Monday, September 19, 2011

Exo : Anti-bacterial DIshwash Bar

Brand : Exo
Company : Jyothi Laboratories Ltd
Brand Analysis Count :  # 496

Exo is a dishwash brand from Jyothi Labs. Exo is a challenger brand in the Rs 10,000 crore dishwash product category in India. The brand currently focuses on South India and is slowly spreading its wings nationally.
Exo was launched in 2000. The brand was launched as a part of the diversification of JLL whose bread and butter was from a single brand- Ujala. Exo entered a very tough market which was dominated by the market leader Vim.

In competitive strategies, theory talks about various strategies like Frontal Attack, Bye-pass attack etc. Exo chose to attack Vim directly and aggressively. When a competing brand chose to attack the market leader, it needs to have a credible differentiator inorderto compete and succeed. Vim have tremendous brand equity in the market and it is a tough task to fight such a leader.
Exo's marketing strategy is a notable example of successful frontal attack. The brand was able to find a credible and sustainable differentiator against Vim. Exo took the position of an Anti-bacterial dishwash bar to fight Vim. 
Exo was India's first Anti-bacterial dishwash bar.As usual, the poor Keedanu ( germs) was at the receiving end. Exo positioned itself as a dishwash bar that killed all the bacteria in the utensils. The positioning was very smart since Vim was positioned on the basis of cleanliness. 
Exo was innovative in creating an awareness about the possibility of germs in utensils. There was also another smart idea from the brand. In theory, we often say that the differentiator should be relevant, sustainable and not easily copied by competitors. Exo's positioning of anti-bacterial benefit can be easily copied by the competitor . In order to counter this, Exo used an ingredient "Cyclozan " to protect its differentiation. The ingredient brand " Cyclozan " ensured that the differentiation of Anti-bacterial benefit cannot be easily countered.
By launching Exo with anti-bacterial property, Exo created both point of parity and point of difference with Vim. The brand talked about cleanliness thus created parity with Vim and then used Cyclozan to establish point of difference thus creating a powerful position in the mind of the consumers.The results was visible . Exo became the second largest dishwash bar in South India. 
To fight the aggressive attack by Exo, Vim launched its own anti-bacterial variant using neem as the ingredient. 
Exo later went into a brand extension mode by launching Exo dishwash liquid and later Exo Scrub. With the acquisition of Henkel in India by JLL, the fate of Exo dishwash liquid appears bleak since  Henkel's Pril is the market leader in the dishwash liquid market. Exo will now be restricted to only dishwash bar category.
Exo is a brand which is promoted exhaustively by Jyothy labs. The brand has very high share of voice and ads keep on driving the USP of germ-killing property. Since the dishwash bar category is not a high involvement category, the brand had benefited greatly by this share of voice. 
With the acquisition of Pril brand from Henkel, Jyothi labs now have two formidable brands in the dishwash category. Vim now faces the most intensive threat to its leadership position. It will be interesting to watch how the fight will turnout to be.

Thursday, September 15, 2011

McCain : Fresh Banega , Baat Banegi

Corporate Brand : McCain
Company : McCain Foods India Ltd

Brand Analysis Count : # 495

McCain is one of the World's largest frozen foods manufacturers. This Canadian giant is known for its potato based frozen foods. McCain is a leading supplier of potato based items like French fries to leading quick service restaurants like McDonald. This giant has big plans for India.
McCain came to India in 1998. The brand primarily set up shop in India to cater to the  requirement of its major customer- McDonald's. The company started with the import of potato based products later commissioned its first production plant in India in 2007.
Frozen foods is a category in nascent stage in India.The category is now worth Rs 1000 crore including B2B segment. Bulk of this business is contributed by B2B segment which consists of restaurants and fast food joints. Slowly the B2C category is growing and McCain is making all out efforts to tap this segment.

