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August 26, 2013

Samoa Airlines - the first Airline in the world to sell the flight tickets by the kilo!

 Samoa Airlines is the first Airline in the world to sell the flight tickets by the kilo!

According to the Samoa Airlines web site this how it works…

The customer has to give Samoa his weight… within a kilo or two would be fine, then tell Samoa how much baggage he wants to take, the customers can take as many bags as he likes but has to give Samoa the intended total of his baggage in kilos (a kilo is 2.2 pounds)

 The Samoa system will add all of this together and charge by the kilo against the sector fare and that will be the customer’s total airfare. On payment the customer will have a page to download and bring with him when he checks in.

If the customers are traveling as a group and paying as one then follow the same process for each member and again the system will add all the weights and calculate the total cost based on the kilo rate for the sector. 

How does this help the customer: By knowing the weights Samoa can make some arrangements for the best seat for the customer for ease of travel and get customer more leg room and a more spacious seating.  Samoa will weigh everything.

Logic of paying by weight: An Aircraft can only provide a certain amount of weight on each and every sector for Samoa to sell, so Samoa’s commodity is weight!

Samoa gears its price per kilo by working it to pay for the sector and its objective is to carry the full payload – and give everyone equal comfort and to maximize its efficiency so it can offer lower rates.  
So the more Samoa know about actual weight the more efficient it can be at reaching the target then thus bringing its cost per kilo down and the benefit can be passed to the customer. The Benefit is the best price Samoa can deliver for anyone needing to send weight (either cargo or passengers) on any of its sectors.  

Samoa know that weight in advance so it can place the customer or aleast it can try to get the customer space and a seat which is comfortable and Samoa can do that by removing seats, increasing pitch between rows, and leaving areas unoccupied – and if the customer can nominate a companion Samoa know their weight and it can try to give the customer the combination they deserve… and for the larger and heavier customers Samoa will try to give ample space. 

Benefits for families: no more paying for seats for the kids at adult seat fare prices or half adult seat fare prices.  Total up their individual weights and the children get their seats at the same per kilo rate as everyone else on the aircraft pays.  

About cargo or unaccompanied baggage: With Samoa the customer can book the cargo onto any particular flight. Cargo rates are the same as passenger rates because a kilo…is a…kilo.. The only addition to cargo fees is if an item is in need of special handling then an appropriate fee is added. 

Samoa wants to reinvent ways to make air travel a new experience. 

August 25, 2013

Cadbury - Positioning strategy

Cadbury India Ltd. is a part of Mondelēz International. Cadbury India operates in five categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo

Below is a video about Cadbury history.
In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it today has six company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.

In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the leader. It recently entered the biscuits category with the launch of the Worlds No 1 biscuit brand Oreo.

Cadbury chocolates the ultimate seductress in the form of chocolate has been a favorite with the Indians. The brand repositioning that Cadbury has tried have been very interesting and worth a study.

CDM is for the kid in you: In the early days, the CDM (Cadbury Dairy Milk) brand had a huge fan following among kids. In order to build stronger appeal among older age groups, the brand re-positioned itself through the ‘Real Taste of Life’ campaign in 1994. The campaign positioned Cadbury Dairy Milk as the chocolate that awakened the little child in every grown up.

CDM is for all occasions: With the launch of the Rs. 5 pack in 1998, CDM became more affordable and hence more accessible for the masses. The ensuing positioning of ‘Khaane Waalon ko khaane ka Bahana Chhayie’ made consumption into a joyful, social occasion.

CDM is a substitute for Indian sweets: In 2004, the `Kuch Meetha Ho Jaaye’ campaign was launched, seeking to increase CDM consumption by making it synonymous with traditional sweets (Mithai).

CDM as a dessert: With the campaign ‘Khaane Ke Baad Meethe Mein Kuch Meetha Ho Jaaye’, Cadbury’s aim was to introduce the thought of having a CDM as a post dinner meetha (dessert).

In the year 2010, the `Shubh Aarambh’ campaign was launched, drawing lines from the traditional Indian custom of having something sweet before embarking on something new. With `Shubh Aarambh’, Cadbury took the Dairy Milk journey a step further into the hearts of its million lovers.

Cadbury GEMs the kid in you: The 2011 campaign “Raho Umarless” celebrates the kid in all of us. The ad talks about two friends unabashedly exchanging the gifts that they get when they buy a Cadbury GEMS pack..

Cadbury Éclairs has been present in India since 1971. The credit for making éclairs, goes to an English confectionary firm which devised this delicious formula in the 1960s. This tasty wonder with indulgent chocolate wrapped in soft, chewy caramel came to Cadbury in 1971, when Cadbury took over this confectionary firm. In 1994 the brand took on the purple and gold packaging which has been its trademark since then.

As on yesterday Cadbury has innovated a new repositioning strategy again. They have changed Cadbury Eclairs’s name to Cadbury Choclairs. The think tank of Cadbury seem to believe that their USP are the words Cadbury and Chocolate and they don’t want the brand dilution. So the reinforcement of the word Choclairs along with the word Cadbury. But one small doubt. The category is called a Éclair. Is it possible that Cadbury is opening a wee bit of the door for the competition to jump in?