Brand Update : Flipkart - From Bookstore to Store

Regular readers of Marketing Practice know that I am not a big fan of Brand Extensions. I always feel uneasy when a brand moves from its defined space to a broader field of play . Flipkart has done just that. From a simple , clutter free online bookstore, the brand has now become an online store selling not only books but mobiles, music videos and gift vouchers.

Reflecting the change in the business strategy, the tagline of Flipkart has also changed from " The bookstore at your door " to " The store at your door ".

Flipkart within a short span of time was able to quickly gain consumer interest because of the simple interface , better pricing and quick service. Customers like me who found other sites like Indiaplaza too cluttered began to look at Flipkart as a serious alternative. In my opinion, Flipkart was a classic example of a brand which offered a simple highly focussed solution for the customer.

Not any more !

Flipkart now is not a bookstore. It is now an online store just like any other online stores. The only differentiating factor is that it retains the simple interface.

The change in the business model of Flipkart will have a serious impact on the brand itself. The brand was built as an online bookstore and now has diluted its core positioning . Now what is the difference between Flipkart, Indiaplaza, Infibeam, tradus and numerous online stores that retails everything from books to innerwears.

While in the books' retailing Flipkart has demonstrated its strength in getting the best price and ensuring fast delivery, will it be able to do that in other categories like mobilephones ? The business logic behind Flipkart to get into other categories is to get more revenue, the question is whether it could demonstrate its success in other categories aswell.

There can be many reasons behind this move :

• Book margins may be underpressure and does not make business sense to concentrate on books alone because of price/margin/competitive pressure.
• Wanted to emulate the business model of Amazon which successfully moved from books to other categories
• Investor pressure to deliver more returns.
• Other categories offered lucrative opportunities.
• Want to cash in the brand equity.
• Founders want to build scale and exit ?

Does it not make sense for Flipkart to concentrate on books alone and become the best/largest/most profitable online bookstore in the country ? I assume that the founders may be under pressure to grow very fast and give more returns to the " angels " who have invested in the venture ( its my assumption !).

I am not going to predict the future of Flipkart as an ordinary store. But in a branding point of view, Flipkart will be diluting its current stature as a highly efficient online bookstore. Thus leaving its exclusive space to potential competitors.

I wish that the brand replicate its success in the current ' diluted ' avatar.

Related brand

Flipkart

Brand Update : Ujala Techno Bright

In an aggressive move to take on the giants of Indian detergent market, Ujala has launched its premium range of detergent brand Ujala Techno Bright. Touted as an advanced stain removing detergent, the brand is currently promoted in the southern Indian market.

Jyothi Laboratories which are the owners of Ujala brand, which is the market leader in the cloth whitener category, have big plans for the brand. Ujala Washing Powder which was launched in 2003 so far was catering to the lower price segment. The brand is very popular in the Southern states. Jyothi Laboratories wants to take this brand to the next level and fight against the mighty Surf , Rin , Tide and Ariel.

For this Ujala has roped in none other than Sachin Tendulkar to endorse Ujala Techno Bright. The launch ad is currently running across Southern States. According to news reports, Sachin will endorse the Parent brand : Ujala and Techno Bright may be the first sub-brand to get the endorsement from Sachin.

It seems little odd that a cricket maestro is endorsing a detergent brand but such a move is going to give a big boost to Ujala's brand equity. Across the diverse Indian geographical markets, Sachin's endorsement of Ujala brand will improve visibility and to a certain extent positively impact the image of Ujala. Further, the presence of Sachin Tendulkar will add momentum to the acceptance of Ujala's brand extensions across India.

Ujala Techno Bright 's attempt to challenge Surf is no small fight.Surf has incredible brand equity and premium perception which is not easy to break. Ujala through Techno Bright is aiming for an upward stretch ( low priced to premium) which is a difficult strategy. Consumers perceive Ujala Washing Powder as a medium/low priced product and to make them pay the price of Surf for this product-line- extension is not an easy task. The presence of Sachin Tendulkar may be of some help but will that be enough to break the perception is something to watch for.

The launch ad of Techno Bright is nothing much to talk about. The creative is average and talks about the efficacy of the product in a rational way. The brand right now has not attempted to talk about anything more than functional aspects.

It is interesting to see that despite having a strong personality like Sachin as the brand ambassador, Techno Bright has not used him in the package . I do not know whether the contract restrict such a usage , but the brand would have gained so much if it used Sachin Tendulkar on the brand package because it can impact the purchase decision at the store.

With Ujala Whitener generating cash for the company, Jyothi Lab is attempting bigger role for Ujala brand. Having Sachin as the brand ambassador at this point when his brand equity is at the peak is a very smart marketing move. The company has a strong distribution network and has shown its capability to humble mighty competitors like Reckitt Benckiser. It will be worth the time to watch how Ujala plays this game.

Related Brand

Ujala

Marketing Q&A : Marketing Career Vs Sales Career

Sir , I want to build a career in marketing but I don't like to do sales. How can I get a marketing job without doing sales ?

