
Wednesday, July 7, 2010
Brand Update : Ujala Techno Bright

Friday, March 19, 2010
Marketing Strategy : Going Back to Basics
In the 1973 classic text, “Management: Tasks, Responsibilities & Practices”, Peter Drucker asks firms to answer five very pertinent questions.
What is our business?
Who is our customer?
What is of value to the customer?
What will our business be?
What should our business be?
Even after 36 years, these simple questions are of profound importance to marketers who are facing one of the toughest times since Great Depression. These questions are more relevant today than ever before. During the period of exuberance, firms tend to forget to answer these key questions and land up in a trouble of their own making. Firms forget value, customers and commonsense when faced with unprecedented growth. This over confidence resulted in inflated prices, aggressive expansions and unrelated diversifications. It is time for marketers to revisit these basics and set their focus on consumer.
Defining the business
One of the fundamental questions that marketers should ask themselves is to clearly define the business. While defining the business, one has to be careful about setting the scope of the business. Too narrow a scope can severely limit the growth of the business. Too broad a definition can cause confusion.
If a marketer narrowly limits the definition of his business by focusing on the product, he will find himself in a state of marketing myopia – a term popularised by Harvard Professor Theodore Levitt. A myopic organization defines its business narrowly which blurs the organizations ability to spot competition from other categories. Further, myopia limits the marketer’s ability to change itself according to changing consumer preferences.
When a marketer becomes too focused on his product, he fails to understand the competition from different types of products satisfying the same consumer need. Although this may sound very simple and obvious, many large organizations and brands have suffered out of this myopia. For example, Scooters which once ruled the Indian market suffered near –death stage due to competition from a different product category of motorcycles. IPod has now occupied the position once owned by Walkman. Ujala redefined the cloth whitener category with a different product form.
The key to a proper business definition is to take the focus away from product and focus on consumer. Marketers must define the business around the customer. The focus should be on the customer rather than the product. Once the organisation redefines itself making the customer as its centre, a world of opportunities will be thrown open.
Too broad a definition blurs the focus of the firm. It is where the firm must be able to understand the consumer it serves. Apple Computers were able to leap forward with its products like Iphone and IPod because it understood the consumers and never restricted itself to be a computer manufacturer.
Understanding the Consumer.
In the highly insightful book “ What the customer wants you to know “ Dr Ramcharan states an important rule – “ The more you know about your customer, the better you and your company will be at identifying and devising products and services that will help address them “
Marketers should be able to collect all the information about the consumers and their buying behaviours. One of the key strength of Hindustan Unilever Ltd is their enormous knowledge about the Indian consumer psyche. This has enabled them to create new products and new business models which are very much in line with consumer’s needs and wants.
Who buys the product and why he buys the product are the two important questions that a marketer should be able to answer.
Consumers buy solutions and not products. Value has been the keyword for success in Indian market. Products that do not have an intrinsic value will not survive in the market. The crisis that most firms now face is a result of the failure of firms to keep their products with in the value expectation of the consumer. When the consumer confidence dips, he turns to those products that offer value. Even in times of recession, consumer needs are not exhausted. He just postpones the decision to indulge till the confidence is back.
The future of business
Predicting the future of business is often the most difficult tasks for a marketer. And marketers have to make decisions regarding the future course of actions.
To predict and determine the future of a business should be based on the firm understanding of the consumer. According to Peter Drucker, this task of making judgements about future should start with a demographic analysis. Demographic analysis is the study of the population and the trends.
Indian market is also witnessing a demographic shift with the younger consumers now becoming the major consuming segment. Those brands which foresee such a demographic shift would be ready with new products and strategies targeting the young consumers.
This calls for massive investment in developing knowledge about customers and their behaviour. Many Indian advertising agencies have realised this need and created specialized departments and Chief Knowledge Officers who are in charge of creation and dissemination of knowledge.
The market environment is in a state of constant changes. Take the case of media. Five years back, very few predicted the explosion of social media in India. Blogging was unheard and Orkut and Facebook was not in vogue, no one was Twittering. Even now Indian marketers are clueless on how to understand the social media and take advantage of the popularity of orkut and facebook.
This is the right time to go back to basics, redefine the business and make the entire business operations centred on the consumer. There will be pain in the process but it will be worth the effort.
Tuesday, July 21, 2009
Revive : Creating a Category
Company : Marico
Agency : Publicis
Brand Analysis Count : 409
Revive was launched in 1993. The brand was received very well by the consumer
community. Revive targeted the urban middle and upper households which was willing to pay a premium for convenience.Revive is also an example of a product that was developed to satisfy a unmet need. Indian households traditionally used starch to stiffen their clothes,especially cotton clothes. The process of making starch and using them was a tedious process for the homemaker. The homemade starch was quite messy and used to leave patches in clothes. It used to smell bad and was not suitable for color clothes.
