Allen Solly : My World , My Way

Brand : Allen Solly

Company : Madura Garments

Ad Agency : Ogilvy

Brand Analysis Count : # 458

Allen Solly is a brand that changed the dressing habits of Indian executives. Launched in 1993, Allen Solly attained a near cult status in a highly competitive readymade market within a short period of time.

Allen Solly's heritage dates back to 1744 when this brand was created by William Hollins & Co . In 1990, the brand was taken over by Madura Garments which launched it in India in 1993. Madura Garments which was looking for an unconventional brand targeting young professionals found a fitting brand in Allen Solly.

Madura Garments rightly spotted a need for a casual work-wear among the young professionals. The growing young working class and the rise of the IT clan of employees further reinforced the potential of a relaxed formal wear.

Allen Solly entered the market with the blockbuster concept of Friday Dressing. The idea was not new. Globally the there was a marked trend towards relaxed workwear and Allen Solly pioneered that concept in the Indian market.

Allen Solly launched office wears in colored shirts and Khaki trousers which became an instant hit. For the first time, Indian consumers were exposed to the idea of relaxed formals. Indian consumers took the bait and rushed to color coordinate their wardrobe with enthusiasm.

Not stopping by these, Allen Solly further experimented with

unconventional shades like beige and tan. Soon the logo attained cult status among the Indian consumers . Allen Solly was in a way announced the coming of age of the mature global Indian workforce.

In 1995, the brand launched ultra bright colors in the formal segment. Colors like yellow, brown , red etc was introduced as formal wears. The yellow shirt featured in the TV commercial became a big hit among the consumers.

The brand further reinforced its cult status with the launch of wrinkle free cottons and checked formal shirts. The young restless generation lapped up the unconventional formals and used it as an expression of their personal freedom.

From the sales data,the company noticed that there was a huge demand for trousers of size 26-28 from women. Taking a cue, Allen Solly launched its range of women wear which was well accepted by the target group.

The competitors soon caught up with the concept of Friday Dressing. Every brand launched similar ranges and colors and soon relaxed formal wear became part of normal work wear. Allen Solly was valued at Rs 250 crore brand by now.

In 2009, the brand went for a repositioning exercise. Allen Solly found that there is a shift in the demographics of the target segment. While the workforce of 1990s were predominantly of the age group of 26 +, now youngsters of age 22-23 yrs have started entering the workforce. The brand wanted to be more relevant to the new young working class. Also the brand somehow wanted to attract consumers beyond the workplace.The worldview of the young consumers have also changed. Earlier success in life was measured based on work. But now the success is more holistic . Allen Solly wanted to reflect this change of perspective of the young consumers.

This thinking prompted the brand to change its positioning from a work-wear to a fashion brand. The brand positioned itself as a casual brand for all occasions.

To reflect the change in positioning, the brand changed its brand campaigns.In 2009, the brand launched its famous " I Hate Ugly " campaign targeting the youth.

The basic proposition was to reflect the irreverent , non-compromising attitude of youngsters towards life. This in-your- face communication struck a chord with the consumers and critics and the brand was able to break the earlier association of the brand as a formal wear.

The brand created a big noise in the market with I Hate Ugly campaign and it will be interesting to see how the brand carries forward the momentum.

Allen Solly also changed the tagline to " My World , My Way " to reflect the new brand proposition. My World , My Way reflects the strong individualistic view of the youngsters who own their world and create their own rules.

In a way, the brand has completely shed its earlier DNA. No longer the brand is associated with formal wears. The brand literally exited the category of relaxed formal wears which it has created. One reason can be that category itself became irrelevant since all brands have their own line of relaxed formal wear. Brands like Color Plus has successfully established itself in that category .

In the new avatar, Allen Solly is targeting the ever- fickle young generation whose concept of fashion changes by the day. The brand has identified a gap for a premium fashion brand specifically targeting this segment. Although brands like Levi's have a strong equity in the market, there is a gap for a player like Allen Solly.

Allen Solly's repositioning is a loss to the generation who saw the Friday Dressing avatar of this brand. Lets us hope that Allen Solly will repeat what it has done to the Work-wear market in 1993.

