Tuesday, December 30, 2008

Art On A Uke


uke back5
Originally uploaded by jadesnake.
I got an e-mail just yesterday from one jadesnake who asked if she could use my Coulton art for "Always The Moon" on the back of her new ukulele. Let me repeat that. I got the e-mail YESTERDAY. The uke is now fully painted and you can see the whole process right here. What a wonderful way to conclude my year.

Consumer Insight : Insurance is a Subject Matter of Solicitation

If you have seen any advertisement of Insurance products, you may not have missed this disclaimer " Insurance is a subject matter of solicitation ".

As a consumer , this disclaimer/warning is of utmost importance but often ignored.

What is the meaning of the clause " Insurance is a subject matter of solicitation".

The dictionary meaning of solicitation is " Ask For". Hence insurance is a subject that should be asked for . It means that customers have to talk to an adviser who will suggest the right product for your needs. Insurance should not be SOLD but Solicited......

Sounds out of the world isn't it ?

How many of us have asked for Insurance ?

In India, insurance is sold not solicited. Hence this dictum seem totally meaningless OR is it ?

If you read the terms and conditions put forth by Insurance companies, one will find relevance to this dictum.

The above dictum have relevance to consumers because it puts the responsibility for selecting the right product on the consumers than on the company. The website of a leading insurer states " Customer's participation in the insurance products are purely on a voluntary basis ".

As a consumer, the responsibility lies in
Understanding one's insurance needs .
Planning
Meet with a trained financial adviser.
Selecting the right product
Signing the contract.

But we know that most of the consumers are not aware about either their needs or the various options available before them. Hence the consumers have to obtain the help from a trained insurance advisor who will " advise " the customers and then help them to select the right product .

In practice, we find that none of the above applies. Insurance advisers take up the role of pure selling machines trying to " close" the sale rather than " advice " the customers. Companies put pressure on their agents to achieve targets often forgoing the basic dictum that drive this business.
While in the developed markets like USA , the actions of financial planners are highly regulated, here the onus is on the customers . CAVAET EMPTOR.... Buyers beware....

Most of the insurance firms also does not practice the dictum iof solicitation in its pure essence. If you have listened to any of the recent " sales talk" of advisers, they pitch the ULIP plans irrespective of whether you like investing in stock market or not.

There is no analysis of one's financial position or insurance needs. ( There are professional financial /insurance advisers who do all the right things but many doesn't) .

It is because of this non-professional selling approach that makes customers run away from an important product like insurance.

If insurance firms practiced what they preached, then insurance would have gained a much higher value as a product. And insurance sales persons would be regarded as a friend rather than a nightmare.

99% of my MBA students hate to get into a job in an insurance company. Much of this hatred happened because we forgot that we should sell the right kind of product to the right kind of consumers. As a customer I believe that insurance is one of the most important products which helps a consumer to be secure. But alas.....

In my experience as a prospective customer, I met only one advisor who professionally and systematically explored my insurance needs. Rest of all were trying to " sell " me insurance.

The million dollar question for an Insurance salesperson is

Will you walk away from a consumer for whom you do not have a right product ? Will you recommend your competitor's product to him if it fits his need ?

Its time for the insurance companies to Walk the Talk.... It is tough... your quarterly results will show negligible growth. But consumers will love you for it.....

Insurance is a subject matter of solicitation.

Monday, December 29, 2008

Marketing Funda : When Teaser Gets Teased

Read my article on Teaser ads published in Adclub Bombay Website here : When teaser gets teased

Caption This: 12-29-08

Amour Mineral Set

brush set, cosmetic solutions

Amour Mineral Set

Mineral Makeup Brushes

Makeup Brushes

Kathy of Coastalscents has been kind enough to grace our Mineral Makeup Blog to guide us in choosing our makeup brushes. I’m grateful for the information shared for Kathy has been in the mineral makeup business, and can provide great insight to us in terms of her expertise in scrutinizing makeup brushes, as well as her minerals!

Brush Set Cosmetics Choice

Brush set, cosmetics

Brush set cosmetics choice

Smash Box Decadence Vanity Brush Collection

brush, makeup cosmetic

This is the ultra-luxurious smash box decadence vanity brush collection

Makeup Brush Set and Real Leather Pouch

brush set, beauty cosmetics

Makeup brush set and real leather pouch from Mac beauty cosmetics

Zeiss : We Make it Visible

Brand : Zeiss
Company : Carl Zeiss India
Agency : Modern Medtech

Brand Analysis Count : 367


Carl Zeiss is a respectable name in the global lens' market. This decade old German company is named after its founder Carl Zeiss who was an optician. His company first started making lenses for microscopes and later extended his product range to cameras .

The company began its Indian operations in 1998. Although present in different verticals, the brand came into consumer space during 2005.

Carl Zeiss manufactures spectacle lenses under a joint venture with GKB Hi-Tech Lenses which is a home grown company. The spectacle lenses are sold under the brand Zeiss.

Indian spectacle lenses market is worth around $90 million ( Rs 360 Crore). Looking at the population, the potential is huge. But like many other products, this market is also dominated by unorganized sector which accounts for more than 75 % of the sales.

There are only two highly visible brands in the spectacle lenses category. One is the global major Essilor and other is Zeiss.

Zeiss has been trying to build its brand by consistently investing in media campaigns in India. It has been regularly advertising both in visual and print media.

The marketing of spectacle lenses is a difficult task because so far the category is regarded as a commodity. Consumers seldom ask for a specific brand of spectacle lenses since they are not aware of any brands neither they are aware of any specific advantages of using a branded spectacle lens.

