Thursday, November 30, 2017
Friday, November 17, 2017
Cutting Edge in Marketing - Brand Trust
Brand Trust is an important concept that is of interest to both practitioners and professionals. The brief video highlights the basics of brand trust and its important dimensions.
Monday, October 30, 2017
Bajaj Dominar : Go Hyperriding
Brand: Dominar
Company: Bajaj Auto
Brand Analysis Count: #580
Company: Bajaj Auto
Brand Analysis Count: #580
In December 2016, Bajaj Auto launched a new product line under the brand Dominar. Dominar was Bajaj Auto's challenger for the market leader in the 250- 500 cc premium motorcycle segment - Royal Enfield. Royal Enfield commands almost 96% share in this segment. According to reports, Royal Enfield managed to sell 3500 - 4500 units every month.
And Dominar arrived in style. The launch was marked by a campaign which made fun of the market leader.
The advertisement had two objectives. First is obviously to create attention and it does with perfection. The second objective is more subtle. The objective is to establish a competitive frame of reference in the mind of the consumer. Dominar doesn't want to be seen as a sports bike in the same class of the best selling Pulsar. If the customer categorizes Dominar in the same category as Pulsar, it can lead to cannibalization. Hence Dominar wants the consumer to consider the brand as a competitor for Enfield even though the brand looks very different from the market leader.
Another objective is the create a comparison with the exemplar - in this case, Enfield, and thus make the consumer compare the brand with the market leader thus making an entry into the choice set of the consumer.
Dominar is positioned on the performance platform. The brand is positioned as a bike which is fast and powerful. The launch campaign " Not for Babies" was intended to position the brand as the fastest of the lot.
The results during the launch were very good for Dominar. It even closed the gap with the market leader in some months, but later the sales plummetted which prompted Bajaj to refresh the product line with new launches. Some decline is attributed to the GST effect.
Although the initial advertisement campaign was superb, the brand failed to sustain the creative onslaught. Dominar's current campaign " Dominar vs Social Media " is IMHO a dud campaign.
The campaign totally looks unbelievable and kiddish. From comparison with Enfield, the brand started its comparison with Social Media ?? This hyperbole not only misses the mark but also dilutes the positioning and image built around challenging Enfield. Probably this lack of creativeness caused the decline in the sales of the brand.
As per the news reports, Enfield continues the dominance in the segment. In a market where one player holds substantial share, there is always room for other players. But whether Dominar will be able to dominate the segment would largely depend on how the brand is consistently positioned against the competitor.
Thursday, October 05, 2017
Brand Update : Is India Post missing out of e-commerce boom ?
Indian e-commerce industry is on a song these days with Big Billion Days and Great Indian Festivals and products flying off from the web-shelves. According to KPMG, on an average, there are 1-1.2 million transactions happening in India every day. Indian e-commerce industry had done business worth $12 billion GMV in 2016. Analysts paint a bright future for this industry in years to come.
The backbone of the e-commerce boom is the logistics. According to KPMG report (Link), the logistics industry driving the e-commerce is worth $ 0.46 Bn and expected to touch $2.2bn in 2020.
With all these actions happening, our very own India Post seems to be taking a backseat in the whole festival. While Flipkart and Amazon have already built their own logistics arm, there are scores of entrepreneurs who want a reliable logistics partner who can reach the nook and corner of a vast country like ours.
Look at India Post, no one can beat the reach and equity of this institution. At the same time, the institution is also not in good shape financially. One year back the department has scaled down its post offices and closed down a lot of unviable post offices. In a country where last-mile connectivity is a bottleneck for many firms, India Post scales down its reach to become financially viable. Irony.
According to this report in ET (link) India Post is taking actions to reap the benefits of this e-commerce boom but not enough. By this time, it could have been the largest beneficiary of the boom. But sadly the institution failed to capitalize the opportunity. It could have geared up the infrastructure and technology to match the speed of the market. I think the game is not over yet with many new formats are being explored in the Indian market and lot of small shops are getting on the bandwagon. Hope that India Post can become the preferred partner for those firms who desperately need a reliable last-mile partner.
Related Post
Monday, October 02, 2017
Marketing Funda : iPhone 8 and the Osborne Effect
"My iPhone 7 is broken but am going to wait for iPhone X. I will manage with my broken phone till then " reads an instagram post of a celebrity. IPhone now has an Osborne effect moment. Osborne effect is when the announcement of a future product affects the sale of current product. Osborne effect happens when the future product is announced at the launch of current product itself.