Brand Update : Cadbury Dairy Milk

Cadbury has launched a new variant of Dairy Milk branded as Dairy Milk Silk. The brand is currently running two TVCs for this variant

Watch the tvc here : Dairy Milk Silk Dance

: Dairy Milk Silk Conference

The brand has been moving away from the celebrity endorsed approach it was following in the last few years. The new campaign is refreshing and brings back the memories of its earlier iconic campaign " Asli Swaad zindagi ka" . I liked the conference one than the dance one.

As I understand , Cadbury Dairy Milk Silk is a smooth and silky version of the original Dairy Milk. The brand is priced at a premium over the Diary Milk which makes it an Upmarket Stretch in marketing terms.

The ads are spot on the brand's core positioning of " enjoying the moments". The agency has conveyed the message in such a captivating manner that many adults who has forgotten about the original brand promise and experience will be attracted back to the brand.

I hope that the brand will scale new positioning heights and it is a learning experience to watch this brand evolving itself.

A related nice article in Afaqs.

Related Brand

Cadbury's Dairy Milk

Mont Blanc : A Story to Tell

Corporate Brand : Mont Blanc
Agency : Meridian

Brand Analysis Count : 432

Mont Blanc is an iconic brand. This luxury iconic brand is now making waves in India. Mont Blanc has a very rich heritage. Created in 1906, the brand was born in Germany. Mont Blanc was founded by stationer Claus Johannes Voss , banker Alfred Nehemias and engineer August Eberstein in Hamburg. The company was earlier christened as Simplo Filler pens but was later changed in to Mont Blanc in 1910.

Mont Blanc which started off as a writing instrument brand soon became an iconic accessory brand selling wallets , watches, jewelery, eye wear and fragrance. This brand thrives on luxury and exclusivity. More than a writing instrument, Mont Blanc is more of an art item, something to show off your success than a functional instrument.
The brand is also carefully crafted. Mont Blanc takes special care in ensuring that the brand communication is reflecting its exclusivity and premium positioning.

Mont Blanc entered India in 1995. The brand has adopted the strategy of slow skimming was initially available in premium boutiques at places like Taj Hotels.
Globally, Mont Blanc built its brand through print media. The brand crafted exquisite ads in the premium lifestyle magazines. This year, the brand deviated from its time tested media strategy and launched its first Indian TVC featuring Bollywood Actor Anil Kapoor and his daughter Actress Sonam Kapoor.

Watch the TVC here : Mont Blanc

Mont Blanc has the tagline " A story to Tell" . This is a positioning that takes the brand from a functional perspective to a higher level positioning. The brand talks about pen as a power to write one's own destiny. This is one of the best positioning statement I have seen in recent times.
In India, Mont Blanc is trying to tell stories of successful personalities who had achieved success not because of heritage but hard work.

The television commercial surprised me because of the choice of Anil Kapoor as the brand ambassador. Even though Anil Kapoor fits well in the brand's positioning based on " story to tell" and rags to riches kind of stuff, Anil Kapoor does not really gel with the over all brand personality of Mont Blanc.
He is an actor who has now virtually retired . Even during his hay days, Anil Kapoor was never considered as an iconic star. So by choosing a star who has faded from limelight seems to be a wrong choice for the brand.
Another question that came to my mind is whether Mont Blanc really needed a brand ambassador ? In the Indian advertising world, stars have become a commodity. These stars only give some 'stickyness' to the ad and other than that there is virtually no value addition to the brand equity.
In my personal opinion, Mont Blanc lost some its premiumness by choosing to get help from a celebrity.

Mont Blanc also was in limelight in India as a part of a controversy. The brand launched a limited edition Pen inspired by Mahatma Gandhi. The pen which was priced at around Rs 12 lakh generated enough controversy for the brand ( worth millions of dollars of free publicity).
The limited edition pen had Gandhiji's image engraved in the nib and also the top of the cap and cone was inspired by the spindle which Gandhiji used to spin cotton.
The limited edition pen with its huge price tag quickly captured the imagination of media and politicians who began a high profile debate on " commercialization of Gandhiji".

