Friday, July 17, 2009

Brand Update :Margo

It has been a long time since I wrote about Margo. Margo was virtually silent all these years and I even thought that the brand was dead. Recently I was pleasantly surprised to see a television commercial for Margo. In the article I had recommended that the brand should take the help of a celebrity.

One of my readers had earlier pointed out that the brand had roped in Rani Mukherjee as the brand ambassador . It was the first time that I saw the ad of Margo featuring Rani.

Watch the commercial here : Margo TVC

I am not sure whether this is an old TVC . Reports suggest that Rani Mukharjee was roped in as brand ambassador in 2008.

I am glad that Margo is trying again for a comeback. I also appreciate the fact that the brand is relying on its heritage and the core advantage of " Neem " ingredient.
Margo faces two issues in this relaunch attempt. First is the product qualities. Margo is well known for its " Pungent Smell " and non-lathering properties. That perception is still there in the market. Hence the task for the brand is to change the product by changing fragrance and making it lather more. I have not used the new Margo , hence could not comment on the product features.

The second issue is with regard to the celebrity. Rani is not at her career best and that can have some negative influence on the current brand efforts. How ever, the fortunes of these bollywood celebrities are highly unpredictable. I had earlier commented that Aishwarya Roy is a better choice of a brand endorser than Kathrina Kaif. Further events have proved me wrong and now Kathrina Kaif is a hot property.

The message in the current Margo relaunch is also laudable. The brand is taking the risk of being branded as Mama's brand . The campaign is making this as the USP and banking on its heritage.

In a smart move, the brand has launched a Rs 5 sample pack which will enable lot of sampling for the brand. If the brand is able to prove its worth, Margo will once again will be on the growth path.

Let us wait and watch the response of consumers to the current relaunch.
Related Brand
Margo

Wednesday, July 15, 2009

GenX :Define Your Body, Inspire Your Mind

Brand : GenX
Company : Lux Hosiery Industries
Agency : Prachar


Brand Analysis Count : 408


If you are a regular reader of Economic Times Brand Equity, you will never miss this brand. GenX is a brand from Lux Hosiery which is famous for its Lux brand of innerwears.
GenX is a premium brand from Lux Hosiery. The brand was launched in the mid 2000 .

Although GenX is a premium brand, it is best known for the controversies generated because of their ads. The brand had a television commercial in 2006 which was later banned by the ASCI because it was of bad taste.

I think the brand learned some lessons from that controversies. From 2006 -2008, GenX was little silent. Now the brand is a regular advertiser in select media.

The brand had chosen a very different approach towards advertising ( my opinion). In most of their print ads, there is not much copy and sometimes just a model wearing the innerwear.As a customer, I felt intrigued by the ads and frankly I thought that it was an international brand.

The brand also seems to follow the United Colors of Benetton approach ( minus controversy). I remember the brand using a white and black models in their ads.
When we use less copy in advertisements, the product has to speak for itself. It is a risky strategy where the brand is expected to make the statement . In the case of GenX, the brand stands out and speaks for itself.

GenX is fighting with giants like Jockey and a whole set of extensions of Van Heusen , Color Plus etc. Hence the brand has to create an international appeal to fight with these brands.

I have not seen any ad of GenX in other magazines. I think the brand is limiting its exposure to Brand Equity and the likes. But I like the approach of the brand and the statement it is trying to make.

Monday, July 13, 2009

Brand Update : Yamaha

Yamaha has launched (relaunched ) Fazer in the Indian market. Yamaha India is clearly on overdrive with the success of R15 and FZ range. Fazer is a 150 cc bike priced around Rs 72000.
Fazer came to India in 2004 as a 125 cc bike. The bike was different from others because of its unique twin headlamps. But the bike got a lukewarm response from the Indian market.

Now Fazer comes with a new 153 cc engine and a terrific styling. In my earlier post on Yamaha , I had compared the Fazer 125 cc with its global counterpart and criticized Yamaha for bringing in a stripped down version of Fazer.

Now that complaint has been taken care of. The new Fazer looks exceptionally cool and stylish.

Fazer is targeting the bikers who likes to live their life on their motorcycles. The brand is being positioned as one ideal for those weekend getaways.
The brand is currently running a TVC : Watch it here

Fazer has the tagline of "Touring Spirit " which reflects the brand's positioning.

Yamaha has identified its core brand DNA. Yamaha has found that its success lies in performance bikes rather than those volume driven underpowered bikes. Yamaha is now reinforcing its brand DNA by bringing in models that drive performance and style rather than volume. A look at the home page of Yamaha India reflects the new Yamaha.

Corporate brand - Yamaha also sports the new tagline " Yes Yamaha ".

It is good to see a failed brand rejuvenating itself . The lesson that Yamaha gives the marketing practitioners is not to forget the Brand DNA.