This September Apple announced the launch of iPhone 8 and 8 plus. Along with the iPhone 8, Apple also announced iPhone X which is a most awaited product launch. IPhone X will be available from November. The announcement of thr next generation iPhone X will prevent many potential customers from going for iPhone 8 whose flagship status will have a short life of two months. The interesting question is how the 8 and X versions co-exist?
Tuesday, September 26, 2017
Lever Ayush : Sahi Ayurveda
Brand: Lever Ayush
Company: Hindustan Unilever
Brand Analysis Count: #579
Company: Hindustan Unilever
Brand Analysis Count: #579
It took Patanjali to wake the giant from slumber. The Rs 36,000 crore HUL has been disturbed pretty hard by the Rs 5000 crore Patanjali resulting in the relaunch of Ayush brand. It seems like a replay of the epic battle between Nirma and Surf, however, the outcome of the current fight remains unpredictable.
Ayush was launched by Hindustan Unilever in 2001. The brand at that time was launched to tap into the premium space in the Ayurveda personal care market. However, the plan failed and Ayush was sidelined in the huge brand-lines of the company.
Patanjali which was established in 2006, began aggressively marketing from 2015 and virtually ignited the growth of Ayurveda based personal care market in India. But what is surprising is that the multi-national giants like HUL, Colgate etc were probably in a state of Marketing Myopia. They failed to see the rise of Patanjali and could not counter the challenger. The result is that within a short span, Patanjali rose to a higher level of brand awareness and reasonable equity in a certain category of products.
The reaction of HUL was also on predictable lines, take an old brand, dust it off and relaunch. Thus launched the revised version of Lever Ayush. The next challenge is to counter the source of Brand Equity of Patanjali. Patanjali heavily draws its equity from Baba Ramdev. Lever Ayush chose the celebrity route. Along with the celebrity, the brand has chosen to partner with Arya Vaidya Pharmacy for the development of this product. However, the campaigns don't really promote this association which is a big mistake. Arya Vaidya Pharmacy has excellent equity and could have given more firepower to the brand in countering Patanjali.
In the relaunch, Lever Ayush has roped in Akshay Kumar as the lead brand ambassador. The brand is currently running the relaunch campaign across various media.
For personal care products targeted at the female segment, the brand has chosen Tamanna as the brand ambassador.
Lever Ayush is positioned as an authentic ayurvedic brand. The tagline of the brand is - Sahi Ayurveda - translated to ' True Ayurveda'.
It has to be seen whether the customer would buy that positioning endorsed by the celebrity.
In the pricing front, Ayush has shed the premium tag and is taking Patanjali head-on by launching the products in the price range of Rs 30 - 130. According to newspaper reports, HUL is promoting the Ayush brand in the Southern States.
The fight between HUL and Patanjali in the personal care space would be a good fight to watch for.
Friday, August 25, 2017
Homelites Matches : Extra Long, Extra Strong Safety Matches
Brand: Homelites
Company: ITC
Brand Analysis Count: #578
In 2005, ITC bought Wimco and now dominates the Indian Matches market. ITC follows the outsourcing model for this product. The product is sourced from small manufacturers and branded and sold through ITC's distribution channel.
Company: ITC
Brand Analysis Count: #578
Matches Industry is an interesting one to study. The Rs 1500 crore industry is now in the declining stage of the industry life cycle. The decline of once indispensable product category was prompted by the popularity of gas lighters, decline of cigarette sales and increasing cost of production.
Homelites is a brand which came into existence in 1987. The brand was owned by Wimco which was world's largest match manufacturer. Wimco was a market leader at that time which had the most popular match brand - Ship.
The decline of Wimco started in 2003 when ITC decided to enter the market with AIM brand. With the huge distribution muscle, ITC was quickly able to dethrone Ship and establish AIM as the market leader. The fact that ITC's cigarette sales network cover the length and breadth of the country ensured that AIM got an upper-hand over its competitor.
In 2005, ITC bought Wimco and now dominates the Indian Matches market. ITC follows the outsourcing model for this product. The product is sourced from small manufacturers and branded and sold through ITC's distribution channel.
