Atomberg : Why Not?

 Corporate Brand: Atomberg

Brand Analysis Count: # 616

Atomberg is a relatively new brand in the highly competitive consumer durable market in India. The company was started by two IIT Bombay Alumnus who had a passion  to creative high quality innovative products for India. The first product was in the fan category launched in 2015. The brand has come a long way since then creating a space for itself in the fan category.

Atomberg is competing for share in the Rs 10,000 crore fan market in India. The brand is pitching for the premium fan segment accounting for about 15% of the total market but the silver lining is that this segment is growing very fast.Atomberg has also recently diversified into other small appliances category like mixer grinders. 

The marketing of a consumer durable brand is a tough task because the nature of the product demand developing a USP and sense of trust among the consumers. The consumer durable market is crowded with large powerful national and international brands at the top and numerous small regional brands at the bottom. Further, these product require service support across the market which is not an easy task to achieve.

Atomberg has decided to play it in the premium segment because the best way to build a brand which will endorse a range of products is to create an aspirational flavor although there are lot of risks in that strategy. The rist is to justify the premium that these products command. Atomberg has chosen the platform of innovativeness as the USP for the brand. In the fan segment, the brand has positioned on the "power-saving" benefit for the consumer through the BLDC (Brushless DC Motor) technology.

The brand is currently running a major campaign for the fans featuring two kids Atom & Berg. The premise for the ads is the corporate brand's tagline  - Why Not ? which is a good representation of the brand's focus on innovativeness. 

There is  not a large number of advertisements that feature kids as the protagonists for brands which are not essentially kid's products. Kids are now seen recommending products like toothpastes to even life insurance. I am not sure what is prompting ad makers to believe that kids are the best people to recommend the products. Same is followed for Atomberg campaign. They have used kids are the representative of the brands. I personally feel that kids reduce the seriousness of what the brands has to say except for the brands that has kids as consumers. 

Here also the brand may have to continue these characters across various new product launches if they are to maintain continuity of the message since this is an umbrella brand for multiple product launches. The only advantage of using kids in ads is that some may view the ads as cute. 

Atomberg has chosen to  build itself around the idea of innovativenes. The challenge is to demonstrate that innovativeness in the products.The brand has been aggressively promoting across various media and this has definitely an impact on brand awareness and likely brand trials. 

Aquaguard: Paani Ka Doctor

 Brand: Aquaguard

Company: Eureka Forbes

Brand Analysis Count: 613

Launched in 1984, Aquaguard was one of the pioneers in the water purifier market in India. The brand from Eureka Forbes created and led the water purifier market for more than three decades now. Aquaguard was launched after the success of the vacuum cleaner products from Eureka Forbes. The company used the direct selling model to sell the water purifier also. Like any pioneer, Eureka Forbes had to do the hard work in convincing the market, the need for a water purifier at home. 

Slowly the market warmed up to the category and the growing awareness of water pollution and the need for better drinking water accelerated the adoption of this product especially in the middle class. When the market grows so does the competition. Aquaguard got a worthy competition in Kent. Kent approached the market in a different way by launching a premium water purifier with an advanced technology called Reverse Osmosis (RO). 

Through heavy advertisement campaigns featuring Hema Malini, the brand quickly gained traction and virtually owned the RO water purifier product line. Kent successfully communicated its claim that RO purifiers are better than the ones marketed by Aquaguard. Despite being the market leader, Aquaguard struggled to counter Kent's RO based marketing push.

Over a period of time, Aquaguard launched its own range of RO purifiers. One of the chunks in the brand's armour was the advertisement support for Aquaguard. Kent was heavily promoted and the communication was consistent and targeted. While Eureka Forbes was not that aggressive on the promotional front. 

Later the brand wake up from lethargy and followed the celebrity endorsement strategy of Kent by roping in Madhuri Dixit. Aquaguard is positioned as an expert in the water purifier domain communicated through the tagline " Paani ka Doctor" meaning - Doctor for Water. The water purifier portfolio has three extensions - Aquasure which is aimed at the lower-priced segment, Aquaguard which caters to the bulk of the market and Dr Aquaguard aimed at the premium consumers. 

While Aquaguard initially was following a catchup strategy with Kent in terms of technology perception, the brand took an aggressive stand in recent years. The brand launched variants with advanced technology and features such as Aquaguard Ayurfresh that gives taste and aroma to the water through a herb diffuser. Another launch was the copper and stainless steel variants taking the features ( augmentations) to the next level.

Recently the brand launched a veiled attack on Kent RO purifiers in the campaign for the Aquaguard active copper variant. The market leader claims that RO has become an outdated technology and the new technology is the active copper feature. The move is a smart one but a tough call. Kent has spent a huge amount of resources to convince the customer that RO technology is a superior version. Aquaguard may have to match that share of voice to claim technology superiority over the rival. It needs to be seen how Kent will react to this move by Aquaguard. 

Brand Update : Ceat Urges You Not To Be A Dummy

 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. 

Brand Update : Kent transforms to a multi-product brand

 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. 

Brand Update : Orient Electricals rebrands to Orient Electric for a bigger market play

In a significant move, Orient Electricals has rebranded itself to Orient Electric. In the new avatar, the brand aims to be a significant player in the Rs 5200 crore Indian home appliances market. Orient - a brand from CK Birla group is a major player in the electric fan category. The Rs 642 crore brand now is spreading its wings to a much broader market play.