Frozen foods has low penetration due to many reasons. Firstly the consumers are not open to the idea of frozen foods yet. Another major impediment to the growth of this category is the distribution inefficiencies. The lack of freezer space at retailers, supply chain issues , retailer reluctance to stock this product category has created huge issues for marketers trying to create this category. How ever things have changed. Consumers have started to use frozen foods and the presence of large retailers gave the much required supply chain support to this category.
Although McCain started selling its branded products in India since 1998, the effort was largely restricted to BTL activities. The brands like Smiles existed in the market for long but there was not much promotions for the brands. 
It was in 2011 that McCain launched its first TVC in India. 
Watch the TVC here : McCain 
The first commercial set in a typical modern Indian household is aimed at introducing the brand to Indian consumers . The brand did certain research on Indian consumer's mindset regarding  frozen foods found that consumers doubted the freshness of such frozen foods ( common sense !). Frozen foods were often viewed by consumers as 'Old ' stale foods. The brand also found that this impression changed after they tried out these products. So the challenge was to convince the non-users about "freshness " of frozen foods. 
It is a Herculean task for marketers to convince customers that Frozen foods are Fresh.The first ad successfully managed the difficult task of connecting the two attributes which are poles apart - Frozen & Fresh in a very subtle but effective manner. The ad makers used a story telling approach and by including the entire family unit in the ad addressed the concerns of all stakeholders of the family. 
The brand has the tagline " Fresh Banega , Baat Banegi " which emphasis on the freshness aspect. 
Although McCain's competency is in potato based products, the brand has tried to cater to the local tastes of Indian consumers. Its product range includes Indian dishes like Aaloo Tikka etc.The brand surprised the Indian market by introducing Frozen Idli which can be cooked within 3 minutes. The product is still in the market testing phase. The company has now focused on the snack food market and once the consumers are opened to this idea of frozen foods, more products like frozen meals will follow.

One of the best practice of McCain is its keen understanding of Indian consumers. The brand spent lot of time in understanding the market before entering the consumer segment. It strengthened its distribution and ensured retailer support before launching its promotions. The brand also took care of pricing to ensure that the value conscious Indian consumers are not scared away by the high prices. Usually frozen foods are expensive but McCain launched packs at price points like Rs 25 which entices consumers to try it out. Also the firm introduced its products in smaller packs because Indian refrigerators are usually small or have small freezers. The products like Smiles attract young consumers because of the form factor. So on many fronts McCain has put in lot of thoughts and innovation which will yield positive results.

The Frozen Foods category is now having lot of players including Godrej . The changing lifestyle has further strengthen the potential of frozen foods in the Indian market. It will be interesting to see how these players shape this market.

Friday, September 09, 2011

Xpert : Fast Action

Brand : Xpert
Company : Rohit Sufactants  Private Ltd

Brand Analysis Count : # 494

Xpert is a dishwash bar brand from Rohit Surfactants Pvt ltd (RSPL) which is now on an promotional overdrive. The brand is from RSPL  which is famous for its Ghari detergent brand. Ghari literally made the large FMCG MNCs a run for their money. The Ghari brand is infact larger than the HUL's Surf and is the second largest selling detergent brand in the country ( source). 
Xpert was launched in 2006 by RSPL as a part of its diversification. The brand is now competing in the Rs 800 crore utensil cleaner market. The market is dominated by HUL's Vim with a share of around 60%. The market is characterized by one big player and several small players. The nearest rival is Exo diswash bar  and Pril with a share of around 8% each. As history has shown, fighting HUL's Vim for market leadership position is not an easy task but that is the risk that a challenger brand needs to take.