As an individual , I was happy that Mont Blanc chose to celebrate one India's finest son with a special edition product. I was more happy because they chose to price this special product with an exorbitant rate. I believe that Gandhiji is not cheap. He lived a humble life does not mean that everything about him should be cheap or priced low. If politicians can choose to use Gandhiji for furthering their goals, why can't brands ? And marketers are not fools to mess with a highly revered icon like Mahatma.

Mont Blanc is a brand that changed the way pens were looked at. The classic white flower-shaped symbol that adored the cap of this pen is considered an ultimate symbol of success. Mont Blanc does not need someone to make it a success it is the other way around.

Brand Update : Onida

Onida has launched its new campaign after putting the devil to rest. The campaign is aimed at repositioning and rejuvenating the brand. The brand is trying for a comeback after years of uncertainty which made this (once) iconic brand lose its share in the market.

Watch the new campaign here : Onida new campaign

In my last post on Onida, I commented that Onida's real problem is not branding but marketing. The brand desperately needed break-through products and embrace new technologies. If the new ads are any indication, the brand is moving in the right direction. The brand is trying to launch products with new features, which is the right thing to do .

Regarding the brand campaign, Onida now has a new tagline- " Tum Ko Dekha to ye design aya" meaning " Designed with you in mind ". The brand replaced the iconic devil with a new-age couple as the protagonists.

Onida is now repositioning on the basis of " Customer Oriented Design". The brand is saying that its products are designed with the new-age customer in mind. The new tagline has nothing new in it and "customer-oriented" design positioning is used by many brands before. In comparison with the classic "Neighbor's envy , Owner's Pride", the new campaign falls short of expectation. ( Another viewpoint here)

In the consumer durable space, it is the product features that attract the buyers not the ads. If Onida can give technologically advanced products at reasonable price, consumers will definitely try it out. But there are issues in such a product oriented strategy. Most of the new features can be copied easily by the competitors unless otherwise protected by patents. When Onida launches a DVD player which plays micro-sd cards, other players are bound to follow. It is in this scenario that branding becomes important. Onida needs to convince the consumers that its products are better designed and technologically superior. It is about managing perception .Features can be copied by competitors easily but changing perception is a difficult task.

Onida needs to work hard on creating and nurturing new perceptions about itself in the mind of the consumers. Long way to go for this brand......

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Onida

Brand Update : Pears

It has been a long time since I wrote anything about Pears. The fact was that there was no big development about the brand for the past two years. The brand is regularly and consistently promoted across various media.

The brand extended itself to kid's category with the launch of Pears Junior and also into personal care segment with products like face wash. Pears also launched variants like Mint, Aloe Vera,Oil control etc during this period. Although the brand launched these variants, the core positioning of the brand remained the same for the original soap.

Recently I saw the new commercial of Pears

Watch it here : Pears

The brand is very consistent about the positioning strategy. Pears is built on the wonderful relationship between the Mother and

Child. All Pears ads captured this emotion quite perfectly. The brand focused on its " Transparency " and is positioned as a " Pure and Gentle " Soap.

This time too, the brand follows the same theme. The significant addition is that now Pears has a tagline - Masoom.

Masoom translates to Innocence . So Pears now celebrates a new brand value - Innocence.

The new campaign is nice but as a Southie I did not quite understood the dialogue. But the cute child and the theme always work the magic.

I am assuming that Pears brand is serious about the Masoom Tagline. Masoom concept works very well for Pears. The concept of innocence fits with the " transparency " and Pure & Gentle positioning.

Pears was one of those brands which did not have a tagline. With out the help of the tagline , the brand was able to communicate its core positioning. The core brand values of Pears was communicated through visual cues .

The tagline of Masoom seems to gel with the brand. Whether and how the brand is going to use this tagline in future is something to watch for.

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Pears

Brand Update : Onida

According to a report in Economic Times, Onida has decided to send its iconic mascot- The Devil to Hell. According to the report, the brand feels that Devil is no longer attractive to the consumers and hence the decision to remove it. The report further says that the brand is working on a new mascot.

