what Allen Solly did with the readymade menswear, Woodland has done it with Indian Footwear. In a market dominated by sports and leather shoes ( read Bata and carona) Woodland created a category for itself.
Woodland never wanted to be an ordinary shoe . According to Mr Harkirat Singh MD , he never wanted this brand to be a mass market brand. So till now this brand is concentrating on the premium end ( above Rs 1500 shoes) of 2000 crore casual shoe segment.
Woodland targets the upmarket segment and is positioning itself as a Rugged high quality premium casual shoe. It can be called as SUV of Indian shoes. The ads are catchy and tempting.
The logo of Woodland was a status symbol during the nineties. The brand is excellent in quality and styling . I think that the brand pioneered Suede and nubuck type leather shoes in India. The brand carefully presented itself as an outdoor/ trekking kind of shoe which captured the imagination of Indian youth.
True to its price, the brand delivered its promise on quality which ensured that the brand is perceived as a value for money brand.
Woodland has extended itself to accessories and apparels. Latest reports suggest that the company is serious about promoting its apparel business which constitutes about 30% to the company revenues. Earlier Woodland tried its hand in the formal shoe category with the brand Woods but it did not make much impact in that market.
The careful branding has helped the brand to garner about 40% of the premium casual shoe market. But this market is witnessing lots of competition with global brands flexing its muscle in India.
Woodland is another example of an Indian Super brand.

Wednesday, January 18, 2006

Kiwi : Dont Worry,Be Happy

Brand : Kiwi
Company :Sara lee
Agency : Grey worldwide

Kiwi is the challenger brand in the Rs 60 crore shoe care market in India. Kiwi was an active player in the shoe care market from 1994 onwards. The brand is owned by $18 billion Sara Lee corporation. In India, Sara Lee started as a joint venture with TTK corporation. In 2002, it became an independent venture. Now SaraLee has tied up with Godrej to market its products.

The shoe care market in India is small. This market was dominated by Cherry Blossom from Reckitt and Benckiser which earlier had a market share of 80%. Kiwi was the challenger brand and right now it holds a market share of 40 % and Cherry's market share decline to around 50%.
Kiwi has a history that dates back from 1906 when William Ramsay developed an unusually fine boot polish. He put the Brand name as Kiwi since his wife is a native of Newzealand. The brand grew so big that in 1967, the products were used worldwide under the banner Kiwi International. In 1984, it became the part of Sara Lee Corporation.

Shoe polishes are infrequently purchased products with very less involvement from the customer. Cherry Blossom had a generic brand status in the market. Wax polishes constitutes 70% of the market while liquid polish constitutes 20%.

In order to displace the leader, Kiwi banked on Innovation strategy which the market leader failed to anticipate .
Kiwi was the first one to bring International standard Liquid shoe polish in India .It also pioneered the Shoe shine sponge which was a blockbuster. Kiwi was also the first brand to launch Suede and Nubuck range.

These new product launches and careful campaigns helped Kiwi to have a top of the mind recall for the brand. As in the case of Robin Liquid, which failed to respond to Ujala's challenge, Cherry Blossom also failed to respond. While Kiwi talked about quality shoe care, Cherry Blossom was stuck with Poor " Charlie Chaplin look alike " ads.

Most of the new product launches of Kiwi was in line with the changing consumer preferences. When the consumers opted for semi casual Suede and nubuck shoes, Kiwi was quick to launch Shoe care products for that category.
Today in this hectic rush , seldom do we get time to polish our shoes every day. Understanding this Consumer insight, Kiwi launched Express shoe polish which can be used to shine shoes when you are in a rush. These innovations surely helped the brand to create a market for itself.
Sara lee also markets Metal Polishes and Drainer cleaner under Kiwi brand.

The Shoe care market has all the potential to grow since the shoe market is growing ( Derived Demand ?)


Kiwi is a good example of how innovations can help in challenging a market leader.

Tuesday, January 17, 2006

Vicks: Vicks Ki Goli Lo , Khich Khich Door Karo

Brand : Vicks
Company : P&G
Agency: Ambience

Vicks is a brand that is more than 50 years old. Vicks is a leading brand in the Fast Moving Health goods ( FMHG). FMHG industry in India is worth around 4500 crores. This market is dominated by products like Rubs & Balms, medicated skin treatments,cough syrup and drops, digestives and health supplements.
Vicks Brand was launched in India in 1951 . It was manufactured by Vicks Products Ltd. Later in 1964, Richardson Hindustan Ltd was formed to manufacture the product .In 1985 RHL became the affiliate of P&G. In 1989 RHL became P&G hygiene and health care.

Vicks in India is known for its VapoRub and cough drops. Globally Vicks brand is worth around 3000 crores.