Orient is a well known brand in the fan category. But that itself can be a limitation for a brand which is aiming to be relevant to other categories as well. Hence Orient decided to rebrand itself so that it could endorse a wider array of products.
Thus the company rebranded itself to Orient Electric with a new logo and new tagline " Switch to Smart".
The rebranding is backed by a series of campaigns featuring the brand ambassador MS Dhoni. The ads are well crafted and unlike many celebrity oriented campaigns, Orient has made a difference by putting the brand in the limelight.

The ad has the theme " The next generation is smarter " and the message is conveyed through a smart kid that outwits Dhoni. The ad effectively conveys the brand's pitch of its new generation avatar.
Watch the campaign here : Orient TVC 1
                                          Orient TVC 2
The new foray of Orient is into a market which is cluttered and highly competitive. The brand's equity in the fan cateogory together with the new high profile campaign will do a lot of good for the brand aiming to be a major player in the home appliances market. 

Brand Update : Fastrack Gets Provocative

Fastrack ,the most successful youth brand of India has started getting provocative. In a strategy emulating the likes of United Colors of Benetton , FCUK etc, the brand has embraced a double-edged sword inorder to keep connected to the fickle Indian young consumers. 

Fastrack is one of those few brands which could break into the young consumer's minds. Over these years, the brand was able to position itself as a young, vibrant, brand and through very smart campaigns has created as space for itself. 

The brand evolved from a sub-brand to a powerful independent brand through some smart product strategies ( design + affordability + promotion) and clever advertising. 

Now it seems, the brand is entering the next phase of its evolution. From a watch brand, Fastrack has grown to become an umbrella brand endorsing products from watches to tees.

The current campaign which is more of a digital campaign is provocative at its best. The brand is now starting to walk through the thin-line separating decency and the other-side. Many brands especially those who target the youngsters are tempted to be provocative with a dash of erotica/nudity. Lot of researches has been done on the effectiveness of such provocative ads. Research says that provocative ads drives its power from three factors (a) Shock Value (b) Ambiguity (c) Transgression  to some cultural taboo  ( Pope Voges & Brown, Journal of Marketing) . The ads which aims to be provocative needs to shock people so that attention is taken. The ads should be ambiguous confusing the audience as to the real meaning of the ad, so that they discuss it longer and finally the ads should break some rules or taboo. In all these counts, the Fastrack campaign scores brownie points.

The real question is the advantage of getting provocative. Earlier researches categorically stated that provocative ads although has an effect on the audience's attention towards the campaign creates a negative impact on the brand image. But recent researches tend to be gentle in criticizing such ads since there is a marked shift in the audience culture. But researchers were not able to clearly measure the impact of such ads on the overall brand image.
So here Fastrack is taking a risk. The short-term benefit is the attention that these ads will shower on the brand but the risk is whether the brand gets trapped in these type of ads and finally ruining its image.
Its for sure that the youngsters will find no issues with the current campaign and that is what the brand also wants.
What do you think ?

Related Brand
Fastrack : How Many You Have

Brand Update : Katrina is the new face of Titan Raaga

Titan Raga has got a new face in Katrina Kaif. In continuation with its celebrity endorsement centered brand strategy, Titan signed the reigning Bollywood Diva Katrina Kaif as the brand ambassador for its sub-brand Raaga. The brand is currently running the campaign featuring the brand ambassador.

Watch the ad here : Katrina Titan Raaga

Titan Raaga which was born in 1992 was able to carve out a space for itself in the Indian watch industry. The brand is targeting the Sec A/B segment with a value proposition combining elegance and quality. 

Regarding the brand communication, there is nothing great about the new advertisement. The ad follows the standard theme and except for a small glimpse of the brand, celebrity rules the entire campaign. The ads featuring Katrina also sports a tagline  " Stay New " . 

 The brand has fallen into the celebrity trap where celebrity gains more importance than the brand. Remember that in most of the Titan ads featuring Aamir Khan , the brand was carefully placed with equal importance as the celebrity. 

Another interesting factor I noticed in the new ad was the absence of any mention of the sub-brand Raaga except for the half-a-second glimpse of the watch. Infact I mistook the campaign for the parent brand. This is another classic case where the agency underplayed the brand in favor of the celebrity. Further there is not much connect between the sub-brand and the theme of the ad. May be the brand is trying to economize by promoting the umbrella brand Titan rather than Titan Raaga. 

Even in the print ads, there is no mention about the sub-brand. This may be a part of the strategy where the Above-The- Line campaigns will be for the parent brand Titan and the Raaga will be relegated to a sub-brand visible only in the product. More clarity will come only after the rolling out of further campaigns.

Does it make a big difference ? 

Related Brand

Titan 

Brand Update : Pureit Ups The Ante

HUL's first foray into the consumer durable market- Pureit is on an aggressive mode. The brand which was launched in 2004 has taken the battle into the premium segment of the water purifier market with the launch of Pureit Marvella. 

Pureit is a classic case of a brand exploiting an important need-gap in the market. Indian water-purifier market worth around Rs 1200 crore is evolving, growing at 15%. The marketing of water purifiers were skewed towards urban markets of India. Only 8 % of the Indian consumers use water purifier which indicates the poor penetration of this product category into Indian households. The major hindrance for this being high price, installation difficulties, electricity consumption and lack of awareness. Eureka Forbes pioneered the growth of this category in the Indian market. Now this category has lot of players and  new product-lines like RO water purifiers has been introduced.

