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Tuesday, December 23, 2008

Junior should not attach with Chyawan should not attach with Granules

That's a rather strange title to begin with. But not stranger than Dabur's strategy. I happened to see a full-page ad for Dabur ChyawanJunior

Chyawanprash has always associated with Dabur. Chyawanprash is not a Dabur brand though; it's an old recipe based on Indian scriptures. And therefore many other players in the market use the name in branding their products. You have Baidyanath Chyawanprash, Himani Sona Chandi Chyawanprash, etc.

What is Chyawanprash? A dark, brownish/blackish paste-like mixture of edible herbs in specified quantities. What's the benefit? Many benefits. It is said to provide one with many nutrients for one's over-all health. Okay, is there any problem with the product? Not really, just that children/youngsters don't find it tasty enough or good-looking enough to consume.

So, what did Dabur do? Converted the ugly looking, odd tasting paste into liquid (especially milk) soluble granules. So of course, the idea is children could have it with milk. But wait a minute. What do children have with milk? Complan, Horlicks, Bournvita... What do these brands do? They also help in growth and developing intelligence. And they taste great. Suddenly the product (Chyawanprash) which stood as a distinct category is now in direct competition with global brands and on their turf. The battle would be interesting.

So, what could be the future of Chyawanprash granules? More specifically, now that Dabur has branded it ChyawanJunior and described the product as Chyawanprash Granules, what could be said about the strategy?
  1. In the first instance, on hearing or seeing the name ChyawanJunior, one would think that it's a special Chyawanprash for youngsters.
  2. On a little more thought, one who has tasted Chyawanprash could get sceptical of the taste of the new product. One can say that Chyawanprash tastes the way it does because it is made of certain types of herbs. Now if the taste has changed, there's a question: has the mixture changed too? And if the mixture has changed, will it be still be so effective? How is it that Chyawanprash paste suddenly gets converted into granules? The credibility about the effectiveness of the new product could be doubtful.
  3. For the ones who've never ever tasted Chyawanprash in life, it is immaterial whether the product is called Chyawan or not. It could as easily be called something else.
  4. So, is ChyawanJunior a 'cool' name? The first part of the name might not sound as cool to the youngsters.
  5. The name Chyawan also succeeds in confusing coz apart from products of other players with similar brand names, Dabur itself has Chyawanprash, Chyawanprakash, Chyawanshakti and now, ChyawanJunior!
It seems that Dabur could be worried about low acceptability of Chyawanprash paste among the youngsters of today. While repositioning was an option, Dabur chose the path of product innovation. It developed a new form of Chyawanprash. However, for the new form it chose to leverage on the name of the earlier product. If the earlier product was low on acceptability or was on its way down in terms of sales, then making the new product ride on former's name might not yield result. And even if the earlier products were doing well and Dabur needed to increase the market, the riding on the former's name might not yield a great deal since it might be perceived as just another variant instead of a different product altogether.

Dabur and other players in the market seem to have lost an important opportunity to create a new category.

Thursday, October 9, 2008

Yamaha into scooters?!

A bikeindia.in report says that Yamaha is launching scooters in India. Scooters! Yes, scooters!

Okay, how do people in India perceive Yamaha? Performance bikes, right?

Has Yamaha done well in India? Not really. It just seems to be coming back on track. But has it? Not really, sales have to prove it yet.

What is Yamaha's market share in India? Barely 5%. Can it play the offensive game? Not really. But given it muscle it can at least adopt a flanking strategy. Is it doing that? Yes. Has it met with some success? Yes. What should be the next move? Capitalize by pushing further with the flanking strategy and perhaps go on the offensive.

So, what does it do? Launch tiny scooters! What'll happen? Your guess is as good as mine.

Yamaha needs to focus for the moment instead of getting distracted by launching products totally unrelated to the current perception of Yamaha. Otherwise, it could be staring down into yet another empty well.

Thursday, October 2, 2008

Life's a journey. So is building a brand. Accidents happen!

