Lever Ayush : Sahi Ayurveda

Brand: Lever Ayush
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. 

Marketing Myopia : ICICI bank charging fee for rewards redemption

Last day when I got my ICICI credit card bill, an interesting notice was enclosed along with the bill. The notice stated that from June 12, the redemption of my reward points which was accumulated  because of the " Loyalty Program" of ICICI bank will attract a charge of Rs 99 + tax. 

Oh really .... What the hell !!

This comes from one of the largest marketing machine in the Indian banking industry and I am totally confused about the logic of this move. Then I happen to read an article in Business Standard and was happy to know that even the journos doesn't have a clue as to what is happening. 

First things first. 

ICICI bank in a way pioneered the concept of rewarding the consumers for their banking transactions. Where reward points existed for credit cards, ICICI introduced reward points for savings bank too and for that they partnered with Payback which facilitate the reward management. 

In my understanding, reward programs are considered an effective way to increase brand loyalty. It is a common method used by marketers to reward loyal and regular customers. There are two sides to rewards. 

Firstly it rewards the existing customers to use more of the service or product and also it acts as an incentive for new customers to be loyal to the product. The thumb-rule is that the rewards must be enticing enough to encourage the customer to see value in being loyal.

Here the smart brains of ICICI bank loyalty program has decided to charge the customers who wants to redeem the loyalty points earned. 

Does it make any sense ???  

First the bank says that you will be rewarded with Payback points if you use the credit card and uses reward points as an incentive to become a loyal customer and then charge the customer when it comes to actual redemption.  It is short-termism at its best. 

You are going to charge the customers for being loyal ?? Common dear marketer , you must be living in the seller's market which is dead a decade ago. 

Another factor is the reward itself. If the reward one gets from the Payback was superb, then 99 INR may be justified but what you get for 1000 reward points is a silicon egg beater or a Prestige LPG hose  ( what a wonderful reward)  for which I need to pay additional  Rs 99 + tax. 

Although I have a Payback card , I have never bothered to look at the points because the so called rewards are no-rewards. So am I bothered about the Rs 99 charge, no because I don't intend to redeem it .  

But as a marketer, what ICICI bank is right now doing is defying all theories. 

Brand Update : Jazz Gets Reasonable

Finally common sense prevails over Honda Jazz. The brand is relaunched with a significant reduction in price marking the end of aggressive market posture by Honda. Honda have a terrific brand equity in the Indian market with its City being one of the most successful product which lead the premium sedan market in India. But with the aggressive product launches from Volkswagen, Toyota and others coupled with Honda's over confidence led to the situation where the brand was dislodged from its market leadership. This over - confidence has blinded the company from understanding the competitive landscape in the market which it operates. Even Honda is not immune to marketing myopia.

This attitude of aggression and over-confidence was evident in the company's attitude towards Jazz. Jazz was launched at a price of Rs 7-9 lakh INR and the attitude was Take It or Leave It. Indian consumers choose to leave the brand and sales floundered. But all through these years, the brand maintained its stance on not reducing its price and depending on the brand's strong image to lure customers towards expensive Jazz.

The sharp decline of the sales of Honda City  in 2011 was a wake up call for Honda. The company realized that a positive brand equity may not guarantee sales. The brand needs to make sense to the customer. It is a surprise that a reputed company like Honda was not able to understand the Psyche of Indian consumer . Honda also failed to see the changes that were happening in the Indian passenger car market. The entry of new players and the shift of consumer interest towards diesel paved the way for the Honda City's dethroning from the leadership position. These factors also made Jazz irrelevant in the Indian market. 

It is in this light that Honda decided to reposition Honda Jazz at the price point. The brand has reduced the price by almost 1.5 Lakh INR and Jazz is now available at price range of 5.5 Lakh to 6.5 Lakh INR . I think this price rationalization is too late too little for Jazz. The market is too negative for a premium priced petrol hatchback. Even at the current reduced price, Jazz is expensive compared to Toyota Liva and even Etios.

Having said that, the brand should be credited with an attempt to create the premium hatchback market in India but the timing was wrong and value proposition of Jazz was not good enough to justify the steep price.

Consumers may adore the brand but to make him purchase , the brand needs to make sense.

Related Brand

Honda Jazz

Brand Update : Can Ambassador be saved ?

Recently the good old Ambassador was in the news that the brand owners - Hindustan Motors is planning to relaunch /rejuvenate this heritage brand. Both the brand and company is in deep crisis with HM posting losses of Rs 43 crore last year and its networth declining by about 50%.

The company plans to relaunch the Amby in a new look and is planning to entrust a design house with the task. The report also suggest that the new Amby will have a retro- look and will be in the price range of Rs 5- Rs 7 Lakhs. The new Amby will be a niche product.

The interesting question is can this brand be saved with the new strategy ?

From the report about the new Amby launch, it will be tough for the brand to regain its lost glory if the brand is going for a niche variant. According to Economic Times, Ambassador sells around 600 units per month in a market of 2 lakh cars/month.

Ambassador is now in a rut which is its own creation. The brand is the classic example of marketing myopia. The company took the customers for granted and refused to change when the entire market changed. The brand did nothing when faced with competition from Tatas and Maruti. Instead of changing its core DNA, the brand relied upon cosmetic changes. When the brand needed a drastic revolutionary change, HM decided to get stuck with the old product.

The current strategy of a niche Amby is again a patch-up . This brand cannot survive on patch-up strategies. I don't think that the core brand Ambassador will revive with the launch of a niche high priced Ambassador. With the brand equity in shambles, how can the brand expect consumers to pay a premium for the new Amby variant ?

The high priced Marquee variant will work for iconic brand which are facing a decline. But Ambassador was not an icon. It was a market leader and consumers bought the car because they did not had a choice. Not because they were a die-hard Amby fan. Hence a high priced niche variant may not revive the sale of Ambassador.

Secondly HM as a company is now relying its future on Ambassador which again is a flawed strategy. A weak brand cannot save a weak company. And a niche variant will at best give some life support and not survival.