Friday, July 10, 2009

Suzuki GS 150 : Drive Me Crazy

Brand : Suzuki GS 150
Company : Suzuki Motors
Agency :RK Swamy

Brand Analysis Count : 407


Suzuki Motors entered the two wheeler market in 1982 through a joint venture with TVS and launched their first two wheeler Ind Suzuki in 1984. Ind Suzuki was a success in the Indian market. After a rocky relationship, TVS and Suzuki parted ways in 2002.

Suzuki re-entered Indian market in 2006 with two brands Zeus and Heat . But both these brands failed to make a mark in the market.

2009 is witnessing another attempt by Suzuki to grab a pie of the two wheeler market. Suzuki recently launched a 150 cc motorcycle Suzuki GS 150. The 150 cc bike which is priced at around Rs 60000 is trying its luck in the highly competitive Executive bike segment.

As discussed in my other posts on automotive brands, the success of the brand is dependent heavily on product quality than anything else. Brands like Activa has proved that product performance is the best possible advertising.

How ever in the case of brands like Suzuki and Yamaha, brand promotion is of utmost importance because of the peculiar situations they are facing.

Suzuki is the market leader in four wheeler segment but it is surprising that the brand has failed miserably in replicating its success in the two wheeler market.
There are two reasons for this failure. The first reason is that Suzuki is not serious about their two wheeler business in India. The efforts of the company was half-hearted and the brand does not have a deep distribution channel .
Second is their selection of products for the Indian market. Suzuki is doing the same mistake which Yamaha earlier did - launching substandard products for mass markets. Yamaha learned from mistakes and came back with good powerful bikes. But Suzuki is adamant that it will learn only from its mistakes.

GS 150 is launched for the highly competitive executive segment aiming for the numbers. But I think it was not a good strategy for Suzuki to launch a product in that segment while making a come back.

Now look at the relaunch scenario. Suzuki motorcycles does not have any meaningful equity in the consumer's mind. Although Suzuki cars have excellent equity , there is no guarantee that consumers will feel the same in the two wheeler segment. The failure of its earlier models and the long absence from the industry has removed this brand from the consideration set of the potential consumers.

Consumers of executive segment are very pampered. The players in this segment invest heavily in product features aswellas branding. With Pulsar and Hero Honda leading the crowd, it is a very difficult market to crack.

So the chances of Suzuki making an impact in this segment looks bleak.

Having said that , a company like Suzuki can change the game by launching a product that Indian consumers has never seen before. Suzuki has the technological ability and money power to do that. A high profile product with a marketing blitzkrieg can make Suzuki a hot property...

But Alas.....

Look at the branding strategies of GS 150. The brand is currently running a television commercial in most channels.
Watch the Tvc here : Suzuki GS150
It is one of the boring commercials I have seen in recent times. A commercial which lacks both imagination and strategic intent. A girl getting aroused while pillion riding a bike is an idea which has been raped a million times.
The brand has the tagline " Drive me crazy " which is nothing but unimaginative. Frankly there is nothing much to speak about the campaign. No clarity in USP or differentiation.

What Suzuki needed was a powerful statement. A power bike which would showcase its capabilities to the consumers. Yamaha did the comeback with R 15 launch. More than the volume, R15 was aimed at rebuilding the Yamaha brand. Once consumers got the taste of Yamaha technology, mass models will reap the benefit.

Suzuki should have bought in their superbikes and should have unleashed a campaign revolving around these macho machines. Time should be spent on building the core Suzuki brand reminding Indian consumers about the capability and technological superiority of this brand.
But Suzuki went after the volumes thereby killing all scope of building a brand.

Monday, July 06, 2009

Kinetic Honda : RIP (1972-2008)

Brand : Kinetic Honda
Company : Kinetic


Brand Analysis Count : 406

Kinetic is another sad Indian brand story. The brand which was once synonymous with Luna and gearless scooters is no more.

Kinetic as a corporate brand is not dead but Kinetic as a scooter brand has been laid to rest in 2008 after the take over by Mahindra & Mahindra.

Kinetic was born in 1972 with the launch of Kinetic Luna which became a generic name for Mopeds in the country. Later in 1985, Kinetic formed a joint venture with Honda to manufacture scooters in India. The company then launched India's first gearless scooter KH 100 which became a run away success in India.

Kinetic Honda was a premium scooter in its brighter days. I would say that this was the brand that gave the ladies in India - the luxury of travel.

Since the scooter was ungeared, Kinetic Honda became the favorite mode of transportation for the women folks. The scooter was reasonable for city use and ladies loved it. So despite the high price, the sales was rocketing like anything. The product was not really good. The engine was unresponsive and mileage was bad. But people loved it because it was ungeared and had an electric start.

