Brand Update : Medimix

In my earlier post on Medimix, I had commented that this brand has fallen into the trap of sales promotion. A recent sales promotion campaign further reinforced my take on this brand's marketing practice.

The advertisement for this sales promotion goes like this :

In a household setting, suddenly the electricity went off. The homemaker then asks for Medimix to light the candle. The husband is confused and asks how can you light a candle with Medimix. Then came the answer " Now get a Medimix Matchbox free with every Medimix soap ".

Frankly I was as confused as the husband character in the story. Medimix Matchbox ?

Then I frantically searched to check whether the company had diversified into making matchboxes. Then it would have been one of the most outrageous brand extensions ever. But thankfully the company had not yet diversified into making matchboxes.

Now the question is whether it is a wrong strategy of giving matchboxes free with soap. I guess it may not be.

But what happens here is that the matchbox is branded as Medimix and the tvc give more focus to " Medimix Matchbox " and even have a tagline for the matchbox.

Its okay to have Medimix logo in the matchbox but to brand it as Medimix Matchbox is nothing but suicide.

So an ordinary consumer will feel that Medimix has launched matchboxes ? Then what does it mean to Medimix brand ?

Its true that in the current scenario, a brand cannot notch up volumes without sales promotions . But it has to be remembered that sales/consumer promotion is a tactical strategy. In the rush to show impressive volumes marketers mess up the brand by focusing only on consumer promotions.

Is Medimix a soap or a matchbox ?


Related Brand
Medimix

Len TV: Chicago

Len TV is back with a quick recap of my trip to Chicago to be on the show 190 North to promote Monster By Mail. The show is slated to air Oct. 26th on ABC 7 Chicago and will be available for viewing by all shortly thereafter. Be sure to check the blog for more details and of course remember to check out Monster By Mail.

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Chicago...It's A HeckuvaTown

Jesus Loves The UN
Originally uploaded by jawboneradio.

My trip to Chicago went well and we'll probably talk about it on the show, but for all those interested, some run-of-the-mill touristy photos are up on the Flickr. Thanks Chi-Town! I hope to be back again soon!

A Little Something To Get You Past Hump Day

Thanks to Monica for this.

Brand Update : India Post

Its more than two years since I posted the critical analysis of India Post. I had criticized about the wastage of immense potential of a service which had unmatched distribution reach across the length and breadth of India.

In 2008, Indian Government had decided to restructure the entire postal department. The restructuring exercise is called Project Arrow. The project aims to make India Post a logistics giant by leveraging the core strengths of the institution. The restructuring is being done in consultation with Mckinsey.

As a part of the restructuring exercise, the institution has redefined its business. According to Professor Theodore Levitt, Every business should ask this fundamental question : What Business are You In ? The answer to this question can throw up lot of opportunities for growth. Narrowly defining the business can create Marketing Myopia which may wipe out the business in the long run.

From just a postal institution , the department has reframed its business to be in the logistics service rather than just a postal service. The move is a significant step in broadening the scope of services that could be handled by this giant.

It is important to reinvent the business definition since the postal service is facing competition which could make its business irrelevant. The e-mail and the rise of affordable private courier services has taken away a significant chunk of profitable business of this institution. Since it is a government department, India Post could'nt change fast to accommodate the changing environment.

In line with the restructuring exercise, the department has also rebranded India Post by launching a new logo. The rebranding was done by O&M.

The new logo retains the signature red color but has made significant changes to the logo. The new logo sports a yellow color which signifies happiness , hope and joy. Red stands for passion. The wings from the old logo has been retained with some modification. The new look brand take Passion, Power and Commitment as the core brand values.

According to the press reports, 50 post offices will be refurbished to make it a new-look hi-fi post offices in the first phase of Project Arrow. The number will be scaled up to 500 post offices in the near future. The new post-offices will be technologically enabled to provide faster service to the customers. A lot of new products have also being created for meeting the new demands of the customer.

It gives me joy to see that the brand has slowly waking up to the new realities. I was surprised to find that India Post was losing almost Rs 1300 crore every year on its operations. This is despite the fact that India Post handles 10 crore Money orders and 17 crore savings accounts with deposits over Rs 5,40,000 crores. The deparment has 1,55,000 post offices out of which 89% is in the rural areas. India Post is the largest postal service in the world.

The government hopes that with this restructuring, India Post will be able to make profits rather than bleed the exchequer .

Related Post
India Post

What I Am Wearing On TV

I leave shortly for my short jaunt to Chicago to film my first Monster By Mail TV segment. But I didn't want to leave anyone hanging as to my wardrobe. I am going with a layered look: A grey longsleeve thermal shirt, jeans, black skeleton Vans and a black Where The Wild Things Are T-shirt featuring Max. I may also bring one more shirt, just in case, but for now, that's what it looks like.

Please continue your Columbus Day.

Caption This: 10-13-08