Another way to look at the current strategy is the transformation of Amby from a mass market car to a niche product. So instead of trying to sell large volume of Ambassador, the company hopes to sell high-end variant and hence generate more cash. In that perspective, the launch of a high priced Amby make sense. But the question is whether the brand has enough equity to support such a variant. Brands like Beetle and Enfield revived because these brands had strong equity existing in the market even after its previous life. The relaunch re-ignited the existing goodwill . But such a goodwill does not exist for Ambassador. Ambassador is known for its space and rugged nature .The product is also infamous for nagging problems and poor build quality. Still people bought because there was no choice. For such a product, the hope of renewal from a niche product seems too optimistic.

Having said that, Indian market has seen consumers embracing products with exceptional quality and/or utility. So if the new variant is exceptional, there are chances of getting accepted by the market.

Another interesting aspect of this issue is about the reliance of HM on Ambassador brand for its survival. Why didn't it think about an entirely new brand ? The trend in the Indian auto market is that multiple brands from different companies sporting the same engine. The engine becoming commoditized and design gaining prominence. In such a market why not come out with an entirely new brand with a proven engine ? Although building new brand is expensive compared to rejuvenation of old brand, in Amby's case, Ambassador comes with a lot of baggage and perceptions which is difficult to change.

If Ambassador wants to stay relevant as a brand, what it need is disruption. Disruption should happen both internally and externally. The brand should go for radical redesign and more importantly it should disrupt the market. The current price to value proposition of Ambassador is negative compared to the competitors like Indica . So if Amby wants to play the volume game, it needs to offer consumer something they cannot refuse. A diesel car below Rs 4 lakh can ignite interest in the brand but given the cost scenario, such a task is virtually impossible.

HM is again going for short-term strategy in pursuit of long-term results. For Amby, it seems to be the end of road .

Related Brand

Ambassador

Brand Update : Horlicks

I was shocked to see an ad in todays newspaper announcing the launch of a noodles brand by Horlicks. I was wondering how can a company like GSK mess up a power brand like Horlicksby launching a totally unrelated extension ?

Horlicks has launched a new extension in the noodles category . The extension has the brand name Foodles and is endorsed by Horlicks. Foodles is positioned as a healthy noodles. The brand has launched two variants of noodles. - Regular and Multi-grain The main USP of Foodles is the " Health Maker" sachet which comes along with the noodles pack. The health maker sachet contains the essentials of 5 vitamins.

Frankly , this is one brand extension which I cannot understand.Theoretically Foodles by Horlicks cannot be termed as a brand extension. In this case Foodles is the main brand and Horlicks is the endorser brand. But for all practical purposes, Foodles is going to impact Horlicks just like any other brand extension.

Horlicks off late has been on a extension spree. It recently launched the Nutribar snack bar with an aim of transforming Horlicks in to an umbrella brand for launching health related food products.

My first contact with Foodles happened last week when my wife tried to trick me with Foodles instead of Maggi. I hated the taste of it and wondered whether Maggi changed the taste of its noodles again. It is only then my wife revealed that she tried to make me eat " healthy " noodles.


What can be the possible logic behind Horlicks trying its hand into launching a noodles brand ?

One reason or argument can be that Horlicks is only an endorser brand . Once the brand is accepted in the market, Foodles can remain as a standalone brand.

If that is the logic, then has the marketers thought about the brand equity dilution of parent brand? Horlicks in no way can be associated with noodles category. Noodles is perceived to be unhealthy , junk food and by associating with this category, Horlicks is definitely going to dilute its core positioning of a health drink.

Secondly, why should a multinational giant like GSK launch a brand with an endorsement from its power brand ? What is restricting the company from launching a new standalone brand ? Only reason seems to be the lack of confidence of the marketer or the search of a short cut to market acceptance.

Has the company thought of the impact of Horlicks if Foodles fail ? If Foodles succeed, does it add value to Horlicks brand or will it dilute the core proposition of a health drink ?
What is Horlicks now - a health drink for kids, health drink for adults, health drink for women, a snack brand, a biscuit brand and a noodles brand .... where is the connection.

Foodles is not going to revolutionize noodles market in India. All the noodles brands are now on the health plank and having a vitamin sachet is not going to do big things for Foodles.

Earlier, my students used to ask me about my favorite brand and I would tell them it is Horlicks because of the focus and smart marketing moves. Now I would say that Horlicks 'used' to be my favorite brand.

Consumer Insight : Customer Loyalty

This post is inspired by the article by Mr Prasad Sangemeshwaran in Brand Equity ( 09/09/09) titled "Goodbye Mr Loyalty". (Read it Here). I feel that the basic premise of the article is wrong.

The article starts with a very bold statement - " The Customer is Infidel" ( which is a nice attention grabbing technique). The author then went on to argue that the concept of customer loyalty is now a thing of past.

I feel that the author made an assumption that all marketers believe in customer loyalty. Customer Loyalty is a concept- an ideal state where the consumers keep coming back for your offering. Marketers know fully well that consumers will keep coming back for the offerings only if it satisfies the need continuously. Marketers are also aware that consumers are looking for new ways of fulfilling their desires.

The moment you think that consumers are permanently loyal to your brand, you are in a state of marketing myopia. Marketing myopia is a condition where marketers become too narrowly focused on the product rather than the consumer & his need. Why Nokia is highly successful in India is its constant endeavour to bring in new products in tune with the changing consumer needs. Even in the case of Nokia, it missed out the " touchscreen" mania and even the " smartphone" trend. Marketers today are more aware about the impact of disruptive innovations which can create havoc in the market. Successful brands today are focusing not only in meeting consumer needs but also in shaping those needs.

It is also wrong to say that in the past consumers were more loyal to brands. The choice before consumers in yesteryear's were very less forcing them to stick to certain brands. That is not an indication of loyal behavior.

Having said that, there are brands which are able to create not only brand loyals but also raving fans. Brands like Harley, Apple,Google,McDonalds, Disney etc are considered iconic because of its ability to create communities and fans. But even these brands needs to keep running very hard to keep those consumers from switching.

If Customer is the King, how can you expect him to be loyal ?