The report gave me a sense of Deja_vu. This is not the first time that Mirc Electronics ( brand owners) has scrapped the Devil.

In1998, Onida withdrew the mascot citing the same reasons that they have given now. The explanation given in 1998 was that Indian consumers no longer find Devil, who symbolizes Envy, relevant. So they scrapped the famous tagline " Neighbour's Envy, Owner's Pride " together with the Devil. But ever since it changed the tagline and mascot, Onida never found a powerful positioning .

After six years of drifting around, Onida brought back the Devil with much fanfare in 2004. Media and brand enthusiasts welcomed the move and eagerly awaited the Devil in a changed modern avataar. But the comeback was damp squib. The brand suffered heavily due to ownership issues within the company. There was no brand promotion or new product launches worth talking about since 2004. If at all there were launches, promotions were not sufficient enough.

Now in 2009, Onida is redoing its old strategy.

Onida is facing a marketing problem and not a branding problem. Everything is fine with the brand. People recognize the brand, love its mascot. The issue is on a larger perspective. It needs to concentrate on its entire marketing mix not just the brand elements. Changing the devil and bringing in a new mascot is not going to do any good to Onida.

The Economic Times report suggest that Onida is changing its brand elements because of competition from Korean brands like LG and Samsung. These Korean majors has built its position in Indian market riding on Product strategy rather than on heavy duty brand promotions. Their products were good, reasonably priced and well promoted. In the case of LG and Samsung, nobody really cares about the tagline. For them , the product speaks for itself.

Onida failed because its products failed. I was a die hard Onida fan . I loved my Onida KY Thunder Television. But after that there was nothing remarkable about Onida. No high technology products came from this brand.Onida became successful because the Devil was backed by products that really created envy in others. Now there is nothing to envy about Onida. Last year, I bought an Onida DVD player which boasts about playing scratched DVDs but the product failed miserably.

Now in the consumer durable space, brands are coming out with new advanced products on a monthly basis. Technology keeps changing and most brands are moving with break-neck speed to catch up with consumer expectations. In the case of Television, flat is now old and brands are talking about plasma, LCD etc. What is Onida doing in this space ?

Onida is now in one of the most difficult times. The brand needs to come out with a product that will change the game. Changing the mascot is secondary at this point of time.

Related Post

Onida Brand Update

Onida

Brand Update : Liril

In my last brand update on Liril, I mentioned the relaunch of Liril as Liril 2000. This week's Brand Equity carried a story about the new adventure of Liril 2000. Read it Here .

As mentioned in the report, Liril is currently repositioned as a soap that refreshes 2000 vital body points.

I was really surprised at the news that Liril is copying the international brand Lever 2000 of the parent Unilever. The positioning of Lever 2000 and Liril 2000 is the same. The only difference is that Lever 2000 is white in color.

I would say that this marks the sad demise of one of the iconic brands in India. Liril has lost its entire brand personality and now is degraded as the poor cousin of another brand. This is strikingly similar to the automotive brand Maruti Zen which again had this same sad story.

HUL in recent times is in the process of bringing in international brands by replacing Indian brands. Clinic All Clear has been changed to Clear. Now Liril is being morphed into Lever 2000.

This is very surprising that a company like HUL ,which has built some of the iconic Indian brands, resort to killing its brands to make way for brands from its parent company.

I cannot buy the argument that Liril 2000 was launched to rejuvenate the Liril brand. If you are rejuvenating a brand, why should you copy the positioning of another brand and import its entire brand elements and even advertising ? A possibility of Liril 2000 being rebranded as Lever 2000 cannot be ruled out . HUL is notorious for such extra-ordinary marketing practices.

If you were really keen on rejuvenating Liril, any person with common sense will tell you to bring back the old memories. A campaign with the old jingle and the imagery will instantly bring this brand back to life. Every newspaper, channel and blogs will write about the comeback of Liril. (Now also blogs and newspapers are writing but not praising the brand) . But alas....

