TVS Scooty : Playful + Powerful

Brand : Scooty
Company: TVS
Agency: McCann Erickson

Brand Count:162

TVS Scooty launched in 1994 is one of the super brands in India. The brand has created and ruled the Scooterette market in India. Scooterettes are sub 100 cc variomatic scooters targeted specifically at the fairer sex.

The brand was an instant hit in the market because of its low price and smart positioning.The brand effectively identified the need for the TG and the product was lapped up in the market. The segment for this brand are

a. College going teenagers
b. Working ladies
c. Even Men

The market can be divided broadly into two based on the customer preference. One set of customers prefer Functionality and another segment prefers style. Scooty has been able to maintain the balance between both.
The entire market for scooters (75-125cc) is dominated by Honda with its Activa and Deo range. Scooty has a market share of about 30% in the segment. The scooterette market is hotting up with lot of competitors eyeing for the share . The latest in the block is the Hero Honda Pleasure which is positioned as a stylish brand exclusively for ladies. The competition also have prompted the players to enhance the power of the scooters.
Scooty has been consistently successful because the brand was quick to change with times.The brand never failed to emulate the competitors when they come up with added features. The brand always had two set of campaigns: one stressing style and the other stressing the functionality.

Scooty has now launched a more peppier Scooty Pep+ with more power. The engine has been upgraded to 90 cc from 75cc. The change was warranted because of the following reason:

a.There is an assumption that ladies/girls prefer less powerful vehicles. Although it is a fact that the segment prefer lighter vehicles, the " powerlessness" is just an assumption. The success of Honda is an ample proof that ladies too prefer powerful vehicle . There is also a distant possibility that the segment preference for more powerful vehicle will increase in days to come. The reason is that those who use these vehicles often need to carry either their kids or their friends along with them. Also the road conditions and the traffic calls for a powerful vehicle.Scooty aims to be the lighter powerful vehicle for them

b. Another factor is the segmentation issue. Scooty is more appealing to the college going girls because of the style. While in the case of working ladies, the segment is targeted by scooters rather than scooterettes. So unless Scooty take this segment seriously, it will be an opportunity lost for the brand. It has to be recalled that their scooter brand Spectra has failed in this market.

Scooty Pep+ is promoted heavily by TVS. The brand is positioned on the basis of Power and Style. The brand got a big boost with Priety Zinta as its brand ambassador. Priety and Scooty gels so well that I call it a perfect example of Successful celebrity endorsement ( my opinion). TVS has been lucky or smart enough in identifying right celebrities to endorse their products like Sachin and Dhoni for Victor and Star respectively.

Scooty also launched another campaign taking the brand to the next level talking about women empowerment and success. The brand is trying to ladder up to a higher state of connectedness with ladies. I think the brand has taken some lessons from Dove and Fair & Lovely which has been successful in laddering up. According to Professor Keller Laddering is the progression from attributes to benefits to more abstract values of motivations.Failure to do so will reduce the strategic alternatives to the brand. ( strategic brand management: Kevin.L. Keller).

The product category of scooterettes are showing more potential in the urban markets in coming days. This category is non existant in the semi urban and rural markets which will be a tough call and in the current conditions, it may not be possible also. The possible competition is from electric scooters and second hand Maruthi cars . Another issue for the brand is to sustain the value proposition for Scooty. Scooty is priced around Rs 32000 which is a premium. It is walking on the thin red line between benefit and cost. The price -value proposition will be biggest challenge for this brand. Having a no frill low cost Scooty has to be there to keep away the treat from the price warriors.

source: businessline,indicar, tvsscooty.com,economictimes,strategicmarketing

Funskool - Welcome to the World of Toys !

Brand : Funskool
Company: MRF


Brand Count: 161

Funskool is the market leader in the Indian organised toys market. Pioneer in marketing branded toys, Funskool was launched in 1988 created a new beginning of high quality toys segment in the highly fragmented industry.

Indian Toy industry is huge. Some reports estimate the size of the market to be around Rs 2500 crore ( some say it is Rs 1000 crore). The conflicting market size estimates is an ample proof that the market is highly unorganised. The organised branded toys segment accounts for only Rs 500 crore. Rest of the market is dominated by unbranded toys.
Although the market for Toys is huge, the market is dominated by cheap imports from China.50% of the market is ruled by cheap imports. The China factor is the single most danger that the Indian toy industry face.