Homelites was created to break the price-sensitivity of the market. Matches are considered to be a low involvement product with price and distribution holds the key to success. Earlier 92% of the market was dominated by 50 paise price point. Now it is Rs1.
Homelites was positioned on the long-lasting benefit. The product had extra-long match handles and was carbonized to give extra-performance. And it was priced at a premium of Rs 2 per pack.
I also happen to find a very good creative ad for this brand on youtube.
According to reports, 54% of purchases of this product category happens at home. With the popularity of gas stoves and gas lighters, there is a chance that this product category may decline further. Probably the usage would be limited to the lighting of the lamp for religious purposes. Theory says that one of the strategies to survive in a declining industry is to try and reinvent. Wonder if there is a scope for such a strategy in this case.
Friday, August 11, 2017
Dr.Fixit : Waterproofing Ka Doctor
Brand: Dr. Fixit
Company: Pidilite
Brand Analysis Count: #577
It is not an easy task to try to brand a product like Dr.Fixit. First, the brand has to create awareness about the need for waterproofing and then it should try to build on brand preference and purchase. The first phase of the promotion of Dr.Fixit was to create an awareness. Fixit has managed to do just that through its partnership with O&M.
Company: Pidilite
Brand Analysis Count: #577
Dr.Fixit is a classic example of how to brand a commodity. Dr.Fixit is the market leader in Rs 2500 Crore scientific waterproofing solutions market. According to Outlook Business, Dr.Fixit originally was a brand of Mahindra Engineering and was bought by Pidilite in 2000.
Waterproofing solutions products are generally considered to be a business product and usually does not come under the radar of a consumer. Like the iconic brand Fevicol, Pidilite is trying to create a brand out of such a product category which usually is not branded. Earlier waterproofing solutions were promoted through plumbers who are basically playing the role of influencer, decider, and purchaser of such product.
While consumers are aware of the importance of waterproofing and the perils of having a house that leaks, there is generally an apathy and laziness from the part of consumers with regard to the purchase of such products. Dr.Fixit through its promotions was intending to break that apathy.
It is not an easy task to try to brand a product like Dr.Fixit. First, the brand has to create awareness about the need for waterproofing and then it should try to build on brand preference and purchase. The first phase of the promotion of Dr.Fixit was to create an awareness. Fixit has managed to do just that through its partnership with O&M.
Just like Fevicol, Fixit also uses humor to the maximum. In 2016, Pidilite roped in Amitabh Bachchan as the brand ambassador for Dr.Fixit. That was a very bold move from the brand and a symbol of commitment from Pidilite to grow the Fixit to greater heights.
One of the main reason for choosing Big B was to build authority to the brand. Dr.Fixit was positioned as an Expert in waterproofing solutions. Hence the brand needs to project that expertise or authority to the consumers through its campaign. One way to build authority is to use a celebrity who commands the trait of authority. Big B is known to convey such a trait. So there was a celebrity-brand positioning match in this case.
O&M cleverly used Big B in the ads by having one set of ads where Big B uses his real persona to deliver the brand message of preventive waterproofing. The role of BigB is huge for such a brand message because a consumer will invest in a preventive solution only if he is fully convinced about the consequences of not waterproofing. So an authoritative figure talking about perils of leakage will drive home the point.
In another series, Big B was used in a humorous manner. The aim of such a campaign is to create brand awareness.
Dr.Fixit is positioned as a Waterproofing Expert. In advertisements, the brand uses the tagline " Waterproofing Ka Doctor".
Along with the promotions, Pidilite also invests heavily in R&D for this category. The company has created an Institute of Structural Protection and Rehabilitation where scientists work towards finding better solutions for this sector. Dr.Fixit now has around 50 products under it offering a wide range of waterproofing solutions. The brand also has Dr.Fixit experience centers where the influencers like plumbers and consumers can learn more about effective waterproofing solutions.
Dr.Fixit is a complete marketing package which shows how a brand can be created in a less glamorous product category through innovation, creativity and sustained brand building investments.
Tuesday, August 01, 2017
Brand Update : Cadbury tries to fight Kinder Joy with Dairy Milk Lickables
Cadbury is taking the fight to Ferrero's turf by attacking its best-selling Kinder Joy. Kinder Joy which was launched in 2007 quickly gained acceptance from the young consumers. Kinder Joy is holding 7% market share in the INR 7500 crore Indian organized chocolate market.