Some time back I saw a few Samsonite outdoor hoardings advertising their range of shoes. These ads made me curious and when I visited malls I made it a point to visit Samsonite outlets. The shoes were impressive to say the least. However, that they are from Samsonite the brand made me a little uneasy. Tough to imagine a situation when I would say that I'm wearing Samsonites!

Brand extensions can often prove dangerous. I was just going through some articles to understand what made the company think of launching shoes under the Samsonite brand. And this is what the president, Samsonite South Asia, said in an article: “We are diversifying from a luggage to a lifestyle brand and may look at an entry into travel-related categories like eyewear, perfumeries and watches in future. The company is hoping the strategy would help it reduce its reliance on the luggage business."

What's happened at Samsonite is that they've confused 'company' with the 'brand'. The company can diversify into other categories but not necessarily the brand. Out here it seems that the brand and the company are considered the same. Look at the statements again:

We are diversifying from a luggage to a lifestyle brand and may look at an entry into travel-related categories like eyewear, perfumeries and watches in future. The company is hoping the strategy would help it reduce its reliance on the luggage business.

Samsonite is a brand and it happens to be the name of the company as well. However, for the consumer, Samsonite means high quality leather bags and suitcases. Now if the company says Samsonite means travel, does the consumer say Samsonite is 'travel'? No way! Travel is an act, an abstract concept. Or, does the consumer think Samsonite means travel-related accessories? Does the existing strongly-entrenched perception of Samsonite play no role? Does the consumer understand that the company wants to reduce its reliance on the luggage business? No way! The only thing that he remembers is that Samsonite stands for high quality leather bags and suitcases and that's why he buys Samsonite.

Also, the power of the brand has been undermined because the marketing think-tank has given into certain concepts like 'lifestyle'. Let me explain this further. What is 'lifestyle'? When you buy a Samsonite bag, do you say to yourself that you've bought a lifestyle brand? Does the consumer understand 'lifestyle brand'? Lifestyle, whatever it means, is a term internal to the marketing think-tank not to the consumer. His interpretation and use of the term 'lifestyle' is quite different. If Samsonite becomes a lifestyle brand, for the consumer it means almost nothing.

If Samsonite introduces products like shoes, eyewear, perfumeries and watches under the pretext that the brand stands for 'travel' and 'lifestyle', and spends heavily on letting the consumers know that Samsonite is 'travel' and Samsonite is bags, suitcases, shoes, eyewear, etc. etc. then it might succeed in confusing the consumer in addition to eroding the brand's current position.

Building a brand is a journey. Journeys could be fatal, when you drive thinking you own the vehicle and you own the terrain. Beware, accident-prone zone!

Saturday, August 30, 2008

The power of a name and the need for change

I maintain another blog called FULL TANK. Being a professional in the field of marketing communications and an avid observer of the process of branding, I've always felt that choosing a good name is extremely crucial. Laura Ries has changed the name of the her blog. And these are her thoughts on the change.

I appreciate the candid confessions. It triggered a thought about one of my blogs mentioned above. To begin with, my blog was just another blog. It was a record of my thoughts on very many things. Cricket, Motorcycles, Beauty, Mumbai, India, etc. I observed that I was writing more about two-wheelers. Not just quantitatively but also qualitatively. So I decided to narrow my focus for the blog on two-wheelers and record my thoughts on other things by creating other blogs like FORK (on brands and businesses), Profss Drums (on education, policy-making and governance), etc.

Over the months, I've changed the name of my first blog many a time depending on my mood. Firstly I named it Indusbeats, then Slumberic Memoirs Of an MBA, later disstraction, and then thrillon2wheels, and finally settling for Full Tank. My impatience and a thirst for something more interesting every now and then also played a part in changing names so frequently.