Vicks vaporub is the market leader in this segment with a share of 50%. Vaporub was initially targeted at children but later the company found out that it is used mostly by adults. Vicks Vaporub is positioned along Mother's Love platform . Vaporub pioneered the concept of " Touch therapy" linking it to the rubbing of vaporub on the child's chest. Vaporub advertises itself as having 6 key benefits
1. Clearing blocked nose
2, Cough relief
3. Body ache relief
4. Head ache relief.
5. Relaxing muscle stiffness
6. Easing breathing difficulty.

Vaporub also ranks best among the consumers in the following parameters : Non greasy, Smells better, Long lasting relief. Greasyness was important because Iodex ( a different category product) failed because of greasyness.

The rencent ad campaign also involves " father " in to the picture. The ad shows a father taking care of the child using Vaporub when the mother is away. The smart positioning and campaigns has ensured the brand retaining the top position in the market.

Vicks Cough drop is another blockbuster from the Vicks stable. Vicks commands a generic recall in this category. Using brand imagery and the catchy charachter " Kitch Kitch", Vicks commands a major share in this market. With unique shape and the long lasting positioning "Vicks ki goli lo Kitch Kitch door karo" , Vicks is a super brand in this category .Vicks coughdrops were careful in not messing up "Kitch Kitch" .This has ensured that the brand enjoys excellent recall .The recent campaigns of Vicks-Honey also strengthens the time tested positioning of the brand.

Vicks Action 500 has been in the market for more than 25 years. Launched in 1979 this is the first advertised OTC brand in India. Over these years the brand has carved a position for itself with around 40% market share in the category. This brand which is now relaunched talks about its ability to provide relief from cold related symptoms. This product is in Caplet shape ( capsule shaped tablet) which makes it different from its competitors and reinforces its ability to cure two symptoms of cold : blocked nose and headache .

Vicks Inhaler was launched in 1951 created and own the inhaler category is one of the first products launched in India from Vicks.

Vicks recently ventured in to the 550 crore cough syrup market with its Formula 44 in October 2003. The brand's usp is 8 hours relief from cough. The product is targeted at kids .The insight is that the power of most of the Cough syrups wanes after 5 hours and long lasting relief is the platform that Vicks is banking on for this product.
Vicks is a brand that is enjoying tremendous equity in the market. It has established its trust with thee customers. The FMHG market calls for Umbrella branding since it is difficult and expensive to create trust for individual brands in that category .That is the reason behind Vicks extending its equity across the various categories. Vicks has used careful branding and packaging for promoting the products. The unique shapes of cough drops, inhaler and caplet are examples of using product form as a differentiating factor.
Vicks is a testimony to the marketing genius of P&G

Monday, January 16, 2006

Titan watches : What is your style ?

Brand : Titan
Company : TATA
Agency: O&M

Indian Watch industry is estimated to be around 1600 crores and Titan is riding on top of it with a market share of over 50%.
This is a super brand that has changed the way we look at ( or wear) watches. A marketing success story, Titan is a brand that will be of interest to most of the marketers.

Titan , a brand from TATA was launched in 1987. During that time Indian watch market was dominated by HMT . At that time watches were seldom stylish and was catering to the basic need of knowing the time. Titan changed all that. With its stylish watches and smart advertising ,Titan took the market by storm. Titan infact changed the way watches was manufactured and marketed in India.
HMT , a public sector company seldom bothered to respond.

Titan initially pioneered the concept of " Gifting watches". The ads captured the essence of gifting and along with the trendy music, easily caught the imagination of the market.
Customers who were fed up with ugly time machines welcomed the brand and Titan had a dream run for many years.

Titan faced lot of problems later when the competition began to eat up the lower end of the market. Besides that, there was another problem. The brand was lacking innovation. To be more precise, the customers were bored by Titan.There was nothing new. Gifting proposition was no longer working .

During this period, Titan made a big mistake. It wanted to play the volume game. For that Titan launched another brand Sonata. Sonata was a huge success because it was a cheap product but at the cost of the mother brand Titan. Titan was perceived to be a premium brand but with Sonata ( at that time " Sonata from Titan") endorsed by Titan took away the premium image from the mother brand. It was a big costly mistake.

Titan realised this mistake and took away the Titan brand from Sonata. Now Sonata is endorsed by Tata not Titan.

Titan realising that the market wanted something to be excited about watches began an extensive marketing campaign. Titan carefully segmented the market and developed different subbrands for each segment. Sub brands like Edge, Steel, Dash, Nebula , Classique, Royale, Fast Track , Raga, and the recently launched Wallstreet . By having various products / models and subbrands, Titan was able to create freshness about the brand.

Titan also moved away from gifting . Titan was positioning itself as a fashion accessory rather than a time keeping device.
Titan also found its persona in Aamir. Aamir provided the much needed edge to the brand. Titan was careful in keeping the brand above the celebrity.
The ads were fresh and neatly executed.