Initially, Cadbury tried to fight Kinder Joy with Gems Surprise. But however ( in my opinion) it failed to get any big traction in the market.
Recently Modolez launched Lickables as a variant of Dairy Milk. Just like Kinder Joy, the new product comes with a gift inside. The brand is running a campaign featuring aliens for this variant.
Now the difference between Kinder Joy and Lickables is the way they have looked at the toys that come free with the chocolate. For Kinder Joy, the toy is the key. It is not something that is given free, more than that, the company takes a lot of efforts in designing various themes and series of collectibles. This focus is often reflected in the quality of the toy that comes with Kinder Joy.
This was not the case with Gems Surprise. The toys were not exciting and not of high quality. If Lickables is trying to follow the story of Gems Surprise, it will not be able to achieve the desirable goal of arresting the growth of Kinder Joy.
With regard to the campaign, I do not see anything significantly attractive about the ad except that the alien theme resonates with the spaceship looking packaging. Cadbury Dairy Milk Lickable needs a little more than just aliens to catch the attention of the discerning customer.
Friday, June 23, 2017
Mahindra e2o plus : Be City Smart
Brand: Mahindra e2o
Company: Mahindra Rise
Brand Analysis Count: # 576
After the buying the Reva company from Chetan Maini in 2010, Mahindra tried to infuse the much-needed expertise and capital into the electric car company.One of the first things that Mahindra did was to rebrand the Reva cars to e2o.
The first e20 was launched in 2013 replacing the two door Reva car. The auto world was looking for some kind of revolution in the electric car segment when Mahindra took over the Reva company. But alas the status quo remains even today.
In 2016, the company retired the two door e2o and launched the four-door hatch branded as e2o plus. The change reflected the lukewarm response to the two-door car.e2o plus is a standard electric hatchback which looks more like a normal car where the earlier Reva and e2o looked more like a toy car. The company feels that the changes will fuel more consumer interest and adoption.
But odds are stacked against the electric car as of now in India. Despite the higher fuel cost and increased emissions, the government has not looked at making the electric vehicle market - its priority. The infrastructure for EV like charging stations are not existing in India. However, the silver lining is the stated objective of the Indian government to have 100% EV nation by 2030. Moreover, the government also plan to fund 60% of R&D expenses in this field to reduce the cost of technology.
So in one way, the path looks bright but the current market and marketing condition for e2o plus looks bleak. The price is the villain. The brand is priced between 6.3 lakh to 10lakh and there is a huge replacement cost of around Rs 3 lakh for the battery in 5 years. Although the cost of running the car is dirt cheap, the cost of ownership together with the battery replacement cost makes the car unviable purchase for a normal buyer.
e2o Plus is positioned as a city car. The brand is banking on the low running cost, non-polluting nature as the USPs.
Even if a consumer is genuinely interested in buying this car, the economics never works out in favor. The only way forward is to hope that the government will lend a hand in helping to reduce the cost of the car. There are other innovative business models that have emerged around the EV ecosystem. Notable is the Bangalore-based Lithium Urban-Tech which provides EV based transporting solutions to companies which will help firms reduced their carbon footprints. There are also reports of Ola creating a fleet of EV taxis. These emerging models will probably act as critical lifeline support for this category as a whole.
However, a breakthrough in the battery technology is going to be the savior for EV's future globally.
Related Brand
Reva
Company: Mahindra Rise
Brand Analysis Count: # 576
After the buying the Reva company from Chetan Maini in 2010, Mahindra tried to infuse the much-needed expertise and capital into the electric car company.One of the first things that Mahindra did was to rebrand the Reva cars to e2o.
The first e20 was launched in 2013 replacing the two door Reva car. The auto world was looking for some kind of revolution in the electric car segment when Mahindra took over the Reva company. But alas the status quo remains even today.
In 2016, the company retired the two door e2o and launched the four-door hatch branded as e2o plus. The change reflected the lukewarm response to the two-door car.e2o plus is a standard electric hatchback which looks more like a normal car where the earlier Reva and e2o looked more like a toy car. The company feels that the changes will fuel more consumer interest and adoption.