Just when I felt fairly convinced that I had chosen an apt name Full Tank for my blog on two-wheelers, this article by Laura Ries gives me other thoughts. What does Full Tank mean? What does it connote/signify? Many things. Passion for motorcycling, cruisers, perhaps big bikes, etc. Importantly it also signifies the object that holds fuel (petrol, to be more specific) in a motorcycle/ two-wheeler. So what happens if tomorrow the world changes and most of the two-wheelers are battery-powered? Will there be a Full Tank? Will the name make sense? I know for the moment the name's just good. But tomorrow...

So? I'm not gonna change the name yet again :) though I did feel the temptation when I was reading the article. My only point here is to discuss the importance of the process of naming and the power a name (or a brand name) possesses.

What's your brand name?

Sunday, August 24, 2008

Smokin' Joe's Might Smoke It All!

Smokin Joe's is India's homegrown Pizza brand. And seems to be doing well. Says 'Fresh Pizzas'. Seemingly a me-too brand (following in the footsteps of Dominos), it differentiates because it offers good pizzas but at a lower price than the brand it's following.

Having tasted success, this Joe seems to have grand plans. Like? Smokin Lees! What? Yes, a brand positioned to offer Home-delivered Chinese food. There are quite a few question marks here.
  1. Has Smokin' Joe's exhausted all the possibilities of growing the Pizza brand? I don't think so. So if growth opportunities exist, why shift focus from a growing the brand to launching another brand?
  2. Has Smokin' Joe's studied the Pizza brands worldwide, especially the biggies like Pizza Hut and Dominos? Why didn't these two brands extend themselves into any other food category? Don't they have more understanding and wherewithal to undertake an initiative like that?
  3. What does Smokin' Joe's stand for? How does Smokin' Lee's does justice the established brand? When the brands are meant for two different categories of food (and also, when the promises 'seem' different), why is there such a similarity in names?
Smokin' Joe's might end up undo a lot of good work that's gone behind the first brand. Firstly, it shouldn't have taken a chance to shift its focus from the Pizza category. Secondly, even it were to expand in other territories like Chinese Food, the name and the positioning deserved more thought.

Look at the name Smokin' Joe's and the way it is rendered as part of the logo. It reminds you of the wild wild west where the cowboys come from. The word 'smokin' makes you envision the gun-totting cowboys. Now considering this, how does it compare with Smokin' Lee's? What's Lee gotta do with 'smokin'? 'Lee' sure does remind you of China but definitely not the cowboys. The brand manager at Smokin' Joe's must have thought that the common element 'Smokin' might help the new brand establish itself easily. I am not sure of that, but definitely if brand-naming follows any logic (even if not pure logic but perception-driven logic), then this is a clear case of 'anti-logic'. Even if brand-naming isn't about logic, it definitely must not be so obviously 'anti-logical'.

Smokin' Joe's is Fresh Pizzas. Smokin' Lee's is Home Delivered Chinese Food. Do the two sound/mean similar things. May be. May be not. Yes there could be an overlap but the two do seem different things. Then why use 'Smokin' as a common word (or theme). My word, the two brands should've been entirely different with different promises. A brand focussing entirely on Home Delivered Chinese Food is a new happening in the market but Smokin' Lee's might not help to exploit the potential.

Thursday, July 17, 2008

Kaun 'Videocon'? The power of a brand name

This post is a short one. When business grows, the brand name starts assuming a god-like status-and-mention in the media. This of course gives a hedonistic feeling to label and sell every possible product under the same brand. There could be many other reasons but the one mentioned is good enough to explain many many brand extensions we see in the market place.

Our home-grown conglomerate Videocon is one such example. But what makes it stand out is the fact that the brand name is 'Videocon'. Isn't it apparent that 'video' in 'Videocon' stands for visual entertainment products? Clearly, being one of the first-movers in the Indian entertainment products industry, Videocon came up with a good brand name for its televisions and also for, now-extinct VCRs, and CD and DVD players. However, to put the same on washing machines, tape-recorders, micro-wave ovens and air-conditioners is not just preposterous but also downright suicidal.