So typically a consumer goes to the optician with his prescription and selects his spectacle frame and asks for the price of the lenses and gives the order. No where in the process , he asks for a particular brand for his lenses..
This offer tremendous opportunity for a marketer but it is not an easy task .
Zeiss has been trying to brand the commodity called spectacle lenses. But I am not impressed.

I have been watching the commercials of Zeiss for a while now. Frankly I did not knew that Zeiss was from the house of Carl Zeiss. I have heard about Carl Zeiss since the brand is famous as a camera lens. More over the latest mobiles from Sony and Nokia is now sporting Carl Zeiss lenses. Cameras which have Carl Zeiss lenses are often sold at a premium.


But the positioning strategy if Zeiss spectacle lenses is far from spectacular.

Watch the commercial here : Zeiss Spectacle lenses

The main USP of this brand is that it is branded...... Sounds funny isn't it ?

Zeiss is positioning itself as a spectacle with brand mark. For non-marketers, Brand Mark refers to the logo or symbol that the brand has.

I frankly does not understand the logic behind this positioning. Brand is defined as a name , term, symbol, logo which are used to identify and differentiate a product from the competitors .
But having a brand mark is never a differentiator. You cannot build a brand over its brand mark.....

Zeiss in their ads try to claim that " Brand nahi hai to style nahi " ( means if it is not branded, then it is not stylish ). It is true also. Consumers try to show off their brands. And successful brands are those where consumers are willing to act as living billboards.
Take Levi's or Nike, consumers are willing to show off. But not because they have brand marks.

First the company has to build a brand on certain core values or attributes . Once this is built, consumers will adopt the brand and act as the brand ambassadors. People does not buy Nike because it has the brand mark SWOOSH . But because they love the brand for its values embedded in " Celebrating authentic athleticism ". Consumers evangelize Apple not because of the brand mark but because of the innovation that is personified by the brand.

Here Zeiss has got it all wrong. Having a brand name or a logo is not suffice for consumers to love your brand. Brands should be built on strong attributes ( tangible or intangible). Brands with out brand values is at best a Label.

Zeiss thinks that its major competitors are the unbranded spectacle lenses. Hence the company feels that having a brand mark is the best differentiator. I was surprised to find that globally also the brand is positioned as a spectacle lens with laser marked brand mark.

Essilor has done a better job in promoting its brands like Transitions and Crizal. Consumers understand that these brands are having quality and certain important attributes.

Zeiss is a powerful global brand which has a reputation of being high quality manufacturer. The brand also has a powerful secondary association with the country of origin - Germany.

It should have taken some important attributes and promoted those attributes. Having a brand mark is an advantage but only after the brand is being built. People like others to see that their sunglass is a Ray-Ban because the brand has an image built on style and quality. Hence the Ray-Ban brand mark on the glasses make sense for the consumers.

First the brand has to understand the important attributes that customers look for in a spectacle lens. Then try to understand which are the most critical of those attributes which influences their decisions. Then develop the brand around those critical attributes. I don't think that the current USP of a brand-mark is considered important by consumers and is a sufficient reason for them to pay a premium for the brand.

Zeiss must go back and learn some basic brand building before investing such huge amount on money on meaningless campaigns.

Related Brand
Essilor

Friday, December 26, 2008

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

Wednesday, December 24, 2008

Left 4 Dead - 8 Bit

I plan on doing a Gamer Dad review of Left 4 Dead in the coming days, but in the meantime, enjoy this java version thanks to Mashupman Sebastian.

My Christmas Present To All Of You


You can thank Scott Johnson for this. Happy Holidays!

Monday, December 22, 2008

Foundation and Antioxidant Moisturizer

Foundation, Moisturizing

Foundation and antioxidant moisturizer

How do I Use and Apply of Minerals

foundation

How do i use and apply of minerals

How do I Use and Apply of Minerals

foundation

How do i use and apply of minerals

Hyundai Accent : What Dreams Drive

Brand : Accent
Company : Hyundai Motors India
Agency : Innocean

Brand Analysis Count : 366

Accent is one of the highly successful long serving car brand in India. Launched in 1999 , this brand is now on its 10 th year in India. The simple fact that this brand has survived the highly competitive market in India speaks volume about the success of this brand.

Accent, when launched competed with the highly successful Maruti Esteem in luxury sedan market. While Esteem perished, Hyundai Accent is still managing its product lifecycle.

Accent is a brand which has survived only because of the product performance and quality. Frankly there is nothing to write about the marketing or branding strategy for this brand. Accent was a highly performing work-horse which was well designed quality product that offered excellent value for money. The company was able to make enough changes in the price which enabled the brand to ride the PLC effectively.

Accent now belongs to the entry level sedan market. When launched it was a premium car. Accent was an instant success because of its product quality and the rub-off from the success of Santro.

The company managed the product lifecycle of Accent using variants. Hyundai regularly updated Accent by launching different variants in line with the changing consumer expectations. There were four variants for Accent in 2002 which were GLS,GLX,GVS Tornado and Viva.

One of the most successful variants was the Accent Viva. VIVA launched in 2002 was positioned as a sporty sedan. The engine was tweaked to give more power and the variant was styled to give it a sporty look. Accent Viva was priced at a premium and was a successful niche variant.

In 2002 , the company launched the first diesel variant of Accent. The brand was the first one to launch the CRDI Diesel engine . Although the CRDI gained lot of interest, there was lot of problems for the diesel variants. Ultimately the diesel version was phased out in 2007.