The major players in the electricity -powered water purifier market however ignored the mass market focusing more on the margin rather than volume. These products which were priced at Rs 5000 upwards were beyond the reach of the average middleclass customers. Even though many such consumers were aware of the health benefits of a water-purifier, it was never in the priority list of high value purchases.

Sensing the opportunity, HUL launched Pureit range of battery operated storage-type purifiers at a price range of Rs 990- Rs 1250. These purifiers did not necessitated any installations which was a definite advantage for those who lived in rented houses. The brand was widely tested in South India before the national launch . According to reports, Pureit has already sold more than 1.3 million units becoming the largest selling water-purifier in India in volume-terms. The brand also created a new category of  non-electric storage- water purifier market which is now worth around Rs 300 crore and growing very fast than the electric category.

One of the problems that Pureit faced during the launch was the doubt about brand's efficacy in the purifying business. HUL is new to this industry and not an expert so consumers rightly doubted the effectiveness of its product . To counter that, Pureit ran a very highly advertised " 1 crore challenge " to convince the consumer that its product is more effective than the competing brands. 

After establishing its name in the mass market, Pureit is now targeting the market-creator Eureka Forbes in an aggressive frontal attack by launching the premium brand Pureit Marvella. Marvella is also a a non-electric purifier with storage capability priced at Rs 7000. The brand also launched its Reverse Osmosis water purifier Puerit Marvella RO at a price point of Rs 13500. These sub-brands directly competes with Eureka Forbes's major product-lines. 

The entry of HUL into the Eureka Forbe's territory was marked with lot of legal fights between the brands because of advertising claims and counter-claims. Now the fight is in the field with both the brands trying to out market each other.

HUL in its typical FMCG style is launching Marvella range with a celebrity endorsement. The brand has roped in Farhan Akther and Praachi Desai as the brand ambassador. The campaign is now running featuring these celebrities. 

Watch the ad here : Pureit marvella

The USP of the brand is its advanced warning system which alerts the consumer to change the RO membrane before it stops working.

The entry of HUL has virtually changed the dynamics of the water-purifier market in India. The market creator was totally out-maneuvered by HUL. Eureka Forbes decided not to counter HUL's foray into mass market because of lack of margin. In strategic terms , the decision made sense because low priced products tend to affect both margins and brand -equity. But Forbes failed to see the shift in the market and the growth of the non-electric segment to become the fastest growing segment. The popularity of the mass market segment also gave confidence for HUL to enter the market of Eureka Forbes. Eureka Forbes countered the HUL's entry by lowering the price of its base models. But HUL is such a formidable player that Eureka Forbes may need all its marketing strength to fight this giant.

Related Brand

Pureit : As Safe as boiled water

Eureka Forbes

Kent RO

Brand Update : Havells Ventures into Small Appliances

Havells brand which made everyone look up with its clutter-breaking  " Shock Laga " ad has diversified into small appliances. Indian small appliances market is worth around Rs 5000 crore with premium segment contributing around Rs 1000 crore ( Source : Business Standard)

Havells is now running its commercials announcing the launch of the domestic appliances. By the theme of the ads, it is assumed that the foray is targeting the premium segment. Indian domestic appliances market is highly fragmented and intensely competitive. Brands like Philips, Bajaj  etc dominates the market. There are also local brands which have powerful equity in certain product-lines. Havells have already marked its presence in fans and water heater product categories.

Havells would be hoping that it can leverage the equity of its electrical products into the new product range. This time also , there is no specific brand value or USP that Havells is trying to project although subtly the ads try to position the brand as futuristic or technologically superior. In some ads, Havells is displaying the tagline " Future Ready " implying the futuristic technology that its product has. Having said that , the ads are able to convey the premiumness of the brand quite effectively.

I still see the absence of a corporate tagline for Havells as one of its major branding mistake. Since the brand is trying to be an umbrella brand endorsing products across categories, it is important to create a positioning platform for the corporate brand. Hope that the brand will get serious about its parent brand's positioning.

Related brand
Havells- Shock Laga Kya

Vodafone Blue : For Facebook Lovers

Brand : Vodafone Blue
Company :Vodafone

Brand Analysis Count : 502

Vodafone Blue is a Facebook dedicated mobile phone from Vodafone. The brand is thoroughly interesting because of its unique positioning. Vodafone Blue was launched in September 2011 targeting the ultimate Facebook fan. 

It is not unusual for a mobile service provider to dabble into the hardware . But most of such launches went largely unnoticed by consumer. This bundling of hardware and software although very much popular in the Western market is not yet being popularized in the Indian market. 

Vodafone Blue is manufactured by Alcatel and is co-branded by Vodafone and Facebook. This brand is an example of co-branding between two service providers. India is witnessing a huge surge in social networking usage. Facebook is leading the pack with an estimated 33 million Indian users. Vodafone is a leading player in the Indian mobile telephony with an estimated subscriber base of around 143 million. So coming together to tap synergies is the aim of this co-branding exercise.

