Amul 'Tru Seltzer’ – A Mixed bag

Dairy, Fruity, Fizzy – Can we think of such a combination. That too in India? This question can haunt everyone at least for a moment. But in this era of design thinking, weird ideas are very much acceptable. Nevertheless, the dairy giant Amul was not suspicious of this fusion idea. The result is, a new product is born which is dairy, fruity, and fizzy. Amul ‘Tru Seltzer’ launched during the covid era is a bold innovation from the company. The extension, I feel is a gamble by Amul to cement their berth in the carbonated drinks segment.

Amul Tru Seltzer' is India’s first carbonated dairy drink made up of milk solids, fruit juice, and fizz. The brand is available in two flavors –  lemon and orange at Rs 15 for a 200 ml PET bottle. As per Amul the brand is a healthier carbonated drink with less sugar content and zero caffeine. Instead, it promises the taste of a good cola, but with real fruit juice, the goodness of milk solids, and reduced amounts of sugar. With Amul’s legacy, distribution network, and advertising campaigns, achieving brand salience will be a cakewalk. But can the brand climb further up? If so, to me new history is made. Moreover, as we all know, Seltzer as a concoction holds a legacy of a few centuries but will it fit with the Indian taste palate?

Amul is synonymous with dairy in India. Over the years they have developed a perception as the most trusted dairy brand in the country. The extension to fruit juices itself was a wager. I strongly believe Amul and Tru Seltzer is a brand and category misfit. Will this brand qualify to be in the category of carbonated beverage? How can a carbonated beverage be healthier? My strong contention is that Amul must have tried to create a category by itself.

My second contention is about scaling up the brand. Amul wants the brand to appeal to the masses(in fact the pricing is perfect) but with a confused positioning, it will only get limited to a niche.  Appealing to youth also may be difficult, already we have lessons from brand Paperboat in front of us.

Given the successful history of Amul, all my concerns may go wrong. Let’s wait and see.

For sure, one advantage is that one or two failure extensions can never harm the strong, sincere, and exciting mother brand AMUL.

Fyre Energy Drink – Can it be a Firebrand?

Who buys your brand? What does it mean to your consumer? These are some regular queries raised by brand experts even in casual discussions. Brand success/failures happened or yet to happen can be very well ascribed to the lucidity of the above questions. The Indian consumer today has evolved,  reflecting a radical shift in their preferences. Consequently, several brands were lucky to intrude into the consumer’s mental landscape. One such category that gained traction in the country is the energy drink category. Fyre Energy Drink is the new enthusiastic and innovative addition to the category.

Energy drink traditionally is an under- noticed category in India. Consumer awareness is abysmally low compared to other beverages. Even though, market research reports forecast a CAGR of 9.22% for 2020 – 2025, market penetration is relatively a tough task. Moreover, unlike other beverages, the energy drink category has a dominant player who enjoys a healthy market share of above 80%. Hence, it compels a  new brand to be innovative in its approach to the market. In this context, Fyre was prodigious in its approach.

Fyre differentiated with the product form. They are the industry first to launch a ‘cut-pour-stir’ format(Read Powdered) of energy drink that comes in sachets. Sounds good and rather innovative. Moreover, the portfolio includes various flavours such as classic, orange, and lemon and Fyre energy shots that are available through e-commerce platforms.  Fyre available in different price points such as  Rs  5, 15, 30, and 60 ensures affordability and confirms price differentiation. On view through a branding lens, I am worried whether Fyre is following the predecessors Urza, Tzinga, SoBe, Sting, etc.

Theoretically, companies keep product characteristics or consumer goals as the ‘Frame of Reference’(Point of Parity) to claim membership. However, if a dominant competitor who exemplifies consumer goals exists they become an obvious frame of reference. Fyre, as a powdered energy drink, I feel does not match with category prerogative. The idea of Sachet packs further distance the brand from the category. Then how can you a member of the category? One must remember the fate of ‘Instant Horlicks’ which failed in the market miserably.