Accent started losing in the segment when Ford launched Ikon . Later the segment became crowded with lot of product launches by the competitors.

At the branding front , except for the marketing of Santro, Hyundai in my opinion is a lousy advertiser. I don't remember any highly creative campaigns from them for any of their products be it i10, verna or Terracan. The quality of creatives for Santro also have come down drastically. They have always built their brands on the product performance.

For Accent also I don't remember any highy creative or good campaigns. But I remember some lousy ads of Accent trying to position it as a aspirational product. In those campaigns Accent had the tagline " Respect comes naturally ".

Accent had tried out different taglines during its different stages. The frequent changes in the tagline have really messed up the positioning of the brand. Accent is confused about whether it should focus on performance or image. The taglines of Accents were

Sheer Pleasure
Expect More
The Next Step
The Power to Excite
What dreams drive

Although the taglines were more performance oriented, the ads especially the television commercials was unfocused. The agency failed to understand that the core brand value for Accent was its product performance and value for money proposition.

Even in 2008 , Accent topped the segment in customer satisfaction in a survey done by TNS.

There were many rumors about the phasing out of Accent. But like Maruthi, Hyundai also does not believe in phasing out old brands. Auto analysts was predicting the phase out primarily because the brand was considered dated. It has been around for 10 years and consumers have become bored by the brand.
The rumor was further fueled with the launch of another mid size sedan Verna. In global markets Verna is sold as the new generation Accent . And in USA , Accent ( Verna) is one of the largest selling economy sedan.

With the launch of Verna, Hyundai reduced the number of variants for Accent. Now Accent has only one variant.

But Hyundai had other plans for Accent. In 2008 Accent was launched in CNG version. The CNG version is expected to boost the sagging sales of this brand. The launch also is an indication that Hyundai is not going to phase out this brand. This year, Accent was relaunched as Accent Executive with spruced up interiors.

One of the strong points for Accent is its design. Accent is still looking great. If Hyundai plans to keep this brand alive , it should focus on the design. Accent can ride the PLC by positioning itself as a stylish brand. It should experiment with colors and graphics. The product quality is already established,what the brand needs is excitement.

At this stage of the PLC, Accent will get a boost if the brand is endorsed by a celebrity. A high profile young film star can rejuvenate the brand for sure.

Viva Woman of Foundation

foundation

Viva woman of foundation

The Face Of : Foundation

Foundation

The Face Of : Foundation

Foundation from Viva Woman

Foundation

Foundation from Viva woman

Caption This: 12-22-08

Best Marketing Practice : Be Proactive to Rumours

Yesterday my wife told me about an internal mail she received at her office. It said that Kurkure contains plastic which makes it more crispier than other snack foods . Further Appyfizz contains cancerous substances and if you take Mentos and Pepsi together, you will die.....
So no Kurkure and Appyfizz for our child from now on.

I tried to show my " Professorial " knowledge by telling her that these are baseless rumors and all these products are safe. But she rubbished it aside saying that the mail come from a very trusted friend of her.......


I was little upset by her comments, not that she doesn't trust me but by the fact that such emails and rumors can create lot of issues for the brand. A call to one of my friend in advertising confirmed that these rumors were running around for more than three years.

Although internet offers lot of opportunities for brand promotion, the biggest threat comes in the way of such rumors.
There are two typical responses to such a kind of malicious rumor. Do nothing hoping for this rumor to die a natural death or be proactive and do something about such rumors.

Marketers should take proactive steps in countering such malicious rumors that can later snowball into a viral negative campaign.

When I did a small google search on Kurkure, I was surprised by the results. The first result that came was a Kurkure blog which negated the rumors. More than that there was a paid link to the FAQ site of Kurkure which clarified further than the rumor was baseless.

That is a proactive approach to handling such rumors by Kurkure.

Marketers cannot stop anyone from making such malicious rumors. But they can effectively negate such rumors by acting on it.

Have a website : Its important for brands to have a place for them in the virtual world. Since internet is a media one cannot ignore, it becomes important for the brand to have a site.
Scan the net for such rumors : Marketers should need to scan the negative news that spread across the internet. This should be done on a regular basis.

Negate the rumor using Search engine optimization : The brand should negate the rumor immediately with out waiting for it to spread. Most of the Search Engine Optimizers will help the company to keep their information on top of the search engine listing. My logic is that when a netizen gets a rumor email, he will search for further clarification. If the company is not providing such a clarification then he will take decision based on the judgement. I am sure that those people who forward such malicious email believe that it is true . Otherwise he will not forward it and risk his credibility.

Use Public Relations : The best tool to handle such events is to use the PR department. Use all mass media to convince the customers that the product is safe. Have a permanent link in your website to offer clarification about such reported rumors. If the rumor has snowballed into a big crisis, have your senior executives issue statement clarifying the issue. It it is health related, have doctors endorse your product's safety standards.

Open a channel for customers to contact you : The channel can be either an email or a phone number where the customers can clarify any doubts about the brand.

I know it will be difficult for a brand to react to each and every rumor that does the round. But the effort is well worth it.

Saturday, December 20, 2008

How I Plan To Make This Site Even Better in 2009


See how to improve your site here.

Brand Update : Kamasutra Condoms

After a long while, Kamasutra has come out with a new campaign. The current campaign is little different from the earlier ones in that the brand has shed the sensual route and has become more subtle.
The last campaign from Kamasutra was revolving around the theme of experimenting which was highlighted by the tagline " who do you want to be tonight ".

The latest ad shows a " button less world' where the guys roaming around with their button-less shirts. The teaser says " get ready to lose your buttons ".

