Company: Hindustan Unilever
Brand Analysis Count: #601
SugarFree, the market leader in the Rs 350 crore Indian artificial sweetener market has recently launched a brand extension much to the delight of calorie-conscious and diabetic patients in the form of dark chocolates. India which is considered to be the diabetic capital of the world is yet to see a boom in the artificial sweetener category and sweets made up of artificial sweeteners. This is largely due to lack of awareness and fear of risks in consuming such products.
However slowly and steadily, the market is warming up to such alternatives to non-sugar delicacies. To take advantage of such potential, most of the confectionery brand has one or two variants in the sugar-free category. For example, Amul has one variant of sugar-free dark chocolate but is rarely available in offline stores.
Zydus Wellness, the owner of SugarFree is sensing such an opportunity and with a brand which has a strong generic name and market leadership, it would not be wise not to take advantage. The company has chosen to launch its range of dark chocolates under the sub-brand D'Lite. D'Lite is not a new brand, earlier, SugarFree had attempted to launch a range of beverages such as fruit punch under this brand name.
In the new avatar, D'Lite will be initially a digital-focused brand with the product available in online stores such as Amazon, BigBasket etc. The sugar-free chocolates come in four variants - Dark Rich Cocoa, Dark Zesty Orange, Dark Hazelnut flavour with roasted almonds, and Dark Crispy Quinoa with roasted almonds. All these have 50% cocoa content. The sugar-substitute is maltitol.
The brand is positioned as a premium healthy alternative for calorie-conscious consumers. Priced at Rs 99 for 40g, the brand is a premium offering. The packaging is excellent and reflects the premiumness of the range. The brand has a soft-launch and I think it is promoted initially through digital platforms. The brand is promoted with the hashtag #Twogood.
I strongly feel that the market for such products has huge potential. The one factor that prevents growth is the negative feedback from a key influencer - doctors. Most of the doctors whom I talked to have expressed a negative opinion about the artificial sweeteners. Except for Stevia, all sugar substitutes carry some form of side-effects is usually what doctors say. It would take some persuasion from these marketers to change that influencer- narrative. However, for a consumer, these products are welcome alternatives to sugar and help keep check of sugar-cravings.
Related Brand Story
Ceat tyres is one of the most visible brands during IPL 2020. As the main sponsor and through a very clutter-breaking campaign featuring Aamir Khan, the brand, in my opinion, reaped a lot of eyeballs during this IPL season.
Other than the fact that IPL, especially during this pandemic, was a welcome relief to a lot of viewers in terms of entertainment value, Ceat was successful in milking the investment of being a main sponsor through a very clever campaign featuring Aamir Khan. Usually, when you are onboarding a celebrity of the calibre of Aamir Khan, the challenge is to use his persona effectively, reduce the chance of eclipsing the brand in the campaign and make the ad interesting. Ceat was successful in all these counts.
The IPL campaign was for SecuraDrive sub-brand of tyres and the focus was on safety. Over these years, Ceat was trying to own the platform of secure driving for its range of tyres. This campaign also is in the same line. The choice of the brand name SecuraDrive also conveys the brand's intended purpose.
What makes the campaign interesting is how the celebrity was treated in the ad. Here Aamir is a car crash test dummy which in itself is a novel idea. The fact that this dummy is afraid of his life is another twist. This campaign is also a classic example of anthropomorphism in advertising. The concept of giving human-like characteristics to non-human entities is called anthropomorphism. The two campaign is spot on in conveying the brand's message to the viewers. Good Job.
In the run-up to the winter season, Pond's has brought back its famous jingle ' Googly Woogly Wooksh" in an emotional pitch featuring a grandfather ailing from memory loss and his beloved granddaughter. The ad touches upon an emotional chord in the viewer at the same time cleverly delivers the core message of the brand in a beautiful way. Pond's always communicated its value proposition of " smooth skin".
This October, Apache which is the indigenous performance bike from TVS reached a milestone of 40 lakh sales. Although this figure may be dwarfed by the sales of the likes of Bajaj which sells more than 1 lakh bikes a month while Hero sells around 3-4 lakhs two-wheelers in a month. However, as a student of marketing, the story of Apache is of persistence and continuous improvement that made this performance bike reach such a good sales milestone.
Launched in 2006, the brand had a good start with its launch of 150 cc bike but later dwarfed by the competition which created multiple segments and dominated those segments in the higher cc performance bike market. In the game of volume sales, it is often easy to get deluded by the race for volume which has seen a lot of good brands biting the dust, TVS kept its patience and incrementally upgraded this brand with new variants and performance improvements. More importantly in the branding perspective, Apache kept its focus on the Racing DNA which forms that backbone of its promotions. The brand took a giant leap when it entered the 250-350 cc segment in 2017 with its RR 310. The tie-up with BMW helped with a refresh on the brand's pitching as a performance-oriented bike.
In my personal opinion, one of the factors that inhibited the brand's large scale user adoption was the style. The brand had a particular stance which was either liked or hated. With the brand offering no variety in styling, the brand limited its sales to hard-core fans. In the new avatar, Apache comes with different variants, the brand began to appeal to a broader set of consumers. In a way, Apache had missed the bus in the premium performance bikes but the slew of launches in the recent years are helping Apache to break into the performance segment.
Kent or rather Kent RO System is known for its RO based water purifiers but not anymore. From 2016 onwards, the brand has been on its way to becoming a consumer durable brand. Slowly and steadily, the brand has been launching products in the small appliances category leveraging on the success of its water purifier product range. Kent RO based water purifier was launched in 1999 challenging the UV based water purifier products which were ruling the market. Although expensive compared to UV based purifiers, RO based purifiers slowly gained acceptance due to its superior purifying ability and also backed by powerful promotions from the brand owners.
Now Kent has a number of product lines which are very diverse. The product line consists of water purifiers, vacuum cleaners, air purifiers, water softeners, kitchen appliances, security camera systems, and attendance systems. Kent brand is built on the positioning platform of purity. The founder of the company, Mr Mahesh Gupta calls the company's core as House of Purity. While the initial launches were in line with the " House of Purity" platform, later the firm began to launch unrelated extensions like a security camera and niche small appliances.
Mr Mahesh Gupta in an interview talks about the logic of concentrating on niche product categories. One advantage of niche is that there is not much competition. The niche products also will help Kent to display its innovative side to the consumers. If the brand is able to come out with innovative products, it will enhance the brand image and thus help brand launch mainstream products in the future.
As with all brand extensions, Kent also faces the problem of equity stretch. When a brand launches its extensions, the new products rely heavily on the parent brand's equity. Unrelated products create a lot of pressure on the core brand equity because there will be a disconnect between the core brand's positioning and the unrelated product's positioning. The solution is to identify a core brand positioning which allows for multiple brand extensions across diverse categories. For example, House of Purity positioning of Kent may not support a product like a mixer grinder of a camera security systems.