The three propositions of the company value for money, sugar-free, and ease of storage/carrying are considered as Point – of – Difference. How energy drinks are sold in India? Functional or Emotional. If functional is the answer, then Urza must not fail. I strongly believe that for Indian market energy drink is predominantly an aspirational lifestyle product. Consumer buys it as a lifestyle statement. Hence, emotions surpass functions. Without belittling the efforts behind developing a disruptive brand, I should say that Fyre is a good brand in the wrong basket. However, the consumer mind is a black box. They decide the fate of any brand I wish Fyre will have their dominant days pretty soon.

Post Covid – How a Consumer Behave?

The world is passing through the toughest of times. A Small virus has made the world standstill. All media, mainly social media, is flooded with scary images from all parts of the globe. We are staring at an apparent economic downturn. A vast majority of the population, especially in developed nations, face a threat to their physiological needs(Maslow’s Need Hierarchy Theory) for the first time in their life, which has triggered the ominous panic buying. Lock down, social distancing, etc. have become buzz words of today. We are all expecting a New Normal post-Covid. What will happen to consumer behaviour? How will the brands respond?

I feel the New Normal will stay forever, and the change seems to be irrevocable. However, brands have started responding to the change. Opportunity lost for someone is gain for others. I wonder the speed at which brands have tweaked their product portfolio by including sanitizers and hand-washes in the kitty. The emergence of Zoom and other platforms have portrayed a different dimension of consumer adoption. Post-Lockdown, face masks, sanitizers, etc. may act as crowd pullers for small/ Kirana shops(a shift from cigarettes, recharge coupons, etc.). We are not sure when the government will lift the lockdown. But for sure, there will be a surge in usage of online platforms like Amazon, Flipkart, Swiggy, etc. that helps in social distancing. The automobile sector may fare well as consumers avoid public transport and rely on their vehicles. However, the most exciting and crucial fact is the shift in consumer behaviour as such.

I predict three types of consumer behaviour.

Liberated Buyer:- You can see liberated buyers immediately after lifting of lockdown. The consumer enjoys freedom after a long time, and he now focuses on individual habits. Besides, alcohol or tobacco, the consumer was missing a lot of his pet habits. He may be missing a tea from his favourite shop or may be missing a Pizza, Burger, etc. Moreover, he may have postponed purchase some necessities like inner garments, natural beauty products, visit a beautician, etc. which had frustrated them. In some families, this lockdown may be a revelation to buy/change some kitchen utensils, or some consumer durables. This buying can lead to a sudden surge in economic activity. But availability may be an issue for at least some products. This behaviour is shared among all consumers, even though wallet-size decides the extent of purchase.

Responsible Buyer:-  The consumer accepts reality and become more accountable. There exist a self-imposed austerity. Health and hygiene get a more significant share of wallet. Since lockdown can happen anytime, there will be a demand for large-volume packs and, in some cases, sachet packs. Sanitizers, hand washes, immunity supplements, health drinks, etc. are considered inevitable by these buyers. The consumer always makes a planned purchase and stay away from impulses(read impulsive buying). They also strongly reappraise their priorities.

Normal Buyer:- The Buyer shows a very regular buying pattern. They tend to buy everything, not restricting themselves to necessities. They are less concerned about their wallet and spend more time window shopping. They are least bothered about the pandemic or any other issues. Moreover, for them, things are the same as before. I presume this group of consumers is tiny in size.

These are just my anecdotal observation. For sure, consumer behaviour will change, and the future will take its due course.

Alto K10 – Bid Adieu. But Why?

The Indian car industry always considers Maruti as the HUL of the car industry. They are well known for their flurry of launches. I firmly believe that Maruti's top position in the Indian market is attributed to these new launches. Are all launches successful? The answer is a big No. Maruti's story is entwined with prosperous as well as failure brands. However, the customer is happy and proud to own a Maruti.

The hot news of the month is about a brand that had a meteoric rise and was in the kitty of Maruti for a decade, Alto K10. Launched in the year 2010, Alto K10 was a modified version of their ever best-seller brand Alto. In Marketing terms, the launch was a line filling. There existed a gap in the market between the entry-level segment Alto and a slightly high-end Wagon R. Alto K10 was Maruti's answer for the need. The brand was doing good, or I should say, still doing good. But no major facelift has been done to the brand since 2014 as per the company sources. But why?