Since most of the mobile service providers are grappling with the issue of wafer-thin margins, data usage is being viewed as a revenue generation & survival opportunity by most players. The rise of popularity of social networking sites provides ample opportunity for mobile service providers to gain revenue and also increase subscriber base. Vodafone's interest in this venture will be to increase its data usage subscriptions. For Facebook, India is a crucial market both interms of users and also advertisers. Partnering with a major player like Vodafone will bring in more users and importantly more usage of its site. So on paper , everything sounds logical and good.

Vodafone Blue's USP is its tight integration with Facebook. The product can be said as a Facebook phone and the product is aiming to give a pure Facebook experience to the consumers. This is not the first brand to come out with a Facebook phone. Earlier HTC has launched HTC ChaCha brand with a dedicated  Facebook button. Vodafone Blue has product features like - dedicated F button, FB is always working on the background, easy sharing of photos and messages etc.

The big question is whether Indian consumer needs such a product that is heavily integrated to only one social networking site ? The product is a niche but only time will tell whether this product is going to have enough takers to justify its existence. It is true that Facebook is hugely popular in India but will a consumer be willing to shell out Rs4500 for a dedicated phone is  a doubtful proposition.

There are many good things about this phone. The hardware is decent so are the looks. But there are many other phones in the same price range that offers many more features than Vodafone Blue. Hence for an average consumer, Vodafone Blue may not be a compelling buy. 

Another interesting facet of this brand is its communication. The brand is running a high profile tvc for its launch.

Watch the ad here : Vodafone Blue 

The ad conceived and executed by Ogilvy  is being shot as a Broadway Musical. This is the first time that an Indian brand has taken up a Broadway musical theme. The ad was interesting as a first-watch then became too long and boring. 

Although the ad had some elements of creative brilliance, the purpose of the ad baffled me. Is that ad for Facebook or Vodafone Blue ? Do Facebook needs such a campaign explaining FB features ? Why such a long ad failed talk any single feature about the phone ?? 

According Business Standard,  the brand is targeting non-metro consumers. The brand feels that the next social networking wave will come from these tier II cities. In that case the advertisement is way off the mark. Secondly, the consumers who already are the users of FB need not be re-educated about FB features. So an expensive advertisement made to show creative brilliance and no strategy.

According to the reports, Vodafone is offering one year unlimited FB access to the buyers of Vodafone Blue. The phone comes locked with the service providers and the consumer has to chose a pre-paid plan for this phone to enjoy the FB services. 

I am no expert in forecasting the success of brand launches. Vodafone Blue is an interesting experiment in the social networking space. A dedicated social networking phone without over-focus on any one social networking site would have worked better, but here in the case of Vodafone Blue, it is a co-branding initiative. Time will tell whether this experiment was worth it or not. 

Brand Update : Daikin focuses on Country of Origin Positioning

It has been 5 years since I updated about this brand. Last time I wrote about this brand, Daikin was having a fair share of  voice with lot of ads focusing on the Silence attribute. The brand was running the " Complete Silence " ads for a while and then went into silence for five long years. I don't remember any campaign from Daikin  during the last five years ( atleast in my place). But even without any hype, the brand still commands around 5% of the Indian  residential A/C market. The brand may be doing the sales activities in the B2B market in these years but in the consumer market, Daiken was having complete silence.

In this IPL 2011, the brand started making some noise. The brand is now showing some reminder ads and the presence is also felt in OOH media. 

What is interesting about the brand now is that it has been repositioned. The brand has done away with the attribute based positioning and is trying out the Country of Origin proposition. The brand has adopted the positioning " With Love from Japan " . From a highly creative Complete Silence to basic Made in Japan  tag seems intriguing.

Along with the tag, the brand seems to have adopted some aspects of  parent company's approach to branding. Infact the brand has imported some brand elements from the parent. Daikin now introduces a mascot for the brand - a character called  Pichon- Kun. Pichon-Kun is a mascot which is a droplet with a small body. The mascot embodies the brand's philosophy of best of nature, fresh and eco-friendly. 

Globally, the brand uses the tagline " Here , There , Everywhere". 

The new brand line " With Love from Japan " at first sounded very archaic to me. I thought that the era of Made in Japan tag was over. But on thinking, I have a feeling that this could work in practical sense better than high profile branding stuff. The association of quality and innovation is still very much connected with  Japanese products. But the issue is that most of Japanese brands sell their Chinese made products so the manufacturing excellence associated with Japanese products have diminished significantly. If Daikin could reinforce the connection of quality and Country of Origin, then the consumers will embrace the product.

The brand has been existence in India for the last 10 years . The brand has a market share of hardly 5 %. This surely means that the brand has not reached its potential. One of the factor being the lack of investment in brand building. 

The brand can boost its sales if it could position itself as a true blood Japanese product (like Toyota) emphasizing on quality , innovation etc. But that need a series of campaigns reinforcing each of those attributes rather than just advertising the  " Made in Japan " tag.

Related post

Daikin - Complete silence  

Brand Update : Philips To Acquire Preethi

The famous Preethi brand of small appliances is going to get a new high profile owner. The Dutch consumer durable giant Philips has agreed to acquire the assets of this homegrown brand.This move came as a huge surprise and  I never thought that Preethi could be a candidate for acquisition. Preethi brand was founded in 1978  and the  owners - M/s Maya Appliances has carefully nurtured this brand. 

The brand developed its mixer range quite beautifully and through careful product development and meaningful advertisement campaigns. The brand had constantly adopted the positioning based on durability and reliability which was communicated through the tagline " I Guarantee ".