Funskool created in 1987 is a joint venture between the World's largest toy manufacturer Hasbro and the Indian tyre major MRF. The brand ushered in an era of toys with educational value and also healthy ( safe). Funskool has since then evolved into a complete toy manufacturer that also exports toys to other markets.
The Indian toy industry can be divided into
a. Board games
b.Building Blocks
c. Dolls & soft toys
d.Electronic toys
While Funskool leads in board game segment, the players like Mattel and Lego leads in the building blocks and dolls segment. Mattel with its Barbie rules the premium end of the Dolls segment. Soft toys is another segment that is growing fast and gaining popularity. Hanung Toys is a major player in this segment.Funskool have a marketshare of around 25% in the branded segment.

Funskool as a brand faces lot of issues in this market. The issues are more of environmental in nature rather than issues of the brand.
The primary issue is the dominance of unbranded cheap toys that is available in the market. The market is price sensitive and hence the branded players face an issue of showing value for the premium paid by the customers. This together with cheap imports made the life difficult for brands like Funskool.
The reason why people go after cheap toys is the lack of awareness about the hazards of using cheap low quality toys. In India Toys are seldom viewed as a development tool. According to Indian consumer, Toys serve the entertainment need of the kids and to the parents it is an easy way to get relief from Pestering kids. While in more developed countries, parents look for educational or developmental value in toys. This makes the category more price sensitive.

Then comes the lack of awareness of parents about the safety of low priced cheap quality products. Although Funskool and other branded toy marketers have run commericials claiming that their toys to be more safe, majority of the consumers have not bought that idea. The main factor is that there has not been too many issues that have arisen because of the use of local toys. We Indians used to make toys out of nature like toys from coconut leaves, wood etc. Hence to teach the Indians sophistication is a difficult task.

Then there is the issue of creative plagiarism or piracy. The rules regarding copying and reproducing toys are not in place or not executed ( copy right issues ). Thus the branded players are not able to sustain the differentiation based on characters or range. Everything can be replicated in this market without much fuss.

Toys are products with shorter lifecycle. A model will survive in the market for 1-3 years. Hence the challenge for the marketer is to create newer toys frequently. Easier said than done, creating newer toys is a challenging task. In the buying process of toys, the marketer has to consider 3 individual minds and 3 different attitudes. While the child is the consumer, the mother acts as the executor of the order and the father controls the purse strings.

Funskool was perfect in creating and marketing new games and toys. The brand is churning out 70-80 new varieties every year. Positioned on the platform of safety, variety and education, the brand already have a huge equity in the Indian market. The major competitor for Funskool is Mattel. Mattel has its range of Fisher Price brand of toys taking on the Funskool range. Fisher Price is a premium brand in the market and has a huge range of toys and from my personal observation has an edge in the shelf space at shops.I have a feeling that the brand is resting on its laurels recently interms of promotions.Fisher Price also is catching the consumers young by below the line promotions involving young mothers.

While Mattel is ruling the dolls market, Funskool is competing with Barbie using its Sandy range of dolls.
Funskool have been constantly tracking the trends in the toys market. The brand has an agreement with Disney to market cartoon based toys. Cartoon characters became popular with the rising popularity of kids channels. Funskool effectively captured the trend of Bayblade by launching it at an affordable price. Other innovations include Playdoh which is non toxic syntehtic dough which can be used to make different shapes and sizes.

The challenge for Funskool is to encourage the Indian consumers to look at toys at a broader perspective than just an entertainment. Funskool cannot rest now since the market is hotting up with all the players competing for their share of the pie.Products like Playdoh and Sindy needs lot of promotions because those brands have immense potential.

source:domainb,businessline,magindia,funskool.net

Proline : Follow Yourself

Brand : Proline
Company: Bombay Dyeing
Agency: Orchard /Leo Burnett

Brand Count: 160

Proline is a pioneer in the creation of Sports/ Leisure wear segment in the Indian market. The brand was launched in 1983 by the Batra group was one a premium sought after brand during that time. The Indian apparel market is huge with a market size of Rs 18000-20000 crore. There are different versions about the actual size of the branded segment in the apparel market ranging from Rs 2500-4500 crore ( Market size and market share reports are always confusing).

Sports and Leisure wear segment during the eighties were virtually non existent. It would be proper to say that there were no serious effort to brand such apparels. Proline rightfully found the gap. Proline gain prominence in the segment through high profile promotions using sports celebrities. Super players like Ravi Shastri, Sandip Patil, Padukone and other major players from different sports. This created a hugh equity for the brand. Proline was an Aspiration brand for most of the youngsters (middle class) like me during that period. But the brand was premium priced and that kept us from trying out the brand.

Unlike the west, the sports wears are used as casual wears in India. There is little difference between the two segments except for the football jerseys. The consumers used to categories all the Sportswear in the T-shirts category. Proline was successful in projecting a Premium International image in this segment.