Suzuki GS 150 : Drive Me Crazy

Brand : Suzuki GS 150
Company : Suzuki Motors
Agency :RK Swamy

Brand Analysis Count : 407

Suzuki Motors entered the two wheeler market in 1982 through a joint venture with TVS and launched their first two wheeler Ind Suzuki in 1984. Ind Suzuki was a success in the Indian market. After a rocky relationship, TVS and Suzuki parted ways in 2002.

Suzuki re-entered Indian market in 2006 with two brands Zeus and Heat . But both these brands failed to make a mark in the market.

2009 is witnessing another attempt by Suzuki to grab a pie of the two wheeler market. Suzuki recently launched a 150 cc motorcycle Suzuki GS 150. The 150 cc bike which is priced at around Rs 60000 is trying its luck in the highly competitive Executive bike segment.

As discussed in my other posts on automotive brands, the success of the brand is dependent heavily on product quality than anything else. Brands like Activa has proved that product performance is the best possible advertising.

How ever in the case of brands like Suzuki and Yamaha, brand promotion is of utmost importance because of the peculiar situations they are facing.

Suzuki is the market leader in four wheeler segment but it is surprising that the brand has failed miserably in replicating its success in the two wheeler market.
There are two reasons for this failure. The first reason is that Suzuki is not serious about their two wheeler business in India. The efforts of the company was half-hearted and the brand does not have a deep distribution channel .
Second is their selection of products for the Indian market. Suzuki is doing the same mistake which Yamaha earlier did - launching substandard products for mass markets. Yamaha learned from mistakes and came back with good powerful bikes. But Suzuki is adamant that it will learn only from its mistakes.

GS 150 is launched for the highly competitive executive segment aiming for the numbers. But I think it was not a good strategy for Suzuki to launch a product in that segment while making a come back.

Now look at the relaunch scenario. Suzuki motorcycles does not have any meaningful equity in the consumer's mind. Although Suzuki cars have excellent equity , there is no guarantee that consumers will feel the same in the two wheeler segment. The failure of its earlier models and the long absence from the industry has removed this brand from the consideration set of the potential consumers.

Consumers of executive segment are very pampered. The players in this segment invest heavily in product features aswellas branding. With Pulsar and Hero Honda leading the crowd, it is a very difficult market to crack.

So the chances of Suzuki making an impact in this segment looks bleak.

Having said that , a company like Suzuki can change the game by launching a product that Indian consumers has never seen before. Suzuki has the technological ability and money power to do that. A high profile product with a marketing blitzkrieg can make Suzuki a hot property...

But Alas.....

Look at the branding strategies of GS 150. The brand is currently running a television commercial in most channels.
Watch the Tvc here : Suzuki GS150
It is one of the boring commercials I have seen in recent times. A commercial which lacks both imagination and strategic intent. A girl getting aroused while pillion riding a bike is an idea which has been raped a million times.
The brand has the tagline " Drive me crazy " which is nothing but unimaginative. Frankly there is nothing much to speak about the campaign. No clarity in USP or differentiation.

What Suzuki needed was a powerful statement. A power bike which would showcase its capabilities to the consumers. Yamaha did the comeback with R 15 launch. More than the volume, R15 was aimed at rebuilding the Yamaha brand. Once consumers got the taste of Yamaha technology, mass models will reap the benefit.

Suzuki should have bought in their superbikes and should have unleashed a campaign revolving around these macho machines. Time should be spent on building the core Suzuki brand reminding Indian consumers about the capability and technological superiority of this brand.
But Suzuki went after the volumes thereby killing all scope of building a brand.

Brand Update : Fa

Fa has launched its range of deos for men branded Fa Xtreme. The brand has roped in the hollywood diva Bipasha Basu as the brand ambassador. The brand is running its first tvc across various channels.

Watch the TVC here : Fa Xtreme

Well.. Just like the brand Denver, Fa has also fallen into the stereotype trap. The theme is predictable and the execution is nothing but lousy.I wonder whether the creative and strategy guys of the agency had gone on a vacation entrusting this job to a school kid.

And the way Bipasha embrace the hunk looks as if she is acting in a Kamasutra movie..

Another issue is the core brand proposition of Fa. Fa is positioned on the platform of Freshness. It has the tagline " Feel Good Freshness ".

But look at the positioning of its line extension. Fa Xtreme is not complementing the core brand manthra of Fa . Instead it is moving in the direction of brands like Axe and Setwet . This is the main issue with extensions. If the extension is not in sync with the parent brand, there is bound to be brand dilution.

Fa could have used the same " freshness " platform for its men's range. No deo brand has taken the freshness platform ( except Cinthol ). Hence Fa Xtreme could have easily created a distinct place in the men's grooming category if it had followed its parent brand's positioning.

For a consumer (men) of deo, freshness is an important attribute. Guys use deos not just to seduce girls ( pun intended) but also to feel fresh . Most working guys slog in the field and deo is an absolute must for them to feel and look fresh.
It is a sad to see reputed agencies and brands failing to dig deep into consumer's mind and settling for mediocre insights and work.

Related Brand
Denver

Brand Update : Eveready

After a long period of silence, Eveready is back on the media space. The brand has launched a new campaign in 2009.The new campaign, known as The Red Light Painters in the ad world , is already making noise among the advertising community.

Watch the ad here : The Redlight Commercial

One of the welcome development with the new campaign is that Eveready has gone back to the famous classic tagline " Give Me Red". Earlier, Eveready has changed its iconic tagline to ' Kuch to hai extra".
The current campaign is for Eveready Ultima batteries.

Frankly speaking , I did not understand the new Eveready commercial. The commercial started with the message that it was made entirely from LED lights, torches and camcoders. And then there was a mouse and the Eveready cat ..... Finally the cat caught the mouse.. That is what I understood.

Today Afaqs carried a story on the new commercial. Read it here.

Only then I understood that there was a story behind the commercial. According to afaqs, the brand is targeting the 15-25 yr olds. May be I did not understood because I am not in the TG.

My feeling is that the new commercial does not tell anything to the consumers. There is no compelling story about Eveready and how the brand is different from its competitors.