Watch the TVC here : Kamasutra new ad

The brand has the new tagline " Most wanted men ".

This is a serious deviation from the core personality of the brand. KS is always perceived to be an extrovert, on-the face , open and a naughty brand which does not shy away from talking straight.
All through the life of this brand, its known to be controversial, sensual brand. Subtle was never this brand's character . So those who were expecting another set of shocking ads are bound to be disappointed.

The brand has also changed its tagline to " Most wanted men ". This new tagline is also a dampener. The tagline is very similar to that of Moods ( My Man !) . I think that the brand could have chosen some thing different from Mood's tagline.

Its interesting to note that in India, government is taking more initiative in promoting these products rather than the private players. Most of the condom marketers are not aggressive in their spends . One reason is that most of them are minting money by supplying it to the governmental agencies and NGO's . There are also reports that suggest that since government is selling cheap condoms through the same channel, premium condoms are losing the market.


In 2007 , the brand have extended itself to personal care by launching its range of deodorants and aftershaves. So far I have not seen any KS personal care products in super markets. I think it is an opportunity wasted.
KS have an equity which could be easily leveraged by the company in the personal care segment . It would have become a worthy competitor for Axe ,had the company "shamelessly " promoted this brand. How ever the company chose not to aggressively promote the personal care range. It would have filled the gap for a " Adult " personal care brand in the Indian market.

Related Brand

Kamasutra

Thursday, December 18, 2008

Jawbone #232: An Evening With Harmonix and Sean Baptiste

On this, what may be the final episode of Jawbone for 2008, we chat with Harmonix Developer and Manager of Community Development, Sean Baptiste AKA HMXSean. We talk about, what else, Rock Band, the future of the genre, the DLC process, what's next up for Rock Band and working with rock stars like Jonathan Coulton. He also talks a little about his Love Machine Dance. Thanks for joining us!

RSS feed.


Download now.

The Conchords Return Online!

I couldn't be more happier about this. We dont' have HBO, so I was lamenting the fact that I wouldn't be able to see the start of Season 2 of one of our favorite shows "Flight Of The Conchords". Luckily, Whiz Kid Dan Coulter alerted me to the fact that the season premiere can be found on Funny or Die. I hope they continue doing this, but since HBO is a money-grubbing machine, it's not bloody likely. Anyway, enjoy the show while you can!

Wednesday, December 17, 2008

Moser Baer : Rewriting the Future

Corporate Brand : Moser Baer
Agency : TBWA

Brand Analysis Count : 365



Moser Baer is a leading player in the optical media storage market in India. Not only that ,this Indian company is world's 5th largest manufacturer of Optical storage media. Founded in 1983, this brand has morphed from a business brand to a consumer brand.

Moser Baer started its operations by manufacturing time recorder units in collaboration with Maruzen Corporation of Japan. In 1998, the company diversified into manufacturing of 5.2 inch floppy disk. In 1999 the company went on to manufacturing of CD-ROMs and DVDs.

The Indian optical media industry is estimated to be around Rs 1500 crore. Moser Baer leads the market with a market share of around 40%. The brand is having a global share of around 20% in this industry.

The optical media storage industry is dominated by CD-ROMs. The trend is now moving towards DVD and latest Blu-Ray discs.

The CD/DVD industry is guided by the penetration of the respective disc drives . It is estimated that 75 % of the computers are sold along with the CD Drives and this factor have more impact on the sale of CDs at the consumer end.

If we look at the market evolution of these products, during the formative years, ordinary users never considered the CD drive as a part of the standard PC. CD Drives was considered as a luxury because of the high cost. This has severely restricted the popularity of CDs at the consumer end . CDs during those years was targeting the software segment.

When the CD drive price crashed, it became a part of the standard PC offering which paved the way for the popularity of CDs. Another big market for these products is in the entertainment sector.
Currently the market is moving towards DVD's since the cost of DVD writers/players have come down drastically.

Moser Baer operates in a market which is highly dynamic and volatile.This is a market which is full of disruptive innovations . One can never predict the lifecycle of a product. A small technological innovation can make a product irrelevant. It had happened in the case of Floppy Disks . The MP3 revolution has severely impacted the CD industry aswellas the entire music industry.

Hence to operate in such a volatile environment requires high flexibility in operations and strategy. The simple fact that Moser Baer was able to handle the Floppy to CD transition is a remarkable example of flexible product strategy. It takes corporate vision to identify the changes that are happening in the environment and then take a proactive step in addressing those issues.

It is not easy as we think. Take the example of CD replacing the Floppy Disk. The company has to first identify this as a disruptive innovation . Then they have to forecast the impact of this technology in their business. Then devise the strategy to handle that disruption. The problem here is timing. In technology marketing, timing is the key. We have seen big companies humbled by start-ups ( Microsoft Vs Google ) because the large firms fail to forecast the impact of these changing technologies on their business.

In the case of storage media disruptions are happening on a regular basis. We have seen Floppy Disk getting eliminated by CDs, CDs getting irrelevant by USB Disks, DVDs etc. There is heated argument whether DVD will be replaced by Blue-Ray discs

Look at the removable memory devises or the flask disks, these devices are increasingly making CDs irrelevant. These USB memory disks are portable , reusable and easy to use. These devices are a big competition for CD and DVDs. More over the various online file storing sites and file sharing sites makes life more dangerous for firms like Moser Baer.

So how will a company survive in such a very fluid environment.?