Titan also was pushing another strategy . Watches was perceived as a one time buy and consumers seldom owned multiple watches. So Titan pushed the concept of " Matching Watches to Clothes" in the recent commercials.

Since men are becoming more serious customers of fashion accessories, this is strategy that is worth trying out. For Titan, even if the concept fails, It has created the much needed freshness in the brand.
Titan also made its presence in the ladies watch segment. It have a sub brand Raga targeting the upwardly Mobilee ladies in the premium segment.
Titan also relaunched the FastTrack brand of watched aiming the target segment of 18-30 yrs old.
Earlier Fasttrack was targeted at 20-25 year olds and positioned along the line " Cool watches from Titan". Then the company found out that the youth in the age group of 11-20 years account for 42% of watch buying in India. Based on this insight the company relaunched the brand lowering the target segment to 18-30 year olds with the baseline " How many you have?". Again the strategy aimed at promoting the multiple watch owning concept. Fasttrack also launched a range of fashion accessories like Sunglasses trying to be a lifestyle brand.

Indian watch market is clearly segmented and lot of serious players are fighting out in these segments . The lower volume segment has HMT, Sonata , Maxima fighting it out. The mid segment has Titan, Timex etc and the premium segment has Titan ,Citizen etc. The super premium segment is also hotting up with lot of international brands setting shops in India.
Titan has carefully created a market for itself through careful segmentation and branding strategies.It is a brand that showed the world that Indians are good in Branding.

Friday, January 13, 2006

Yezdi (1961-1995) : RIP



Brand: Yezdi
Company: Ideal Jawa India Ltd

A brand that was once the heartthrob of Indian urban Youth is now resting in peace...

A case of marketing myopia...

I am not sure why I chose this brand , may be because of nostalgia. During my school days me and my brother used to argue as to whether Yezdi or Bullet is the best.

This bike was manufactured by Ideal Jawa Ltd with technical collaboration with Jawa of Czechoslovakia. Ideal Jawa started its operations in 1960 .Yezdi ( that time Jawa ) was in Indian roads from 1961. During 1960's Indian roads were ruled by scooters. Bikes were not at all popular due to mechanical issues and low mileage.

During that period , there were only three serious players in the Indian motorcycles market. Bullet, Rajdoot and Ideal Jawa. Rajdoot was popular in rural areas because of sturdy suspension. Bullet and Jawa were popular in the urban market.
Yezdi was targeting the youth with the positioning of " Forever Bike Forever Value" . Since it was a seller's market, what ever that was produced were lapped up by Indian consumers.

1980's saw a sea change in the Indian two wheeler market. Japanese technology entered the Indian market through joint ventures. The market saw lot of new 100 cc bikes which were more fuel efficient and easy to ride.
Ideal Jawa was having a blind eye. It refused to accept the realities. When the consumer attitudes changed, Jawa refused to change . Customers wanted Bikes that offered mileage, style and comfort. Japanese bikes provided all that. This period also showed the shift of Indian consumers from scooters to motorcycles.
Yezdi had serious mechanical issues, especially the starting trouble. One had to pump about 20 times to get that machine started. It had no chance before the peppy new generation Japanese bikes.
Yezdi realised this late and came out with some design changes and new launches like Roadking which had a new styling. But it was too late.
Failing market and labour problems took its toll on Ideal Jawa . Yezdi was laid to rest in 1995. Had Yezdi changed its products in tune with the customer needs, we would have seen a lot of this bike on Indian roads. but alas ....
Once an Icon, Yezdi has now faded in to the annals of history.

Thursday, January 12, 2006

Parker : Why use a pen that's not a Parker!

Brand: Parker
Company : Luxor Writing Instruments Ltd
Agency :Lowe
Indian writing instruments industry is worth around 1600 crores . Luxor is a major player in the market with a market share of around 15%.

Parker is a brand that is well established in this market. Parker is manufactured and marketed in India by Luxor Writing Instruments Ltd (LWIL). Parker was launched in India in 1996. Luxor had a joint venture with Gillette which owned the brand at that time. In 2000 Gillette sold the brands to $9 Billion major Newel Rubbermaid. That included the 50:50 joint venture with Luxor. Later the Jains bought the entire stake in the joint venture. Now LWIL have the 100 right to manufacture and market Parker Pens in India.

The writings instruments market can be classified into premium, middle and economy segment. There are many established players in this market like Reynolds, ADD Gel,Todays, Camlin etc.

While the premium segment is dominated by super expensive brands like Mont Blanc , Cartier etc, the economy segment is dominated by local players. All the action is in the middle segment which consists of College students, Executives Businessmen etc.
Parker pen was born in 1888 in Janeswille Wisconsin US. The pen was created by George Safford Parker who was a teacher of telegraphy. He started the business as a source of additional income.
The famous Arrow Clip that is the trademark of Parker was created by Joseph Platt in 1933.
Parker pens have a rich heritage. The treaty of peace ending the 1898 Spanish- American Civil war was inked using Parker pen. Sir Arthur Conan Doyle drafted the stories of Sherlock Holmes using Parket pen. The list contains the Who is Who of American History.