That's quite a statement to make for me but that's the power of a good name. Applied at the right places, it works. But apply it to something that's not a match and you kill yourself. Videocon's share in the market in most of its product-categories has been going down and one of the big reason is its branding strategy.

Monday, June 2, 2008

Sumo tries becoming svelte, or is it?




If the third one is Tata Sumo, what about the first two... Make a guess.

When Tata makes automobiles, especially consumer utility vehicles or passenger cars, it fights a lot of perceptions. Why? Because of the ubiquitous and lumbering Tata Trucks we've been seeing on Indian Highways since time immemorial. To top that, when Tata launches consumer utility vehicles, it plays with brand names, launches variants, shuffles the brand names based on internally discussed logical plans; the brand managers really work hard. Just that they might not care much for perceptions of consumers who buy their brands or products.

Tata Sumo was launched, it did well in the initial years and then got clubbed when Toyota Qualis entered the market. Wasn't surprising that the majority of the buyers of Sumo were the taxi fraternity. But the brand managers wouldn't give in. The initial success of Sumo perhaps wasn't forgotten.

Since taxi fraternity was going in for Sumo and perhaps the marketing/brand managers didn't really like the fact, they launched a cheaper UV - using the Sumo platform and shape - called Tata Spacio. The idea would've been that drivers would adopt Spacio leaving Sumo for extensions upwards. Show a Tata Spacio to anyone right now and ask that person which vehicle is that. 95 out of 100 would say, "Tata Sumo!"

Extend upwards, they did. They launched Sumo Victa - again using the original Sumo platform and shape. The ad hinted at individualism and luxurious life-style; the parting line was Kuch log Sumo Victa chalate hain with a guy in erect-posture looking at you. Imagine! First name a utility vehicle Sumo (a vehicle with an expansive body, naturally to accommodate many passengers) and then show individualistic tendencies. Victa, from my memory, hasn't done great. Show a Victa to anyone right now and ask which vehicle is that, he or she would say, "Tata Sumo!"

Brand managers didn't give in. So again remembering the success of original Sumo, and the subsequent success of a rival product Mahindra Scorpio, the brand managers launched another vehicle (built on the same platform but with a cooler look) called Sumo Grande. This time, for family. I don't see too many Grandes on the road yet. Grande stands out distinctly from the original Sumo, Sumo Victa or Spacio. Then why is it called the Sumo? Killing your own baby, is it?

Brand Sumo has been messed around with, left, right and center. One needs to understand that Sumo, the brand (or any other brand), isn't owned by the company; it is owned by the people who consider it and buy it. Brand is a summation of their perceptions. It's mostly at the point of inception that the brand manager has complete control over pitching the brand as one thing and not the other. Thereafter, consumers have the right to accept it and reject it. And if the brand turns out successful in a particular way, no matter the brand managers desire or do, it might continue to be perceived in the way that made it successful.

If Grande is for family and Victa for individualistic guys, think what is Tata Safari for? You'll say Grande and Victa are UV's and Safari is an SUV. To elaborate more, you'd say Grande is a luxurious UV competing with the likes of Toyota Innova. Then why call it Sumo Grande? If Victa is for individualistic guys, why is it a UV? Isn't SUV more suited for individualistic tendencies? Loads of questions. Confusing. Jumbled. That's right. Courtesy, the branding strategies applied for Tata Sumo. Do you doubt then that the performance of the brand isn't really as desired.

I suspect brand managers could exercise greater control, especially beyond inception, over brands which failed in the first place. Assumption is that the brand failed because people couldn't quite accept it and therefore do not have too many perceptions about it.

Also, it's easy to bring a 'high-end' brand lower but mighty tough to push a 'lower-end' one higher. Tata needs to rethink about Sumo. Or rather simply leave it for the mass transit purposes. Do some chopping (easier said I know what with all the capex already incurred) and launch new brands to target different segments; that would be better. Perhaps better products would also do better!