Xpert has chosen celebrity endorsement as a route to attract consumers towards the brand. For this Xpert chose Madhuri Dixit as the celebrity endorser. The brand is currently running a campaign in TV featuring the celebrity.
Watch the ad here : Xpert  
The brand is using its Aquashine formula as the USP and like any other brand , it is talking about quick and easy cleaning. 
The ad is very basic and rather than using  Madhuri Dixit for testimony, the brand chose to use her as Gangu Thai ( a housemaid character in the movie Ganesha) for the campaign. If one has missed the Ganesha movie, the ad plot will be half lost.  
Xpert is priced around Rs 10 for 200 g bar while Vim around Rs 12. Exo is priced at par with Xpert. The brand hopes that the price differential together with celebrity will tilt the consumer choice towards Xpert. This aggressive pricing + promotional strategy is going to affect the smaller brands rather than Vim in the short-term.
What is lacking in the current strategy of Xpert is the absence of a clear differentiator. While Aquashine formula is the USP, the brand fails to communicate what it means and how it is going to benefit . May be in future campaign, these will be explained. Without a powerful differentiator, Xpert may not be able to break into the market of Vim. Exo tried with its aggressive promotions and anti-bacterial properties with limited success. It is very difficult to create a differentiator in a market like dishwash bar and almost all options has been used up by the players.
It will be interesting to see how this high profile attack of Xpert will play out in the future. In the short-term we will see some action in this dull category . 

Wednesday, September 07, 2011

Otto : The Symbol of Success

Brand : OTTO
Company : Pothys Group

Brand Analysis Count : # 493

Otto is the readymade brand from Pothys Group. Pothys is one of the most reputed textile retail group in South India. The brand Pothys is a known name in Silk sarees and commands tremendous brand equity across South India. 

Otto brand of men's wear started off as a private label has now moved to become a brand ( theoretically). The brand which was available at various retail stores in TN has now moved to other markets as well. Advertisements of this brand has began showing in various media across markets other than its core TamilNadu market. 

What is striking about the current campaign of OTTO is its celebrity driven brand strategy. OTTO although was in the market since 1997 is now upping its ante across various markets this season. The brand has roped in the Tamil Superstar Vikram as the brand ambassador. Print ads featuring the star is now running across Kerala where the shopping season has started coinciding with the Onam festival.

Watch the television campaign here : OTTO shirts

First it is one of those rare instances where a retailer upgrades a private label to a brand and puts that brand through other retail outlets.In that way Pothys deserves to be appreciated for the risk it has taken to build a brand in the hyper competitive readymade market. 
Having said that , the brand had fallen prey to the celebrity endorsement trap where more than anything, celebrity over shadowed the brand. It is true that celebrities like film stars command huge respect and credibility in markets like TN, AP etc and the endorsement by a star like Vikram will take the brand to new heights, in the long run it is not a good strategy for the brand.

The brand seems to be heavily depended on Vikram to deliver results. There is no mention of product features, USP, positioning or differentiation. The brand also did not try to leverage the equity of its parent Pothys. By not addressing these critical brand building basics, OTTO has lost valuable opportunity to build an image for itself that would sustain even after the contract with the celebrity is over. The brand name OTTO is a German term meaning Wealthy. 
The brand has chosen a positioning loosely on being a success symbol. The brand has the tagline  " Symbol of Success " and uses the celebrity as the proof. But given the power of the celebrity, OTTO could have done better if it had a proper brand building strategy aimed at long-term. Ideally the brand should have done these things 
  • Identified a strong sustainable USP 
  • Positioning statement 
  • Endorsement by parent brand Pothys
  • Campaign combining product feature + Positioning 
But the current campaign focus on earning short-term brownies riding on the popularity of Vikram.

Saturday, September 03, 2011

Velocit : First Joys of Motherhood

Brand : Velocit
Company: Dr Reddy's

Brand Analysis Count : # 492

Velocit is a unique brand. The product belongs to Rs 1000 crore Indian diagnostic market. Velocit is a Pregnancy Diagnostic Kit launched by Dr Reddy's in 1998. The brand had grown the category and  has built a leadership position in the market.
There has been a significant growth in home diagnostic kits due to the larger incidence of diseases like diabetes, BP etc coupled with increasing awareness among the public about detection and monitoring of such diseases. Doctors also began recommending such home based diagnostic kits which further resulted in the growth of the market. This category of products are called Point of Care ( POC) testing market. POC refers to any testing made outside the traditional testing centers like labs, hospitals etc.