Parker was considered to be a premium brand in India ( before Mont Blanc and Co's landed with rs l lakh and above pens) . The brand had an aspirational value attached to it. Then LWIL decided to shed the premium image to play the volume game.
Earlier Parker was priced above Rs100. Research found that the price put off a large segment of the market. The market was dominated by Reynolds ( again a Rubbermaid brand) marketed by GM Pens. The TG for this segment was the school/ college kids and this segment was growing. Reynolds is leading with a market share of 12% and Luxor umbrella brands are next with 10% market share followed by players like Cello and Todays.

Parker then launched Parker Beta for Rs 50 aiming this segment and play the volume game.

Parker is endorsed by none other than Big B. Some ads are lousy and some very good. I like the ones with the baseline " Why use a pen that's not a Parker" .

Since the lower segments of the pen market lacks brand loyalty, BigB can make a difference . LWIL by using BigB aims to connect and identify with young and old alike.

There are other players like ADD Gel which carved a niche in this crowded market with their Gel pens. Now Gel pen market is worth around 350 crore.

Parker was a brand that had the elegant premium touch to it with its rich tradition and quality. But with the launch of lower priced Parker range, the premium and the exclusivity has been compromised . Now the Parker range is available from Rs 50- 5000. Big B to certain extent salvage the pride of Parker. But when the brand tries to play the volume game, it is difficult to sustain the premium. Thus Parker is losing out the Executive segment where pens are used as Accessory. Its is a void that is waiting for a brand.

As one of my colleague after buying a Parker Beta commented " Parker has become Cheap".

Wednesday, January 11, 2006

Sunfeast : Spreading the smile


Brand : Sunfeast
Company : ITC Ltd
Agency " FCB Ulka

Can a cigarette manufacturer succeed in marketing Biscuits? What do management thinkers say about unrelated diversification? Unrelated diversification will succeed if it is based on the core competency of the firm. So What is the core competency of ITC that is being leveraged when it decided to enter the Foods market. ITC relies on three core competencies

1. The depth of distribution

2. Its brand building capabilities.

3. The ability of Quality outsourcing.

Sunfeast has been a success because of these three competencies of ITC. Sunfeast was launched in 2003 was one of the diversification forays of ITC which wanted to establish itself as a serious FMCG player from its position of Tobacco products leader. ITC had the advantage of the well entrenched distribution setup which is matched only by HLL.

Indian biscuit market is estimated to be around 4500 - 5000 crore. The market is dominated by Parle and Britannia. Parle is the volume leader with brands like parle- G, Krackjack and Monaco while Britannia is the value leader with brands like 50: 50, milk bikis, Tiger, Goodday etc. The biscuit market has now moved from the core Glucose base to more value added categories. The key markets are UP, Maharashtra, and Tamilnadu. The percapita consumption of biscuits in India is only 1.2 kg per annum while the percapita consumption is 15 kg p.a in developed nations. While the glucose biscuits are popular in Rural India , Urban market prefer Cream biscuits.

To establish a brand in this tough market was never easy. Sunfeast using heavy promotion and careful brand building have already garnered 10% market share in this market. Sunfeast is positioned as an exciting brand. This platform is supported by a series product launches. Since Biscuits are convenience goods , new tastes and new products are essential to built excitement in the market. Sunfeast have maintained continous series of new launches like Milky Magic, Coconut, strawberry, pineapple cream etc. Recently Sunfeast launched a product for the premium segment named " Dark Fantasy" with chocolate flavour and cool advertisements.

Sunfeast have used the baseline " spread the smile" as the brand essence and the brand is endorsed by Shah Rukh Khan. The use of SRK makes sense since the TG is mainly kids . SRK have the energetic persona that goes well with the brand. The mascot of Sunfeast is the Animated Sun which is the symbol of contentment, satisfaction and Pleasure. This mascot has been well received by the TG. The ad campaigns are catchy and full of colors and excitement. The product is also of very high quality. Thus Sunfeast has managed to get all the winning combinations in the right mix.

Sunfeast is also trying to garner more share in the Marie category which is estimated to be around 600 crore. It launched the Marie with different flavours that has enabled it to gain a strong foothold in that category. To expand the brand in to the snack category Sunfeast has launched Pasta Treat which talks of a healthy snacking option for kids.

Sunfeast also uses lot of Below the line promotions for brand building. It sponsors Sunfeast Open, a recent initiative aiming at the school kids by providing them an opportunity to enhance creativity through painting competitions, " Hara Bano " campaign which set a world record in planting maximum number of saplings etc.