Proline buoyed by the success of its brand began retailing initiatives in a big way. The brand was promoted through exclusive shops and " Shop in Shops" in big supermarkets. The owners also began to market international brands like Fila and K-swiss through this retail outlets.
2000 saw the international players entering into Indian market with serious business plans. Brands or icons like Nike , Reebok and Adidas started their brand building efforts. The Pioneer in the market, Proline was dwarfed by the International giants.

Proline could not stand upto the competition from these players . With competition from unbranded players at the bottom of the market together with the onslaught of International brands at the premium end. The brand could not find enough space to fit in.

Proline was positioned as a brand that respect individuality. The brand revolves round the value of " Self Respect" and the confidence gained by accepting what you are. The attitude " Been there and Done That" was exemplified by the campaigns. That is one of the best positioning that a brand can opt for.
But despite the good brand name, first mover advantage and the memorable positioning, Proline was a brand that could not sustain. The brand is said to have a market share of less than 6% in the segment.
The reason for the underperformace are many :

a. Competition from International players and domestic brand: It is interesting to note that almost all the national brands have a casual sports wear range. Whether it is Colorplus or Peter England, T-shirts are available. That poses serious threat to a pure play sports wear marketer.

b. Value: The brand could not sustain the value proposition in the mind of the consumers. Priced at par with brands like Nike, Proline needed to show the customers more value for the premium it was asking for. More over, there were issues of segmentation. Proline never looked at affordability of the brand. With a choice of international brands, Proline had a tough time convincing the customers to stick to the brand. Further the presence of brands like Fila selling side by side Proline was little risky . Unless the brand is clearly careful about its pricing and segmentation, there is a chance that the franchised brand cannibalise the manufactured brand. I am not sure whether this has happened in Proline's case.

c. Distribution : Proline had limited presence in only major cities.

In 2003, the brand changed hands. Bombay Dyeing took 51 % ownership in the brand and that gave the brand an instant access to the distribution outlet of the textile major. Now Proline also has the responsibility of marketing the failed/failing Vivaldi brand of Bombay Dyeing.

Although brand is now with a textile major, the brand is yet to take off. What the brand Proline needs is some fresh thinking interms of Segmentation. The brand may not be able to compete with the likes of Nike at the premium end. But I feel that there is immense scope for a brand at the affordable segment in the casual wear market. For example , in the t-shirt market, there is a scope for Proline to make a mark if it follows the strategy of Peter England ( quality at affordable price). Although there are brands like Classic Polo, crocodile etc, there still space for Proline.

The brand need not do much to revitalise itself because still Proline commands some respect and recall in the market. Price rationalisation and some high profile brand building will definitely rejuvenate the brand and take it to new heights.

source: businessline, prolineindia.com,agencyfaqs,universalgarment news

Essenza Di Wills :Your Essence, Your Soul

Brand : Essenza Di Wills
Company: ITC
Agency: Law & Kenneth

Brand Count : 159

In the year 2004 there was lot of speculation of ITC entering the FMCG personal care segment competing head on with the gaint HLL. Two years later the debate is still on. But most of us did not realise that in 2005 ITC has forayed into the HLL bastion. Essenza Di Wills is the ITC's take on the Rs 480000 FMCG business.

Essenza Di Wills ( EDW) is positioned in the top end of the premium personal care segment. Retailed exclusively at the Wills Lifestyle stores, this brand personifies a fine balance between Classical and Contemporary. EDW is a classic example of building a premium brand. The promotion was low profile and aimed at projecting the brand as an international one.

According to the EDW website, the brand value relies on Exclusivity and is considered as Intriguing Elegant and Sophisticated.The company has chosen Diana Hayden as the brand ambassador.Priced steeply above Rs 1600, this brand is clearly aimed at the super rich.
Although small in size, the premium personal care products has been growing at a rate of 15%.While the entire market is dominated by famous international brands, Essenza may be trying its luck at the bottom of the Premium pyramid.

EDW was promoted during its launch in Visual media and select magazines. The TVC featured a man and a woman in a glass maze. The details of the campaign and the meaning is given in their website. Frankly I did not understand the ad since I am not in their TG. I can say that the ad was intriguing in line with the brand positioning.

EDW has around 16 products for both sexes. The main product is their perfume branded as Inizio. The perfume is positioned as a brand that is exclusivem innate, stylish,sophisticated and magnetic. All the ranges have uniform fragrance thus giving the EDW customers a harmonised fragrance experience. This is a differentiator since most of the time the Deo , the Spray and the aftershave have different fragrance and what come out will be a horrible mix. EDW gives you a harmonised experience.
The brand has an added advantage of piggy backing on the success of Wills Lifestyle shops. Within five years of launch Wills Lifestyle has emerged as a major brand in the premium lifestyle clothing. With excellent distribution strength and the already built in brand equity EDW certainly going to have lot of trial purchases.

