Friday, May 30, 2008

Saint-Gobain : The Future of Glass

Corporate Brand : Saint-Gobain
Agency : Lowe

Brand Analysis Count : 330



Saint-Gobain is one of the global leaders in the Glass manufacturing industry. The company has a long history dating back to 1665. The company came into existence in France as a part of Louis XIV s plan to restore the sagging French economy. The company soon became a monopoly in Europe and extended its operation across the world.

Saint-Gobain came to India in 1996 with the acquisition of Grindwell Norton. Grindwell Norton was a major manufacturer of abrasives at that time. Saint-Gobain is visible in the consumer space as a construction-glass products marketer. Besides glass, the company is also into manufacturing high performance materials , abrasives and project management.

Indian treated glass market is worth around Rs 5000 crore. Saint-Gobain is one of the most visible brand in this market. Indian treated glass market is an example of an Oligopoly. There are three major players - Saint-Gobain,Asahi Glass, Gujarat Guardian ( Modiguard) which control the majority of this market.

Treated glass is basically an industrial product ( B2B product ) and the customers are builders and architects. This market is poised to a huge growth owing to the construction boom witnessed in India.
Despite being in the B2B market, Saint-Gobain has invested heavily in brand building. Till now, the brand had eight television commercials to its credit. These investments has enabled Saint-Gobain enormous advantages in terms of brand visibility which translates to better margins and market share.
Construction Glass products are low involvement products and the purchase process is often complex that involves lot of people like architects, building contractors, investors etc.

By investing heavily in the brand building, Saint-Gobain has tried to influence the key decision makers. The campaigns focus on two broad themes
1. To establish the brand as the leader
2 . Highlight the quality of Saint-Gobain glasses.
The memorable campaign includes the one that involves the Japanese waiter speaking out " Hai " and the one where the lady throws water into the clear-glass at a hotel .

Recently the brand launched a range of Sun- Ban glass which prevents heat and thus gives a cooling comfort to the rooms.
The early investment in the brand has given Saint-Gobain a clear lead in the emerging home segment. The booming economy also has opened up a new market for such products in the home construction segment. Further the emphasis on brand also has prompted the builders to look for factors other than price when deciding on such solutions.

Saint-Gobain has the tagline : "The future of glass" . The brand takes pride in its rich heritage and wants to position itself as an innovation leader. The launch of sun-ban glass is in this direction. Although such products are available in the market, Saint-Gobain is the first brand to advertise such a product.

By building a brand Saint-Gobain has achieved two advantages -
a . de-commodize the market
b. Emphasize on non-price attributes like quality .

Saint-Gobain is a classic case of a successful B2B brand. The brand has proved that investment in brand building can give long-term results even in a highly competitive business market.

Jawbone #208: Higamus, Hogamus

So here it is, better late than never -- show 208 served up for your enjoyment. Tonight, Nora and I discuss dreams, poor excuses that are actually real excuses, trolleys and fat people, and a few more things that you'll just have to listen to find out. Enjoy the show!

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Thursday, May 29, 2008

Not Happening Tonight

Just got back from an event, Nora has a headache and the reality is the show is not going to happen tonight. We'll probably record at some point during the day tomorrow. So if you're around, you might be able to catch us on Ustream.

How To Rap, Hungarian Style


I don't know about you, but I've always wanted to be able to rap like those big rap stars like the Eminem, and the Twopack Shakur. But I think I learned the most from this guy: Speak the Hungarian Rapper. Apparently, all you have to do to really rap like a gansta is to say words like "check" and "business" and haltingly speak about things like "war" and "peace". Come to think of it, this guy is really no different than the mainstream rappers except he doesn't speak like he has jalepeno on his lips. Anyway, enjoy Speak's song "Stop Your War Business." Thanks to Derek for the link.

Wednesday, May 28, 2008

Dior Diorshow Mascara

Dior Mascara

What it is:Dior's cult-fave, super volumizing, lengthening, and curling mascara.

Waterproof Mascara

Dior show Waterproof Mascara

The ultra-glamorous catwalk eye makeup that lengthens, thickens, and curves lashes to the nth degree - now in a waterproof version that holds its own when you swim, splash, or even shed a few tears.