The brand is going to face a critical survival issue in future. More and more products are now running on rechargable batteries. Except for clocks and torches, most products which used disposable batteries are now being used with rechargable batteries. For products like clocks, consumers are not too worried about the brand. They will choose any of the major players rather than be loyal.

So in such a scenario, Eveready should be chalking out a survival strategy. It is not about the brand but about the product category.
In my case as a consumer, let me give you the list of products that run on battery in my house : Three clocks
Two remotes
Two Torches

While the new age products like cameras, Ipods, Mobiles,laptops are using rechargable batteries that comes bundled with the product.
In such a scenario, the market for non-rechargable battery market will be limited to a certain households and certain products. There are chances that the entire category getting extinct in future .
I personally think that Eveready is suffering from marketing myopia. The brand has not forayed into mobile batteries or laptop batteries. India is a big market for mobile phones. And typically the batteries need to be replaced. But never seen the brand venturing into this market dominated by chinese makes.

Even in the rechargable segment , Eveready has not done anything to expand the market. These areas may drive the business in future. If the brand is focusing on urban market, without a presence in these segments, I doubt how the brand will survive focusing on the traditional non rechargable batteries.

How ever, I am glad that the " Give Me Red " is back .

Related Brand
Eveready

Brand Update : Bajaj Pulsar

Recently I saw an ad of Bajaj which showed that Bajaj XCD 125 is now in the DTSI Club . The DTSI which stands for Digital Twin Spark Ignition system was a technology patented by Bajaj.

This technology uses twin sparks at either end of the combustion chamber which gives faster combustion compared to the single spark plugs found in conventional engines. This twin sparks increases the power of the engine and offer better performance.

Bajaj did a great marketing move by patenting it and then branding this technology as DTSI. This is a classical case of ingredient branding. The DTSI was featured in the second generation Pulsar which was launched in 2003.

While Pulsar rode the wave in 2001 on the back of excellent styling and mind-blowing positioning , DTSI became the key differentiators for the brand after 2003. Pulsar was perceived to be a mean machine because of DTSI.

Pulsar thus created and ruled the performance bike category in India.

Its natural for any company to think of extracting maximum mileage out of a patented technology. Bajaj did just that by extending the DTSI technology to all its vehicle models including scooters . My doubt is whether Bajaj has commoditized the DTSI technology by extending it too much.

When DTSI was associated with Pulsar, it meant power , efficiency and performance . But what will DTSI mean when it is associated with a small scooter like Bajaj Krystal or a entry level bike like XCD.

Branding an ingredient is the same as branding a product. The consumers should feel that the ingredient brand is different from other ingredients . The concept of positioning also applies to ingredient brands.

In many ways, Bajaj has done correct strategies for DTSI. It patented it, protected it and branded the technology. But where it had failed was that it commoditized the ingredient brand.

Bajaj did not try to give a special personality for DTSI. Remember, DTSI had a strong secondary association with Bajaj Pulsar. Both the brands benefited out of this association. Pulsar used DTSI as a differentiator while DTSI got the performance tag from Pulsar.

But by making this technology available to all other brands without clearly looking at synergy was a big mistake from Bajaj. I have no doubt that the extension of DTSI technology to other brands will greatly help the sales of these brands . XCD will sell more when it has the DTSi technology.

When a measly powered scooter is also powered with DTSI, what is DTSI ? It had lost all its brand values which were power and performance. I don't think that XCD is anywhere near Pulsar in terms of power or performance. So in a way Bajaj has virtually killed this powerful ingredient brand.

The brand which is going to suffer most will be the flagship brand Pulsar. When every other Bajaj brands have DTSI, how is Pulsar different from rest of the crowd ?

The obvious answer will be the design. If it is so, then Pulsar could be beaten by any other bikes which are better designed. Having good looks is good for the brand but cannot be sustained over a period of time because :

Competitors can come with good looking bikes.
Designs can be outdated.

Both these are affecting Pulsar. Too many Pulsars on the road has made this brand dated in terms of looks. But DTSI was a powerful differentiator which cannot be copied since it was patented. But Bajaj , because of greed, faltered with one of the most powerful differentiators at its disposal.

Last month, I read a report saying that the newly launched Yamaha FZ 16 has become the number two brand in the 150 cc segment beating Apache RTR , Hero Honda Hunk and CBZ. In some markets, FZ also has beaten the market leader Pulsar. Without a clear differentiator, Pulsar is now more vulnerable than ever.

Is Bajaj listening ?????

Related Brand

Pulsar
Yamaha

Brand Update : Medimix

In my earlier post on Medimix, I had commented that this brand has fallen into the trap of sales promotion. A recent sales promotion campaign further reinforced my take on this brand's marketing practice.

The advertisement for this sales promotion goes like this :

In a household setting, suddenly the electricity went off. The homemaker then asks for Medimix to light the candle. The husband is confused and asks how can you light a candle with Medimix. Then came the answer " Now get a Medimix Matchbox free with every Medimix soap ".

Frankly I was as confused as the husband character in the story. Medimix Matchbox ?

Then I frantically searched to check whether the company had diversified into making matchboxes. Then it would have been one of the most outrageous brand extensions ever. But thankfully the company had not yet diversified into making matchboxes.

Now the question is whether it is a wrong strategy of giving matchboxes free with soap. I guess it may not be.

But what happens here is that the matchbox is branded as Medimix and the tvc give more focus to " Medimix Matchbox " and even have a tagline for the matchbox.

Its okay to have Medimix logo in the matchbox but to brand it as Medimix Matchbox is nothing but suicide.

So an ordinary consumer will feel that Medimix has launched matchboxes ? Then what does it mean to Medimix brand ?

Its true that in the current scenario, a brand cannot notch up volumes without sales promotions . But it has to be remembered that sales/consumer promotion is a tactical strategy. In the rush to show impressive volumes marketers mess up the brand by focusing only on consumer promotions.

Is Medimix a soap or a matchbox ?


Related Brand
Medimix

Brand Update : India Post

Its more than two years since I posted the critical analysis of India Post. I had criticized about the wastage of immense potential of a service which had unmatched distribution reach across the length and breadth of India.