Now once the acquisition is over, it will be interesting to see how the brand will fit into Philips' overall branding strategy.There are chances that Philips will use Preethi as a sub-brand with endorsement from Philips. 

It is also interesting to see how the brand image of Preethi will change with the endorsement from Philips. Suddenly the homegrown image of Preethi will vanish.

Through this acquisition, Philips will gain huge market in the mixer grinder segment. Philips will also get instant sales and service network of Preethi ( even though Philips has its own robust distribution network).More than that, Philips will get that vital market knowledge that Preethi had acquired over these years.According to news reports, after the acquisition, the company will be run by existing promoters. It will be interesting to see how this acquisition will turn up for this nice brand.

 Related Brand

Preethi 

Xylys : It Possesses You

Brand : Xylys

Company : Titan Industries Ltd

Agency : Rediffusion

Brand Analysis Count : # 460

Xylys can be termed as India's own premium watch brand. The brand created by Titan Industries is taking on the iconic premium watch brands like Omega, Rado,Patek Philippe, Rolex,Cartier etc. The brand was born in 2006 gain rapid acceptance in the Indian watch market.

Indian luxury watch market is worth Rs 500 crore and is dominated by Swiss and other European brands. There is virtually no presence of any Indian brands in that segment. The rising affluent Indian consumer class and the trend towards more expressive lifestyle accessories prompted Titan to seriously look at this segment. Xylys is currently targeting the lower spectrum of the luxury watch segment.

Xylys was initially launched as a flanker brand for Titan. Titan which is the market leader in the mid-price segment felt that the upper end of their target customers were moving towards iconic global premium brands. With that intention of blocking any such migration , Xylys was introduced at the price range of Rs 8000- Rs 33,000.

Xylys however gathered good momentum with the brand clocking a 50% CAGR growth rate. From being a flanker brand, Xylys morphed to be a powerful growth brand in the course of time.

Titan while carefully analyzing the consumer behavior of premium watch customers, it found that the consumers were highly influenced by the "Country of Origin " association. The consumers loved the Swiss Made proposition and there is a huge association between " Swiss Made " and quality, precision , premium etc. The insight was that it would be difficult for an "Indian Made " tag to impress upon the target segment. Titan thus made Xylys - a Swiss Made watch. Xylys is manufactured at a state-of-the-art factory in Switzerland which has a rich heritage of 80 years in precision watch making.

Xylys' strong point was its design . The brand is being crafted in association with Swiss designer Laurent Rufenacht along with Titan's own designer Michael Foley. The sharp unique designs quickly made Xylys a fast growing brand in the segment.

Xylys was launched as a contemporary brand targeting the upwardly mobile successful men & women. The brand has segmentedthe market based on psychographic profiles. Xylys defines its customers as contemporary dynamic successful persons who has attitude and confidence. The brand wants to celebrate success with them. The customers of Xylys are highly individualistic persons who does what they love. These people would love to express themselves and loves to show their success to the world. The brand has a very well defined brand charter and values which I feel is an excellent marketing practice. ( Read Xylys Brand Charter here).

During the launch phase, Xylys was endorsed by the Actor Rahul Bose, tennis player Carlos Moya and super model Saira Mohan. The basic theme of the launch campaign was the story of how these people tread their own path and became successful.

Watch the launch ad : Xylys Launch

Xylys -Saira Mohan

The brand at that time had the tagline " The power of X " . The brand used " X" to symbolize the differentiating factor in the highly successful people. X also denotes Xylys-the brand.

In 2010, the brand changed its positioning from " Symbol of Success " to " Feeling of Love ". The brand now is talking about falling in love with Xylys. Xylys is currently running a campaign reflecting the new positioning.

Watch the new campaign here : Xylys Possession

The brand have also adopted a new tagline " You do not possess Xylys , it possesses you ".

The new campaign is a significant deviation from the core positioning of the brand. The entire brand personality of Xylys was changed in the current campaign. I wonder why a brand which is growing should try to change its positioning at this critical juncture.

The earlier positioning of Xylys were talking about the highly individualistic expressive nature of successful people while the current positioning talks about how Xylys takes control of such a person. If you look closely the brand is totally off the mark regarding the core values that it stands for. I feel that the agency has not read the brand charter before creating the campaign. The purpose of creating a brand charter is to protect continuity in the communication. The product managers should use the charter as the basis for devising their communication strategies. The current campaign is very difficult to fit into the brand charter.

Regarding the execution of the new positioning , there is nothing worthwhile in the advertisement. The idea of a man being possessed by a product and forgets everything is an idea which has been raped a million times. Even the chocolate brand 5 star uses this idea as the central theme.

Having said that, Xylys' core strength is its design and since watch is an experiential product , consumers may fall for it when they see the designs. But the brand needs to create clutter-breaking campaigns if it wants to fight the likes of Omega , Rado etc.

Xylys has took lot of effort in creating a very good brand charter. Why not follow it ??

Wipro Smartlite : Savings Account

Brand : Wipro Smartlite

Company : Wipro

Ad Agency : Orchard Advertising

Brand Analysis Count # 448

Wipro Smartlite is an interesting brand. Interesting because of the patience with which the company is nurturing the brand and also for the consistency of positioning which is now a rare feature in the current Indian marketing world.