Dior show Mascara

Dior show Mascara

What it is:Dior's cult-fave, super volumizing, lengthening, and curling mascara. What it is formulated to do:Creates the longest, thickest, curviest lashes ever, resulting in an ultra-glam "just-off-the-catwalk" look.

Australia Mascara Secret Weapon Award

Mirenesse Australia Secret Weapon Award Winning 24 Hour Mascara in Black

Full Curly Lush Sexy Lashes Exclusive breakthrough water based natural formula gives you really full, curly, lush, thick sexy lashes. Extremely long wearing, smear-proof, sweat-proof, smudgeproof, sleep-proof, flake-free and water resistant. Breakthrough Formula Secret Weapon Mascara amazingly tubes your lashes with our innovative breakthrough polymer formulation allowing you to build breathtakingly beautiful lashes. Easy Water Removal Want outstandingly long, curly, voluminous lashes? Now you can have it all with easy complete water removal - no more panda eyes! Fragrance FREE Fragrance free, mineral oil free, petrolatum free, alcohol free, SLS (soap) free. Ideal For Sensitive Eyes Ideal if you have sensitive eyes and is contact lens friendly.

Diorshow Black Out Mascara

Black Out Mascara

What it is : A limited-edition, extreme black mascara. What it is formulated to do : From the catwalks to you. Lashy "doe eyes" are hot this season and Dior does it best with an intense deep kohl black shade that glides on smoothly, and draws out every last lash to show-stopping lengths.

Tuesday, May 27, 2008

Allout : Yamraj of Mosquitos

Brand : Allout
Company : Karamchand Appliances Ltd (subsidiary of SC Johnson Co)


Brand Analysis Cout : 329


Allout is an interesting brand for an Indian marketer. The brand is interesting because it is an example of a pioneer who developed a new category and also a brand which showed the power of aggressive marketing.

Allout was launched in 1990 by a small company known as Karamchand Appliances Pvt Ltd. The company was run by the Arya brothers : Naveen, Anil and Bimal. These brothers spotted a huge opportunity in the mosquito repellent business way back in 1990.

During that period, the mosquito repellent market was dominated by Mosquito coils. Later during early 2000, mats also became a popular mosquito repellent. Karamchand Appliances wanted to venture into the marketing of mats. For that purpose, the company began scouting for technical collaboration. The search took them to Japan where they entered into an agreement with a company known as Earth Chemical Co.


Although the collaboration was for the manufacturing of mats, the Aryan brothers noticed a new product - vaporizers. Vaporizers consisted of a heating unit and a container containing the repellent liquid.

Vaporizers had more advantages than the mats. The mat's effectiveness used to weaken over time . But vaporizer had the advantage of consistent effectiveness since there is a continuous flow of liquid to the heating element. The brothers knew that this was an opportunity.
Karamchand appliances launched the vaporizer in 1990. The brand name was put as " Allout " . The name was easy to pronounce and understand and further the name described the core idea of the brand : to keep the mosquitoes out of the house.

Allout was launched with aggressive brand promotion. The product was priced at a premium and at the time of the launch, the brand was retailing at Rs 225 for the main Vaporizer.
Allout soon attracted the attention of the consumer. Because of the high price, the product was limited to the high income households.

On the marketing front, the company started off advertising in a big way but with little success . The account was initially handled by Avenues and later by HTA but the promoters was not satisfied with the brand communication . Later the company itself took the advertising responsibilities inhouse.

Then came the famous trademark advertisement of Allout featuring the animated frog . The ad showed the Allout machine like a jumping frog eating all the mosquitoes. The ad was a big hit among the consumers . The ad was simple and communicated the brand purpose effectively.

launched another variant - At one point of time Allout was one of the largest advertisers in the visual media. In 1995 AlloutPluggy which was small and priced less than the ordinary vaporizer. In 1999 Allout launched a massive exchange scheme where the consumers could exchange their mat machines and buy vaporizers at a discount. This exchange program helped the brand to penetrate into the mat segment. It was a smart marketing move and a first of its kind in that segment.

Soon Vaporizers began to gain popularity among the users. Sensing this shift, the market leader Godrej Saralee also extended the Goodknight brand into the vaporizer segment. The entry of Goodknight expanded the market much to the advantage of all the players.