To be fair to Liril, I liked the concept of rejuvenation and 2000 body points. I would have loved it ,if it was for Lever 2000 but not for Liril On the positive side, the old imagery and the ads are popular among a segment of consumers who has now become old. For the new generation, they may have heard about the famous waterfall and the girl but never have experienced the it in real time. So for an uninitiated 20 year old, Liril 2000 may be a new experience. That may be what HUL also is hoping for....

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Liril
Brand Update - Liril

Brand Update : Pulsar

Faced with stiff competition from the likes of Yamaha, Honda and TVS Apache, Bajaj Pulsar have decided to strike back. The brand has been facing competition from the super bikes and was pressurised to hit back aggressively. Yamaha with its new launches and Apache are slowly eating away the market once owned by Pulsar. Pulsar reacted to this by launching new variants but on the promotional front, it was keeping silence.

In my earlier posts, I have been criticising this brand for being laid back in its promotions and commoditising its DTSI USP.

The brand has launched its revamped Pulsar 220 variant which will reinforce the brand's core promise of a performance bike.

Watch the new tvc here : Bajaj Pulsar 220

Although the ad is quite long , I really liked the climax.

And Hurray, Pulsar has a new tagline " The Fastest Indian ". After dumping the " Definitely Male " tagline, Pulsar ads never was a thriller. The product qualities made the brand a huge success. The ads just increased the familiarity and recall.

The new ad and new tagline gives a remarkable boost to this brand. And " Fastest Indian " is a very very powerful tagline. ( Hopefully Bajaj will retain this tagline for years to come ).

It is very wise for the brand to own the highest superlative . Pulsar has owned the " Fastest " superlative , that means another brand cannot be faster than the fastest. This gives a powerful boost to the brand itself. It all depends on how well Pulsar takes this proposition forward.

And being Fastest appeals directly to the target audience . Now in the promotion front, Apache and other performance bikes has to create a new superlative to beat the Bajaj.

The new ad is also well executed and packs the punch at the end beautifully . More than the ad, I liked the tagline.

It is good to see Pulsar getting the much needed promotional and creative boost.

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Pulsar

Brand Update : Lays

Lay's is on a repositioning mode again. The brand is currently running a new campaign with a new tagline " Be a little Dillogical ".

Dillogical is the new manthra for the brand. The newly coined term represents the logic of the heart ( I think So !). The new campaign with the new tagline how ever does not speak much about the new positioning.

Ever since the brand dropped its famous " No one can eat just one " tagline, Lays has never really caught the consumer's share of mind. None of the campaign with the tagline " Har Program Ka Main Food " really was as effective as the previous campaigns.

In my last post about this brand, I had criticized about the decision to change a famous tagline just for the sake of change . I think the brand never found its soul in the " program ka main food " tagline. This may have created the need for a new tagline.

I don't think that the Dillogical tagline is going to be any better than the last one. Pepsi is obsessed with Hinglish words , the recent one being Youngisthan.

In sheer share of voice and creativity, Bingo has clearly outsmarted Lays. The campaigns of Bingo has always been clutter- breaking and funny. Lays never was able to bring out a classy campaign after its repositioning.

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Brand Update : Liril

After a long long time, the iconic Liril is back. Yesterday I saw the new tvc for Liril. The campaign looks foreign, complete with foreign models and settings.

The new tvc talks about 2000 points in our body which when touched will refresh us!!!! The ad uses the theme of a playful interaction between a father and baby to drive home the power of touch and these 2000 sensitive body points.

The ad claims that using Liril will rejuvenate those 2000 body points to keep you FRESH...

Well... some brands will never learn from mistakes. After the dumping of the famous imagery of Liril girl and the waterfall, the brand has never recovered. The fall of this iconic brand was accelerated by some stupid campaigns like Uff Umma and mindless product-line extensions like Orange Liril.

Now comes another half-hearted attempt to rejuvenate the brand. Although the new ad has a touch of class, it does not gel with the brand image of Liril that we had in our mind.

Another interesting development is that the entire product has also being changed. The brand packaging has been changed to dark green and the shape of the soap is changed to rectangle.