It calls for a very flexible product strategy. Such a strategy allows the managers to experiment and pull the company into different directions. Product Managers will be looking for emerging areas /technologies and will be investing in those new areas. Although this strategy is sexy, it is highly risky. Not all new technologies are disruptive. So it takes lot of wisdom and luck to spot and act on such a technology.

Last two quarters has been very bad for the company owing to the increase in the production cost and decrease in demand due to competition from other categories. One of the raw material for CD/DVDs is polycarbonate which is a byeproduct of oil industry. The rise in oil prices has increased the cost for this raw material.

It is this scenario which may have forced Moser Baer to undertake many related and unrelated diversification. In 2006, the company forayed into entertainment business. The company launched an entertainment division which focused on distribution of movie CD/DVD. The company procured around 10,000 movie titles and aggressively started distribution.

Moser Baer shocked the movie industry by launching movie CDs and DVDs for as low a price as Rs 28 and Rs 34 respectively. At that time, a DVD used to cost minimum Rs 150 and CDs at around Rs 80. The move made lot of sense because the expense for Moser Baer was limited to promotional and distributional expenses.

According to reports, Moser Baer adopted an FMCG model of distribution for these CDs. The reason was to drive the volumes in order to compensate for the low price. The low price of Moser Baer movie CDs was a deadly blow to the pirate- mafia which was a major threat to the entire movie industry.

This move of Moser Baer was complimented by the low priced DVD players that entered the Indian market. The price of a branded DVD player came to the level of 2000-5000 which enabled many households to own one.

Another diversification of Moser Baer was into the Rs 12000 crore PC peripheral market which include products like CD/DVD drives , hard disks, speakers etc. Moser Baer expects to corner 20 % of this lucrative market .
In the business market, Moser Baer has diversified into manufacturing of photo-voltaic cells which is used in harnessing solar energy.

A major unrelated diversification for this brand was into the consumer durables in 2008. Moser Baer entered the consumer durable space with a high decibel launch of LCD televisions and DVD players.

Watch the tvc here : Moser Baer

Although the corporate tagline for Moser Baer is " Rewriting the Future " , the company decided to have a seperate tagline " Ultra Life " for its consumer durable venture. The brand is projecting itself as the advanced fururistic technology brand. For the movie CD venture, the brand has another tagline " Hello Happiness ".

In a branding perspective, the same brand has three different positioning strategy in three different categories. Theoritically this will result in brand dilution.


I seriously doubt the logic behind Moser Baer entering a space where it has virtually no standing . It does not have the brand equity nor the marketing strength to fight the competition. In this space it will be fighting all the major consumer durable brands of the world like Sony, Philips, LG, Samsung, Onida, Panasonic and what not.

Moser Baer may be a well known brand in the CD category but it is a zero in the consumer durable space. The only advantage for the brand is the brand familiarity. Consumers have seen this brand but that is not sufficient to counter the competition of established brands like Sony.

Moser Baer is trying to fight the war using price as a proposition. The price of LCD TV is much lower than the established players. Hence the price + brand familiarity may give some head start for the brand.

Another serious issue for the brand will be the time and energy needed for Moser Baer to establish itself in the consumer durable space. The company may have to devote considerable resources , both money and managerial time ,to be successful as a consumer durable major. This will seriously impact the investment needed in its core business. In this period, when cash is the king, the brand may have to spend judiciously .

Moser Baer has also launched products like USB disks in order to pre-empt the competition from that category which makes more sense than the consumer durable venture. It could have spent more energy on establishing itself in the USB media space and even launch products similar to ipods.
It makes more sense if Moser Baer concentrated on Memory ,Storage and even PC peripherals space rather than spent valuable resources on highly competitive market like consumer durables

A Gamer Dad And His Guide To What To Games To Spend Your Money On: DEAD SPACE


I've been twittering my thoughts on the space-themed horror game, Dead Space, but I haven't really put my thoughts into any cohesive form. So, with the advent of my other gaming post (and it being a week before Christmas and there still being time to purchase some last minute gifts), I thought I would give a formal review of the game.

First off, if you have played another game called BioShock, you will like this game. Dead Space utilizes some of the same storytelling techniques as BioShock including movies, text logs and audio tapes to lay out the tale of what looks like a medical experiment gone very wrong. There are a lot of nods to horror movies like The Thing and Aliens, and you will definitely be nervous as you turn corners.

I had read another review of this game that said I would be scream out loud while I was playing it. I originally thought that was an editorial exaggeration. But they weren't kidding. There are moments in this game when I found myself yelling out loud from being startled so bad. Things pop out at you and fall on you at the most inopportune moments and some creatures also sneak up on you, making it even worse. It definitely has captured the feeling of watching a good horror movie, which loud sounds and skittering unseen monsters adding to the suspense.

As of this writing, I'm about 70% through the game and it's still keeping my interest. The difficulty factor isn't much of an issue if you continue upgrading your weapons as you go along. One nice thing is that the story is set up in chapters and each one takes about an hour or so to complete. So if you have limited gaming time, you can finish one chapter in a sitting. If you're still having issues, however, there are multiple save stations. Plus, getting lost on the sprawling ship is close to impossible thanks to a very detailed three-dimensional map.

FAMILY TAKE: Dead Space will startle you. My teenage son loves the game, but it still scares him. There is a lot of blood and dismembement, but my kids see it as cartoony and not frightening. If your kids can handle the blood, it should be fine to let them check it out with parental supervision. Do be aware that some of the audio logs that your character picks up can contain some salty language, and watch out for bad language scrawled on the walls of the ship.

A Gamer Dad And His Guide To What To System To Spend Your Money On



EDITORIAL NOTE: I'm trying a little something new here. If you like it, I may continue...but here we go.