But odds are stacked against the electric car as of now in India. Despite the higher fuel cost and increased emissions, the government has not looked at making the electric vehicle market - its priority. The infrastructure for EV like charging stations are not existing in India. However, the silver lining is the stated objective of the Indian government to have 100% EV nation by 2030. Moreover, the government also plan to fund 60% of R&D expenses in this field to reduce the cost of technology.
So in one way, the path looks bright but the current market and marketing condition for e2o plus looks bleak. The price is the villain. The brand is priced between 6.3 lakh to 10lakh and there is a huge replacement cost of around Rs 3 lakh for the battery in 5 years. Although the cost of running the car is dirt cheap, the cost of ownership together with the battery replacement cost makes the car unviable purchase for a normal buyer.
e2o Plus is positioned as a city car. The brand is banking on the low running cost, non-polluting nature as the USPs.
Even if a consumer is genuinely interested in buying this car, the economics never works out in favor. The only way forward is to hope that the government will lend a hand in helping to reduce the cost of the car. There are other innovative business models that have emerged around the EV ecosystem. Notable is the Bangalore-based Lithium Urban-Tech which provides EV based transporting solutions to companies which will help firms reduced their carbon footprints. There are also reports of Ola creating a fleet of EV taxis. These emerging models will probably act as critical lifeline support for this category as a whole.
However, a breakthrough in the battery technology is going to be the savior for EV's future globally.
Related Brand
Reva
Sunday, June 11, 2017
Maruti Suzuki Dzire : From Sub-brand to on its Own
Brand: Dzire
Company: Maruti Suzuki
Brand Analysis Count: # 575
The success of compact sedans which was largely aided by the tax- rebate on sub 4meter cars, caught the fancy of all the car makers and most brands started launching their versions in this segment. The cars became better looking and proportionate and not like the hatchback+boot kind of design.
However, from the branding perspective, we have one more example of a sub-brand becoming a standalone brand and Dzire truly deserves that status.
Company: Maruti Suzuki
Brand Analysis Count: # 575
From Maruti Suzuki Swift Dzire to Maruti Suzuki Dzire, the brand had come a long way. Launched in 2008 as a reaction to the uptick in compact sedan sales, this sub-brand became the second largest selling brand the company's portfolio contributing 14% of the domestic sales. So far 1.38 million Dzires were sold in the country.
The brand launched as a sub-brand of the best selling hatchback Swift, the brand easily caught the fancy of the sedan-loving consumers of India. Dzire in all sense was a Swift with a boot. But customers loved the car.
In a brand promotion perspective, there was nothing remarkable about the brand's communication. There were regular campaigns for the brand which focused more on the " Desirability " factor. The focus of the ads was to lure a trade-up to a bigger car.
The major factor that pulled customers to Swift Dzire was the practicality. The car gave the performance of Swift with a bonus of a boot. However, on the design front, it was not aesthetically perfect.
The success of compact sedans which was largely aided by the tax- rebate on sub 4meter cars, caught the fancy of all the car makers and most brands started launching their versions in this segment. The cars became better looking and proportionate and not like the hatchback+boot kind of design.
This has probably prompted the market leader to look at Dzire in a different light. The sub-brand not only got promoted as an independent brand but also got a brand new design. Interestingly the new Dzire shares the design (oops !) with new Swift but was launched much ahead of the new Swift.
Although the front of the new Dzire looks very classy, the boot still derives the design cues of the older version which is a letdown. One has to see the new Swift to make a judgment whether the new Dzire is entirely new or not.
However, from the branding perspective, we have one more example of a sub-brand becoming a standalone brand and Dzire truly deserves that status.
Friday, May 19, 2017
Brand Update : Frooti extends to Frooti Fizz
In a very surprising move this summer, Frooti decided to extend itself into Fizz category with the launch of Frooti Fizz. The fruit + fizz category was created by Parle Agro through Appy Fizz in 2005.
The brand had a very high profile launch piggy banking on the brand ambassador Alia Bhatt. Now Parle Agro have SRK, Priyanka Chopra and Alia Bhatt endorsing its brands. That also is a shift from the earlier promotional strategy which was essentially not revolving around a celebrity.
The new launch is interesting in the sense that why should a brand like Frooti extend to a category which is significantly different in terms of the most important category attribute -Taste. Frooti is the market leader in the category and the brand is worth around 600 crores. Fruit + Fizz category is a niche category now. The brand owners feel that customers are shifting from artificially carbonated drinks to other forms which are perceived to be more healthy. So the Fizz category may see an interest from the mainstream carbonated drink customers and eventually grow in size. Frooti with its brand equity would be able to drive more customers into the category.