The increased competition also rationalized the price of vaporizers. Companies began to lower the price of the vaporizers ( captive product pricing) and gain the margins by selling the refills.

What is intersting about the marketing of Allout is the strategy of using animation in their advertising. Besides the consistent using of the jumping frog, the brand also used animation extensively in their advertising. I also remember an ad featuring Tom & Jerry .

In 1998 , SC Johnson acquired controlling stake in Karamchand Appliances. The support from a large parent company like SC Johnson will be crucial for this brand since the competition is intense in this segment.

Right now Allout is having the slogan " Macharoen ka Yamraj " . The brand also uses the acronym MMR to differentiate itself from the competition. MMR stands for Mosquito Mortality Rate. Allout claims that it has more MMR than the rest of the competition.

Aggressive marketing has made Allout a pioneer in creating the vaporizer segment in India. The brand also showed that a small company can create and lead a new category through smart aggressive marketing.

Caption This: 5-27-08

Sunday, May 25, 2008

Kara Skincare Wipes : At Your Best . Always

Brand : Kara
Company : Birla Viscose (Aditya Birla Group)
Agency : Contract

Brand Analysis Count : 328

Kara Skincare wipes is a new product to hit the Indian market. The brand is now running heavy print campaigns announcing the launch.
Kara Skincare wipes can be called as India's first branded skincare wipe product. Skincare wipes are popular in the west but in India the category is a new one. Although Indian consumers are familiar with the products which are imported, its the first time that an Indian company enter this segment.
Kara means care . The brand also marks Aditya Birla Group's foray into the Indian FMCG market.
According to reports, Wipes market is worth around Rs 30 crore ( source : Ginni filaments website).
Kara Skincare wipes is positioned as am essential skincare accessory. The brand is being launched in five variants -
Refreshing
Deep Pore Cleansing
Toning
Moisturizing
& Sunscreen Wipes

The brand is targeting the young lady professionals who often needs to meet lot of people.

The brand aims to create a new category of wipes in India . Hence the challenge is to educate the TG about the usefulness of this product. This task is cut out for Kara since the TG is already exposed to such products. The only task is to inculcate the habit of buying and using the wipes. The product is relevant in the Indian market for two reasons. One is the climate which necessitates such a product and second is the growing number of lady professionals .
The brand has the tagline " At your best. Always " which clearly communicates the core brand positioning. The brand is being promoted as the anytime solution to look good.

Kara has a good potential to create and own a new category. The brand already has the first mover advantage. But the category does not have much entry barriers. It can face stiff competition from cheap imports. But Kara has the financial backing of Birla group and the investment in building this brand will pave the way for another successful marketing story.

Friday, May 23, 2008

Weezer Does YouToob


Awesome video. Great song. Found via Addicted to Vinyl, an awesome Cleveland blog that I'm pretty sure my friend Matt is behind. Who knew!?

My Annual Batman Drawing


My Annual Batman Drawing
Originally uploaded by jawboneradio.
So, I've been feeling kind of lackluster and burned out as of late and I decided to switch things up by getting some new inking tools: some new cartooning nibs, traditional india ink and some Windsor and Newton sable brushes. Turns out I turned back to my standby Microns and Pitt pens to complete this image. Which led me to the conclusion that I have already found my tools of trade and that, at this point in my life, there was no reason to start anew. Ah well, at least I have the option to use brushes and nibs if I so choose. And really, there's nothing wrong with having a large arsenal of tools to play with.

Just ask Batman.

Drawn on Bristol, colored in PS.

Maggie's Soap Nuts

Maggie's Soap Nuts

Maggie's Soap Nuts are the first truly natural cleaner - the only laundry soap that grows on trees! Truly effective, 100% natural and safe for your most sensitive skin. Soap Nuts are the dried fruit of the Soapberry tree. They contain saponin, a natural cleaner used for thousands of years to clean clothes, proven effective in Chinese and Ayurvedic traditions. Tested by humans on humans for at least 5000 years. Simply put 5 Soap Nuts into the included cotton sack and drop it in your laundry. Reuse up to 5 times. Your clothes come out clean, vibrant, and soft. Replace your laboratory detergents and softeners with the soap made from Nature by Nature. Your clothes, your skin, your family, and your planet will thank you. Ingredients: dried fruit of the Soapberry tree. Also contains: one cotton wash sack and full instructions for washing more than 200 loads of laundry.