So, here we are: One week before the big Christmas Holiday. Hopefully, you've finished all your shopping and you're getting ready to settle in to enjoy the season. If not, however, I thought I'd share some of my vast knowledge and give you some suggestions on what to give your geeky loved ones.

As you may or may not know, I am a huge video game fan. I thought that last Christmas was tough to decide on videogames to ask for (or if you're married to a gamer, what to choose for your significant other.) I'm sure that most gamer dads have a huge list of games on their list. But what to choose? What's will be fun for your kids and what makes the most sense for family gaming?

I started thinking a bit, and realized that I am in a perfect position to give some advice on gaming choices. The age range of our six kids run the whole gamut from teenager to toddler and I feel that gives me a very unique perspective on gaming. So as a public service, here is my (hopefully) quick snapshot on some recent games and advice on systems - from a gamer geek dad's point of view.

One of the questions I get a lot is which system should I choose? Having all three systems: the XBOX 360, PS3 and Wii, here is what I see as the pros and cons of each:

THE SYSTEMS:

Nintendo Wii: Ok, here's how I see it. A few Christmases ago, the Wii was the must-have system. Up until recently, they were almost impossible to find and the motion-sensing wiimote made the system a shining star in the console war.

Two years later. the Wii is shaping up to a bit of a disappointment. Only a few third party manufacturers have figured out how to really utilize the wiimote's powers. Because of the limited resources of the Wii (it's only slightly more powerful than it's predecessor the GameCube) most of the games are simply scaled back versions of the big titles that are handled more elegantly and more beautifully graphic-wise on the other two systems. And other than making and sharing miis or voting on other user-created characters, connectivity with your friends is sorely limited.

Don't get me wrong, there are some fun games on the Wii. But if you're looking for a more social experience and better graphics and sound, you'd be better off choosing one of the other two systems.

FAMILY TAKE: The Wii will make a great system for a family with small kids. But if your kids have friends who have one of the other two systems, soon they will be bugging you to upgrade to a 360 or PS3.

PLAYSTATION 3: One thing I'll say about this system: It's EXPENSIVE. The lowest priced system still hovers around $400 and some recent changes have done away with PS2-backward compatibility, meaning that you won't be able to play your huge collection of PS2 games on your new purchase.

That being said, you are getting a built-in Blu-ray player and a beautiful sound and video presentation on all of the games. (The PS3 has some of the best sound of any system I have played). Another new addition is Playstation HOME, a Second-Lifey type interface that lets you run around and interact with online friends. I recently played a Beta version of HOME and found it to be too deep feature-wise to be enjoyable. Granted most of the features such as movies and ads were disabled during the beta, but even with the other features. HOME still seemed a bit useless.

FAMILY TAKE: The kids will certainly love you for this. A gorgeous game like Little Big Planet is reason enough to invest in a PS3. And yes, it will be an investment. But if you have a good HD setup and a decent home theatre set-up, the PS3 will be a bright spot in your entertainment center.

XBOX 360: The 360 has not been without its problems. Poor early manufacturing caused major failures (read Red Ring of Death) in nearly all of the systems. In the past year, Microsoft has stepped it up and the RROD is almost a thing of the past.

As a social machine, the 360 wins hands down. Adding friends is done simply via web or console, and joining friends in a game is simple. A recent upgrade to the interface has given the 360 a beautiful, colorful look and the Mii-like avatar creation system has also added a bit of fun to the gaming process. The video marketplace is a little bit easier to navigate than the PS3 version and if you're a Netflix member, watching movies instantly from your cue couldn't be easier.

FAMILY TAKE: The 360's multiple packages makes it easy for novice gamers to get in the game. A slimmed down arcade version allows you to jump right in, while the more expensive Elite version gives you a bigger hard drive to play movies and install games. Good value. Good gaming.

Well, there ya go. Hopefully that answered some of your gaming console questions and makes your decision a bit easier. If you dig this post, I can write up some reviews of games if ya'll like.

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Tuesday, December 16, 2008

Things To Hate Vol. 2

Somehow I blame one of the blogs I follow, Electric Disk, for this. (BTW, if you haven't checked out his blog, do so today.) He had written a post about Nickelodeon's answer to Hannah Montana, Miranda Cosgrove. She is from the show iCarly, and if you want to know how I know this, one only has to look at our Tivo Now Playing list to see that Drake and Josh fills up a portion if it.

Anywho, I've been subjected to Ms. Cosgrove in other ways. For example, she has a free song on Rock Band, and she's on pretty much every freaking commercial on Nick. So when ED posted about her new video, I had to check it out. (Well, not really, but I did anyway.)



I don't want to belabor the point of how much I dislike her head-bobbing and weirdly empty smile and acting, but for the purposes of this post, know that I do.

So I'm checking out the video and as the case is with YouTube surfing, I find out that the song "About You Now" is a COVER SONG by the all-girl band, Sugarbabes. And here is the said video:



The watching of this video, along with fostering an intense longing for the long-gone halcyon days of Bananarama, elicits a ton of questions. Here they are in no particular order:

1. Is there anything to this formula of girl bands made up of one part Latino girl, one third black girl and one third blonde girl?

2. Why do the women keep touching each other's shoulders?

3. Why is that parkur man chasing Billie Jean King through the streets?

4. Why does the Latino girl keep pushing her tuchis out into the staircase?

5. Why does the blonde chick keep hugging that wall? Is that wall really the cube from Transformers?

6. Who would win a fight between each Sugarbabe?

7. In the scene where the parkur man jumps past the woman on crutches, is that a stealth commentary on the Sugarbabes view on the handicapped?