I still don't understand why the brand has not thought about bringing back its iconic positioning on freshness and its brand element of waterfall and still famous music. I am not saying that the brand should exactly replicate the earlier ads but it can creatively take advantage of that brand image which is still there in the consumer's mind.

Liril's consumers has become old and the new generation does not know much about this brand. But the collective memory and images are still there in the consumer space. It is also interesting to note that no other brand has been able to take up the space of Liril. So there is still lot of opportunity for Liril but going by the new campaign, that opportunity has been wasted miserably.

As a consumer , I still miss this soap.



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Liril

Brand Update : Axe

Axe is a marketing phenomenon. This brand knows how to keep excitement ticking in the market. Last year saw the controversial Axe Dark Temptation making headlines . The brand has started 2009 with yet another launch - Axe 3 deo.

This is a unique innovative product where the brand asks the consumer to use two Axe Deos to gether to make a new fragrance. So Axe 3 comes in a combi-pack of two fragrances and the consumer can make a third one by spraying the two deos together.

Watch the ad here : Axe 3

Smart move indeed. Has anybody thought of combining two deos for a new fragrance ? ..

Axe 3 was launched in other markets in 2007 as a limited edition product.
A typical Axe 3 packs contains two deos marked 1 & 2. These cans should be sprayed together for a new fragrance.
The question is why should a consumer spend double the money for deos ? Why should he use two together and blow away double the money ?

The answer is that the brand does not expect every one to do so...

This is a product launched to keep the excitement going. That is the purpose of limited editions. All those Axe fans will try out this new product and competitors will have tough time matching this brand .

Axe has always been an unconventional brand. These seemingly outrageous innovations are in line with the brand's core positioning. And these launches gives enough reasons for Axe to advertise and that keeps the brand on top of the share of mind.

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Axe

End Note : Neither the HUL website or the Axe Effect website carry any information about this new product launch. It is sad that a professional company like HUL did not have the common sense of regularly updating its websites.

Omega : The Choice

Brand : Omega
Company : SMH

Brand Analysis Count : 354

Omega is a leader in the Rs 600 crore luxury watch market in India. The brand which is an aspirational brand has a long history dating back to 1848. The brand had its origin in Switzerland in 1848 when a young man named Louis Brandt started assembling high precision watches.

But it was in 1894 that Omega as a brand was created. The brand and the company went through lot of turmoils through these periods. In 1930 during the depression, the company merged with other watch makers to form SSIH. The merger was to withstand the economic turmoil at that time.

In 1980 , the brand again went in to financial crisis. SSIH then merged with another watchmaker ASUAG to form ASUAG-SSIH. Now ASUAG-SSIH is owned by a private group and the company has been renamed as SMH. SMH owns some of the iconic watch brands like Tissot, Swatch , Longines and Rado.

Omega has been very active in the Indian market for the last four years. The brand was present in the country through imports but now with the government allowing single brand retail formats for foreign brands , Omega is in full swing to tap the Indian market.

Indian market is a unique market for the watch category. I was surprised to find that the penetration of watches among Indians is abysmally low. According to reports the penetration is only 27 %. That means only 27% of Indians own a watch. The total watch industry is around Rs 2500 crores in terms of value.

The market is broadly divided into low, mass market , premium and luxury segments. 85% of the market is for watches below Rs 500.

Although the bulk of the market is at the bottom of the pyramid, the top the line watch market is growing at a rate of 25 - 30 % . Most of the growth is attributed to the economic growth witnessed by India. With new jobs and profiles taking Indians to new heights of luxury, accessories like watches gain importance in the shopping list.

Its in this context that Omega began its aggressive campaigns in India. Now most of the business and lifestyle magazine have atleast one Omega print advertisement.

Omega's marketing practice is heavily depended on Celebrity endorsements. Its a brand that has successfully used celebrities to create differentiation. Its celebrity endorsers contain the who is who of the world. Some of the celebrity who has endorsed Omega are
Cindy Crawford
George Clooney
Michelle Wie
Michael Schumacher
Nicole Kidman
Ellen Macarther
Ian Thorpe
Michael Phelps
Eugene Cernan and
our very own Abhishek Bachchan

But the most celebrated and famous brand ambassador for Omega is James Bond. I think its the first brand that has a brand ambassador in a movie character rather than the actor. Bond has been wearing Omega watches since 1995 with the movie Golden Eye. The association has been strong and Omega celebrates the launch of the Bond movies through events and special editions. In the latest Bond movie , Daniel Craig wears an Omega Seamaster Planet Ocean 600m Co-axial Chronometer with a black dial.