K10's exit was not an ignominious one. For me, K10 was a cash cow for Maruti. To be more specific it has reached the maturity stage of the product life cycle and without market/product modifications survival is tough. Moreover, the success of cross over SUV – like models such as Kwid accelerated the push outside. But I don't think there is a desperate need to discontinue the brand. The factor that, to me, has contributed to the exit of K10 is brand cannibalization. After the initial success of S Presso, K10 started losing its customers to S Presso, which is a classic case of cannibalization. The threat of cannibalization is always there if your portfolio size is large. Companies usually manage it by withdrawing one brand. In this case, Maruti wants to protect the younger one with a more meaningful life. The fate of S Presso is again uncertain. But investing in a question mark is more critical than protecting a cash cow. (Cash cow, Question Marks are two quadrants of the BCG Matrix).

 Anyway, it is time for us to bid farewell to an exciting brand that people remember forever.

New Santro – Facing an Identity Crisis?

The Indian Automobile sector today, like other sectors, is haunted by the ‘tyranny of choice’(Phrase Courtesy: Jack Trout). One wrong step can result in irreversible damage both for image and market share. The bygone years have witnessed an enormous leap in the number of car brands in the country. The level of competition in the market intensified. Some brands got vanished in no time while new ones occupied the space. New designs and technology replaced the obsolete. However, Maruti and Hyundai still enjoy the top two positions in the market with Maruti on top.

In such a scenario, if a brand survives and survives for more than two decades, it is often laudable. Maruti’s Wagon R and Hyundai’s Santro, who are still in the race, have a rivalry for years. Wagon R has crossed three generations with seven models during the past 21 years, and the journey is on. Santro, the first mover in the segment, has also crossed three generations but took a break for 4 years as the model was withdrawn in the year 2014 and reintroduced in 2018. Breaks are always good for a fresh start, but was this good for the brand? I doubt whether Hyundai made a mistake while retaining the brand identity of New Santro?

A brand vouches for modification when it reaches the maturity stage of the life cycle. Both Wagon R and Santro on reaching maturity stage also forced a lot of modifications. At this juncture, Hyundai decided to take a break and relaunch while Wagon R came with modifications. The brand identity for both Wagon R and Santro is that of a ‘Tall Boy.’ The Point of Parity is this, while Point of Difference is the performance and mileage. Maruti was very particular in maintaining the identity of Wagon R, all through the product modifications. If we check into the different models, one can quickly identify with the ‘Tall Boy’ image. The Big New Wagon R launched in 2019 seems to be accepted well by consumers, and you can spot more numbers on the road.

The New Santro was launched with much fanfare. The brand was successful in obtaining initial orders at ease. But to me, the brand failed to continue the show. Here comes the importance of Brand Identity. The new Santro to me has compromised on the ‘Tall Boy’ posture, and the Deja Vu(of old Santro) was missing.

Moreover, the brand resembled the other brands such as i10, Grand i10, which creates confusion among the consumers. Is Santro now facing an identity crisis?. It is not a ‘Tall Boy,’ not a replacement for i10, Grand i10, etc. So what is Santro?

Going by the track record of Hyundai, one can assume that Santro will find its space in the market, but my gut feeling is that if they have maintained the “Tall Boy’ posture, it would have been a cakewalk for them.

POP/POD and Positioning Conundrum – Sensodyne

Positioning is always tricky. Brands quite often get confused about what to position, how to position, and so forth. However, the success of brands depends upon how you place the brand in the minds of the consumers. In a crowded FMCG sector, the positioning conundrum is highly visible. The toothpaste industry gives us a classic case of POP/POD, Positioning conundrum.

Colgate Palmolive and HUL dominate the toothpaste industry in India for years. Colgate, with a market share of 58%, enjoys being the leader in the category with Pepsodent, Close – Up, Patanjali, Dabur, Sensodyne, etc. follow the race. On observing the industry, I wonder why Competitive Positioning is essential? Unlike other industries, the brand loyalty of toothpaste is very high. One can find families using Colgate for generations. Then why brands always run behind competitors?