In 2008, Indian Government had decided to restructure the entire postal department. The restructuring exercise is called Project Arrow. The project aims to make India Post a logistics giant by leveraging the core strengths of the institution. The restructuring is being done in consultation with Mckinsey.

As a part of the restructuring exercise, the institution has redefined its business. According to Professor Theodore Levitt, Every business should ask this fundamental question : What Business are You In ? The answer to this question can throw up lot of opportunities for growth. Narrowly defining the business can create Marketing Myopia which may wipe out the business in the long run.

From just a postal institution , the department has reframed its business to be in the logistics service rather than just a postal service. The move is a significant step in broadening the scope of services that could be handled by this giant.

It is important to reinvent the business definition since the postal service is facing competition which could make its business irrelevant. The e-mail and the rise of affordable private courier services has taken away a significant chunk of profitable business of this institution. Since it is a government department, India Post could'nt change fast to accommodate the changing environment.

In line with the restructuring exercise, the department has also rebranded India Post by launching a new logo. The rebranding was done by O&M.

The new logo retains the signature red color but has made significant changes to the logo. The new logo sports a yellow color which signifies happiness , hope and joy. Red stands for passion. The wings from the old logo has been retained with some modification. The new look brand take Passion, Power and Commitment as the core brand values.

According to the press reports, 50 post offices will be refurbished to make it a new-look hi-fi post offices in the first phase of Project Arrow. The number will be scaled up to 500 post offices in the near future. The new post-offices will be technologically enabled to provide faster service to the customers. A lot of new products have also being created for meeting the new demands of the customer.

It gives me joy to see that the brand has slowly waking up to the new realities. I was surprised to find that India Post was losing almost Rs 1300 crore every year on its operations. This is despite the fact that India Post handles 10 crore Money orders and 17 crore savings accounts with deposits over Rs 5,40,000 crores. The deparment has 1,55,000 post offices out of which 89% is in the rural areas. India Post is the largest postal service in the world.

The government hopes that with this restructuring, India Post will be able to make profits rather than bleed the exchequer .

Related Post
India Post

Ambassador : Marketing Myopia

Brand : Ambassador

Company : Hindustan Motors

Agency : Mudra/ Equus

Brand Analysis Count : 326

Ambassador can be called as the first Indian car. Although the car has a British legacy, it is considered as definitive Indian car. Ambassador was born in 1958. The car owes its design and technology to a British car model - Morris Oxford which was built by Morris Motor Co at Oxford UK. Hindustan Motors launched the Indianised version of Morris Oxford as Ambassador in 1958.

From 1958 to 1980's Ambassador ruled the Indian market. Infact there were only two cars in the Indian market - Premier Padmini and Ambassador. The licence raj, lack of capital and the unfriendly Indian economic policies ensured that no automobile manufacturers entered the Indian market.

1983 saw the emergence of a new era in the Indian car market. Maruti Udyog Ltd launched the Maruti 800. Soon Ambassador lost its leadership position to Maruti. The family segment which is the largest segment in the car market embraced Maruti. Ambassador was reduced to a marginal player within no time.

But Ambassador had some advantages over 800 which made it dearer to certain segments. It was the only Indian car with Diesel option. During those times, there was a significant difference in the prices between Diesel and Petrol. Second advantage was the space and sturdiness of the Amby. These two factors enabled the brand to become popular among big families and more importantly among the Taxi and tour operators.

Amby was perceived to be a sturdy car ideal for Indian roads. The brand also had a positive perception of being less expensive to maintain. These two were only perceptions . Infact Ambassador was expensive to maintain and even though the car looked sturdy and well built, the car lacked the quality and refinement. Rattling sounds and rusting was common complaints .

But consumers bought the car because of the significant economy of diesel cars which made consumers to compromise on other parameters.

Another significant market for Ambassador was the Government. Over 16 % of the brand sales came from the Government. Ambassador was the first choice for most bureaucrats . Ambassador used to be the Prime Minister's car till 2002. That status was lost when the PM of that time Mr Atal Bihari Vajpai replaced Ambassador with a BMW Limo.

Soon the officials also lost interest in the brand. With the emergence of new and better models from other auto-makers, there was a significant drop in the orders from the Government.

The fall of Ambassador from a leadership position to a marginal player is a classic case of marketing myopia. For four decades, the brand has been taking its customers for granted. There are many reasons that can be attributed to this brand's failure. The fundamental issue was with the product and price.

If we look at the product, Ambassador never changed with times. The brand made many cosmetic changes from 1958-2000 and three upgrades was made which was named as Mark II, Mark III and Mark IV . There was no significant value addition between these upgrades. The look and the built quality remained the same. A major change happened when the brand introduced a 1800 Isuzu engine. The Amby with Isuzu again lifted the sales of the brand. But the euphoria was short lived.

The apathy of HM to offer product changes in tune with the times made the brand stale. Second factor that failed Amby was the price. HM never bothered to rationalize the price of the brand. Even now Ambassador costs more than Rs 4,80,000. At that price one could afford a more luxurious Indigo sedan.

According to reports, the HM plant had achieved full depreciation in 2000. But the company did not thought of passing on the reduced cost to the consumer. Had the company rationalised the price of Amby in 2000, the brand could have survived the competition.

The nail in the coffin came with the launch of Indica. Indica took away the taxi car market from Ambassador. Again the diesel loving individual consumers had a better affordable modern car as compared to the ageing Ambassador.

In order to lift the sagging sales of the brand, HM launched a radically designed Ambassador variant Avigo in 2004. Although the styling was radical, the customer response was lukewarm.

Indian consumer is now spoilt with choices. The competition is immense and the quality of cars has also gone up. Consumers now have new set of purchase considerations like quality, brand, drivability, luxury ,cost of maintanence etc

In the value proposition domain, Ambassador is never in the radar of the consumers. The narrowing price difference between petrol and diesel also eroded the value in investing in an old dated Ambassador.

The company also has never invested in the brand. Without investing in either brand or product, HM had sealed the fate of this brand .

The question that arise is could a brand like Ambassador maintain its position Indian market despite all the competition?