Another reason is to bring in renewed interest into the brand. Frooti being a brand which has been in the market since 1985 wants to rejuvenate the brand equity and stay young and relevant. One way to stay relevant is to keep reinventing and experimenting. This launch is also such an effort to keep the brand innovating and taking risks and explore newer pastures.
A lot of success of Frooti Fizz would depend on the taste factor. The nature of the Fizz category was that it was suited for occasional indulgence and not for regular consumption ( personal opinion !). Frooti Fizz would be aiming to change that. The launch ad tries to create a Yo image for the brand. However, I cannot read much about the brand in the advertisement except the presence of vibrant colors and the brand ambassador.
Frooti has taken a risky step by extending into a different sub-category. I am not a fan of extensions, however, Frooti may benefit from the additional promotional push and consumer interest aided by this Rs 100 crore media blitz.
Monday, March 27, 2017
Brand Update : What happened to LMN ?
Remember LMN?
I was listening to a news regarding the launch of Frooti Fizz last day and suddenly remembered a very hyped brand LMN from Parle Agro. After campaign blast during the launch in 2008 and repositioning in 2009, the brand went to silence.
My guess is that the brand got a silent burial soon after the relaunch. There is no mention of the brand in the Parle Agro website also. What is sad is that LMN was such a powerful brand name, the company was not able to capitalize the brand name.
The second factor is the promotion. Parle is a company ( in my opinion) which does only seasonal bursts of promotion. Even for its bread and butter Frooti, This seasonal spurts of promotion does not augur well for a new brand that too in highly competitive market.
The third factor is the positioning. Although the brand's initial campaign was artistically good, it did not resonate well with the target audience.
So till Parle decides to relaunch LMN, May it rest in peace.
Related Post
LMN
I was listening to a news regarding the launch of Frooti Fizz last day and suddenly remembered a very hyped brand LMN from Parle Agro. After campaign blast during the launch in 2008 and repositioning in 2009, the brand went to silence.
My guess is that the brand got a silent burial soon after the relaunch. There is no mention of the brand in the Parle Agro website also. What is sad is that LMN was such a powerful brand name, the company was not able to capitalize the brand name.
The second factor is the promotion. Parle is a company ( in my opinion) which does only seasonal bursts of promotion. Even for its bread and butter Frooti, This seasonal spurts of promotion does not augur well for a new brand that too in highly competitive market.
The third factor is the positioning. Although the brand's initial campaign was artistically good, it did not resonate well with the target audience.
So till Parle decides to relaunch LMN, May it rest in peace.
Related Post
LMN
Tuesday, February 07, 2017
Tata Motors does a TAMO
Brand: TAMO
Company : Tata Motors
Brand Analysis Count: # 574
My preliminary understanding is that Tata Motors will use TAMO to launch high-end niche products like the sports car, luxury sedans etc to break away from the existing perception of a low-cost utility car maker. Tata Motors probably is trying to adapt the much-discussed strategy of Japanese carmaker's strategy of entering the USA premium market through new brands like Accura, Infinity etc.
But in all reports about TAMO and even in the company website, the TAMO brand is categorized as a sub-brand. If Tata Motors is any way serious about positioning TAMO different from the existing perception of Tata Motors, the sub-brand strategy is not a wise move.
Sub-brands are almost always used alongside a parent brand. So if TAMO is a sub-brand, it would be endorsed by Tata Motors. So if TAMO's main purpose is to break away from Tata's existing image, the sub-brand strategy will not work.
On the other hand, if Tata wants to launch products like sports car using a sub-brand strategy, then I wonder whether customers would really be open to paying a premium for a Tata car. A parallel can be drawn with Maruti Suzuki launching a premium distribution network Nexa to launch its premium cars but later diluted the premium by adding cars like Ignis which starts at Rs 5 lakh.
One bold move would be that TAMO launched as an independent brand of niche products without any endorsement from Tata Motors. It's too early to comment on how Tata Motors plan to position TAMO, but that would be a story worth watching for.