Sensodyne, a GSK global No.1 brand entered the Indian market in the year 2011. The launch was not smooth as the core benefit of the brand i.e., reducing teeth sensitivity, was not accepted by people. The more significant insight is that consumer awareness of such a condition is inferior. So it was imperative for the brand to first turn attention to Point – of – Parity(POP). The taste and foaming(significant drivers of consumer buying decisions of toothpaste) were adjusted to suit the Indian market. The Point – of – Difference(POD) was reducing tooth Sensitivity(Benefit Positioning). When the whole industry was aggressive and widely used red ocean strategy, Sensodyne marched in a different route.

Herding behaviour is present in all sectors. Cause-related advertisement is a trend today. All companies now bet for a cause. Why this herding behaviour? In the toothpaste sector, Smile is the new positioning normal. Competitive Positioning is not new, but I consider it a waste of money. Why brands like Colgate, which enjoy high brand loyalty goes for herding? This always amuses me. A challenger brand using competitive positioning is understandable, but can’t they travel in a different route i.e., rely on POD.

The last company in the sector to show herding is Sensodyne. They have given away their sensitivity proposition from the latest ads. They also now rely on competitive positioning. But Why? I think there is a shift of focus from being a specialist brand to a mass-market brand. Being a mass brand can, of course, attract more new users and increase usage. I doubt the success of this positioning as we know Sensodyne only as an expert. Now a change in approach makes the brand susceptible. When Xerox tried to change the positioning from a photo copier to a ultimate communications provider, the brand failed miserably. The brand IGNIS of Maruti launched through Nexa Outlets confused people. This is the classic positioning conundrum I was discussing here. Will this approach succeed? Wait for time to say something.

Neeman’s Shoes – Comfort Redefined

It’s been a long time since I have written something here. Thanks to the lock down. Unexpected lock down helped us understand life in a different way. But marketers are always very hard to guess. Their expertise in identifying markets and opportunities is beyond our imagination and often laudable. Neeman’s is a new entrant in the market beyond your imagination. Can a shoe be made of wool? I have never thought of it till the recent past. But the answer is Neeman’s Shoes.

Neeman’s is a Hyderabad based start-up started selling shoes since 2017. What makes Neeman’s different from the competition is the product itself. Neeman’s are shoes made of Australian Merino wool. The primary differentiator to me is the fabric, and secondary is comfort. Neeman’s has three variants viz. Jogger’s, Sneakers, and Loafers. Given the value, I feel the pricing is reasonable. Neeman’s shoes are priced at approx. INR 7000 per pair. Neema’s shoes, as of now, are available only online.

The target market segmentation is based on demographics and lifestyle. Neeman’s is available for both men and women and focuses more on the environmentally-conscious buyer. The tipping point to me is the design as it suits all activity i.e., it serves as running shoes, a pair of casual shoes, lounging shoes, etc. In an already crowded industry, how you position yourself is very crucial. In my view, Neeman’s had succeeded in finding a differing proposition. Neeman’s is positioning is on comfort as well as one – size –fits – all(Read one shoe for all activities and all-weather). Hence, being considered as a multipurpose shoe is a clear differentiator. The lightweight and breathable material keep the wearer cool during hot weather and warm during the Winter season.

Usually, brand pundits say that if you don’t have a unique product try a unique way of communication. However, Neeman’s has tried both. Their product, as I said earlier, is unique, and by having exceptional communication, the brand ensured they stand apart. The digital ad for the brand features stand -up comedian Vir Das, who talks about shoes and the brand in a very humorous and attractive way,unlike usual run-of-the-mill shoe ads.

In a nutshell, a potential winner is born. Early adopters well accepted the introduction. But my worry is on the journey ahead. Can the company scale up the brand or will remain as a niche. To scale up, you have to be aggressive. But the brand has not shown any aggression to date. Since the pricing is a tad higher, democratizing the brand will be different. Only time can decide fate.

Can Water be Smart? - Coca Cola Smartwater

Ever since I started observing the packaged water industry, I was pretty amused by the whole idea of packaged drinking water. What is in the water? Who cares about a brand? What is so special in bottled water? It quenches your thirst as usual. Are we concerned about pH factor or the presence of minerals? How can we find a difference between brands? Is it worth spending time for choice? I presume even the people in the industry also may agree with me for instance. But how long companies can survive without differentiation? Apparently, a shift is visible now. A few attempts are done by the giants in the industry like Bisleri, Pepsi Co’s Aquafina, TBL, and Coke.