I'm sure more questions will be added soon. But these are my questions for now. What I find the most interesting about both videos is that they are able to take one song and make equally irritating videos each time. Kudos to music video maker people!

Monkey Shines on ABC! Rare Promo Painting


Monkey Shines Promo Painting
Originally uploaded by jawboneradio.
For those of you who didn't know, Jonathan Coulton, Paul and Storm had a very short lived sitcom on ABC in the mid 80s called "Monkey Shines". The show was cancelled midway through the pilot and all parties involved thought that the show was erased from existence.

That was until last week, when the opening credit sequence surfaced on YouTube and renewed interest in the project.

I was a big fan of the show and tend to be a packrat with things I enjoy. So during a visit at my parents house this past weekend, I went to the basement and found this rare Monkey Shines Promo Painting that ABC had in their marketing for the show. The painting was to be used for an alternate opening credit sequence that was scrapped after Family Ties did a similar opening sequence. I've uploaded it to my Flickr account for all to see. It's great to be a part of this revival. Hopefully we'll see a reunion show soon?

This Week's Special Guest

On this week's episode of Jawbone, we're talking to Sean Baptiste AKA Harmonix Sean, a developer of the game Rock Band and manager of community development at Harmonix. Of course, we're very excited to talk with him, but we'd also like to open up the floor for questions from you, members of the gaming community. If you have a question about Rock Band or Harmonix, list it here. I can't guarantee it will be asked, but we'll do our best. Thanks for helping!

Monday, December 15, 2008

Caption This: 12-15-08


Brought to us by our good friend Gene at Hometown Tales. (Yes, that is him on the right.) Have at it, but please be kind.

Sunday, December 14, 2008

Bosch : Invented for Life

Corporate Brand : Bosch
Agency : Saatchi & Saatchi


Brand Analysis Count : 364



Have you ever thought about the brand of wipers you have in your car? Ever thought about the brand of spark-plug of your bike ? How many of us have insisted to the mechanic that we need a specific brand of spark-plug or a wiper ?

Compare that to a consumer insisting on Pentium Core Duo for his computers.

Welcome to the world of ingredient branding.

Bosch want to be the Intel in the auto world or I would rephrase it to Bosch has the potential to be the Intel of Automotive industry.

Bosch is world's largest auto-component manufacturer with more than 275 subsidiary companies spread across the globe.Bosch has a history dating back to 1886 when Robert Bosch founded the company which was known as Workshop for Precision Mechanics and Electrical Engineering.

The company came to India in 1951 as Motor Industries Company Ltd ( MICO) . The company established itself as a leader in spark-plugs . Infact MICO was almost generic to spark-plugs. At the not-so visible engineering industy, Bosch is famous of its motors, power tools, braking systems, etc.

Bosch India has operations in for verticals
Automobile components
Industrial technicals
Consumer goods and
Engineering and IT services.

In 2008 the company decided to rebrand its entire operations in India under the name Bosch .
Under this rebranding exercise , the company is currently running a heavy campaign across various media.
Watch the TVC here : Bosch

Before rebranding , MICO also invested heavily in building its brand presence across the country. Most of us are familiar with these names although we are not quite directly in touch with the products.

There are two markets for most of Bosch's products ( automotive) - Institutional and After market .
The institutional segment consists of the OEM segment where the consumers use Bosch products as a part of the standard equipment. The after market segment consists of the replacement of the worn-out products .

Bosch have a strong foundation in the OEM segment and has relationship with most of the major automotive companies in India. The brand was in news recently for collaboration with Tata Motors for the Nano project.
In the replacement market, the consumers leave the decision of spare parts to the workshops and the marketing is done through the distributors and dealers.

Bosch is a brand known for its engineering excellence and innovation. According to Superbrands.org, Bosch registers 2750 patents every year. The company is famous for its inventions like
Diesel fuel injection
Power tools
ABS
Bosch Traction control
Electronic stability program etc.

Infact the Bosch founder Robert Bosch was the first to introduce the eight hour work schedule long before it became a norm.
Another interesting fact about the company is that 92 % of Bosch is owned by a charity foundation and most of the profits are ploughed back to the company for growth and expansion. It is one of those rare private companies which are owned by a charitable foundation.

Bosch is a brand founded on innovation . The core brand value is innovation and engineering excellence. In 2004 , the brand acquired the tagline " Invented for Life " . The brand has lived up to its promise of innovation.

Another interesting fact which I discovered during my study on this brand was about Blaupunkt. Blaupunkt is a brand owned by Bosch ( I never knew that ! ). In 1929 Bosch launched the first car stereo radio system which created the way for the world famous Blaupunkt brand.

Bosch's branding initiative come under the ingredient branding. This is a special case of co-branding where we brand ingredients, components or parts which are contained within other branded products ( Kevin Lane Keller ) .

Although the current brand campaign by Bosch is driven by the rebranding exercise, I see an opportunity for Bosch to create an identity in the consumer's mind also. From my personal experience, my wiper for my car was not working properly and I changed it twice but still it shows problems. After seeing the ad, I am going to ask my mechanic to put Bosch wipers.

Although this may be a one-off case, it shows an opportunity for the brand in the after market. Battery marketers like Exide , Ameron etc had built the brand slowly using consumer targeted campaigns. Now consumers have started insisting on these battery brands.