The constant product launches and careful promotions have enabled Sunfeast to move to the top league in the biscuit market with in a span of 3 years. We may see this brand expanding to many categories .Hope they don't mess the brand by extending it to underwears.

Sunfeast : A marketing success story.

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?

Monday, January 09, 2006

Amaron : Lasts Long , Really Long . TingTong !


Brand : Amaron
Company :Amara Raja
Agency: O&M

Amaron is a disruptive brand in the automotive segment. Launched in mid 2000 , this brand has created some excitement in the rather dull automotive battery market in India. Amara Raja has been a leading player in the industrial battery segment. In 2000 they forayed in the lucrative Automotive battery market which is predominantly dominated by players like Exide.

Automotive battery market can be categorized into two: OEM and replacement market. OEM segment is dominated by established players while replacement market is dominated by local players and other non branded batteries.

Car Battery replacement is viewed as a grudge purchase by the car owners. No one thinks of battery until it breaks down. This product comes under the category of High Involvement and Low Interest product. We can consider this as a slow moving consumer good .
Amaron wanted to differentiate itself from the existing players in the market. It had to do so because the product category is SMCG with low interest. So the question is how to create that excitement. The Indian automotive battery market is worth around 1200 crore. Organised players constitute 40% of that market.
The first thing the company has done was to create the product differentiation with respect to the product feature. Amaron decided to bringout the Zero maintenance battery into the Indian market ( I think it is the first company to do so). That means that we needn't check for the water level and so on.
Amaron also ensured that the product commands the best quality so that the product can be positioned as a premium brand.

Then came the form differentiation. Conventional batteries were all looking alike with a transparent body and blue/ red top. Amaron decided on a black body with fluorescent green logo splashed over. There was also another reason for the black body. There is a possibility of government regulations stipulating the use of Recycled plastics for battery. Amaron is using such plastics so it need not effect the changes once the regulations are implemented. And since the water level needn't be checked, Black body will have no problem for the customers.

The purpose of using fluorescent green was that since our country is very hot, the color should stay in Promotional materials , hoarding and in the product. So green was chosen.

Then came the differentiation regarding the advertising. Amaron decided that it will do the breakaway advertising. Traditionally conventional battery ads seldom sells battery. It is the sheer distribution and the presence of well established brand name that does the selling.
So Amaron wanted its ads to look different and establish the brand name in this crowded market.
So O&M decided to have a un-battery like campaign for Amaron. For the first time in India "Claymation" ie using clay models + animation was used for advertising .Amaron ads were classic examples of " Clutter busting". The ads were attention grabbing and outright funny. It won many awards for the agency and Amaron grabbed 6% market share in a short span of time. The Amaron Campaign Pandu Mangal has been well received by the public and research shows that Amaron has a top of the mind brand recall . The ads coupled with claymation and hyperbole effectively communicates the positioning of " lasting long" . The jingle "TingTong" has also been a smash hit.
This is a brand that is a classic case of smart marketing and careful differentiation. I hope this brand " Lasts Long, really long" ( I just bought one for my car !) Ting Tong.

Saturday, January 07, 2006

Colorplus : Underwear ? ... a rejoinder

In my earlier blogs I have praised Colorplus owners ( Raymonds) for their careful brand strategy and execution. I have in that blog wished that Raymonds will not mess up that brand. Seeing today's newspaper, I got the shock of my life , an ad of Colorplus Underwear. One of the best Brand Extensions I have ever seen in my life !!!

Let us see the rationale behind this wonderful extension. Colorplus is a respected brand in the premium menswear category. Men wear underwear. So men in the premium segment wear Premium Underwear. So why not launch a Premium Underwear ?. And since Colorplus is a premium brand, why not launch a Colorplus underwear?

Will it dilute the mother brand? No yaar, it is premium isn't it? Underwear always add value to the premium image of the brand. Oops !!!
Can it be called a backward integration ? May be a better word will be "undergration".

Well! enough of criticism! I thought I will do some research to find out why such a drastic move from Colorplus.
Hold your breath !
The Indian men's Innerwear market is worth around Rs 2500 crore ( I am also surprised!). The market is dominated by local and regional players. The organized branded innerwear market is estimated to be around Rs 750 crores. The premium innerwear market is worth Rs 120-150 crore.More interestingly this is a market which is witnessing a double digit growth.
No wonder ColorPlus is caught "Pants down"

The men's innerwear market is dominated by VIP with over 20% market share. The brand has been there for long and has established itself across the segments. Recently there has been lot of activity in the premium segment of the market.
2004 saw the launch of Hanes innerwear in the Indian market.Hanes is a 105 years old global brand which is worth around $2.2 Billion. The brand is launched in India by Sara Lee India Ltd. Hanes has targeted itself with "original Tagless Comfort". The emphasis on "Tagless " comes from the global research which showed that 2 out of 3 men are irritated by the tags in the innerwear. The brand is launched in India with some smart advertising from Mccann.
Another major player is the 125 years old global brand Jockey which has around 25% share in the premium segment of the market. This year also saw the Vanheusen brand from Madura Garments "Undergrating "to Underwears