Pheromone for Men Scented Soap

Pheromone for Men Scented Soap

Pheromone for Men Bar soap.

Thursday, May 22, 2008

Jawbone #207: Living Vicariously Through Tea

On tonight's podcast. we talk about the aftermath of the Jog-A-Thon, living vicariously though my famous friends, MST and Rifftrax, more about the bittermelon and Nora's new obsession with tea. Enjoy the ride!

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Rock Band's Competition


Well, it was only a matter of time until Guitar Hero jumped on the bandwagon and tried to imitate Rock Band. Personally. I hope Rock Band beats the pants off of GH only because in this fight between Vivendi/Blizzard/Activision and EA/MTV/Harmonix. I'm rooting for Harmonix who, even though they have made millions off Rock Band, they are definitely the underdog in this fight.

See more here. I think the Guitar Hero game will suck. But that's just me.

Tuesday, May 20, 2008

Brand Update : Anne French

In my analysis on Anne French , I had mentioned that this brand is going to face stiff competition from Veet. Anne French has taken the challenge head on . The brand has roped in the Bollywood diva Kareena Kapoor as the brand ambassador. Veet had launched its depilatory range using Katreena Kaif .

Anne French is running a TVC featuring the new brand ambassador.The brand has adopted a new slogan " Beautiful skin is in ". The positioning is inline with the core brand promise offering smooth and silky skin.

In the new communication, the brand is telling the TG to flaunt their skin ( after using Anne French).
Kareena will definitely provide enough thrust to this brand to fight Veet. Kareena has more acceptance and fan-following than Katreena among young girls. More over the brand has been careful in making the brand promise to be clearly communicated in the new campaign.

Related Brand
Anne French

Len TV: Jog-A-Thon



Len TV returns with the results of the Jog-A-Thon!

As you may remember, we asked our listeners to sponsor co-host, Neil, in a Jog-A-Thon to benefit a local elementary school. Well, this afternoon, the event took place and you'll have to watch for yourself to see how Neil did.

There are some prizes up for grabs and Nora will be figuring out that end of it. Someone will be getting a Monster By Mail drawn by either myself, Nora or Neil. Plus, thanks to your pledges, Neil may be hosting an upcoming episode of Jawbone Radio. Thanks for all your support. I firmly believe that we have the best fans in podcasting. Enjoy the vidcast!

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Ladies and Gentlemen, Christian Vander


Hang on until at least 1:40. Thanks Rifftrax for this rare find.

As Seen On Rifftrax

Jonathan Coulton and Paul and Storm are living the geek dream. Not only do they get to travel around in a magical bus playing musics for people in buildings all over the country, sometimes cool people are among the people in the building. Take for example this past weekend in San Diego, when Bill Corbett of MST3K fame joined in on a sing-along. Afterwards, the group (which included former Jawbone guest, Mike Nelson and his wife, Bridget) hung out and imbibed spirits at a local pub.

What does this have to do with me? My artwork for Paul and Storm's "Dejected Arrr" tee (available here) ends up at the Rifftrax blog. Unfortunately, it's not credited. But I'll take what I can get. Thanks to Dan for heads up.

UPDATE: I have been credited! Thanks Conor!

Monday, May 19, 2008

Decadent Superheroes


Got this great link from Knightwise. What is superheroes let themselves go? I guess this is what it would look like. See em all here. And for those interested, the little known DC universe continues with Granny Goodness, a request by Nora.

Caption This: 5-19-08

With all the Jogging and Running and health related activities happening this week, I thought I'd do a Caption This that had a little something to do with that. Enjoy!

Sunday, May 18, 2008

Act II : Creating a Category

Brand : Act II
Company : Agrotech Foods ( ConAgra)
Brand Analysis Count : 327

Act II is an interesting brand story. The brand is from the global agro-foods major ConAgra Foods. Act II was launched in India in 1999. Since the launch the brand has succeeded in creating the branded popcorn category in India.