Wipro Smartlite was launched in 2001 marking the foray of Wipro Lighting division into the CFL market. After 9 years, Smartlite is India's fifth largest CFL brand. The Indian CFL market is estimated to be around Rs 700 crore and is expected to grow fast because of the current trend towards energy efficient products. The lighting market is dominated by the incandescent bulbs which sells around 90-95 crore units every year.

The CFL market was growing slowly because of the significant price differential compared to incandescent bulbs. While the ordinary bulb costs Rs 10-15, CFL used to cost between Rs 110-115. This huge price differential made CFL to be considered as a luxury rather than a value for money product.

The entire CFL market become the center of focus in the last couple of years due to strong campaign from Government and NGOs. Despite the higher cost, CFL is considered to reduce the electricity consumption to a large extent thereby provide continuous savings . Such campaigns increased the awareness of utility of CFL among the general public.

Wipro Smartlite has positioned itself on the savings platform. The brand has adopted the tagline " Savings Account of your house " and uses the benefits like (a) Saves 40% electricity (b) lasts longer (c) better lighting ,to reinforce the positioning . The brand has roped in celebrities like Paresh Rawal and Jayaram in its campaigns.

Watch the campaign here : Wipro Smartlite

The CFL market faces the issue of cheap imports from China. The market is full of cheap low quality China CFLs which are sold at a ridiculously low prices. The margins of these China CFLs are so high that retailers push these products to the consumers.

The next few years will witness a tremendous growth in the CFL market in India. Consumers are becoming more conscious about energy saving products and are convinced about the value proposition of CFL. The high profile promotions of players like Wipro, Philips, CG , Havells etc will further expand the market for CFL.

Micromax : Nothing Like Anything

Corporate Brand : Micromax

Ad Agency : Lowe Lintas

Brand Analysis Count #447

Micromax is a challenger brand in the highly competitive mobile handset market. This Indian firm is shaking up the market dominated by MNCs. Micromax was founded in 1991 by Rajesh Agarwal . Micromax in its original avatar was a distributor of computer hardwares. In 1998, three more people Sumit Arora, Rahul Sharma and Vikas Jain joined Micromax as co-founders.The company branched out from a mere distributor to a marketer of telecommunication equipments.

It was in 2008 that Micromax ventured into the mobile handset market. The brand wanted to create a base before taking on the large players . Hence as a go-to- market strategy, Micromax concentrated on the rural market first. It was a different move altogether since most of the marketers tend to concentrate on the urban markets then move to the rural markets.

Micromax launched its first phone in the rural market with a very unique USP- 30 days battery standby time. The brand was launched from a consumer insight that most of the rural households do not get enough electricity to recharge phones on a daily basis . Hence a phone with a 30 day battery standby would be a worthwhile differentiation. The first product was a big success. The first product Micromax X1i priced at Rs 2150 was lapped up by rural market.

The success of X1i enthused the company to go aggressively into the market. But tapping the rural market is not an easy task. There is severe logistics pressure in servicing these markets. One of the first things that Micromax did was to establish the distribution network . According to a report in Forbes India ( March 5,2010), Micromax created a distribution network comprising of 34 super distributors, 450 distributors and around 55,000 retailers. The brand could also take advantage of the inroads made by other brands into advantage.

One of the highlight of their distribution strategy was that Micromax managed to make these dealers pay in advance by offering them more margins. Marketers will vouch that the most difficult part in managing distribution is the payment collection part. According to the news report, Micromax managed this hurdle through this strategy of more margins for advance payment. It is not a new strategy to offer such kind of discounts for advance payments (cash discounts), but to make a retailer accept such an offer is indeed a remarkable feat (if the Forbes report is true).

Unlike many challenger brands, Micromax was careful in its product strategy. Although all Micromax products were towards the lower end of the pricing spectrum, the brand was focusing on adding more features at a reasonable price . The focus was more on value than price. What I have noticed while going through their product range was that there was some USP in their products which offered more value. I think , that value orientation with a clear differentiation was a significant factor that aided the significant growth of this brand in Indian market.

The company in their website claims to have invested heavily in the product development. The brand boast of launching many firsts in the market like

30 day battery life

Affordable QWERTY phones

Affordable Double Sim etc

Besides the focus on product development, Micromax has invested heavily in brand building. The brand is one of the big spenders in the current IPL. Micromax has centered much of its brand building exercise around cricket. It was one of the principal sponsors of the South Africa VS India ODI series in 2010.

Most of the brand promotion for Macromax is centered around products. I havn't seen a corporate brand building campaign from Micromax. The ads are for individual products highlighting the product features and USPs.

Micromax has the tagline " Nothing Like Anything " which initially appeared confusing to me. Perhaps the brand wants to convey that every product from Micromax has something unique. It is not just like any other product.( I need to have more clarification on this regard).

The brand's promotions , although heavy, is a big let down. Some of the campaigns are good but most are below par. For example , the Micromax Facebook ad was outright disgusting. Most of the campaigns like Gravity, MTV , EEZPad was very ordinary basic ads. There was no brand building theme behind those ads. They talked about the product and that is it. I feel a visible lack of creativity behind those ads.

In a big marketing move, Micromax roped in the Bollywood Action hero Akshay Kumar as the brand ambassador. This move is going to boost the brand recall of Micromax to new heights. Akshay Kumar has strong equity both in urban and rural markets. The association with such a big star will also have a positive impact on the image of Micromax. The brand can now overcome the perception of a low price product.