- I have come across this question a hundred times in my career as a teacher. The eager beaver MBAs wanting to build a career in the glamorous world of marketing without having to sweat it out in sales. By marketing careers, they mean all those jobs that involves creating marketing strategies, brand management etc and not the field sales jobs.

Understandably so !

Sales jobs , although plenty to find, are tougher than ever before. Many firms focusing on growth at any cost has virtually eliminated all possibilities of ethical selling. Many firms believe sales can be /should be done by everyone in the organisation irrespective of whether that person is fit for such a function. It is not how you sell but how much you sell that is now counted.

MBAs , from those tier II business schools ,who inevitably land in such sales jobs find their dreams of a professional marketing career shattered. The high pressure selling, four letter expletives, hire and fire stories, rude clients make their initial corporate years something comparable to hell. It seems to them that they are in a rut from where there is no escape...

Is this the marketing that Kotler speaks about ? When am I going to think about the strategies, 4 P's , branding etc ? How long am I going to wait till I get such a job ?

These are my thoughts about building a career in marketing !

My personal opinion is that it is better to have some hardcore sales experience in sales before thinking about a career in the so called glamorous world of Marketing. Sales will give you lot of inputs about customers, their needs, behaviour, how the channel works etc which will be of tremendous help to you when you enter into the world of marketing strategy. You will be able to device practical marketing strategy since you know how the market works.

Having some sales experience also acts as a career insurance . That experience will help you to be employable even in times of recession. Hence even if you have landed yourself in a sales job you did not like, it is better to stay there for the experience of it ( if all other factors like pay, working environment etc are good ). I have seen many students who initially were skeptical of a sales job later thriving in it. So shed all those inhibitions on being a Salesman. You have nothing to lose except those meaningless calender years.

Having said that, there are marketing jobs that young MBAs can look for which may not have a sales content. Marketing research , Analytics, Creatives, Designers, Retailing , Business Analysts etc are some of those marketing jobs where direct sales component is not present. But these jobs are limited and hard to get.

Also remember that hardcore marketing jobs like Brand Management, product management are often not advertised. Most of these jobs are filled through lateral placements. The point is that these jobs may not come to business school campuses other than the top 10. Hence the task is to network while on the job and find the right contact who can land you that dream job.

My advice to fresh MBAs is not to be heartbroken if you don't land up that marketing job of your dreams. Slog it on sales job , get some experience, network and land your dream job.

Brand Update : Logan Loves India

Automobile enthusiasts were curious about the future of Logan after the brand was taken over by Mahindra. The Renaulth - Mahindra JV was in trouble after Renault began to aggressively pursue multiple JV in the automobile market. The issue resolved after Mahindra buying out the JV. As of now Mahindra will be promoting the Logan brand.

The first move that Mahindra made after the buyout was to rationalize the price of Logan. The price of Logan was reduced by a massive Rs 60,000 and the brand is now retailing at Rs 5.35 lakhs . Logan was struggling to make decent numbers because even at Rs 6.5 lakhs, it was finding it difficult to convince the customers about the value proposition. The market is also witnessing a new consumer attention towards premium hatchbacks which is eating into many sedan's market share.

Once Logan got the attention of consumers with its attractive pricing, the brand moved into the next marketing step - communicating its new value proposition to the consumers. Logan is currently running a new campaign " Logan Loves India " ( which is also the new tagline). The new campaign is highly rational and talks about the brand's strong points like Space and Mileage. Although these attributes are talked about by every brand in the class, Logan is trying to project itself as a brand made for India.

Watch the campaign here : Logan Loves India

In the new campaign , the brand uses testimonials of customers to drive home the value proposition of the brand.

One of the burning issue between the Mahindras and Renault was over the product specifications. Mahindra wanted the size of the Logan to be trimmed to take advantage over the tax rules but Renault was cold on such a move. With Mahindra now in full charge of the brand, such a move can be seen in future.

Logan was always trying to position itself as a value brand and the latest commercial only refreshes the brand's core positioning. When the brand was launched , consumers were convinced about the brand's value but the brand messed it up. Now the onus is on Mahindra to bring back the trust factor in consumers. With Renault exiting from JV, there are serious doubts about the future of Logan. The task of the brand is to convey that trust to the consumers that Logan is here to stay. "Logan Loves India " campaign may be trying to do just that

Related Brand

Logan

Oxemberg : Body Music

Brand : Oxemberg

Company : Siyaram

Brand Analysis Count : 457

Whenever my wife purchases a shirt for me , 80% chances are that the brand will be Oxemberg. Although she knows my brand preferences which does not include this brand, Oxemberg will finally make it into her choice list.

The reason is that she looks for design/patterns and often other brands

fails to impress her.

Oxemberg is one of the pioneers of readymade branding in India. The brand which was launched in 1995 rightly envisioned the trend towards readymade clothing in the Indian market.

The brand has been in existence for more than 15 years and is worth over Rs 80 crore. In this highly cluttered and fragmented market, being existing itself is a big achievement for Oxemberg.

However I wonder whether the brand was able to realize its true potential ? Was it left out in the sidelines by the aggressive competitors ?

Oxemberg is a brand targeting the higher middleclass segment. The brand is priced little higher than the brands like Peter England , John Players etc.