Home pregnancy kits gained popularity in India owing to the convenience and confidentiality it offered regarding testing pregnancy. Gone are the days when pregnancy was guessed with symptoms like Vomiting. Doctors also began advising women to test their doubts using such kits.
Home pregnancy kits like Velocit uses the presence of a hormone called Human Chorionic Gonadotropin in the urine to confirm pregnancy. 

Products like Velocit marketed itself through recommendation from doctors during the launch phase. The ethical route to promotion was adopted since consumers was unsure about the efficacy and accuracy of such products. The emergence of competition and the growth of the category prompted these brands to promote itself aggressively through advertisements.
Velocit started its branding focusing on functional benefits. It was positioned as  "3 Minute Wonder " referring to the speed with which the consumer will get the result. Now Velocit has moved to a higher positioning platform focusing on " First Joys of Motherhood ".  The brand says that the news or confirmation of pregnancy is the first joy of motherhood and the campaign puts the brand right at that first moment of joy.

Watch the ad here : Velocit
The brand also runs a print campaign along the same lines in major women's magazines. This emotional positioning will work well for the brand. The insight behind the " first joy of motherhood " should be appreciated since it strikes a chord with the consumers.
The increased number of competitors has made promotions crucial in category like that of Velocit. Most of the sales happen through word of mouth /referrals. But that WOM should be reinforced and complimented using ATL campaigns. Velocit has done this effectively.  

Tuesday, August 30, 2011

Brand Update : Amrutanjan wants to be Sexy

It has been a long time since I updated about Amrutanjan. A lot has happened with this brand including a rebranding exercise and launch of various variants. Amrutanjan which once had a generic status in the pain balm market is now the third largest player in the Rs 1700 crore pain balm/rub market with a market share of around 10%. The balm which was projected as a one-stop solution for all kinds of pain found it difficult to position itself in the increasingly fragmented market. With more and more specialized brands entering the market, Amrutanjan's positioning of an all-purpose brand became largely diluted.

Realizing this, the brand came out with a slew of variants and a change in the positioning. The brand also rebranded itself with a change in the logo to make it more contemporary and appealing to younger generation. Amrutanjan launched a sub-brand Amrutanjan Relief specifically for Cold management product range. The brand also introduced Roll-On variant positioning it on the basis of convenience in carrying.

In the promotional front, the brand changed its famous " Its Gone " ( Fast Relief) positioning and experimented with various other positioning platforms. In 2010,the brand roped in celebrities like Asin to endorse the brand. 
Another experiment in promotion was the " Be Ready " campaign where ten  ' slice of life ' situations were shown in the TVC where people accidently  got injured. The campaign wanted consumers to be ready with Amrutanjan because one never know when injury will happen. The campaign further asked consumers to share their own videos of such instances. 
When its main competitor Zandu Balm sizzled the market with Malliaka Arora , Amrutanjan followed suit with an attempted sizzling ad for its roll-on variant. According to Soumyadip of Cutting The Chai blog, the ad is inspired by the (in)famous Savita Bhabhi . 
Watch the ad here : Amrutanjan Roll on
The ad also gives a new tagline " Kick Out Pain " for the variant.
In my opinion, the new campaign qualify for one of the worst brand campaigns in India. The ad which is of poor taste neither talks anything sensible about the brand nor it is interesting. The brand thought that this campaign would become viral but that also did not happen. Overall it was a mega flop campaign.

Amrutanjan never found a strong positioning ever since it ditched its " Its Gone " ( fast relief)  platform. There was no reason for the brand to ditch such a strong memorable positioning. Now it is paying price for that mistake. 
Related brand