Act II is the world's first and largest selling popcorn brand . The brand came into existence as Act( I) which was a microwave popcorn which had to be stored in a refrigerator. In 1984, Act II was launched which was a revolutionary shelf storage product which did not need refrigeration.
The most common consumption of this product was in movie theaters and outdooors like parks and beaches. Act II when launched also tried to tap these markets. This segment is set to grow with the emergence of numerous multiplexes across the country.

Then the brand launched the instant popcorn variant where the consumers can make the popcorn in their homes. But the problem was that the popcorn could be made only using a microwave oven. Thus the product was restricted to upper class urban households. But later the brand launched Act II which could be prepared using a pressure cooker or even a frying pan. This pressure-cooker friendly popcorn was indigenously developed and paved the way for a new category of snack foods in the Indian households. Through this innovation, the company hopes to penetrate the large middleclass market.

To appeal to the Indian consumers, Act II launched many India-centric tastes for the popcorns. Now the brand is available in four flavors : Classic Salted, Butter pepper, Golden Sizzle & Chilly Surprise. The brand is also testing other Indian flavors .

Besides these product centric developments, the brand is also into aggressive promotion. The brand is now running a campaign to highlight the "ease of preparation" of this product. The campaign is around the theme of ' Even Papa can Cook " which gives the message that Act II can be made in just three minutes.

Recently Act II also relaunched the Microwave Oven Popcorns since the company felt that microwave ovens have penetrated many urban middleclass households.

Typically like any new category , Act II is also facing the challenge of popularising the Popcorns as a regular snack. The brand has its tasks cut out since Popcorns are popular but the challenge is to make it a regular snack like potato chips. The brand must increase the usage occasion of Popcorns which is now restricted to outdoors. The current campaign of ' ease of preparation' is relevant but the brand should also have other campaigns aimed at increasing the consumption.

The current state of brand has striking similarity with Maggi Noodles . When Maggi was first launched it also harped on the ease of preparation but later had to change tacts. Act II should be spending money focusing on two factors :

a. Promoting Popcorns as a regular snack. This is more challenging since the brand will be competing with the likes of Lays, Bingo etc. The brand could seek the help of a celebrity to popularize this category. The brand also faces the challenge from private labels and the unorganized sector.
b.For this the brand has to find a compelling reason for consumers to buy Act II . It can highlight the taste, nutrition etc . According to a website popcorn .org , Popcorns are one of healthiest snacks available. If its correct, then the healthy snacks positioning will be the most effective for this brand. The brand could emulate the strategy of Bingo and launch many new flavors which can increase the trial of this product.

In 2007 , Act II was a Rs 30 crore brand. The brand has also extended itself into other categories of snack foods like Corn Chips etc.

Last Chance to Sponsor Neil for the Jog-A-Thon

Hey everyone: Monday the 19th is the last day to sponsor Neil for the Jog-A-Thon. Just a reminder about the specs: The track is 1/8 of a mile. How many laps will Neil run in 45 minutes? Guess correctly and you can win your very own Monster By Mail--drawn by Nora, Neil or Len. To participate, click the comment box and agree to pledge some amount per lap. Then list the total you think he'll run. All proceeds benefit a local elementary school. Pledges are due May 29th. Or you can call our voicemail line @ 206.666.2326. Neil has agreed to host an episode of Jawbone Radio live on camera if he raises $142.00, so join in the fun!

If you haven't already chimed in with a pledge or a guess, feel free to pledge in the comments for this post. Thanks for participating!

Friday, May 16, 2008

Bobbi Brown Lip Color

Bobbi Brown Lip Color

Creamy, semi-matte color gives lips instant polish with rich, full coverage. Fresh shades look like lips, only better.

Avon ULTRA COLOR RICH Lipstick Featured Shades

Avon ULTRA COLOR RICH Lipstick Featured Shades

Shapes lips with the richest, creamiest color. Nonfeathering moisturizing formula with vitamin E. Lip-magnifying shine

Sephora Brand Gloss Lipstick

Sephora Brand Gloss Lipstick

These tubes of sheer, glossy color can be worn alone or over your favorite lipstick to add sexy shine and essential moisture.