In the brand management perspective, its suicidal not to continuosly invest in a brand .Often heritage brands wait till it becomes dated. Once the brand becomes dated, its virtually impossible to rejuvenate the brand. The task is to prevent the brand to become dated. For that the brand has to go to the consumer for ideas. Changes in product or promotions can sustain the brand even in the light of emerging competition. Brands like Lux , lifebuoy, Surf has been successful because of continuous investment in branding and product development.

Ambassador should have learned from Maruti 800. The brand is still surviving because it made changes along with the changing consumer values. Also the brand rationalised its price in the light of emerging competition which made Maruti 800 relevant even in the current market.

I am not saying that Amby had the potential to become an Iconic brand like Volkswagen Beetle. But the brand could have been relevant to Indian market as a basic family car. It is a herculean task to bring Ambassador back to life. A price below the price of Indica is the only option for the brand to keep its fortunes alive.

LML Vespa :RIP 1960-2006

Brand : Vespa
Company : LML


Brand Analysis Count : 321

Vespa is an interesting brand firstly because it was a brand which was once bestselling and now dead and secondly because of its unique history in India.
Vespa first came to India in 1960 with a collaboration with Bajaj Auto. The technical collaboration ended in 1971 and Bajaj and Vespa parted ways. Vespa at that time was considered an iconic scooter brand globally and the brand was owned by Piaggio. Piaggio then joined hands with the Kanpur based Lohia Machines Ltd ( LML) in 1983 and started to roll out the Vespa range of Scooters. By that time Bajaj was ruling the market with the iconic Chetak .
Vespa came to India with a more powerful 150 cc scooters but could not met with success in the Indian market. But launch of LML Select in 1993 was an instant success. The company also revamped the NV series which began to shore up the volumes. during 1991, LML was facing its worst financial crises and the company was referred to BIFR. It was Vespa NV that brought the company back to black . By 1998, LML was the second largest scooter manufacturer in India with a market share of over 28 %.
But the JV between LML and Piaggio did not last long. In 1999 the JV was called off with LML buying Piaggio's stake. LML decided to go alone with the scooters. It dropped the brand name Vespa and continued selling LML NV and LML Select brands .

But during these times, the entire two wheeler industry was redefined . Scooters made way to Motorcycles . Sensing this shift, LML ventured into motorcycles. In 2003, LML launched its first bike in India branded as Freedom. But the entry into motorcycles was a disaster.

LML was falling into severe financial crisis. A labour unrest at the Kanpur plant proved to be the last nail. In 2006, LML closed down the operation of its Kanpur plant. And it was the end of Vespa Scooters.

When scooters was considered a work- machine, it was Vespa which redefined the market. Vespa was stylish and contemporary. It was elegant, youthful and more balanced compared to the sturdy Chetak. While Chetak was the price warrior, Vespa was always the premium scooter. Vespa was commanding the premium for the looks since the technology that drove both Chetak and Vespa was the same.

But like Chetak, Vespa was also myopic. It failed to see the sweeping changes that was happening to the two wheeler market. LML was not able to upgrade the scooters since the JV with Piaggio was called off. It was also reeling under severe financial crisis. These coupled with the shift in focus to motorcycles paved the way for the death of this stylish scooter. LML still manufactures and exports Vespa to US where it sells as Stella and also to UK.

LML could not emulate the success of TVS in launching indigenous technology and surviving the aftermath of a failed technical collaboration. The company also could not replicate the success of Bajaj which reaped rewards by entering the Motorcycle segment. The failure of LML Vespa is a bitter lesson to all Indian business who depend on foreign partners for technology. The problems with most JV's happen with the issue of control. While Indian partners want technology, seldom does Indian entrepreneurs want to lose control over their companies. During the licence raj , foreign partners used to succumb to this because there was no other way to enter the Indian market. But post - liberalisation, Indian market is a level playing ground. Indian business either have to shore up their investment in R& D or may have to negotiate hard with the JV partner on power-sharing.

Piaggio have a presence in Indian market in the three-wheeler segment. The resurgance of scooter market has inspired Piaggio to re-enter the Indian market with the Vespa brand. According to news reports, 2008 may see the re-entry of Vespa once again to India.

Smyle : It does Wonders

Brand : Smyle
Company : Maneesh Pharmaceuticals


Brand Analysis Count : 314

Smyle is one of the popular brands in the OTC market in India. This 60 crore brand earlier belonged to Kopran Pharma and was later sold to Maneesh Pharmaceuticals Ltd.

Smyle as the name suggests was firts launched in the Oral care market. Its most popular product was Smyle Mouth Ulcer Gel. Smyle was one of the first OTC ayurvedic Mouth Ulcer Gel. The product achieved instant popularity because of its effectiveness.
Mouth Ulcers are a common irritating disease . The reason for mouth ulcers can be many : digestive problems, vitamin deficiency, accidental biting, use of heavy antibiotics etc. Once it is there, it causes severe pain and one will not be able to eat anything till the ulcer get cured. Normally we used to treat this ourselves using some home remedy like applying coconut oil etc. Usually one will resort to medical advice only in case of severe ulcers.
But the medicines that are usually prescribed for Mouth Ulcers tastes too bad and often smells bad also. This has opened up a new untapped market for a user friendly product.
Smyle Mouth Ulcer Gel had lot of advantages. First was that it tasted pretty OK and hence the customers did not mind using the product again and again. Secondly Smyle was ayurvedic and hence perceived to be side - effects free. Thirdly , the product was very effective.
These advantages created lot of equity for this product. But the market was small and Smyle Gel was essentially a niche brand. Smyle ulcer gel was promoted heavily through TV and print ads. I still remember a TVC which shows a guy screaming with pain inside a cinema hall while having a popcorn.
What was interesting is the way in which the brand owners extended the brand " Smyle " . I don't know the exact hierarchy of the launch of these extensions but here is the list of brand extensions of Smyle :
Smyle Mouth Ulcer GEl
Smyle Toothpaste
Smyle Prickly heat powder
Smyle throat reliever
Baby Smyle range of baby soaps
Baby Smyle baby powder
Smyle Lozenges
Smyle vaporub
Smyle Freshness talc
Smyle first aid kits
Smyle band-aid
Smyle nasal inhaler.

