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.