But the first campaign featuring Akshay Kumar was nothing but pure noise. I couldn't believe that Lowe Lintas could come out with such a pathetic ad. Watch it here.

The new Gamolution handset was supposed to be a game changer for Micromax. But the campaign was a big let down. With a star like Akshay, the brand could have done much much more rather than some funny noises and acrobatics. I think the agency was stuck in a stereotype as to how to use Akshay Kumar.

The new game handset uses the motion- sensor technology with bluetooth ( as I understand). So one can play games using the computer and handset. I don't think that the ads were in anyway doing justice to the brand's intention. Motion Sensor games are not new to the Indian markets but playing games on a PC using mobile is something new. I am not sure whether the ad essentially communicated the innovation.

A very poorly made ad like this will do more harm to the image of Micromax. The brand may get lot of eyeballs due to the ' noise ' and celebrity power, but a low quality ad will reflect in the image perception of Micromax. A lot of my students said to me " Have you seen that Akshay ad, its crap !!" . Micromax has lot of powerful positives that many consumers doesn't know. I came to know more about this brand only after I digged for information to write this post.

There is a risk of the brand perceived not as an aspirational brand but a ordinary price warrior if it does not focus on the quality of the communication.

Micromax now have a wonderful chance of moving up the ladder. With a good product range, reasonable pricing base and a high profile celebrity, the brand could have positioned itself as an aspirational brand. Instead of also ran ads that lack any brand vision, Micromax would do well if it could bring in some class in their campaigns.

The brand should also move from a product oriented ad campaign to a brand building mode. Micromax as a brand should be developed focusing on the core brand values like innovation and value orientation. When the product range widens, it may not be practical to sustain individual campaigns. So it is time for Micromax to position the Family Brand and develop a brand identity.

Brand Update : Sony Vaio

Sony Vaio is currently running a campaign featuring Kareena Kapoor as the brand ambassador for its Vaio range of ultra-portable laptops.

The brand is now running a campaign featuring Kareena.
Watch the tvc here : Vaio

My first question is whether Sony need a brand ambassador for the Vaio brand ?. Vaio had some brilliant commercials and had built in a premium image without the help of any stars. So why now take the help ?

Sony is positioning Vaio not as a netbook but as the ultra-thin laptop and also as a lifestyle accessory. But a discerning consumer will think twice before splurging Rs 85000 for such a product. The brand is fighting for the market along side the competitor Mac Air.

The ad is also not very impressive because the focus is more on the brand ambassador than on the product. According to reports, the brand is trying to cash in on the " Size Zero " rage popularized by Kareena. The brand is feeling that consumers will find a connection between the " thin " Kareena and the " thin " Sony Vaio.

But I think that for a brand like Sony, it could have depended more on the creativity of the ad guys to make the brand popular than piggybacking on some thin stars



Related Brand

Sony Vaio

Brand Update : Onida

Onida has launched its new campaign after putting the devil to rest. The campaign is aimed at repositioning and rejuvenating the brand. The brand is trying for a comeback after years of uncertainty which made this (once) iconic brand lose its share in the market.

Watch the new campaign here : Onida new campaign

In my last post on Onida, I commented that Onida's real problem is not branding but marketing. The brand desperately needed break-through products and embrace new technologies. If the new ads are any indication, the brand is moving in the right direction. The brand is trying to launch products with new features, which is the right thing to do .

Regarding the brand campaign, Onida now has a new tagline- " Tum Ko Dekha to ye design aya" meaning " Designed with you in mind ". The brand replaced the iconic devil with a new-age couple as the protagonists.

Onida is now repositioning on the basis of " Customer Oriented Design". The brand is saying that its products are designed with the new-age customer in mind. The new tagline has nothing new in it and "customer-oriented" design positioning is used by many brands before. In comparison with the classic "Neighbor's envy , Owner's Pride", the new campaign falls short of expectation. ( Another viewpoint here)

In the consumer durable space, it is the product features that attract the buyers not the ads. If Onida can give technologically advanced products at reasonable price, consumers will definitely try it out. But there are issues in such a product oriented strategy. Most of the new features can be copied easily by the competitors unless otherwise protected by patents. When Onida launches a DVD player which plays micro-sd cards, other players are bound to follow. It is in this scenario that branding becomes important. Onida needs to convince the consumers that its products are better designed and technologically superior. It is about managing perception .Features can be copied by competitors easily but changing perception is a difficult task.

Onida needs to work hard on creating and nurturing new perceptions about itself in the mind of the consumers. Long way to go for this brand......

Related Brand

Onida

IFB : Set Yourself Free

Brand : IFB

Company : IFB Industries

Agency : Saatchi & Saatchi

Brand Analysis Count : 417

IFB is a major brand in the premium home appliances market. The brand is famous for its washing machine range especially the front loading type. I would say that IFB was a pioneer in popularising the front- loading washing machines into the Indian market.

In the Rs 20,000 crore Indian consumer durable market, the washing machines contribute for Rs 2300 crore.(source). At one point of time IFB was the second largest player in the Fully Automatic category.

IFB is a Kolkata based company which had its origin in 1974. The company was earlier known as Indian Fine Blanks. The company was specialised in manufacturing Fine Blanks and supplied to many industrial multi-nationals. The company later ventured into consumer durables under a joint venture with the German major Bosch in 1990.