But should you launch such innerwear through an extension?. This is a big market with a potential for a new brand. 2500 crore is a huge market. Why not a new brand exclusively for innerwear like VIP? Why should a Brand like Colorplus be diluted by a half hearted move in a new segment?
See the distribution dilemma that the brand will face .
To have a large market share , the ColorPlus innerwear has to be in all the shops that sell innerwears, that include small textile shops. If the company decides on an intensive distribution, then this premium brand will be visible to the customer in non premium outlets thus diluting the premium image and the exclusivity.
Again if the brand is restricted to select outlets, then the volume will not justify the brand extension, because convenience of purchase is an important criterion in this segment since the value of the product is low.Customers may not travel to a large textile shop to make such a purchase.

Well , If Colorplus is a brand that has been nurtured through careful advertising , this is an extension that could have been avoided.




Friday, January 06, 2006

Maggi : Its different


Brand : Maggi
Company: Nestle
Agency" Publicis

Maggi owned by Nestle is a brand that created a category for itself in the Foods market in India. The brand which is famous for the Noodles has evolved into the umbrella brand for Nestle in the Food segment.

Nestle launched its noodles in the Indian market in the early 1980's. Nestle wanted to explore the potential for such an Instant food among the Indian market. It took several years and lot of money for Nestle to establish( I would say create) its Noodles brand in India . Now it enjoys around 50% market share in this segment which is valued at around 250 crores.

Maggi has faced lot of hurdles in its journey in India. The basic problem the brand faced is the Indian Psyche. Indian Palate is not too adventurous in terms of trying new tastes. That may be the reason why we are still stuck with Idli and Sambhar.
So a new product with a new taste that too from a different culture will have difficulty in appealing to Indian market.

Initially Nestle tried to position the Noodles in the platform of convenience targeting the working women. But it found that the sales are not picking up despite heavy promotion .Research then showed that Kids were the largest consumers of the brand. Realising this, Nestle repositioned the brand towards the kids using sales promotions and smart advertising.
Now Indians are the largest eaters of Maggi Noodles in the world. Maggi Noodles is a marketing success story.

During 1997 Maggi changed its formulation. It was during that time that Indo Nissin - a Japanese company launched its Noodles brand "Top Ramen" with lot of promotion and with SRK endorsing the brand. TopRamen gave Maggi a run for its money. The change in taste of Maggi was a mistake. The consumers rejected the new taste of Maggi. And in 1999 Maggi relaunched Noodles with the original taste. Nestle was ready to accept the consumers verdict and it paid off handsomely. Top Ramen could not sustain the growth it had for long.

Maggi's campaigns were revolved around its "convenience to make and good to eat " qualities. Ready in " 2 minutes " was a proposition that was well received by the market.

In 2005 Nestle made a very smart move. It knew that although kids love noodles, the parents were bothered about the health aspect of Noodles which was made of Maida. Hence Maggi launched Maggi Atta Noodles with the baseline " taste bhi health bhi" .Reports suggest that after 10 months of the launch , the product has been well received by Indian consumers. Maggi noodles is an example of a brand that knows the customer and willing to learn from the mistakes.

Maggi also tried to leverage the success of the Noodles to other food products like sauces , tastemakers , soups etc.
Maggi sauces needs special mention because it is another success story. Maggi have a market share of 45% in the 180crore ketchup market in India. Maggi leveraged the brand equity very effectively. The product quality was good and the communication was excellent. The brand was positioned as a "Different" sauce with the baseline " Its different".

Customers was intrigued as to what is different about the brand and was curious to try the sauce ( may be surprised to find nothing different,but that is marketing honey!). The ads featuring Javed and Pankaj kapoor was superb and funny. It was created by JWT. The new campaigns are handled by Publicis and the baseline has been changed to " enjoy the difference".
There was no need to change the baseline,may be ad agencies have an ego problem in accepting the creativity of another agency. So agencies change the baseline even at the cost of the brand.In this case even though the new baseline " enjoy the difference" was not very different from the old one, was it a change for the sake of change ?
I strongly feel that the brand managers should take the ownership of the brand and the way it is communicated. If it is left to agency alone, every time the agency changes, the communication changes.
Maggi after its long and tough journey is enjoying its well deserved success. Let us wait and watch for more journeys of Maggi.

Thursday, January 05, 2006

Pond's : As beautiful as you want to be !

Brand : Pond's
Company : HLL
Agency : O&M


Pond's range of products were in India from as early as 1947 . This is a brand that has celebrated Women's courage and personality. A brand that has tried to evolve with the changing persona of Indian Women.