Somewhere down the lane, things started to go wrong for Kinetic Honda. Kinetic Honda was limited by their JV Partner to focus only on Mopeds and Scooters. Since Honda had another JV with the Hero Group ( Hero Honda), Kinetic could not enter these markets. At one stage the competition became intense in the moped and scooter segment. TVS with their Scooty carved as significant chunk of Kinetic Honda's market share.

The joint-venture between Kinetic ( Firodia Group) and Honda faltered during 1998. Honda wanted to buy out Kinetic , but Firodia was not willing to sell stake ( Read a report here). Finally the JV ended with Honda exiting the venture.

The exit of Honda was a huge blow for the brand . The consumers were sceptic about the quality issues since everyone knew that Kinetic Honda 's main USP was its technology from Honda.
Kinetic Motors was not affected by the exit of Honda. Infact, the company became more aggressive after this break up.

The issue with Kinetic scooters was more than the Joint venture. The brand had its issues with Product , Price and Promotions.
Regarding the ungeared scooter segment, Kinetic Honda was never successful with its new products or upgradings. It is said that in automobile segment, 90% of success depends on the product and rest is in other marketing mix elements. Hence if the product is very good, then the chances of success is very high.

Kinetic was unlucky in this front. The brand was not myopic or complacent. Infact I was surprised at the number of products this company has launched over these years. The brand was working on new products but somehow the products was not successful in the market.

For example, in 1996-97, the company launched its scootterette Kinetic Pride but was withdrawn because the pillion ride was not comfortable. In 1997, the company launched a powerful scooter Marvel but the product failed in the market. In 1998, Kinetic launched its Y2K complaint version of Kinetic Honda. In 2002, the company launched Kinetic Nova and Kinetic Zing but both were not big hits.

After the split up with Honda, Kinetic ventured into motorcylce manufacturing and launched Kinetic Challenger in 2002. In 2003, the company stunned the auto world by launching 4 models at one go. Kinetic launched Kinetic Boss, GF170, City and Kinetic Velocity.

Again in 2003, Kinetic launched India's most expensive bike Aquila priced at Rs 1.15 lakh. The brand was launched in collaboration with Hyosang Motors. Surprisingly Aquila was well received by Indian consumers. But Kinetic was complacent in projecting Aquila as its flagship offering. Rather it played cold to the demand from the market and did not pursue the opportunity.

Despite doing these , Kinetic failed in gaining momentum in the Indian market. The nail in the coffin came when Honda launched its own scooter Activa.

If you look at the failure of Kinetic Honda, one of the reason was the price. While Kinetic Honda was ruling the market, consumers were willing to pay a higher price . But Kinetic continued its high price without giving additional value to the consumers. After the exit of Honda , the core product - Kinetic scooter never got any better. Kinetic also priced its new brands Nova and Marvel aggressively thus putting off consumers. Consumers never wanted to pay a high price for a brand which was yet to demonstrate its technical superiority on its own. The brand could have developed a product that convinced the consumers that Kinetic could stand on its own. TVS did that with its Victor and improved upon its image through Apache. But Kinetic never had such a product to showcase.

Kinetic failed in its motorcycle venture for the same reasons. The products had its own flaws and Kinetic was not aggressive in marketing its products convincing the customers that they are not just scooter makers. May be the brand tried too much in a short period of time.

The story of Kinetic did not end like that. During late 2000, the brand tried to make a come back by launching designer scooters under Italliano range. But again , the brand faltered in delivering world class product.The final product from Kinetic was Kinetic Flyte which got rave reviews from auto reviewers.

Kinetic is not a sad story . In 2008, Firodias decided to sell the scooter business to Mahindra & Mahindra. Soon after the take over, Mahindra decided to drop " Kinetic " brand from the products. That was the end of an era.

Kinetic group is still running strong with its businesses in automotive parts and is a leading supplier to Tata Motor's Nano project.

For consumers, the death of Kinetic is a death of an era. It is sad to see a home grown brand dying because it could not catch the pulse of the market and develop unique technology on its own.

Friday, July 03, 2009

Brand Update : Idea


Idea has launched another campaign extending its core idea of " An Idea can Change your life ". This time the brand has chosen a funny tale to drive home its positioning. 

Watch the new ad here : Walk the Talk

The new campaign revolves around the theme " Walk when you talk " urging the mobile users to walk while they talk and there by be more healthy. 

The ad is funny and Abhishek Bachchan is at his  best. The brand and the celebrity co-existed perfectly well without eclipsing each other. 

One should really appreciate Idea for being consistent with its positioning. The brand reaped the rewards also. " An idea can change your life " has become a common usage. 

Marketing a cellular service is a complex task. The prepaid segment which dominates the market is a highly volatile segment with little or no brand loyalty. Consumers look at the plans and coverage quality and some times acts as a grasshopper making life difficult for marketers. 

Brand managers spent on their brand building activities hoping that when plans become commoditized , consumers will give more value to the brand .

Related Brand

Idea