The packaged drinking water market is an Rs. 14,000 crore market with a CAGR of 20%. A vast majority of the market (approx. 65%) is in the unorganized cottage industry that too comes in around 3000 labels. Bisleri is the pioneer in the industry and the key player has democratized bottled water when potable drinking water was the need of the hour. Interestingly, over the years all the players in the market are operating at the same price point which makes differentiation hardly possible.

However, here comes time for water to be more than water. Coke with their launch of new product in the category Coke SmartWater is trying to differentiate from the clutter. A per Coca Cola, Smartwater is vapor – distilled and re-mineralized with electrolytes- potassium, calcium, and magnesium which gives water a distinctive pure and crisp taste. An innovation inspired by nature. The product is exciting. It perfectly fits with the portfolio. But the challenge is in gaining traction in the high price-sensitive Indian market. Moreover, Bisleri and TBL are already in this segment with Vedica and Himalayan respectively.

When we talk about STP, it is obvious that the product is premium. It largely appeals to Urban Tier 1 consumers. While the USP of competitors is ‘naturally sourced water’, SmartWater uniqueness is in the manufacturing process 'the way clouds are made'. In a market where consumer consciousness on quality is still low, will the consumer appreciate this USP? Only time has to say. However, I strongly believe that the brand name is catchy. The name SmartWater can induce curiosity among the people and can attract the tech-savvy youth of today.

To me what makes the brand unique is the brand communication. They have become the industry first to rope in celebrity endorsers for bottled water. They have used Radhika Apte and Rana Daggubati in their black and white (read classic) ad films for SmartWater. Through the campaign, coke has tried to make it is a lifestyle choice, a frame of mind and an attitude of seeking the best. The ads I think can definitely induce trial in an aspirational buyer.

The fate of the brand is certain. It can’t bring numbers at least for a few years. You can’t expect also. But having such a product in the portfolio can certainly enhance the brand image.

UNIBIC goes Paan India

A few years ago, if you ask anybody in India about a cookie, they will better point their fingers towards Britannia Good Day. Yes. Good Day was a synonym for cookie in India. But there is a significant shift happening in the industry. The consumer awareness and affinity to cookies have increased.  This has made the cookie industry exciting for the biscuit marketers across the country. In the approximately Rs 300 billion biscuit industry the cookie segment accounts for around 30 percent share at Rs 90 billion. Biscuit giants like Parle, Britannia, ITC and a host of players are targeting this market very aggressively. The market is dominated by Britannia’s Good Day and Parle’s Hide & Seek.  A relatively late entrant UNIBIC is also there in the race for the pie in the market.

UNIBIC which came to India had a rough patch for around 10 years. It suffered lackluster response from the customers as well as internal issues which made the company lag behind competitors. Although the brand is home to a wide array of products like biscuit, cookie and snack bar, I strongly believe that brand equity is still at stake.

The product portfolio of UNIBIC is varied. A glance into their website exposes you to around 30 different cookie and snack bar variants spanning across 8 different categories. It stands out of the competition in terms of product design (design resembles a handmade cookie) and innovation. They a few years back launched the Chywanprash variant which was later pruned out. Their appetite in understanding consumer palate is unmatched as now they have launched a Meetha Paan variant of the snack bar. The fate of the variant is yet to be decided but the innovative spirit is commendable. In order to tap the rural market, the company also have Rs.10 packs in the kitty which is on par with the competition. Have quality products but yet to grab a lion’s share of the market? Quite interesting? I feel that barring product they failed in building the brand. The glad news is that they are now the market leader (as claimed by the company) in the snack bar category.

UNIBIC follows a brand building strategy which is I think is long term in nature. On looking at distribution they have now a presence in around 3, 00,000 outlets across the country. Is it enough? Their institutional selling is strong as they have partnered with Retail Chains, IT Firms, banks, Corporates, Government Organizations, Caterers, Hotels, Hospitals, and Educational Institutions, etc. The major institutional clients include Indian Railways and a lot more. The company is also expanding its business to North India and planning for a new facility in North India ensuring a pan – India presence. But I doubt the positioning of the brand. On brand equity terms do the brand enjoy high brand awareness? The product placement in the retail chains, bus waiting shed branding as well as bill boards are truly attractive. Can they contribute more than salience? UNIBIC is still sold mostly in bundled packages which can induce consumer trial but the product imagery may get affected over a period of time. The Segmentation of UNIBIC goes like this. Cookies are primarily for kids, the digestive range of biscuits are for the middle-aged segment and the sugar-free cookies are for old people. The snack bar is for pan – Indian consumers.