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Saturday, December 13, 2008

Brand Update : Tata Indicom


Tata Indicom is currently running a new brand campaign extending the concept of " Listen to your heart " ( suno dil i awaaz " ) positioning. The new positioning is being reinforced using several tvcs featuring various celebrities . The brand has roped in Himesh Reshammiya, Karan Johar, Lalit Modi, Prachi Desai, Irfan and Yusuf Pathans as the brand ambassadors.

The ads shows these self-made successful persons talking about how they listen to their heart and achieved their dreams. All these personalities chose their profession based on their interest often defying the advice of their relatives and friends. The brand is celebrating their success.
This is classic case of brand laddering is supported by a 360 degree campaign by Tata Indicom including events, outdoors and conventional media vehicles.

After some rustic campaigns using Kajol and Ajay Devgan, the brand has finally found its core positioning platform.
I liked the slogan and the execution of the repositioning exercise. But somehow I fail to see a strong connect between the current positioning and the product. When Airtel talks about " expressing yourself " , its easy for us to connect to their core service.

But it is little difficult " listen to your heart " and Tata Indicom service. Hence the brand should have first established the connection between the current positioning and the brand.
According to the reports, the brand 's core idea is to empower people to listen to your heart. But where will the product fit in ?
Is it that you listen to your heart using Indicom
or
Those who use Indicom are the ones who have listened to their hearts ?

May be the brand is using the second proposition. Tata Indicom in a sense is trying to create the brand personality using these celebrities.

But I still feel the disconnect ..........

What do you think ?


Related Brand
Tata Indicom

Friday, December 12, 2008

Jawbone #231: Another Live Call-In Show Spectacular!

It's one of our last show's of the year, everyone is busy. So why not do a live call in show? Thanks to everyone who called in and played a part in the show: Todd, Teresa, Bonnie and everyone in the chatroom. Next time we do this, I'l make sure I give a lot more notice. Topics for tonight include Rock Band, being an important blogger in Cleveland, David Byrne, being retrospective and some other things that I've forgotten now. Enjoy! BTW, I did a google image search for "call in show" and this is the first photo I found.

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Thursday, December 11, 2008

"And The Grammy Goes To..."

After seeing this video, I'm sure you'll agree if those words aren't uttered at the next Grammy ceremony, the world of Asians has been robbed. Thanks to Scott at ELR for this gem. Also, no, this is not what I look like while recording the podcast.

Marketing in Recession

In my earlier post , I had pointed out some strategies for marketers to counter the recession. I think that Indian firms have realized that there is going to be a significant slowdown in the coming quarter.

Auto companies have taken a proactive step by reducing the prices. Most of the auto giants like Maruthi, Hyundai, Tata etc have reduced their prices by a significant amount. This move was further aided by the Central Government reducing the excise duty. These companies hope that the price reduction may boost sales.

But there is a limit to what a marketer can do inorder to tackle the slowdown. The marketer have limited option of reducing prices , increasing promotions etc . But these actions will not be sufficient to tackle the systemic issues that created this meltdown.

I am not an economist and hence I may not be able to give a detailed economic view of the current crisis. For that you may check out Harvard University Professor Greg Mankiw 's blog ( warning : its full of economics ) or IIM A Professor Jayanth Varma's blog ( warning : its full of finance ).

I am presenting my view about the larger issues that both the industry and the policy makers should be addressing. I am talking not as a marketing academic but as a middleclass consumer.

The current crisis that we face in India is different from that of USA. We currently do not have the sub-prime crisis . Although there is a real estate bubble, our banking system is sufficiently protected ( I hope so !) . But we face the ripple effect from the global crisis.

Indian Government has been proactive in its steps to ensure liquidity and providing confidence to the consumers and industries. To that extent, things are moving in the right direction.

I think that we have failed to understand the real issue behind this slowdown. The real problem is the slowing down of consumer demand and not the liquidity. Many marketers are pressuring governments to allow liberal credit to the consumers. That means banks will be offering easy credit to consumers which will then boost demand.

It will be suicidal to boost demand using cheap credit. The US market suffered because most of the growth was based on cheap credit.

I think that the consumer demand is going to go down more rapidly in 2009, because of the negative news spreading ( that includes this post also). If you examine the reason behind the eroding consumer confidence , there is only one - Job security.

When people lose jobs, they stop spending ( common sense). When the news of lay offs spreads, everyone stops spending and starts saving. The more the job losses, the more the fall in demand.When demand drops, companies cut jobs.....This is a vicious cycle

So when firms cut jobs, they are contributing to the bigger mess. This problem has a bigger magnitude in Indian context. Unlike USA, we don't have social security and most of the companies also doesn't provide one.

When Barack Obama talked about protecting US jobs and creating new jobs, I think he is moving in the right direction to tackle the fundamental issues.In India also , Prime Minister had made an appeal to corporates not to cut jobs ( there are political reasons for that since elections are around the corner).

It is time for the government to think about a broader social security plan in India. The National Rural Employment Guarantee Scheme is one of such initiative but not enough. I am not sure whether government is in a position to create a social security system , but some thinking has to be done in this direction.

Instead of social security , India have a provident fund system which has been made mandatory by law to certain class of employees. When economy was in a boisterous mood, we do not think about any of these things. Concepts like long-term growth, life long employment, loyalty all became old fashioned. I think this is the time where we have to revisit those old values.

Consumers tend to spend lavishly when he feels secure. Jobs offer him security. India saw a consumer boom when there was plenty of jobs. When the jobs started losing, demand also came down.

Any move to ensure easy credit without creating stable jobs will have serious repercussions. It would take an effort from both the employees and owners to start building a new culture .

I don't know whether this post make any economic sense ?... What do you think ?


Related Post

Marketing During Recession