Sustaining those customers will depend on the quality of the product. EDW has taken proper care in making sure that the packaging is in line with premium positioning. As we all know in the product category of perfumes, packaging plays an important role in the success of the brand. There is lot of explanation about the meaning of the color and the style of the packaging in their website ( most of which I didn't understand).

In the marketer's point of view Essenza Di Wills is a case of building a global brand. ITC may have mega plans for making EDW a global brand.

source Essenzawebsite, itcportal.com,businessline

Volvo : Redefining Travel

Brand : Volvo
Company: Volvo India
Agency : Grey

Brand Count :158

India is one of the largest market for buses and trucks in the world. With most of the population depending on public transport systems , this product is tied close to the life of an Indian.
Buses come under the category of commercial vehicles and the marketing is mainly business marketing. In business marketing , the concept of customer is different when compared to the Consumer marketing. Here customers are the institutions /companies who uses this product for their business. Hence the branding of business products is a different ball game altogether.

Seldom do such brands become popular at the ultimate consumer level. There are cases where such b2b brands had successfully built equity at the consumer level. Notable examples are Intel , Dupont, Lycra etc. Volvo is a brand that had touched the consumer successfully and made a mark for itself in the Indian market.

Volvo changed the way Indians travel ( I have used this phrase for many brands, bear with me). The Indian bus market is huge with a size of around 10,000 -12,0000 units per month. The market is dominated by Tata with a market share of around 62%. With the economies of scale, distribution network and the equity of TATA serve as an entry barrier for any new players in the Indian market. This is applicable to the Truck market also.

Volvo entered Indian market in 1998 by launching high quality trucks. In 2001, Volvo launched its first bus in India. This virtually ushered in a new era in the Inter city bus travel . Volvo did not entered the city bus market which is the huge market because of the following reasons.
a. The entry barrier created by established players
b. Volume constraints
c. The purchases for city buses are done by state transport corporations. The market is not fully privatised. The STC's are cash strapped and hence they may not be able to afford the high cost of Volvo buses

This prompted Volvo to enter into a niche market of Inter City travel which is privatised and not regulated. Volvo introduced its Luxury bus B7R into this segment. Actually there was no segment called Luxury Bus segment. During the launch the Air Buses ( Not the plane but Bus with Air suspension) was considered as luxury buses. Volvo was A/C luxury bus and thus a new category of Luxury A/C Intercity Buses was created. Priced 2-3 times above the ordinary buses, Volvo offered unmatched luxury for the passengers.

Although priced steeply , Volvo buses made sense for the bus operators. It enhanced the image of the operators, the buses were fuel efficient and ushered in a new segment of customers who switched from rail to road because of these buses. For example , lot of people in Kerala prefer to travel to Bangalore by Volvo rather than take a train.

Volvo had a clear strategy when it entered the truck/bus market in India. It was to have a clear differentiation over the existing players. Hence the company opted to focus on niches rather than go in for mass markets. In the truck segment also , the company focused on large carriers rather than compete with Tatas and Ashok Leyland. Volvo trucks were differentiated on the basis of
a. Productivity
b. Transport economy
c. Customer education ( source: IBEF.org)
For example,the drivers cabin was a/c which ensured that he will not be exhausted even after a long drive and that will make him more productive.
The customers were trained about the products and safe driving methods that helped the fleet owners to get more returns on their investment. I think Volvo certified drivers are having great demand in US. The customers were also trained in optimising their vehicle for better performance. These factors together with excellent quality inspired many fleet owners to opt for Volvo trucks.

In the bus segment,passengers became the brand advocate. Volvo became a generic name for luxury buses. Passengers used to ask for a Volvo ticket rather than a Luxury ticket. The again prompted many travel operators to include Volvo in their fleet. It is to be noted that Indian bus majors were not looking at this segement at all . It another case of marketing myopia. Now after 4 years , Indian companies are thinking about luxury segment.

While Indian companies start thinking about having a product in this segment, Volvo is trying to enter the city bus segment. Here also Volvo is going in for unconventional route. The city bus they have introduced is large and very different from the normal buses that is currently plying. One of the issues that can affect the equity of the Volvo buses is the maintenance of Volvo buses by the fleet owners. To get more out of the bus, there is a chance that the operators put in more seats and reduce the luxury that this bus produce. My first experience with Volvo was not superlative and I felt the bus lacking enough leg space or comfort.