These brand ambassadors give a special touch of luxury to the brand. But Omega is not dependant on any of these brand ambassadors and has a personality of its own. Omega is a classic case of a brand using celebrities to its advantage.

Along with the ads, the brand is also active in connecting to the customers through events. Like any other luxury brands, Omega also sponsors sports events because sports form an important part of lifestyle.

Omega was successful because of the secondary association of its country of origin ( Switzerland). The brand has its strength in quality, brand and its heritage. What has made this brand aspirational is the consistent campaigns with a common theme. The brand is positioned as the preferred choice or the rich and famous.

Omega has a distinct advantage derived out of its heritage and strong brand equity. Since Indian consumers are well connected with the world outside, the brand's campaigns using international iconic stars works well with Indian consumers. The brand has also added a touch of local flavor by adding Abhishek Bachchan to the list.

Red Bull : It Gives You Wiings

Brand : Red Bull
Company : Red Bull Gmbh

Brand Analysis Count : 342

Red Bull can be called as a pioneer in the energy drink category worldwide. In India too, Red Bull was the brand that created the energy drink category.

Red Bull is a highly successful branding story. The brand came into existence in 1984. The brand was created by an Austrian professional turned businessman Mr Dietrich Mateschitz. The story goes like this.

The original inventor of Red Bull energy drink is said to be Chaleo Voovidhya, a Thai businessman . In 1962 he created a drink named Krating Daeng ( meaning Red Bull in Thai). In 1982 when Mr Dietrich visited Thailand, he came across this product which helped him to tide over the jetlag very quickly. Impressed by the product efficacy, Dietrich decided to take this product to Europe. He started Red Bull Gmbh with equity participation from Chaleo Voovidhya.

By the year 1987, Red Bull achieved a cult brand status across Europe and America.

The brand came to India in 2003. Although the brand has been keeping a low profile compared to the Cola majors , Red Bull has created a category of energy drinks in the Indian market. According to Economic Times ( 30.05.08) the energy drink market in India is estimated to be around 100 crore. The market now has two main players Red Bull and Power Horse.

Energy Drinks are not much popular in India or it can be said that this product is used mostly by sport persons hence a niche. So far the use of these kind of drinks has not percolated to the mass market.

From my childhood experiences, I used to take either fruit juices or products like Glucose powders ( Glucon-D ) to energize my self after playing.

The energy drink broadly comes under the category of functional drinks which is a bigger market estimated to be around Rs 543 crores.

Red Bull globally is known for buzz marketing. It is a brand which has built its equity through careful below the line marketing. During the initial launch time, Red Bull used to invest heavily in buzz marketing .
Some of the famous marketing strategy adopted by Red Bull is given below :

Student Brand Managers : The brand tried to reach the trend setters and opinion leaders by appointing ( informal agreement ) student brand managers across campuses. These members were given free Red Bull cans and was encouraged to organize parties for other youngsters.

Identify Hot Spots : The brand identified hot spots where the majority of consumers /opinion leaders gather. This could be a bar or a party area. Once these hotspots are identified, the brand campaigns in that spot.

Extreme Sports : Red Bull is adopted following brand qualities : Energy , Danger and Youthfulness. Hence the brand chose to sponsor or associate with extreme sports. At one point of time the brand also owned a Formula 1 racing team.

Athletes : Rather than roping in expensive celebrities, Red Bull sponsors high performing athletes who are not celebrities. One advantage of doing that is that the brand gets a highly dedicated brand loyalist from the fans of these athletes. According to Forbes Magazine, Red Bull sponsors more than 500 athletes.

Quirky Ads : Red Bull is a brand which was built without depending too much on advertising. The brand used advertising for reinforce brand identity rather than for selling the product. The ads of Red Bull has the classical cartoon format with a touch of humor.