All these products were launched in a span of four years. Common sense says that the brand extensions was too many too fast.Smyle extending itself into powder and baby products does not make sense because the parent brand Smyle does not have a strong brand equity to support these category extensions.
Marketing theory suggests that inorder for a brand to extend into multiple categories, the parent brand should have strong relevant brand equity aswellas brand values. Smyle as a parent brand did not had such extendable brand equity. What Smyle had was a successful product.
Smyle Toothpaste made sense because Smyle was associated with Oral-Care . But there also the brand did not invest on building a positioning platform but tried to become a price- warrior. Fighting the giants like Colgate, HUL and Dabur needs more than low price.
While the throat lozenges and cough syrup extensions had a connection with oral-care, the brand had to break into the strong hold of power brand like Vicks. Smyle throat reliever had a USP of Gargle and Gulp property but I feel that the brand lacked power to compete with Vicks.

Having extended so much into so many products, Smyle may have shown an increase in the cumulative sales but in the long run, there is a chance that the brand may bleed itself to death. With out developing a core brand, too much energy has been spent on these brand extensions. Successful umbrella brands like Vicks and Johnson & Johnson have unmatched core- brand strentgh which Smyle lacks. Smyle as a brand had lot of advantages like a good brand name and a successful product . The brand could have leveraged the Smyle name and could have built a strong brand image taking some time . For example Smyle can take meaning of Smile from relief, enjoying life , freedom from pain , instant relief etc. Once that core values are built, these extensions could have worked . I am not saying that the extensions of Smyle has failed but I have a feeling that the brand will be wasting too much money over building these individual extensions since Smyle lacks a core equity.

For every brand manager, its always a dilemma choosing between investing in a brand Vs showing high sales figures. In this era of managing brands on a quarterly basis, investing in building brands takes the back seat.

CBZ Xtreme : Live Extreme

Brand : CBZ Xtreme
Company : Hero Honda
Agency : JWT

Brand Count : 250

CBZ is India's first sports bike . The brand came into existence in 1999 when Hero Honda decided to trade up its customers to premium segment. The brand created the premium segment of motorcycle in India.
But the first mover advantage was short lived. In 2001, Bajaj stealed the thunder right under the nose of the market leader. Pulsar just took the entire market away from CBZ. CBZz struggled hard to gain an advantage over Pulsar, but in vain. In 2005, the company decided to take the brand out of the market.
In 2007 saw Hero Honda relaunching the brand with a hope of getting a slice in the fastest growing segment in Indian automobile market which is estimated to be of 600,000 units. Premium segment is expected to be around 10% of the total market.
What really happened to CBZ is a sad story.
The company failed both in the product front as well as in the marketing front. CBZ when launched got rave reviews because it was some thing that the market has not seen. The styling was also good so was the power. But when the product got to the actual road test, problems began to surface. There was issues regarding fuel consumption and the high price also dampened the initial enthusiasm .The product also had some glaring issues, for example a simple fact like one has to push up the Foot Rest inorder to kick start showed that the company took the customer for granted.
The price - performance mismatch and the lethargic marketing/branding activities took its toll in the sales performance of CBZ. With the blockbuster Pulsar coming in, CBZ soon was in death bed. The company also had focused more on retaining its leadership position in the executive segment rather than looking at the premium segment. These factors aided Pulsar to dominate the segment .
This year showed Hero Honda's renewed interest in the premium segment which translated to the relaunch of CBZ as CBZ Xtreme. The new CBZ comes with a spruced up design and a more powerful engine. But still the product lacked the refinement of Pulsar. One of the CBZ owner told me that the Foot rest vs the Kicker issue is still there in the new CBZ ( thankfully there is a selfstart option).
The marketing campaign of new CBZ Xtreme is also horrible . The brand failed to communicate anything to the consumer about the product. There is a severe lack of BIG IDEA which is evident in the new commercial.
Watch the Commercial here : CBZ XTREME
The main aim of this commercial is to put a JAMES BOND kind of image about CBZ but failed to the extreme. I would give it a 1/10 . The brand uses the tagline " Live Extreme" to promote the product. The idea is to project the brand as an Extreme machine for those who like challenges. But the execution of this concept was horrible.
Marketing of CBZ is going to be very crucial in the success of this relaunch. The reason is that CBZ Xtreme sports the same engine as Honda Unicorn and its own Achiever. So technically there is not much scope of differentiation. The only available differentiation is interms of branding. And Branding is the weakest link in Hero Honda's scheme of affairs. Yet again the brand has failed to deliver a meaningful communication. The brand could have faired if there was no competition. In this case the competition is having an iconic status and CBZ 's only weapon is to match the brand strength of Pulsar. But Alas, the agency has let down the brand. The company has failed to highlight a USP for CBZ or does CBZ has any ?

Kelvinator : RIP 1963 - ?

Brand : Kelvinator
Company : Electrolux

Brand Count : 246

Kelvinator which ruled Indian refrigerator industry is no more. The brand did not die on its own. This heritage brand was killed by sheer negligence and marketing myopia. Any marketer with common sense would not have done this to a brand like Kelvinator.
Kelvinator came to India in 1963. The brand along with Godrej, Allwyn has ruled the market for decades. A global brand, Kelvinator has its origin dated back to 1914.The brand changed hands so many times and came to the fold of Electrolux in 1985.

In India, the brand's disaster started in 1996 when Whirlpool acquired this brand globally. Whirlpool wanted to sacrifice Kelvinator for its own brand The entire episode of the change of ownership of this brand will make any Hindi serial sops look like a kid's story. According to Business World, When Electrolux bought the company White Consolidated which owned the brand globally, In India during 1996 Kelvinator's Indian licensee sold the license to market Kelvinator to Whirlpool. So Electrolux became a contract manufacturer of its own brand which was being marketed by its competitor. Whirlpool had the license to market Kelvinator brand in India till 1997. Because of this Electrolux entered Indian market with its own parent brand. The fate of Electrolux in India was also not good since it ran into huge loses.