Company : Tata Motors
Brand Analysis Count: # 574
On February 2, 2017, Tata Motors announced the launch of a new sub-brand TAMO. According to the Tata Motors website, TAMO will be
TAMO as a new, separated vertical will operate in the first step on a low volume, low investment model to provide fast tracked proves of technologies and concepts.
This is a significant move for Tata Motors who has been trying all sorts of strategy to move up the value chain. The Tata Motors has been stuck with the utility vehicle maker tag in the Indian market for long. The perception has affected the premium brands like Aria, Safari etc in getting customer interest and adoption.
My preliminary understanding is that Tata Motors will use TAMO to launch high-end niche products like the sports car, luxury sedans etc to break away from the existing perception of a low-cost utility car maker. Tata Motors probably is trying to adapt the much-discussed strategy of Japanese carmaker's strategy of entering the USA premium market through new brands like Accura, Infinity etc.
But in all reports about TAMO and even in the company website, the TAMO brand is categorized as a sub-brand. If Tata Motors is any way serious about positioning TAMO different from the existing perception of Tata Motors, the sub-brand strategy is not a wise move.
Sub-brands are almost always used alongside a parent brand. So if TAMO is a sub-brand, it would be endorsed by Tata Motors. So if TAMO's main purpose is to break away from Tata's existing image, the sub-brand strategy will not work.
On the other hand, if Tata wants to launch products like sports car using a sub-brand strategy, then I wonder whether customers would really be open to paying a premium for a Tata car. A parallel can be drawn with Maruti Suzuki launching a premium distribution network Nexa to launch its premium cars but later diluted the premium by adding cars like Ignis which starts at Rs 5 lakh.
One bold move would be that TAMO launched as an independent brand of niche products without any endorsement from Tata Motors. It's too early to comment on how Tata Motors plan to position TAMO, but that would be a story worth watching for.
Tuesday, January 24, 2017
Brand Update : Xenon Updates to Xenon Yodha
Tata Motors launched Xenon in 2008. When the brand was launched, it was positioned as a lifestyle pick-up truck. Nine years down the line, the brand has grounded itself as a pickup truck. Tata Motors has always been thinking ahead of times.In 2008, Xenon was trying to create a new market for urban pickup trucks which are very popular in western world. This was targeting people who owned small businesses or adventurers who would like to travel with a lot of stuff.
But somehow the market was not warming up to Xenon to the extent which Tata Motors expected. The product is in a niche market. Now suddenly there is a renewed interest in the segment resulting from the launch of Isuzu D-Max pickup truck. The launch of Isuzu may renew a lot of interest in the segment which has very few brands like Mahindra Scorpio Getaway and Xenon.
In terms of branding, what is interesting is that Xenon has become more Desi in the new avatar. The relaunch of Xenon is now as Xenon Yodha. The positioning also has changed from a lifestyle product to a utility vehicle. That is a big shift as far as the brand is concerned. The ad features the brand ambassador Akshay Kumar who now endorses all the commercial vehicles of Tata Motors.
Another interesting thing is that Isuzu has positioned its D-Max as a lifestyle pickup rather than a utility vehicle. One of the reasons for the slow offtake of this lifestyle pickup truck is the government regulations probably insists that these trucks can only be registered as commercial vehicles. A twin cab pickup truck costs more than 10 lakhs and the value for money proposition does not match up for a non-commercial use.
Monday, January 16, 2017
Brand Update : Thums Up says Main Hoon Toofani
In the latest commercial featuring the new brand ambassador Ranveer Singh, Thums Up has started its slide down in terms of creativity. Usually, Thums Up ads are nicely made and usually succeeded in creating that adrenaline pumping machismo effect.
The recent commercial featuring Ranveer Singh is a big let down ( IMHO) both in terms of idea and execution.
We have seen this plot of the school bus, hero saving etc in many films and ads, It is nothing but plain boring.
Secondly, there is also a change in the narrative of the brand. In the earlier ad, the hero used to do big stunts for Thums Up. The brand was projected as something which even a big hero would do anything to get it.
Here in the new narrative, the hero and the brand is totally disconnected. Probably the argument is that the brand and the hero is one which is reflected in the new tagline " Main Hoon Toofani ".However, the execution fails to project the narrative properly. Even the presence of the brand in the frames is limited to the first two and last frames. If you notice hard, you can see the logo on the bike, jacket etc. It's a classic case where the celebrity outshines the brand.