Volvo is a brand that has pioneered the concept of luxury buses in India. It has also showed that in the commercial vehicles segment, the customers look for quality and performance. The fleet owners in both truck and bus segment ordering Volvo is a classic example of " How a marketer can create value in the Indian Market".

source: volvo.com, ibef.org,hindubusinessline,autocar,agencyfaqs.

Ajanta Quartz : From Clocks to Tiles

Brand : Ajanta /Orpat
Company: Orpat Group
Agency: Mudra

Brand Count 157

Ajanta Quartz was established in 1971 and the story reminds us of a typical rags to riches kind. Starting as a small establishment at Morbi in Gujarat , Ajanta rose to become the world's largest clock manufacturer in 1999-2000 clocking 1 crore time pieces in that year.

The company was founded by Odhavjibhai R Patel ( O.R.Patel) who started manufacturing mechanical clocks under the brand name Ajanta. During the mid 1980's , Mr Patel was wise enough the foresee the end of mechanical watches/clocks and the evolution of Quartz technology in clocks. The company was quick to change over to quartz clocks .

Ajanta in a way changed the entire clock market in India. The market for watches and clocks are estimated to be around 30 million units. Surprisingly Ajanta during the eighties was the only Indian manufacturer of clocks. The brand came into limelight by creating a price disruption in the market. The clocks were priced ridiculously low and came in wide variety of shapes and sizes. The ever value conscious Indian consumers did not waste any time to lap up this brand. At one point of time Ajanta clocks were a favorite gift item in marriages. Favorite for the giver, because the product was cheap and had reasonable quality. For the receiver of this gift, he would be left with too many clocks that sometimes you can see more than two clocks in the same room! After my marriage, I was left with too many clocks that some of them are now still in a packed condition. The brand was also clever in coming out with various designs and the blockbuster religion based designs that was highly popular in the Indian market.

But competition was starting to create problems for this brand. Many Indian firms started to emulate Ajanta's business model and the market was flooded with cheap clocks. Added to that the low cost clocks was dumped to Indian market from China. Sensing that the business may soon become unviable, Ajanta tried to set up a manufacturing facility in China to balance the cost equation and to compete with cheap imports. At one point of time Ajanta commanded 70% of the market share.

Ajanta also ventured in to the manufacturing of calculators under the brand Orpat (derived from the founder's name O.R.Patel). In this market also the brand faced competition from the cheap imports.Then came the telephone set market where also Orpat has established itself as a major player.

2003 also saw the company diversify to totally unrelated areas like FMCG. Ajanta launched its toothpaste with much fanfare and tried to repeat the story in clocks to this segment. Ajanta shaked the toothpaste market with its low price of Rs 18 for 200 gm pack while the FMCG majors like Colgate retailed for Rs 54 for 200 gm. This caused ripples in the market and the Goliaths were to a certain extent humbled by the Davids like Ajanta, Anchor and Babool. But this story also went sour with Colgate and Hll flexing its marketing muscles with launching low priced flanker products like Cibaca Top and ended up regaining market share from these price warriors.

The Patels were unfazed by these setbacks and their entrepreneurial spirit should be really appreciated . The group then ventured into small appliances and then to CFL lamps under the Orpat name. In the CFL lamps segment, Orpat quickly established itself again using price as an advantage and is reported to have a market share of 50% in that segment fighting out with Philips. Now the company is venturing into Vitrified Tiles segment under the brand name Oreva. All these diversification are banking on the model of Low price, high volume and Economies of Scale.

Orpat has evolved into an umbrella brand for many product categories . The brand is positioned on the basis of "Low Price " platform. The brand is also facing challenges because of this positioning. Every company which is using "low cost " of production as a competitive advantage faces the problem of sustaining the cost advantage. With the trade barriers becoming a thing of past, most of the companies can take advantage of outsourcing from low cost countries to compete with low price warriors. The problem become dangerous when the Brand is being positioned as a " Low Price " brand rather than a " High value " brand. A classic example of High Value Positioning is Tata Indica where the company is not raving about its price but the value that it delivers.

Ajanta has relied on the distribution strength to build its business with low brand building activities inorder to cut costs.In the initial phases, the brand was very aggressive in promotions. But now the brand is facing competition with brands like Samay who is more aggressive in the promotions front.Ajanta now faces the issue of differentiation because the Price is now not a differentiating factor. The brand also faces competition in the technology front interms of the LCD clocks may replace quartz in future.Theoretically Ajanta should be pioneering the digital clocks if it want to get the first mover advantage.

Orpat as a brand in the electronics and small appliance market will have a bright future if it position in the platform of Value rather than price.


Source: orpatgroup,economictimes,agencyfaqs,businessline