Theron T Pond, a Pharmacist from Newyork introduced " Pond's Golden Treasure" in 1846. It was a Witch-hazel based wonder product. In 1914, Pond's introduced the cold cream and vanishing cream and that moment marked the brand's evolution to a beauty icon.

In 1955, Pond's merged with another company Chesebrough. In 1987, Unilever purchased the brand from Chesebrough- Pond's.

Pond's is a brand that has been carefully nurtured by HLL. Till 1980's Pond's were a household name in talcum powders. Later the talcum powder faced competition from other categories, we call it as boundary blurring. Hence Pond's had to enter to different categories in the cosmetic market. Pond's have a market share of around 65% in the 600 crore Indian talcum powder market. Subsequently Pond's also became a generic name in the Winter care market. Pond's brand was known more during the nineties for its cold cream.

HLL decided that the brand have potential to grow in the cosmetics market. So Pond's was positioned as an all purpose skincare brand. The Indian cosmetics market is estimated to be around 1850 crore and in that the skin care market is estimated to be around 1300 crores.

In a survey on customers by AC Nielsen ORG Marg in 2003 , Pond's were among the most trusted brands in India. It was not by accident. Pond's had certain qualities that created a trust among the users of the brand. Pond's is known for

consistent Quality
Constantly Improving &
Changing with times.

I feel that all brands should have these qualities to succeed in the market.
Pond's knew the pulse of the market which made it a top brand in the cosmetic industry.
Pond's is targeting at the premium skin care market in India which is estimated to be around 325 crore. Currently Pond's is also aiming at the super premium segment and the launch of super premium range is expected in first quarter of 2006.

The target group that Pond's is aiming are the ladies above 30yrs of age. It is trying to capture the skin care needs with anti- ageing ,skin rejuvenation and anti- wrinkle products. Currently this segment is dominated by Revlon and other foreign brands.

Pond's uses the baseline " As beautiful as you want to be " I consider it as one of the best baselines currently on air. It tries to redefine beauty as something more than superficial. The baseline of Pond's cold cream " Googly Woogly Woosh" does not convey any meaning but the ads are lovely.

I have serious reservations of other ads of Pond's but I hope it appeals to the target market.

Pond's is a brand that is not complacent. In the talcum Powder category , Pond's have many variants like Dream Flower, Sandal, Prickly Heat ,and recently relaunched Magic. This has ensured that the leadership position remains intact.

Pond's is a brand for " Well grounded, self assured, and confident " women. HLL have used campaigns and events ( the prestigious Pond's Femina Miss India) to create and capture the beautiful moments in the life of the Indian Women.

Wednesday, January 04, 2006

Ujala : Char Boondom Vala

Brand : Ujala
Company: Jyothi Lab
Agency: Situations Advertising and Marketing


Ujala is a brand that revolutionized the fabric whitener industry. I consider Ujala as a super brand(although it is not considered by Super brands ) because
1. It changed the usage habit of the target market.
2.It dislodged the leader
3. It created a category for it self.
4. It has become a generic name.

You can seldom see such brands.

Ujala was launched by Jyothi Lab in 1993 in south India and its national launch was in October 1997. At that time liquid fabric whitener was non existent category. The category that was existent was the powder blue and was created and dominated by Robin Blue from Reckitt and Coleman. Robin Blue was generic brand at that time .

Ujala was not seen as a competition for Robin by Reckitt -a typical case of marketing myopia. The reason was that Robin commanded a huge market share and the liquid form required customer education and that is a hell lot of money to be spent on ads.

Reckitt was wrong. There was a customer need waiting to be satisfied.Powder blue had its inherent disqualification. Customers were not fully satisfied with the product. Ujala provided the solutions. Powder blues were messy, had to be used in large quantities hence less value for money, even after rinsing, there were traces of blue on the clothes etc. Reckitt was also slow in responding to competition. The liquid variant of Robin came very late.
Ujala carefully positioned itself as a
1.Reasonably priced
2. Conveniently packaged
3.Superior whitening
alternative to Robin Blue. Mr. Ramachandran who is the Chief Executive of Jyothi Lab was a marketing genius . He spent a lot of money on smart advertising. During 1990's the jingles of Ujala was all around in the radio.
From 26% in 1998, Ujala commands a market share of 70% in the category now.

Ujala campaigns executed by Situations Advertising is known for its simplicity and effective use of jingles to promote the brand. The Jingle " Aya Naya Ujala Char boondom Vala" effectively communicates the brand attributes.
It is also interesting to know that the consumers use around 3-5 drops of Ujala. That shows the trust that customers have in the brand.


Although we say that changing the usage habits of Indians is the most difficult things to achieve, Ujala is a brand that showed it is possible

Tuesday, January 03, 2006

Close Up : Kya Ap CloseUp Karthe hain?