Flori Roberts Lipstick

Flori Roberts Lipstick

This moisturizing formula gives a continuous release of moisture while you wear it. It is a non-drying formula. Microfine pigments provide a rich, creamy color. It is smudge resistant and long-lasting - good for all day wear.

Lustrous Lipsticks

Lustrous Lipsticks

Contour, line and emphasize lips with our beautiful collection of Lipsticks, Pencils and Glosses. Lip color instantly adds style, on or off the stage.

Jawbone #206: Beware of Women in Denim Dresses

Lots going on around here today, so we keep it short. On today's show, we chat about birthday parties, orange rooms, flies, taxes, the aftermath of .23 cent pizza day and more. Thanks for joining us for this abbreviated show.

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Thursday, May 15, 2008

Show Postponed Until Tomorrow...

Life gets in the way sometimes. We have a lot to talk about, but it will have to wait until Friday morning. Thanks for hanging with us.

Wednesday, May 14, 2008

Marketing Q&A : Brand Laddering

Marketing Practice Reader Vivek asks about the concept of Brand Laddering.

Professor Kevin Lane Keller defines Laddering as follows
"Brand Laddering involves progression from attributes to benefits to more abstract values or motivations. Laddering involves repeatedly asking what the implication of an attribute or benefit is for the customer."
According to Keller, failure of laddering up sometimes reduce the strategic alternatives available to the brand. Keller also suggests that there is a means-end chain which takes the following structure :
Attribute ( descriptive features) lead to benefits ( meaning attached to attributes) which leads to values ( enduring personal goals and motivations).
The concept of laddering has its application in positioning of the product. When the brand is launched, the focus will be more on attributes and benefits. But once these basic functionality has been established in the mind of the consumers, the brand has to deepen the meanings associated with the brand.
For example, Dove's campaign has transcended from the basic functionality of the product to " Celebrating real beauty ". Nike is all about Athletic Performance . An Indian example would be Raymonds which has transcended the basic functionality of apparels to a more deeper meaning of " A Complete Man ".
Laddering is not always easy. The task for the marketer is to first have a clear understanding of the brand's core values. Also laddering will work only if the consumers are convinced and satisfied with the basic functionality of the brand.
The advantage of laddering is that the brand will breakfree from the product restrictions. That gives lot of flexibility to the brand manager. Flexibility in extending the brand aswellas in communicating.
References
Strategic Brand Management by Kevin Lane Keller

bareMinerals Liner Shadow

bareMinerals Liner Shadow

It's revolutionary eye beauty - pure bareMinerals pigments offer intense, radiant color for a variety of eye-defining effects. Wear Liner Shadow dry for soft, subtle or smoky looks, or wear it wet for a more dramatic, fine line. Smudge-proof and water-resistant, bareMinerals Liner Shadow lasts all day and is good for sensitive eyes.

Liquid Liner

Liquid Liner

Each of these easy-to-handle liquid liners has a fine, flexible brush for precise application, and a rich, creamy formula that dries fast, and stays put.

Waterproof Eye Definer

Waterproof Eye Definer

* Our newly formulated eye pencil never needs sharpening
* A creamy smooth finish that glides on without pulling
* Our pencil is waterproof and smudge proof
* Dermatologist tested, sensitivity tested, hypoallergenic, and non-comedogenic

Vital Radiance Soft Defining Eyeliner

Vital Radiance Soft Defining Eyeliner

Non-skipping. What Makes It Special : Exclusive powder-infused pencil glides easily on delicate eyelids without dragging or skipping and lasts for hours. Why You'll Love It : Eyes are newly defined with a smooth; soft colored line. Ophthalmologist tested. Suitable for sensitive eyes.

The Makeup Fine Eyeliner

The Makeup Fine Eyeliner

Color Fidelity Through Advanced Luminous Technology. Dermatologist And Ophthalmologist-Tested. (Formulated to minimize the risk of allergy and eye irritation.) Specially formulated by Shiseido Laboratories, Japan.

Tuesday, May 13, 2008

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.

Momentous

We'll probably talk about this on the next show, but as of today, Nora and I are officially the parents of a teenager.

