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Kal
Aaj Aur Kal
Dr. S
Ramesh Kumar
Professor of Marketing, IIM Bangalore

Marketers spend huge resources on
several kinds of communication strategies. There
has been a great deal of proliferation of brands
in almost every product category. Each category
consists of brands new to the category: successful
brands, which have sustained their success for a
length of time and continue to be successful; and
brands which have been very successful in the past
and are struggling to revive their success. There
could be certain interesting questions, which could
be raised on communication strategies:
a) Should brand communication strategies
be different for different categories of brands?
(Categories, which have been mentioned).
b) What factors are to be taken into consideration
before formulating the communication objectives
for brands in each of the categories?
c) How should the communication be combined with
promotional methods to achieve the objectives
of communication?
A structured approach towards communication
objectives not only provides to focus; it also enables
marketers to take into account several changing
factors in the environment relevant to the respective
marketing situations. Besides the communication
objectives themselves may change from time to time.
The objective of a new brand (relatively) like Himalaya
in the category of cosmetics and over the counter
(OTC) drugs may be to create awareness and initiate
trials before building conviction around its brand
values. The objective of brands like Ponds
or Fair & Lovely, which have a huge base of
consumers, may be to emphasise the conviction that
the consumers may have shown over the years by buying
the brand. This may perhaps be achieved by ensuring
that consumers try out the new herbal variant of
the brand. It may be observed in this hypothetical
situation considered, the brand not only has to
emphasise the brand value to make the conviction
stronger; it has to also ensure that at least a
cross-section of consumers so convinced would try
the new herbal variant in an environment which is
largely shifting towards herbal formulation with
regard to the product category. Monitoring the changes
in the environment is vital for communication strategies.
New brands that have made an impact in the
category
In the category of a commodity like atta branded
offering have been advertised by MNC brands (Annapoorna
and Naturefresh). While there are national brands
with huge advertising spends, a brand like Shaktibhog
is leading in several markets in the northern part
of the country, which consumes a major chunk of
the category. The new brand has a market share,
which is significantly higher than the share of
MNC brands. In such FMCG product categories with
which consumers have been familiar for several decades,
value is the criteria on which consumers perceive
a branded offering. Value in a category like this
is not just lower price; it is also a taste that
matches with the palate of consumers in a specific
geographical region. Shaktibhog delivers on both
these factors and the new brand is slowly gaining
equity. The brand may not spend heavily on advertising
but it has launched sales promotional schemes, which
MNC brands resort to frequently. This ensures that
there is an over-all value perception
associated with the brand. In the liquor market
white spirits have an insignificant share of the
overall market. Bacardi a new brand has made an
attempt to expand the market by introducing `ready
to drink alcoholic beverages in different
flavours. The target segment is executives in the
range of 25-30 years age group and the most interesting
aspect of this new introduction Bacardi Breezer
is the price point at which the prospective consumer
can try out the beverage - Rs. 35 to 40 for 330
ml. A new brand in any category has to provide a
differentiation, which would appeal to consumers
at that point of time. This varies from one category
to another. Medimix herbal soap differentiated itself
on the herbal plank two decades back when there
were only synthetic soaps. A new brand of herbal
soap launched in todays context has to probably
define the herbal qualities through an enhanced
mix of ingredients to convey the differentiation
because `herbal is the proposition of several
brands both new and old. The established Medimix
brand is currently running a campaign, which conveys
the brand benefits through appropriate imagery.
While consumers all along have perceived herbal
to be good for the skin in the category of soaps,
there is a need for an established brand to communicate
the benefits through appropriate visuals/imagery
because a number of brands have been launched in
the category. This is the response of an established
brand to the strategies of new brands, which have
entered the market. Ayush a brand from Hindustan
Lever uses the expert endorsement route (accreditation
from a well known ayurvedic hospital) and another
brand uses the enhanced ingredients mix
route to appeal to consumers. An established brand,
apart from formulating strategies to improve its
market position is, also forced by new brands to
time its communication strategies/objectives (Medimix
example). In a typical context of this kind, the
frequency of advertising also becomes important
for the established brand because visibility has
to be maintained to reduce the number of existing
consumers trying out new brands (or to reduce the
frequency of purchases concerning new brands). This
is a vital objective because the loyalty of existing
consumers is based on experience and a brand cannot
afford to lose the trust and goodwill among the
loyal consumers (in a category like soaps in which
consumers tend to try different despite exhibiting
loyalty towards a specific brand).
In FMCG categories, a strong `product based
differentiation (in the herbal soaps sub-category
the differentiation centered around `amplifying
or enhancing the benefits) can achieve positive
results within a short span of time. Such a differentiation
also backs up the communication objective of ensuring
trials among a competitors brand besides bringing
in new category users who would want to try out
the new brand. Fairever (in the fairness cream category),
which came into the market with a strong differentiation
(saffron based cream) is an example of a new brand
making its presence felt in a category almost dominated
by a strong brand over a considerable period of
time. The differentiation never existed before (at
least in a branded and advertised offering) and
the brand has gained a rapid market share in the
category.