The technology collaboration with Bosch gave IFB a headstart. The company was able to give consumers products with exceptional quality. IFB soon became the leader in the premium washing machines in the country. But in 1997, Bosch severed its ties with IFB.

Despite the termination of the JV, IFB was able to hold on its own. The brand was able to maintain its image in the Indian market. It had a share of 23% in the washing machine market in 2002.

How ever, IFB was caught in a serious financial trouble during 2005 where it was referred to BIFR. Later the firm came out of the financial trouble with a debt restructuring exercise.

IFB still holds the premiumness in the mind of the consumers despite maintaining a low key . The brand's share of voice is abysmally low . But fortunately the brand maintains a strong aspirational pull in the mind of the consumers.

IFB is a brand which is priced exorbitantly high. Its washing machines are priced more than 50% compared to the competitors. But the question is whether IFB can maintain the premiumness without adequately spending on brand promotion. Almost all the major global brands are competing for space in the Indian market. Technological differentiation is virtually impossible now since all brands are bringing their latest products to India.

In such a scenario, IFB needs to reinforce its brand equity. The brand is perceived to be a technologically superior but that perception can fade if the brand become complacent .

Brand Update : Onida

According to a report in Economic Times, Onida has decided to send its iconic mascot- The Devil to Hell. According to the report, the brand feels that Devil is no longer attractive to the consumers and hence the decision to remove it. The report further says that the brand is working on a new mascot.

The report gave me a sense of Deja_vu. This is not the first time that Mirc Electronics ( brand owners) has scrapped the Devil.

In1998, Onida withdrew the mascot citing the same reasons that they have given now. The explanation given in 1998 was that Indian consumers no longer find Devil, who symbolizes Envy, relevant. So they scrapped the famous tagline " Neighbour's Envy, Owner's Pride " together with the Devil. But ever since it changed the tagline and mascot, Onida never found a powerful positioning .

After six years of drifting around, Onida brought back the Devil with much fanfare in 2004. Media and brand enthusiasts welcomed the move and eagerly awaited the Devil in a changed modern avataar. But the comeback was damp squib. The brand suffered heavily due to ownership issues within the company. There was no brand promotion or new product launches worth talking about since 2004. If at all there were launches, promotions were not sufficient enough.

Now in 2009, Onida is redoing its old strategy.

Onida is facing a marketing problem and not a branding problem. Everything is fine with the brand. People recognize the brand, love its mascot. The issue is on a larger perspective. It needs to concentrate on its entire marketing mix not just the brand elements. Changing the devil and bringing in a new mascot is not going to do any good to Onida.

The Economic Times report suggest that Onida is changing its brand elements because of competition from Korean brands like LG and Samsung. These Korean majors has built its position in Indian market riding on Product strategy rather than on heavy duty brand promotions. Their products were good, reasonably priced and well promoted. In the case of LG and Samsung, nobody really cares about the tagline. For them , the product speaks for itself.

Onida failed because its products failed. I was a die hard Onida fan . I loved my Onida KY Thunder Television. But after that there was nothing remarkable about Onida. No high technology products came from this brand.Onida became successful because the Devil was backed by products that really created envy in others. Now there is nothing to envy about Onida. Last year, I bought an Onida DVD player which boasts about playing scratched DVDs but the product failed miserably.

Now in the consumer durable space, brands are coming out with new advanced products on a monthly basis. Technology keeps changing and most brands are moving with break-neck speed to catch up with consumer expectations. In the case of Television, flat is now old and brands are talking about plasma, LCD etc. What is Onida doing in this space ?

Onida is now in one of the most difficult times. The brand needs to come out with a product that will change the game. Changing the mascot is secondary at this point of time.

Related Post

Onida Brand Update

Onida

Brand Update : Kelvinator

Marketing Practice reader Ms Simran asks an interesting question about Kelvinator. She wanted to know about the prospects of rejuvenation of Kelvinator brand.

In my earlier post on Kelvinator, I had predicted (assumed) that the brand will be killed after being acquired by Electrolux. To a certain exte

nt, it was true also because Kelvinator was sidelined for Electrolux brand. There was no brand promotion and the product was also not visible in stores.

Electrolux too had difficulty in surviving the highly competitive Indian consumer durable market. In 2005-06, Electrolux Kelvinator Ltd was acquired by the Videocon group ( source). The acquisition gave Videocon , the rights to use Electrolux brand for five years and Kelvinator brand for unlimited period. ( Source).

My prediction of Kelvinator's death was proved wrong. Videocon had other plans for this brand. The brand was rejuvenated in 2008-2009. Recently I saw the commercial of Kelvinator in one of the local Kerala channel. ( Watch the TVC here : Kelvinator)

The brand retains the famous classic positioning of " The Coolest One".

I think that Videocon is using Kelvinator as a flanker brand . Kelvinator will be the price warrior for the Videocon. Even after all these years, Kelvinator still have lot of brand recall. Vidoecon will just have to create some noise in the media to rejuvenate the brand . I am sure Kelvinator still have lot of potential to succeed in the Indian market.

It is good to see the good old Kelvinator back into the branding world. It is also wonderful to see the brand owners retaining the famous positioning and tagline which made Kelvinator famous.

Related Brand

Kelvinator