You can see that Kelvinator brand lost its place because it fell into a cobweb of ownership issues. Whirlpool did not invest in Kelvinator since it had the rights to the brand only till 1997. So why invest in some other's baby. So during these years, Whirlpool harvested Kelvinator while developing its own brand. When the brand came back to its original owner, Electrolux did not had the money to build this baby.In 2005, Kelvinator was killed. When the brand was taken off, it had a market share of over 14 %.
A look at the brand assets of Kelvinator will make every marketer drool. An International pedigree and a whopping market share together with two great brand elements :
Mascot : Penguin
Tagline : Its the coolest one.
During its peak years, the brand was heavily built. During 2000 , the Australian circket team endorsed Kelvinator and Adam Gilchrist was the main character in the TVC ran during that time.Kelvinator's main positioning was based on its cooling power. The tagline aptly captures the USP of the brand. Kelvinator's compressors was one of the best available globally. Besides that , the brand was considered to be a tough and reliable one.

One of the best and most apt tagline for any refrigerator brand " Coolest one" , this tagline is still in the mind of many Indian consumers. The brand equity was so powerful that even without much promotion , the brand had two digit market share during early 2000.
I would blame the death of this brand on its owners Electrolux. In 2005, when Electrolux decided to go for the parent brand, Kelvinator still had a life left. It could have been a wonderful entry level brand for Electrolux. A brand with so much heritage could have easily created volumes for this company. But alas.... According to reports,Electrolux is set to come back to Indian market in a new avatar.

Kelvinator will soon fade away from the memories along with it one of the coolest brands.
Source: businessline, businessworld, economictimes

Brand Update : Parryware

Parryware has now embarked upon a new campaign focusing on its range of bathroom fittings and accessories. Feeling the heat from the competitors and also unbranded products, the brand has renewed its marketing thrust.

But the new campaign is a sad story all together. In my earlier post on Parryware, I had mentioned that Parryware has redefined the Bathroom fittings by innovating the concept of Glamourooms. The brand achieved super brand status through this smart positioning. But during 2003, the brand made a big mistake in changing its core positioning to " Add glamour to your life" and then changed the tagline again to " Surrender to the temptation " and crap like that.

The new campaign is shocking. The brand now adopts the tagline " What a bathroom!". Its a pity that the brand has come to a full circle. It has reached the stage where it has started its successful journey. From "Glamourooms " , the brand crashlanded to "Bathroom".Glamourooms differentiated Parryware when everyone was talking about bathroom fittings and now also things are not so different. The fact is that man companies are talking about glamorooms and now Parryware has started talking about Bathrooms. What a paradox.I don't see a logic and cannot understand why those creative hotshots at JWT could ever letgo of a highly successful positioning and land the brand back to square one !
Ofcourse I know that the answer will be " the old positioning has lost its charm". But I feel that its the job of the creatives to find ways to refresh these ideas not kill them for the heck of change. The brand now is in a state where it has lost is DNA. The ads may be good but the strategy is horrible. The brand has undone the entire equity built over its past years ( Glamouroom era).

Do You see any logic?

Related Brands
Parryware

Brand Update : Yamaha

This year Yamaha launched yet another bike branded Alba 106. Surprisingly this bike is a 100 cc bike which is an absolute contra strategy because almost all bike marketers are moving away from the 100 cc segment. Alba was launched after the reasonably successful run of Gladiator. But according to reports, Yamaha India is in deep trouble and time is running out for them to give a winner. As discussed in the previous blog about Yamaha, it is sad to find an iconic brand now slowly dying.

Alba 106 again is a mass market brand. The brand is once again going to dampen the brand equity of Yamaha which went down the drains with the failures of Crux,Frazer and YBX. What was needed for this brand was a SUPER BIKE and what came was a cropper.
To top it, ALBA 's campaign is one of the worse media campaign I have seen in recent times. The ad surprisingly do not feature the brand ambassador John Abraham. The brand uses the baseline " Got It?" which does not mean anything. The story , the positioning and the USP all missing in the campaign. If the agency feels that Indian consumer will be impressed by showing a tattooed girl and a dude, they are terribly mistaken or they lack commonsense.
Alba 106 fails to convey any sort of differentiation for the product. One print ad says " Ride it if you can handle it" which is a dampener. Another major issue that the brand faces is the failure of the earlier launches like Crux,Frazer etc. Customers who bought these brands are worried about the after sales support. This issue further damages the equity of Yamaha.
Yamaha is again trying wrong medicine to its disease. What it needs is a product like Pulsar that will bring back the confidence of customers back to the brand.


Related brand

Yamaha

Image courtesy : magindia

Brand Update : Lays

What I have feared has happened. The brand mandarins at Pepsico or at JWT seems to be bored with the highly successful tagline " No one can eat just one". The brand Lays has changed its positioning statement to " Har Program Ka Main Food" which means " Main Food for All Programs" .

When the first TVC featuring this new tagline was aired during the world cup, I thought it was a temporary change in tagline to suit the event. But now the new tvc is on air with the same tagline. My personal feeling is that the brand has decided to try suicide because it is bored with the success. When no competitor is having the capacity to kill your brand, then why not try it yourself.
For so many years, the tagline "No one can eat just one" was able to communicate the brand DNA to the customers. Those who liked Lays would say with conviction that you cannot stop eating Lays. The creative guys at JWT had the flexibility of using this tagline to come out with new and different campaigns. But yet, someone out there felt experimenting.
The new tagline has taken the focus away from the USP of the brand ie. "Taste" to the " Usage Occasion " which is not a strong differentiator as the previous one. By doing so, the brand has given away the best differentiator it had...

It was the same case with Pepsi, it had the habit of messing up the tagline just in the name of freshness and experimenting. From the iconic tagline " Yehi hai right choice baby" to ?????? can anyone remember the new tagline?
I am not saying that the brand shouldnot experiment with its taglines and positioning. I am not saying that tagline is the MOST important brand element. But the point is that a change in the successful tagline should be guided by solid reason. Messing up a blockbuster positioning statement like " No one can eat just one" is going to cost heavily on this brand. Frito Lays may be investing lot of money experimenting new taglines in coming days... I pity them.

Related Brand
Lays