The differentiation brought in by a new brand would
have to be perceived by consumers. Optima and Ultra
Doux in shampoos, Prudent in toothpastes and All
Care in soaps are new brands in the respective categories
which do not seem to have made rapid strides after
their introduction, though considerable amount of
marketing communication efforts could be associated
with them.
Successful brand building with advertising as one
of the marketing mix elements
Horlicks, Titan, Cadburys and Hero Honda are
some of the brands which have been not only successful
but the ones which have sustained their success
(in terms of market share over a length of time).
Horlicks has a strong nutritive association. Though
the brand may have appealed to only convalescing
people a few decades back it is currently positioned
towards children. The brand during the mid-eighties
made the transition in positioning from being positioned
for people who are coming out from sickness to several
segments who may require nutrition - professionals,
dancers and children. This was made possible through
appropriate imagery. While the brand may not have
maintained consistency in its association with regard
to its user-imagery, it has been able to successfully
sustain its `nutrition association. The brand
was also re-launched a few times over a period of
two decades with an improved version of the offering.
The brand also strengthened `Junior variant
(though its other variants like chocolate flavor
may not have been very successful). Horlicks is
reinforcing its nutritive association by the introduction
of its cold shakes (under the brands Horlicks and
Boost) targeting teenagers- an attempt to bring
in synergy between product-line management, changes
in the needs of consumers and appropriate positioning
strategies reflected through advertising imagery.
Titan has a dominant share in the quartz watch market,
which comprises of a huge chunk of unorganized offering.
There have been time phases when the unorganized
sector had grown faster than the organized one.
Titan has followed the specialized strategy of offering
different variants for clearly defined segments.
The development of the gift and warmth
associations over a period of time and the varied
offerings to diverse segments with a clear cut positioning
strategy have been instrumental in sustaining the
market share of the brand. Titan has to a great
extent attempted to balance the positive aspects/associations
of the mother brand with the option of using sub-brands
to appeal to several segments. For example, Nebula
is a jewelry watch; Bandhan targets businessmen;
World Time, the Globe Trotter and Fast Track the
aspirational and upwardly mobile urban youth. Titan
also moved the experience of buying
a watch in the crowded market place to one, which
is memorable in the ambience of the exclusive outlet.
Titan has been able to bring together the various
elements of marketing mix to become a leader in
the quartz segment. A very interesting strategy
from Titan has been for creation of the brand Sonata.
When Titan found that a large chunk of prospective
consumers were apprehensive they perceived an elitist
orientation towards Titan, Sonata was created without
Titans association with offerings covering
a wide price range. Sonata contributes significantly
to the sales volume of Titan. This strategy is a
good example, which reflects the caution required
in leveraging the equity of a successful brand.
Cadburys is one the rare examples in which
the target segment itself was changed radically
with regard to one of its established offerings.
The brands Cadburys Dairy Milk (CDM)
mould type of chocolates targeted children till
mid-nineties. The positioning was built over warmth
associated with the relationship between parents
and children. In an attempt to enlarge the chocolate
market, CDM changed its target segment to adults.
There were a few campaigns, which effectively used
imagery in positioning to adults. The first one
showed adults from different walks of life enjoying
the chocolate; the second campaign focused on the
joys of daily life by highlighting the
spontaneous enjoyment on the cricket field. The
brands new campaign shows adults sharing the
chocolate brand during joyful and sorrowful
times (vicissitudes of life). Cadburys also
enlarged the market by introducing lower priced
stock-keeping units (SKU) besides introducing wafer-chocolate
Perk. Wafer-chocolates have been finding growing
acceptance among consumers in the recent times.
In all the three (cases) Horlicks, Titan and Cadburys
sales promotion aspects have not been very pronounced
(as compared to a number of other FMCG brands).
Sales promotions have been very limited and this
ensures that consumers do not rush towards
the brand only when a sales promotion is announced.
Horlicks has had a sales promotion (contest), which
reinforces its brand values. The contest involved
matching statements on why different types of consumers
preferred the brand and winners were given prices.
Besides the thrill of the contest, this kind of
sales promotion also is helpful in reassuring the
consumers about their choice of the brand and this
could prevent consumers from switching over to a
competing brand. In the case of Titan and Cadburys
the brand had made an attempt to adapt to the changing
environment by introducing appropriate product line/pricing/branding
strategies, which have been instrumental in sustaining
their success (especially with the entry of Nestle
in chocolates and Citizen and a number of offerings
in the unorganized sector in the category of watches).
Marketing communication cannot be the only strategy
There have been a number of brands (some of them
being pioneers in the respective category), which
have not been able to sustain their success or the
stranglehold they may have had over the market in
the yesteryears. There may be complexities, which
go beyond marketing mix elements but from the viewpoint
of marketing, these elements have not been timed
to capture the changes in the post-liberalization
era. Maruti, Moov, Modi Xerox, TVS mopeds, Park
Avenue, Reynolds, Compaq, Pepsodent, Liberty, Hero
Honda and Nirma (in the respective category) are
brands which entered the Indian context much later
after pioneering brands which dominated the pre-liberalized
era. Most of these `follower brands still
continue to make rapid strides in the market by
closely monitoring consumer behaviour, trends and
competitive strategies. It is clear that the equity
built up by brands would have to be sustained through
a continuous process of marketing planning.
Send feedback to smeditor@indiatimes.com
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