One of the factors that has slowed the brand's growth was the limited distribution and the low brand promotion. The brand is being retailed only through select MBOs and is not highly promoted across the media as compared to the competitors. The lack of brand promotion together with the high price may have caused many customers to opt for value brands like Peter England.

One of the reason for low brand promotion may be because the brand chose to grow very slowly. The brand never went for a high profile national launch but moving slowly from one geographical market to another. Despite being in existence for 15 years, I don't remember any memorable campaign run by this brand through any national media . Despite these constraints, the brand sustained itself all these years.

It seems that Oxemberg is now aiming for a much higher play. The brand is now very visible across the print media with the new campaign featuring the celebrity Niel Nitin Mukesh. The brand has adopted the tagline " Body Music " which contains the brand message : Clothes that Move to my Rhythm.

" Body Music " is a very good tagline and positioning of Oxemberg fits to the body like Music is a remarkable idea. The tagline perfectly conveys the message of " perfect fit " property of the brand . The use of word " Music "also gives a sense of coolness to the brand.

The print ads are well made and catches the attention of the readers very well. It is also nice to see the brand taking the positioning based on "body fit ".

As a brand user, I feel that the real strength of Oxemberg is the design. Its patterns have some quality which is not seen in other brands. Even though the cloth quality may not be the best, Oxemberg scores high in the design which should be highlighted in the marketing communication. The current positioning platform is flexible enough to talk about design also.

It is good to see aggressive marketing activity for Oxemberg at the national level. The brand commands fair share of brand awareness because of its long existence. The new communication thrust will take the brand to the next level of growth.

Marketing Strategy : How to Market The Intangible

Marketing the Intangible

Originally Published in Adclubbombay.com

Services contribute about 5o% of India’s GDP and have become an important growth engine for our economy. The growth in the service sector has opened up immense opportunities for new products and also newer markets. The huge service economy of India has attracted many players into the market. The market is now flooded with new players and new products.

Marketing of services is a challenging task primarily because services are largely intangible in nature. Because of this intangible nature, consumers find it difficult to visualize the service or evaluate the quality of service before purchase. For established services this problem is less because customers already have formed their opinions because of their past interactions. For a new service firm, getting the customers to try out the service is a very difficult task. This calls for a strong branding effort on the part of the service marketer to lure the customers into their offerings.

Creating a service brand is not the task of the marketer alone. The entire organization is responsible for crafting that brand experience. This is because of the fact that service cannot be separated from the service provider. When the brand promises a consumer of a definite experience, the entire organization should be working as a single unit to provide that expected experience. People who are a part of the organization form an important element of the consumer’s perception about the service brand. For example, the behaviour of the cabin crew in an airline service is a critical factor that defines the perception of the consumers regarding that brand. Hence managing a service brand is more of a strategic function rather than a mere functional task.

According to the branding guru Kevin Lane Keller, marketers should employ a full range of brand elements while crafting a brand strategy for service. The brand elements like Logo, Symbols, characters and slogans play an important part in the formation of brand image. These brand elements becomes important because services are intangible unlike physical products.

The first task for marketers is to make services more tangible so that consumers can visualize the service easier. This is done by adding tangible elements into the service. Hotels and resorts create tangibility by creating excellent infrastructural facilities which gives the consumer a fair idea about the service. For pure services the task of creating tangible elements becomes more complex. For insurance and financial services, the marketers have to build a strong brand image which acts as an equivalent of a tangible element.

For a consumer, evaluating a service before purchase is a difficult task. There is a strong element of risk which is perceived by the consumer before availing the service for the first time. Marketers’ task is to reduce the risk perception and encourage trust so that consumers try out the services. Many companies use branding as a tool to build trust and thus create a long lasting relationship with the customers.

Professor Leonard Berry in his article “Cultivating Service Brand Equity “in Journal of the Academy of Marketing Science” talks about four ways to build service brand equity. According to him, the service brand should be (a) Different (b) Determine your own fame (c) Make an emotional connection and (d) Internalize the brand. Strong service brands create powerful differentiators to convince the customers that they are different from the rest of the crowd. Service brands should also be very clear about their core strengths which will inturn makes customers to come back to their service offering. The brand should then build emotional connection with the consumers. Another important requisite is that the employees of the service organization should internalize the brand values and then only they will be able to provide outstanding customer service.

While communicating the service brand’s message, firms should be able to project its credibility, expertise and trustworthiness to the customers. Brands use characters, logo,symbols,colors etc to reinforce its service promise. ICICI Bank successfully used celebrities to build its image as a trustworthy new generation bank. Global consultancy firm Accenture firm uses Tiger Woods to convey its core brand value of “Performance”. These brands have used brand elements like slogans to reinforce the brand promise. Brands like Bajaj Allianz use characters to convey its message. Bajaj Allianz uses the animated “Super Agent “character to convey the message of reliable customer service. These brand elements help the customers to visualize the services even in the pre-purchase stage thus reducing the perceived risk of service failure.

Marketing a service require a holistic approach where the entire organization is focused at fulfilling the brand promise. It becomes the responsibility of every employee in the service organization to take part in creating the experience promised by the brand.