Tuesday, January 10, 2017
Brookside : Dark Outside, Exotic Inside
Brand: Brookside
Company: Hershey
Brand Analysis Count: # 573
The 7500 crore Indian chocolate market is hotting up with global giants stepping up the fight. The latest to enter the market is the brand Brookside. Brookside is a brand of the chocolate giant Hershey.
Hershey has launched Brookside as a premium chocolate brand with the USP of the fruity core.
Brookside is a unique combination of dark chocolate and fruit flavor. Brookside is launched in 3 flavors - Blueberry & Acai, Raspberry & Goji, and Pomegranate.
The combination of fruity flavor and dark chocolate may not appeal to the larger set of consumers hence taste-wise, this brand would appeal to a limited set of consumers. However, there is something very different about the combination which will prompt many trial purchases.
Company: Hershey
Brand Analysis Count: # 573
The 7500 crore Indian chocolate market is hotting up with global giants stepping up the fight. The latest to enter the market is the brand Brookside. Brookside is a brand of the chocolate giant Hershey.
Hershey has launched Brookside as a premium chocolate brand with the USP of the fruity core.
Brookside is a unique combination of dark chocolate and fruit flavor. Brookside is launched in 3 flavors - Blueberry & Acai, Raspberry & Goji, and Pomegranate.
The combination of fruity flavor and dark chocolate may not appeal to the larger set of consumers hence taste-wise, this brand would appeal to a limited set of consumers. However, there is something very different about the combination which will prompt many trial purchases.
The brand is positioned on the basis of this unique combination of fruit and dark chocolate and is reflected in the tagline " Dark Outside, Exotic Inside".
The brand is priced at Rs 50 for 33-gram pouch and Rs 140 for 100-gram pouch, Brookside is already running its launch campaign in television channels.
Watch the TVC here: Brookside
After seeing the ad, my wife's remark was " I don't like fruit flavored chocolates " while my daughter's reaction was "wow ". So this brand will appeal customers who like something different and exotic to indulge.
The entry of Hershey into the chocolate segment is a good news for the chocolate lovers. The iconic Hershey's Kisses and chocolate bars are expected to hit the Indian market in the near future. Mondolez is already gearing up for the fight. In the recent past, the company has been trying to strengthen the Cadbury Dairy Milk range with a lot of variants at the premium end in preparation for the new competition.
Wednesday, January 04, 2017
Tata Hexa : Whatever it Takes
Brand: Hexa
Company: Tata Motors
Brand Analysis: # 572
Tata Aria is dead, Long live Tata Hexa.
Company: Tata Motors
Brand Analysis: # 572
Tata Aria is dead, Long live Tata Hexa.
The new year will see the resurgent Tata Motors launching the new premium crossover Hexa, replacing Tata Aria. Tata Aria, launched in 2010 failed in the market owing to the steep pricing and positioning problem. Tata Hexa is another attempt by Tata Motors to break into the premium segment with the Tata branding.
Tata Hexa is also a premium crossover - a category which was created by Aria. However, many customers equate this category to the premium MUV segment and its leader Innova. That was where Aria lost its game. Rather than considering Aria as a mix of car + SUV, consumers compared Aria with Innova, and the equation did not fit. Aria was considered big and difficult to maneuver which often is taken for granted for an SUV and not for an MUV.
In the new avatar, Hexa looks strikingly similar to Aria which can create perception issue for the brand. Tata Motos has priced Hexa between 12 to 17 Lakhs. The pricing is less than the Innova Crysta.
In the typical Tata style, the brand is loaded with features and goodies. Hexa also comes in the automatic variant along with other models.
The brand has started the bookings and launch ad is already in air. Watch the ad here: Hexa Ad
Hexa has the tagline " Whatever it takes ". The tagline has two interpretation by the brand. The first is that the brand has done whatever it takes to bring the best product to the customer. Second is that whatever it takes, the brand performs in various terrains.
The brand microsite also has the racer Narain Karthikeyan endorsing the brand and taking the visitor through a 360-degree experience of the product.
It will be interesting to see how Hexa will fare in the market. In my view, a lot will depend on the pricing. Tata is yet to be perceived as a premium brand. Also, it cannot match the quality perception of Innova. So if Hexa wants to carve a position in the market, it has to make an offer that a customer cannot refuse.
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