Brand : Close Up
Company: HLL
Agency:O&M

CloseUp is the original youth brand in Indian toothpastes. Launched in 1975, this brand is the first gel toothpaste aiming at the youth segment. HLL through CloseUp have created and owned a segment for itself.
The 2200 crore toothpaste market that was dominated by Colgate Dental Cream needed some competition and Hll used CloseUp effectively to fight the market leader.CloseUp was a disruptive brand that changed the structure of toothpaste market in India. With the red colour and smart advertising , it forced the market leader to change its strategy and launch a gel variant.
The customer insight was that people are conscious about their breath and want to get close with each other with confidence. Based on this insight the brand was positioned on the Fresh Breath platform . The campaign was executed showing "Happy couples having fun together". Even film Theatres had corners called as "Close Up Corners". The brand had the aspirational persona in it. Close Up have used films and filmi songs to appeal to the Indian youth. Close Up was the first brand to introduce the " Self Check" of breath. The famous " HA HA" was the idea of Close Up introduced in year 1987.
In 2004 Close Up again was relaunched. During that period, the fight between Pepsodent and Colgate was hotting up. Both of these brands were owning the oral care platform and CloseUp 's share was coming down. Close Up found that its mono-attribute focus is losing the sheen .Hll relaunched CloseUp With Vitamin and Flouride . Thus CloseUp offered more than Fresh Breath it also offered Oral Care.
Close Up launched lot of variants that bombed in the market. The variants like Oxy fresh and Eucalyptus Blue failed in the market. HLL decided that only the Lemon variant will continue. The reason behind the failure of variant is because Close Up is a Sensorial brand. And in such kind of brands, variants will not work. In categories which are more rational, variants will work.

Colgate have given a run for money for Close Up with their gel variant. The "Talk To Me" campaign was a run away success. Colgate failed to capitalise on that campaign- that is another issue. But the gel variant took the breath out of Close Up.
Close Up had to reinvent to keep the category that it created. The account was shifted from JWT to O&M. Now the mother brand is focusing on three attributes : Fresh breath, White Teeth and Strong Teeth.
O&M have brought out a campaign " Kya aap Close Up Karthe Hain" which was perceived as "cool" among the market.
The recent campaign which aims at positioning on the "Smile " factor is a damp squib, the campaign is poorly executed and treats the target market as a bunch of adolescents who will do any thing to attract the opposite sex. Indians never was bothered about the way they look, let alone how their teeth look like. That is why 33% of urban market is not using tooth pastes and 67% of rural still use the traditional way of brushing teeth like neem sticks. So when the ad shows that a young person being conscious about their teeth, it does not click.( my opinion). I guess the agency have run out of ideas.

This is a brand that have created a category for itself. It will be sad if it cannot dominate that category. But that is what marketing is all about " survival of the smartest".

Monday, January 02, 2006

Pears : Pure and Gentle


Brand : Pears
Company : HLL
Agency : Mcann Erickson


Pears is one of the oldest soap brand in the world. Launched in India in 1902, the brand commands a unique position in the mind of the people. There is still virtually no competition for the brand in its segment.
Pears is unique from other ordinary soaps in that the glycerin is retained in the soap. Pears is famous for the transparency and company shows it as the sign of purity. The soap is mellowed under controlled condition and is individually polished and packed in cartons. The traditional Pears is amber coloured and there are two variants.

Pears originally was born in London in 1789. The makers of the soap were A&F Pears London owned by Andrew Pears and Thomas J Barratt( who is considered by some as a pioneer of advertising). They developed the 3 point strategy in promoting pears 1. Spot the gap in the market 2.Develop the product to fill the gap 3. Convince as many to buy the product. These three points are still valid in contemporary marketing. Even during that period, the product was promoted by smart advertising. The makers, co-opting with John Everett 's painting "Bubbles", blurred lines between ads and Art. They even came out with controversial ads at that time to promote the brand.


In 1917 Levers acquired the brand. In India Pears targets the premium segment of the market. Although the brand has a legacy, it is lagging behind Dettol in the category with a market share of around 4-5% in the segment and less than 1% in the overall soap market.
HLL has tried to strengthen the brand with two variants : Blue for Germ fighting and Green for Oil Control.
Of late , the brand is facing competition from Doy Aloe vera which offers similar quality at a reasonable price.
Hll has always supported the brand with careful advertising. The brand is promoted with the positoning as a Pure and Gentle soap. The transparency of the soap acts as the visual cue for purity and the glycerin content as the sign for gentleness. Pears commercials highlight the virtue of the soap using Mother and Child as the central theme . "Pears Mother" is used as the central character to appeal to the emotions of the target market.
Although this brand has been carefully nurtured, the brand remains a niche player in the soap segment.