Red Bull has the famous slogan " Red Bull gives you wiings ". The ads are revolving round this theme of the brand giving a high. One fact is that Red Bull need not do much of a product advertisements because the brand was confident that once the customer tries the product, he will start understanding the benefits of this product.

In India which is a market which is characterized by heavy duty advertisements, high profile celebrity endorsements and mouth watering sales promotions, Red Bull has managed to take the different route.
Since the launch the brand has managed to dominate the Indian market with more than 60 % market share . The popularity of Red Bull has prompted many cola majors to launch their energy drinks brand in India. There are news reports of Coca Cola and Pepsi bringing their global brands in this category into the Indian market.

Despite the success of Red Bull and Power Horse, there are stumbling blocks in the development of this category . The main issue is regarding the perception of consumers towards this category.

I always viewed this type of drinks with suspicion. Frankly speaking I had a perception that this energy drinks are associated with alcohol ( it was a perception). I was surprised to find that these products are targeted towards youth.And these products are more found in pubs and bars which further reinforced the perception that these drinks have parity with products like beer.

In the European markets, the consumption of beer and alcoholic beverages are not a taboo. Its a part of ones social life. But in India, the culture is different. The consumption of these beverages are not considered a part of social living. There are restrictions in consumption and availability of these beverages.

Red Bull is marketed heavily through pubs and bars across the western markets. But in India , Red Bull should keep away from associating itself with these kind of beverages. Because such an association will repel many customers especially ladies.

Having said that, this category also offers excellent growth potential also provided the brand rationalizes the price. The price of energy drinks vary between Rs70-95 per can which can restrict the frequency of purchase of this product.

Brand Update : Cinthol

Cinthol , the flagship brand of Godrej Consumer Products Ltd is set for a makeover. The brand has roped in Hrithik Roshan as the brand ambassador. The new campaign is on air featuring Hrithik performing out -of- the- world stunts.

Watch the TVC here : Cinthol

Cinthol interestingly is the only masculine soap brand available in the Indian market. Ever after Lifebuoy repositioned itself targeting family, there has been no soap except Cinthol targeting male. The reason may be that marketers felt that soaps are usually bought for the family and used by multiple members . The decision of the soap brand usually is taken by the lady in the house. And moreover, soaps were never considered to be a part of the male grooming product category.

But things are different now. There is a marked shift in the consumer interest towards male grooming products. The category has expanded from shaving products, deo etc to face wash , hair care , face creams etc. The shift is also a result of the emergence of Metrosexual male and also of the Urban Nuclear Family where every individual members have the freedom to use individual products. So typically a modern household may see husband and wife using two different brand of soaps.

In this context , the relevance of Cinthol as a masculine brand achieves paramount importance for Godrej. Even without much promotion, Cinthol has a share of over 2 %. While Business Standards pegs the brand size to be around Rs 80 crore, Businessline puts the brand's size to be Rs 200 crore.

More than the new users, Cinthol's strength has been a strong brand loyal customers. This is both a strength and weakness. The prime challenge for Cinthol is to be relevant to the new Male.

The new campaign features a new look for Cinthol and a new slogan. The last ad of Cinthol featured the slogan " Get Ready Get Close " .
The new slogan for Cinthol is " Don't Stop" . The brand promise is
24 hour confidence &
Long lasting freshness.
Although the slogan has been changed, the positioning has been in a consistent line. Cinthol has long been positioned on the basis of the properties of Deo, freshness and confidence.
The new slogan tells the audience to have confidence to do what ever he likes. The execution of the concept is little out of the world but interesting to watch.

Regarding the choice of the celebrity , Cinthol has pulled off a coup by roping in Hrithik. But what I have seen is that Hrithik has not been exploited as a brand ambassador. Brands like Acer and even Coke was not able to fully exploit this celebrity.
My first impression about the ad is positive but the ad is not enough to raise the brand to a level of an icon. Having said that the slogan " Don't Stop " with core brand values of Freshness and Confidence give the brand lot of power to move ahead.

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Cinthol