On marketing communication the brand has adopted myriad ways to connect with the customers. The brand has connected with the customers over outdoor media as well as TV and digital. To promote Unibic's cookies and snack bars, the company teamed up with influencers across Instagram and also partnered with Shilpa Shetty Kundra's YouTube channel in a bid to promote their digestive cookie offering. Product activation was also done during events like Puri Jagannatha Yathra. All these have helped in enhancing secondary association. In 2016 brand started using UBU mascot in their campaigns. It has gained appreciation from all corners of the industry. With UBU the brand tries to be lively and friendly personality. The UBU and other campaigns across social media platforms like Facebook and Instagram earned a lot of followers. But in gaining an emotional connection I strongly believe the brand miss a celebrity endorser. In a highly competitive market, it is very important for a brand to have a strong secondary association which a celebrity can provide. A brand is more than a product. So a strong emotional connect can enhance brand equity. I also believe that UNIBIC can follow a cause-related marketing campaign which can also create a strong association.

Anyway, UNIBIC with the high-quality product portfolio they have will surely become a challenger in the market in the near future.

Honeywell Indoor Air Purifier – Can it stay healthy?

What is in the air? The timing is perfect while I ask this question as Delhi is choking. Pollution in India is snowballing at a faster pace. Even though, Delhi is worse other cities also show poor air quality. Several agencies like Pollution Control Board are concerned on the poor outdoor air quality over the years. People are happy staying indoors to avoid exposure to pollution. But are indoors safe? Our incense sticks? Do they pollute our home? Our cooking? Is it harmful? Our indoor upholstery? Who knows?

But this has been taken as an opportunity by a lot of companies. Already we have international companies like Dyson, Philips, Honeywell, Xiaomi, HUL’s Pureit along local players like Kent, and Bluestar competing for a space in the market. According to a marketing research firm Euromonitor, the sales of air purifiers are roughly Rs. 116 crores in 2017 and expected to grow 14.5% by 2022. Considering the fact that India is home to half of the 20 most polluted cities in the world, I think the figures shown are abysmal.

In marketing terms, I presume this is a classic case of non-existent demand. People are unaware of the product or uninterested in the product. Lack of awareness of indoor pollution is a huge challenge for companies. On browsing through various commercials, I found that the companies have meticulously tried to make their commercials more informative. But then why the market chokes?

The answer for this I feel is that people still perceive air purifier as an aspirational product. There is a confusion between mass and premium positioning. Since there is a presence of inferior players in the market, marketers are skeptical about where to position air purifiers. Another difficulty is that utility cannot be measured normally and so there is no differentiation as such in the product. The emotional appeal i.e. family based appeal has become pretty common and so people don’t find it appealing also.

Honeywell air purifiers, in my opinion, tried to stay unique from the competition. They were successful in understanding the consumer behaviour. For a product like this, an endorsing agency can do wonders. They marketed with certificate of recommendation by the Indian Medical Academy for Preventive Health (IMAPH) which adds to the credibility of the product. Talking about segmentation, it serves both the middle class and elite class of the society. The price range as per their website is between INR 12,290 to 30,990. The pricing is at par with the competition. What distinguishes Honeywell from the competition is the product range they have. No other competitor as of now can match with the variety in the product portfolio.

In communicating with the customer, Honeywell is very cautious in its approach. They portrayed Kareena Kapoor as the brand endorser. The initial advertisements were informative in nature. But the latest commercial took a different route i.e. healthy sleep vs sound sleep,. To me this is a rational thought as poor air always gives you bad sleep. Honeywell stand out from the competition with this healthy note.

I know that these are early days to talk about an industry. My strong contention is that, like air conditioners, air purifiers will also become a necessity in several parts of the country. This will attract more companies into the fray. Can Honeywell be innovative and stay healthy.