Why do I feel less prepared to handle a teen than an infant? Maybe because an infant can't punch you in the face. I kid, our son is a good tyke even in his old age. And I can't believe he has entered this phase of his life. So soon. Ironically, I feel like I have never left it, so what does it say about me? Regardless, Happy Birthday to my eldest and to everyone else who is sharing this day (you know who you are).

Run To The Hills


For those of you playing Rock Band expert drums, you know the pain that is Iron Maiden's Run To The Hills. I've often wondered if the RB chart is close to the real drum in any way. Well, this pretty much answers my question. This dude does Rock Band Expert Drum videos on The YooToob and he's pretty darn good. Oh and I should mention that if you are into Iron Maiden and love their zombie mascot Eddie The Head, you can join in the drawing fun at this Flickr group set up by my hobo buddy, Halcyonsnow.

Monday, May 12, 2008

Behold - Bullet Man


Bullet Man
Originally uploaded by jawboneradio.
Another little known hero from the DC Universe. Click the pic to learn more about this dude. Incidentally, I also picked up the Marvel Encyclopedia, so don't be surprised to see some lesser known heroes and villains from that tome as well.

Caption This: 5-12-08


Thanks DJ Hojo!

Sunday, May 11, 2008

Brand Update : Eyetex

The senior management of Arvind Laboratories has shared some of the important sales figures of Eyetex & Dazzler brand to Marketing Practice. The excerpts of the mail is given below.
  • During 2007-08 the sales of Colour Cosmetics {CC} lead by EYETEX DAZLLER Nail Polish & EYETEX Eyeliner liquid increased by 22%.
  • Nail Polish sales/other issues crossed 2.75 million units & Eyeliner Sales/other issues crossed 1.78 million units.
  • Overall group sales in traditional Kajal & Kumkum crossed 110 million pieces.
  • The firm has strengthened its sales teams all over India;
  • There are 210 staff at all levels & about 75 Beauty Advisers in Retail counters now {& proposed to touch 250 before October 2008}.
  • Current Year targets are 4.50 million units in Nail Polish & 2.64 million units in Eyeliner amongst other CC products such as Lipsticks, Compact Powder, Lip Gloss etc.,
  • Overall 125 million units including Traditional Kajal & Kumkum.

Eyetex is on an overdrive and the growth of the brand shows that the extensive below the line activities of the the company has yielded positive results.

Happy Mother's Day, Momma!

This goes out to all the lovely mother's in the world who happen to be reading this blog. And as a client I once worked on said in their ad, "Don't just make it Mother's Day, make it Mother's Night." Bow chickki bow bow. Happy Mother's Day!

57 States


Class, can anyone name all 57 states?

Saturday, May 10, 2008

Brand Update : Motoyuva

Finally Motoyuva has gone soft on the parents. The brand has launched its new range W270 flip phone.
Watch the tvc here : Motoyuva w270
The ad shows the father trying to imitate the dude son after seeing the son talking to his girlfriend using the stylish W270. The basic idea is to highlight the stylish attribute of the phone and the message is consistent with the youthful positioning of the brand.

What I liked about the ads of Motoyuva is the choice of the actors. In this ad, the "father" is perfect and because of it, the ad is never boring.
The reason why the brand has gone little soft on parents may be because of fear of resentment . The previous ad for W230 was too harsh on the parents.

More importantly , the brand has got the price and the product perfect for the target segment. Firstly Motoyuva is a no-nonsense music phone. The brand has clearly identified that music is a decisive attribute as far as the 18-25 is concerned. Secondly the brand has got the price also right for the consumer.For an entry level consumer, the price of Motoyuva is compelling enough to elicit a favorable decision.These funny campaigns add the critical thrust to make the final decision.There was a gap in the entry level music phones which this brand has rightly tapped.

Thursday, May 8, 2008

Jawbone #205: 23 Cent PIzza Night


It's 23 Cent Pizza night! Neil joins us as we talk more about his training for the upcoming Jog-A-Thon, (if you'd like to sponsor Neil, see this post for details). You can also continue to sponsor him in the comments. We talk about Neil's court date, 23 cents for a pizza, podcasting help and much more. We also feature the music of Frans Huxie. Enjoy the show!

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