Revive solved these issues at one go. The brand was initially launched in the powder form. The homemaker could make starch easy by just mixing the powder with water. It offered convenience and saved a lot of time. Another significant advantage of Revive was that it could be used in cold water. Traditional starch needed warm water. Revive also can be used in color clothes which was again a big advantage for the consumers.
It is difficult for the consumer to ignore a product that offers solution to their problems . Revive was successful because it made the life of homemaker little more easier. Revive too had its share of disadvantages. The problem was with the product form and the price. Revive was premium priced compared to the virtually "free" homemade starch. Hence convincing consumers to sample the product was tough. Since the product was in the powder form, consumers was confused about the quantity of powder that should be used.
The real challenge for Revive came when Jyothi Lab launched Stiff & Shine. Stiff & Shine was a liquid stiffener which was much convenient than the powder Revive. Jyothi Lab was trying the same strategy which it used to dethrone Robin powder blue.
But Marico reacted very fast to the challenge posed by Stiff & Shine. It launched the liquid version of Revive very fast and backed it with a heavy dose of campaign.
Revive is focusing on three main attributes in its campaigns- instant starch ( convenience),better stiffness for clothes and no patches.
The fight between Stiff & Shine and Revive is still raging with both brands now linking confidence and social acceptability . Both the brands are running similar campaigns ( using kids) claiming that clothes that are well ironed and shining will earn you self-respect and social acceptance.
Recently Marico took the fight to a new level by launching the liquid blue extension of Revive. I was surprised to see the ad of Revive liquid blue. No further details about this extension is available in the public domain .
Revive is a brand which is promoted heavily by Marico. The instant starch market is still very small and the task of the marketer is to increase the market size rather than to fight for the market share. The recent campaigns connecting the brand and social acceptance is targeted at non-users of this category motivating them to use the product.
The instant starch category has a great market potential and the brands should focus on increasing the category size. There is lot of room for growth for these brands when the category grows . Revive should resist the temptation of extension because the brand will reap rich rewards if it focuses on the category it created.
Related Brand
Ujala
Friday, November 14, 2008
Market Statistics : IRS 2008 Round 2
- Dainik Jagran : 1.62 crores
- Danik Bhaskar : 1.30 crores
- Hindustan : 92.73 Lakhs
- Malayala Manorama : 84.17 Lakhs
- Amar Ujala : 80.73 Lakhs
- Daily Thanthi : 76.81 Lakhs
- Enadu : 68.31 Lakhs
- Times of India : 67.12 Lakhs
- Ananda Bazar pathrika : 66.76 Lakhs
- Rajasthan Pathrika : 66.71 Lakhs
Media planners use AIR to decide on their media plan. AIR refers to the estimated readers for a single issue. Average Issue readership is derived from the recency. Recency denotes the number of people who have read the publication within the publication interval. For example for Dailies , the AIR is those who have read the paper yesterday.
Total Readership is the cumulative of AIR and Claimed Readership ( CR) . While AIR is the readership for one insertion, CR is used in a broader perspective to include addons and supplements.
The readership surveys use the Masthead method. In this method , the respondent is shown the Masthead of the publication and is asked whether he has read the publication.
The major difference between CR and AIR is that AIR denotes those who have read the publication with in the publication time interval. While CR represents those readers who claim to have read the publication but may or may not have read it in the interval .
So if a respondent say that he has not read a paper yesterday then he will not be considered as an Average Issue Reader. How ever if he claims to have been reading this paper but not yesterday , he will be considered in Claimed readership figure.
From IRS 2008 Round 2 , MRUC has moved to Total Readership as the standard rather than AIR. Some media planners are of the opinion that AIR provides better information about the reach of a publication rather than TR.
Usually Claimed Readership figures are more because of replication.
The latest IRS results also has thrown in some interesting trends in the media habits of Indian consumers.
Regularity of reading print media including both dailies and magazines have come down .The average frequency of reading also has come down for all print media. The average viewing / listening time for media like TV , Radio and Internet has increased.
The average time spent on media like TV , Radio increased while the time spent on print has declined. Average time spent in television is 99.4 minutes and 81.1 minutes on radio. How ever time spent on Internet has declined.
Another interesting fact is that the fragmentation in Television media has caused a decline in the time spent with one channel. That means that viewers are not brand conscious with regard to television channels but are program conscious. On the other hand time spent per title for print has gone up.
It was also revealed that print media is losing out in claiming the attention of young Indians. The readership for print among the age group 20-29 has declined by over 16 %.
Exchange 4 Media
IRS